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PENNANTPARK INVESTMENT CORP (PNNT) Stock Fundamental Analysis

NYSE:PNNT - New York Stock Exchange, Inc. - US7080621045 - Common Stock - Currency: USD

6.82  +0.03 (+0.44%)

Fundamental Rating

4

Taking everything into account, PNNT scores 4 out of 10 in our fundamental rating. PNNT was compared to 232 industry peers in the Capital Markets industry. Both the profitability and the financial health of PNNT get a neutral evaluation. Nothing too spectacular is happening here. PNNT has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

PNNT had positive earnings in the past year.
PNNT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PNNT reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: PNNT reported negative operating cash flow in multiple years.
PNNT Yearly Net Income VS EBIT VS OCF VS FCFPNNT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M

1.2 Ratios

The Return On Assets of PNNT (3.79%) is better than 62.93% of its industry peers.
PNNT has a Return On Equity (9.76%) which is in line with its industry peers.
PNNT has a Return On Invested Capital (3.68%) which is in line with its industry peers.
PNNT had an Average Return On Invested Capital over the past 3 years of 3.87%. This is below the industry average of 7.85%.
Industry RankSector 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%
PNNT Yearly ROA, ROE, ROICPNNT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

1.3 Margins

PNNT's Profit Margin of 34.44% is fine compared to the rest of the industry. PNNT outperforms 78.02% of its industry peers.
PNNT's Profit Margin has improved in the last couple of years.
The Operating Margin of PNNT (41.62%) is better than 72.84% of its industry peers.
PNNT's Operating Margin has declined in the last couple of years.
PNNT has a Gross Margin of 46.37%. This is comparable to the rest of the industry: PNNT outperforms 48.71% of its industry peers.
PNNT's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
PNNT Yearly Profit, Operating, Gross MarginsPNNT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 100 150 200

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5

2. Health

2.1 Basic Checks

PNNT has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for PNNT has been reduced compared to 5 years ago.
The debt/assets ratio for PNNT is higher compared to a year ago.
PNNT Yearly Shares OutstandingPNNT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
PNNT Yearly Total Debt VS Total AssetsPNNT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

Based on the Altman-Z score of 0.34, we must say that PNNT is in the distress zone and has some risk of bankruptcy.
PNNT has a worse Altman-Z score (0.34) than 69.83% of its industry peers.
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.
PNNT's Debt to FCF ratio of 5.36 is fine compared to the rest of the industry. PNNT outperforms 65.09% of its industry peers.
A Debt/Equity ratio of 1.53 is on the high side and indicates that PNNT has dependencies on debt financing.
PNNT's Debt to Equity ratio of 1.53 is on the low side compared to the rest of the industry. PNNT is outperformed by 73.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.53
Debt/FCF 5.36
Altman-Z 0.34
ROIC/WACCN/A
WACCN/A
PNNT Yearly LT Debt VS Equity VS FCFPNNT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 2.09 indicates that PNNT has no problem at all paying its short term obligations.
The Current ratio of PNNT (2.09) is better than 69.40% 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.
With a decent Quick ratio value of 2.09, PNNT is doing good in the industry, outperforming 69.40% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.09
Quick Ratio 2.09
PNNT Yearly Current Assets VS Current LiabilitesPNNT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

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1

3. Growth

3.1 Past

The earnings per share for PNNT have decreased strongly by -19.05% in the last year.
The Earnings Per Share has been growing slightly by 6.15% on average over the past years.
The Revenue has decreased by -7.36% in the past year.
Measured over the past years, PNNT shows a small growth in Revenue. The Revenue has been growing by 5.11% on average per year.
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 -9.31% yearly.
The Revenue is expected to decrease by -8.21% on average over the next years.
EPS Next Y-19%
EPS Next 2Y-11.55%
EPS Next 3Y-9.31%
EPS Next 5YN/A
Revenue Next Year-11.45%
Revenue Next 2Y-8.21%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
PNNT Yearly Revenue VS EstimatesPNNT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M
PNNT Yearly EPS VS EstimatesPNNT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8 1

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.02, the valuation of PNNT can be described as reasonable.
Based on the Price/Earnings ratio, PNNT is valued cheaper than 84.05% of the companies in the same industry.
PNNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.86.
The Price/Forward Earnings ratio is 9.37, which indicates a very decent valuation of PNNT.
75.43% of the companies in the same industry are more expensive than PNNT, based on the Price/Forward Earnings ratio.
PNNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.43, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.02
Fwd PE 9.37
PNNT Price Earnings VS Forward Price EarningsPNNT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, PNNT is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 3.19
EV/EBITDA N/A
PNNT Per share dataPNNT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

PNNT's earnings are expected to decrease with -9.31% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.3
EPS Next 2Y-11.55%
EPS Next 3Y-9.31%

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6

5. Dividend

5.1 Amount

PNNT has a Yearly Dividend Yield of 12.90%, which is a nice return.
Compared to an average industry Dividend Yield of 8.07, PNNT pays a better dividend. On top of this PNNT pays more dividend than 86.21% of the companies listed in the same industry.
PNNT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
Industry RankSector 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
PNNT Yearly Dividends per sharePNNT Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

PNNT pays out 127.42% of its income as dividend. 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-11.55%
EPS Next 3Y-9.31%
PNNT Yearly Income VS Free CF VS DividendPNNT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M
PNNT Dividend Payout.PNNT Dividend Payout, showing the Payout Ratio.PNNT Dividend Payout.PayoutRetained Earnings

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PENNANTPARK INVESTMENT CORP

NYSE:PNNT (6/27/2025, 11:05:19 AM)

6.82

+0.03 (+0.44%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)05-12 2025-05-12/amc
Earnings (Next)08-05 2025-08-05/amc
Inst Owners23.62%
Inst Owner Change-3.71%
Ins Owners0.45%
Ins Owner Change0.67%
Market Cap445.35M
Analysts50.77
Price Target6.95 (1.91%)
Short Float %3.16%
Short Ratio3.6
Dividend
Industry RankSector Rank
Dividend Yield 12.9%
Yearly Dividend1.01
Dividend Growth(5Y)7.09%
DP127.42%
Div Incr Years3
Div Non Decr Years3
Ex-Date06-16 2025-06-16 (0.08)
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)-0.91%
PT rev (3m)-2.68%
EPS NQ rev (1m)-1.56%
EPS NQ rev (3m)-9.35%
EPS NY rev (1m)-3.54%
EPS NY rev (3m)-5.79%
Revenue NQ rev (1m)-8.17%
Revenue NQ rev (3m)-8.17%
Revenue NY rev (1m)-5.38%
Revenue NY rev (3m)-5.38%
Valuation
Industry RankSector Rank
PE 8.02
Fwd PE 9.37
P/S 3.22
P/FCF 3.19
P/OCF 3.19
P/B 0.91
P/tB 0.91
EV/EBITDA N/A
EPS(TTM)0.85
EY12.46%
EPS(NY)0.73
Fwd EY10.67%
FCF(TTM)2.14
FCFY31.34%
OCF(TTM)2.14
OCFY31.34%
SpS2.12
BVpS7.47
TBVpS7.47
PEG (NY)N/A
PEG (5Y)1.3
Profitability
Industry RankSector 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 RankSector 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-19%
EPS Next 2Y-11.55%
EPS Next 3Y-9.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.36%
Revenue growth 3Y20.79%
Revenue growth 5Y5.11%
Sales Q2Q%-14.78%
Revenue Next Year-11.45%
Revenue Next 2Y-8.21%
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