PENNANTPARK INVESTMENT CORP (PNNT) Stock Fundamental Analysis
NYSE:PNNT - New York Stock Exchange, Inc. - US7080621045 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to PNNT. PNNT was compared to 231 industry peers in the Capital Markets industry. PNNT has an average financial health and profitability rating. PNNT has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year PNNT was profitable.
In the past year PNNT had a positive cash flow from operations.
In multiple years PNNT reported negative net income over the last 5 years.
In multiple years PNNT reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 3.79%, PNNT perfoms like the industry average, outperforming 59.74% of the companies in the same industry.
PNNT has a Return On Equity of 9.76%. This is comparable to the rest of the industry: PNNT outperforms 56.28% of its industry peers.
The Return On Invested Capital of PNNT (3.68%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PNNT is below the industry average of 7.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 9.76% | ||
| ROIC | 3.68% |
ROA(3y)-0.43%
ROA(5y)2.03%
ROE(3y)-0.35%
ROE(5y)4.23%
ROIC(3y)3.87%
ROIC(5y)3.39%
1.3 Margins
Looking at the Profit Margin, with a value of 34.44%, PNNT is in the better half of the industry, outperforming 77.49% of the companies in the same industry.
In the last couple of years the Profit Margin of PNNT has grown nicely.
Looking at the Operating Margin, with a value of 41.62%, PNNT is in the better half of the industry, outperforming 73.59% of the companies in the same industry.
PNNT's Operating Margin has declined in the last couple of years.
PNNT's Gross Margin of 46.37% is in line compared to the rest of the industry. PNNT outperforms 51.08% of its industry peers.
In the last couple of years the Gross Margin of PNNT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.62% | ||
| PM (TTM) | 34.44% | ||
| GM | 46.37% |
OM growth 3Y-1.4%
OM growth 5Y-1.58%
PM growth 3Y-45%
PM growth 5Y19.08%
GM growth 3Y-1.58%
GM growth 5Y-1.3%
2. Health
2.1 Basic Checks
The number of shares outstanding for PNNT remains at a similar level compared to 1 year ago.
PNNT has less shares outstanding than it did 5 years ago.
PNNT has a worse debt/assets ratio than last year.
2.2 Solvency
PNNT has an Altman-Z score of 0.34. This is a bad value and indicates that PNNT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.34, PNNT is not doing good in the industry: 68.83% of the companies in the same industry are doing better.
The Debt to FCF ratio of PNNT is 5.36, which is a neutral value as it means it would take PNNT, 5.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PNNT (5.36) is better than 62.77% of its industry peers.
PNNT has a Debt/Equity ratio of 1.53. This is a high value indicating a heavy dependency on external financing.
PNNT has a Debt to Equity ratio of 1.53. This is in the lower half of the industry: PNNT underperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 5.36 | ||
| Altman-Z | 0.34 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
PNNT has a Current Ratio of 2.09. This indicates that PNNT is financially healthy and has no problem in meeting its short term obligations.
PNNT has a Current ratio of 2.09. This is in the better half of the industry: PNNT outperforms 70.56% of its industry peers.
PNNT has a Quick Ratio of 2.09. This indicates that PNNT is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of PNNT (2.09) is better than 71.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 2.09 |
3. Growth
3.1 Past
The earnings per share for PNNT have decreased strongly by -19.05% in the last year.
PNNT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.15% yearly.
PNNT shows a decrease in Revenue. In the last year, the revenue decreased by -7.36%.
PNNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.11% yearly.
EPS 1Y (TTM)-19.05%
EPS 3Y19.87%
EPS 5Y6.15%
EPS Q2Q%-18.18%
Revenue 1Y (TTM)-7.36%
Revenue growth 3Y20.79%
Revenue growth 5Y5.11%
Sales Q2Q%-14.78%
3.2 Future
PNNT is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.76% yearly.
The Revenue is expected to decrease by -3.61% on average over the next years.
EPS Next Y-16.02%
EPS Next 2Y-8.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.42%
Revenue Next 2Y-3.61%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PNNT is valuated cheaply with a Price/Earnings ratio of 7.84.
Based on the Price/Earnings ratio, PNNT is valued cheaper than 85.28% of the companies in the same industry.
PNNT is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.60, which indicates a very decent valuation of PNNT.
PNNT's Price/Forward Earnings ratio is rather cheap when compared to the industry. PNNT is cheaper than 80.09% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PNNT to the average of the S&P500 Index (22.15), we can say PNNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.84 | ||
| Fwd PE | 8.6 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PNNT is valued cheaper than 87.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.12 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as PNNT's earnings are expected to decrease with -8.76% in the coming years.
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y-8.76%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.90%, PNNT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.17, PNNT pays a better dividend. On top of this PNNT pays more dividend than 83.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, PNNT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.9% |
5.2 History
On average, the dividend of PNNT grows each year by 7.09%, which is quite nice.
PNNT has been paying a dividend for at least 10 years, so it has a reliable track record.
PNNT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.09%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
127.42% of the earnings are spent on dividend by PNNT. This is not a sustainable payout ratio.
PNNT's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP127.42%
EPS Next 2Y-8.76%
EPS Next 3YN/A
6.66
+0.03 (+0.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners24.26%
Inst Owner Change-3.59%
Ins Owners0.45%
Ins Owner Change0.67%
Market Cap434.90M
Analysts71.43
Price Target7.01 (5.26%)
Short Float %2.24%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.9% |
Yearly Dividend1.01
Dividend Growth(5Y)7.09%
DP127.42%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.57%
Min EPS beat(2)-7.88%
Max EPS beat(2)-7.26%
EPS beat(4)1
Avg EPS beat(4)-2.36%
Min EPS beat(4)-7.88%
Max EPS beat(4)7.6%
EPS beat(8)4
Avg EPS beat(8)0.97%
EPS beat(12)5
Avg EPS beat(12)-0.45%
EPS beat(16)8
Avg EPS beat(16)2.8%
Revenue beat(2)0
Avg Revenue beat(2)-7.07%
Min Revenue beat(2)-9.29%
Max Revenue beat(2)-4.84%
Revenue beat(4)0
Avg Revenue beat(4)-12.06%
Min Revenue beat(4)-33.13%
Max Revenue beat(4)-1%
Revenue beat(8)2
Avg Revenue beat(8)-5.84%
Revenue beat(12)4
Avg Revenue beat(12)-2.99%
Revenue beat(16)7
Avg Revenue beat(16)-0.71%
PT rev (1m)-1.79%
PT rev (3m)-1.79%
EPS NQ rev (1m)-7.91%
EPS NQ rev (3m)-7.91%
EPS NY rev (1m)-2.33%
EPS NY rev (3m)-2.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.84 | ||
| Fwd PE | 8.6 | ||
| P/S | 3.14 | ||
| P/FCF | 3.12 | ||
| P/OCF | 3.12 | ||
| P/B | 0.89 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.85
EY12.76%
EPS(NY)0.77
Fwd EY11.62%
FCF(TTM)2.14
FCFY32.09%
OCF(TTM)2.14
OCFY32.09%
SpS2.12
BVpS7.47
TBVpS7.47
PEG (NY)N/A
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.79% | ||
| ROE | 9.76% | ||
| ROCE | 4.66% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.78% | ||
| ROICexgc | 3.78% | ||
| OM | 41.62% | ||
| PM (TTM) | 34.44% | ||
| GM | 46.37% | ||
| FCFM | 100.87% |
ROA(3y)-0.43%
ROA(5y)2.03%
ROE(3y)-0.35%
ROE(5y)4.23%
ROIC(3y)3.87%
ROIC(5y)3.39%
ROICexc(3y)4.02%
ROICexc(5y)3.5%
ROICexgc(3y)4.02%
ROICexgc(5y)3.5%
ROCE(3y)4.9%
ROCE(5y)4.29%
ROICexcg growth 3Y16.98%
ROICexcg growth 5Y1.66%
ROICexc growth 3Y16.98%
ROICexc growth 5Y1.66%
OM growth 3Y-1.4%
OM growth 5Y-1.58%
PM growth 3Y-45%
PM growth 5Y19.08%
GM growth 3Y-1.58%
GM growth 5Y-1.3%
F-Score3
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 5.36 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.3 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 292.9% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 2.09 | ||
| Altman-Z | 0.34 |
F-Score3
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-19.05%
EPS 3Y19.87%
EPS 5Y6.15%
EPS Q2Q%-18.18%
EPS Next Y-16.02%
EPS Next 2Y-8.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.36%
Revenue growth 3Y20.79%
Revenue growth 5Y5.11%
Sales Q2Q%-14.78%
Revenue Next Year-6.42%
Revenue Next 2Y-3.61%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-19.44%
EBIT growth 3Y19.1%
EBIT growth 5Y3.45%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y379.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y379.72%
OCF growth 3YN/A
OCF growth 5YN/A