PROSPECT CAPITAL CORP (PSEC) Stock Fundamental Analysis
NASDAQ:PSEC - US74348T1025 - Common Stock
2.9 USD
0 (0%)
2.9 USD
0 (0%)
PSEC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 238 industry peers in the Capital Markets industry. While PSEC is still in line with the averages on profitability rating, there are concerns on its financial health. PSEC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PSEC was profitable.
PSEC had a positive operating cash flow in the past year.
In multiple years PSEC reported negative net income over the last 5 years.
In multiple years PSEC reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of PSEC (-5.38%) is worse than 81.51% of its industry peers.
With a Return On Equity value of -7.72%, PSEC is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
PSEC has a Return On Invested Capital (4.15%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PSEC is below the industry average of 7.60%.
The 3 year average ROIC (4.06%) for PSEC is below the current ROIC(4.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.38% | ||
| ROE | -7.72% | ||
| ROIC | 4.15% |
ROA(3y)2.32%
ROA(5y)4.38%
ROE(3y)3.67%
ROE(5y)6.97%
ROIC(3y)4.06%
ROIC(5y)3.98%
1.3 Margins
PSEC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 47.43%, PSEC belongs to the top of the industry, outperforming 81.51% of the companies in the same industry.
PSEC's Operating Margin has improved in the last couple of years.
PSEC has a better Gross Margin (53.69%) than 60.08% of its industry peers.
PSEC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.43% | ||
| PM (TTM) | N/A | ||
| GM | 53.69% |
OM growth 3Y2.53%
OM growth 5Y1.85%
PM growth 3Y-51.74%
PM growth 5Y-3.58%
GM growth 3Y2.62%
GM growth 5Y1.89%
2. Health
2.1 Basic Checks
There is no outstanding debt for PSEC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 0.43, we must say that PSEC is in the distress zone and has some risk of bankruptcy.
PSEC has a worse Altman-Z score (0.43) than 64.71% of its industry peers.
The Debt to FCF ratio of PSEC is 3.08, which is a good value as it means it would take PSEC, 3.08 years of fcf income to pay off all of its debts.
PSEC has a better Debt to FCF ratio (3.08) than 80.25% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that PSEC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.42, PSEC is doing good in the industry, outperforming 68.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 0.43 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.65 indicates that PSEC may have some problems paying its short term obligations.
PSEC has a worse Current ratio (0.65) than 70.17% of its industry peers.
A Quick Ratio of 0.65 indicates that PSEC may have some problems paying its short term obligations.
With a Quick ratio value of 0.65, PSEC is not doing good in the industry: 69.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
PSEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.99%.
Measured over the past years, PSEC shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.29% on average per year.
EPS 1Y (TTM)-32.99%
EPS 3Y-8.91%
EPS 5Y-2.29%
EPS Q2Q%-32%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-21.35%
3.2 Future
The Earnings Per Share is expected to decrease by -17.86% on average over the next years. This is quite bad
The Revenue is expected to decrease by -7.87% on average over the next years.
EPS Next Y-26.25%
EPS Next 2Y-17.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-11.33%
Revenue Next 2Y-7.87%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 4.46, the valuation of PSEC can be described as very cheap.
Based on the Price/Earnings ratio, PSEC is valued cheaply inside the industry as 95.38% of the companies are valued more expensively.
PSEC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.14.
PSEC is valuated cheaply with a Price/Forward Earnings ratio of 6.05.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSEC indicates a rather cheap valuation: PSEC is cheaper than 94.96% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, PSEC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.46 | ||
| Fwd PE | 6.05 |
4.2 Price Multiples
PSEC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PSEC is cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.99 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PSEC's earnings are expected to decrease with -17.86% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-17.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.63%, PSEC is a good candidate for dividend investing.
PSEC's Dividend Yield is rather good when compared to the industry average which is at 8.00. PSEC pays more dividend than 90.76% of the companies in the same industry.
PSEC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.63% |
5.2 History
The dividend of PSEC has a limited annual growth rate of 5.35%.
PSEC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)5.35%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PSEC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-93.45%
EPS Next 2Y-17.86%
EPS Next 3YN/A
2.9
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners13.55%
Inst Owner Change51.52%
Ins Owners18.66%
Ins Owner Change3.1%
Market Cap1.31B
Analysts40
Price Target3.06 (5.52%)
Short Float %9%
Short Ratio9.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.63% |
Yearly Dividend0.87
Dividend Growth(5Y)5.35%
DP-93.45%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.46%
Min EPS beat(2)-8.96%
Max EPS beat(2)-1.96%
EPS beat(4)2
Avg EPS beat(4)11.59%
Min EPS beat(4)-8.96%
Max EPS beat(4)36.17%
EPS beat(8)6
Avg EPS beat(8)13.47%
EPS beat(12)10
Avg EPS beat(12)14.09%
EPS beat(16)14
Avg EPS beat(16)14.57%
Revenue beat(2)0
Avg Revenue beat(2)-4.06%
Min Revenue beat(2)-4.14%
Max Revenue beat(2)-3.97%
Revenue beat(4)1
Avg Revenue beat(4)-3.23%
Min Revenue beat(4)-6.01%
Max Revenue beat(4)1.21%
Revenue beat(8)3
Avg Revenue beat(8)-9.65%
Revenue beat(12)5
Avg Revenue beat(12)-6.24%
Revenue beat(16)8
Avg Revenue beat(16)-4.23%
PT rev (1m)0%
PT rev (3m)-14.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.57%
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 | 4.46 | ||
| Fwd PE | 6.05 | ||
| P/S | 1.71 | ||
| P/FCF | 1.99 | ||
| P/OCF | 1.99 | ||
| P/B | 0.27 | ||
| P/tB | 0.27 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.65
EY22.41%
EPS(NY)0.48
Fwd EY16.53%
FCF(TTM)1.46
FCFY50.29%
OCF(TTM)1.46
OCFY50.29%
SpS1.69
BVpS10.8
TBVpS10.8
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.38% | ||
| ROE | -7.72% | ||
| ROCE | 5.25% | ||
| ROIC | 4.15% | ||
| ROICexc | 4.18% | ||
| ROICexgc | 4.18% | ||
| OM | 47.43% | ||
| PM (TTM) | N/A | ||
| GM | 53.69% | ||
| FCFM | 86.11% |
ROA(3y)2.32%
ROA(5y)4.38%
ROE(3y)3.67%
ROE(5y)6.97%
ROIC(3y)4.06%
ROIC(5y)3.98%
ROICexc(3y)4.1%
ROICexc(5y)4.01%
ROICexgc(3y)4.1%
ROICexgc(5y)4.01%
ROCE(3y)5.14%
ROCE(5y)5.03%
ROICexcg growth 3Y5.53%
ROICexcg growth 5Y-0.41%
ROICexc growth 3Y5.53%
ROICexc growth 5Y-0.41%
OM growth 3Y2.53%
OM growth 5Y1.85%
PM growth 3Y-51.74%
PM growth 5Y-3.58%
GM growth 3Y2.62%
GM growth 5Y1.89%
F-Score4
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.08 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.57 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.43 |
F-Score4
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)-32.99%
EPS 3Y-8.91%
EPS 5Y-2.29%
EPS Q2Q%-32%
EPS Next Y-26.25%
EPS Next 2Y-17.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-21.35%
Revenue Next Year-11.33%
Revenue Next 2Y-7.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-15.57%
EBIT growth 3Y13.69%
EBIT growth 5Y6.06%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y314.65%
FCF growth 3Y108.25%
FCF growth 5Y4.58%
OCF growth 1Y314.65%
OCF growth 3Y108.25%
OCF growth 5Y4.58%