PROSPECT CAPITAL CORP (PSEC) Stock Fundamental Analysis
NASDAQ:PSEC - Nasdaq - US74348T1025 - Common Stock - Currency: USD
PSEC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 232 industry peers in the Capital Markets industry. PSEC has a medium profitability rating, but doesn't score so well on its financial health evaluation. PSEC 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 PSEC was profitable.
PSEC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PSEC reported negative net income in multiple years.
In multiple years PSEC reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -5.38%, PSEC is doing worse than 83.19% of the companies in the same industry.
With a Return On Equity value of -7.72%, PSEC is not doing good in the industry: 79.74% 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 7.87%.
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
In the last couple of years the Profit Margin of PSEC has declined.
The Operating Margin of PSEC (47.43%) is better than 80.17% of its industry peers.
In the last couple of years the Operating Margin of PSEC has grown nicely.
PSEC has a Gross Margin (53.69%) which is comparable to the rest of the industry.
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
Compared to 1 year ago, PSEC has more shares outstanding
The number of shares outstanding for PSEC has been increased compared to 5 years ago.
The debt/assets ratio for PSEC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.47, we must say that PSEC is in the distress zone and has some risk of bankruptcy.
PSEC has a Altman-Z score of 0.47. This is in the lower half of the industry: PSEC underperforms 64.22% 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.
Looking at the Debt to FCF ratio, with a value of 3.08, PSEC is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that PSEC is not too dependend on debt financing.
PSEC has a better Debt to Equity ratio (0.42) than 69.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 0.47 |
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's Current ratio of 0.65 is on the low side compared to the rest of the industry. PSEC is outperformed by 71.55% of its industry peers.
PSEC has a Quick Ratio of 0.65. This is a bad value and indicates that PSEC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PSEC (0.65) is worse than 71.12% of its industry peers.
| 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 -27.00%.
The Earnings Per Share has been growing slightly by 2.68% on average over the past years.
The Revenue for PSEC has decreased by -12.18% in the past year. This is quite bad
PSEC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.13% yearly.
EPS 1Y (TTM)-27%
EPS 3Y9.44%
EPS 5Y2.68%
EPS Q2Q%-43.48%
Revenue 1Y (TTM)-12.18%
Revenue growth 3Y10.89%
Revenue growth 5Y4.13%
Sales Q2Q%-15.58%
3.2 Future
The Earnings Per Share is expected to decrease by -23.25% on average over the next years. This is quite bad
PSEC is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -10.61% yearly.
EPS Next Y-41.11%
EPS Next 2Y-29.7%
EPS Next 3Y-23.25%
EPS Next 5YN/A
Revenue Next Year-15.84%
Revenue Next 2Y-13.61%
Revenue Next 3Y-10.61%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.36 indicates a rather cheap valuation of PSEC.
96.12% of the companies in the same industry are more expensive than PSEC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.34. PSEC is valued rather cheaply when compared to this.
PSEC is valuated cheaply with a Price/Forward Earnings ratio of 6.63.
PSEC's Price/Forward Earnings ratio is rather cheap when compared to the industry. PSEC is cheaper than 93.97% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, PSEC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.36 | ||
| Fwd PE | 6.63 |
4.2 Price Multiples
89.66% of the companies in the same industry are more expensive than PSEC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.18 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as PSEC's earnings are expected to decrease with -23.25% in the coming years.
PEG (NY)N/A
PEG (5Y)1.63
EPS Next 2Y-29.7%
EPS Next 3Y-23.25%
5. Dividend
5.1 Amount
PSEC has a Yearly Dividend Yield of 14.63%, which is a nice return.
In the last 3 months the price of PSEC has falen by -24.64%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 7.91, PSEC pays a better dividend. On top of this PSEC pays more dividend than 91.81% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, PSEC pays a better dividend.
| 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-29.7%
EPS Next 3Y-23.25%
3.18
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners13.7%
Inst Owner Change28.99%
Ins Owners18.45%
Ins Owner Change3.95%
Market Cap1.44B
Analysts40
Price Target3.06 (-3.77%)
Short Float %9.08%
Short Ratio8.55
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)-14.29%
PT rev (3m)-25%
EPS NQ rev (1m)-7.14%
EPS NQ rev (3m)-7.14%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.36 | ||
| Fwd PE | 6.63 | ||
| P/S | 1.88 | ||
| P/FCF | 2.18 | ||
| P/OCF | 2.18 | ||
| P/B | 0.29 | ||
| P/tB | 0.29 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.73
EY22.96%
EPS(NY)0.48
Fwd EY15.08%
FCF(TTM)1.46
FCFY45.87%
OCF(TTM)1.46
OCFY45.87%
SpS1.69
BVpS10.8
TBVpS10.8
PEG (NY)N/A
PEG (5Y)1.63
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 | 0.47 |
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)-27%
EPS 3Y9.44%
EPS 5Y2.68%
EPS Q2Q%-43.48%
EPS Next Y-41.11%
EPS Next 2Y-29.7%
EPS Next 3Y-23.25%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.18%
Revenue growth 3Y10.89%
Revenue growth 5Y4.13%
Sales Q2Q%-15.58%
Revenue Next Year-15.84%
Revenue Next 2Y-13.61%
Revenue Next 3Y-10.61%
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%