2.77 USD
+0.03 (+1.09%)
At close: Jan 30, 2026
2.78 USD
+0.01 (+0.36%)
After Hours: 1/30/2026, 8:14:00 PM
PSEC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. Both the profitability and the financial health of PSEC get a neutral evaluation. Nothing too spectacular is happening here. PSEC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- PSEC had positive earnings in the past year.
- PSEC had a positive operating cash flow in the past year.
- In multiple years PSEC reported negative net income over the last 5 years.
- The reported operating cash flow has been mixed in the past 5 years: PSEC reported negative operating cash flow in multiple years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -5.73%, PSEC is doing worse than 81.86% of the companies in the same industry.
- The Return On Equity of PSEC (-8.22%) is worse than 76.79% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.96%, PSEC is in line with its industry, outperforming 55.27% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for PSEC is below the industry average of 7.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.73% | ||
| ROE | -8.22% | ||
| ROIC | 3.96% |
ROA(3y)-3.01%
ROA(5y)2.7%
ROE(3y)-4.47%
ROE(5y)4.51%
ROIC(3y)4.19%
ROIC(5y)3.97%
1.3 Margins
- PSEC has a Operating Margin of 48.23%. This is amongst the best in the industry. PSEC outperforms 85.65% of its industry peers.
- PSEC's Operating Margin has improved in the last couple of years.
- The Gross Margin of PSEC (54.94%) is better than 63.71% of its industry peers.
- PSEC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.23% | ||
| PM (TTM) | N/A | ||
| GM | 54.94% |
OM growth 3Y-0.89%
OM growth 5Y2.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.58%
GM growth 5Y2.34%
2. Health
2.1 Basic Checks
- The number of shares outstanding for PSEC has been increased compared to 1 year ago.
- The number of shares outstanding for PSEC has been increased compared to 5 years ago.
- Compared to 1 year ago, PSEC has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.39, we must say that PSEC is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.39, PSEC is doing worse than 63.29% of the companies in the same industry.
- PSEC has a debt to FCF ratio of 3.06. This is a good value and a sign of high solvency as PSEC would need 3.06 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 3.06, PSEC is doing good in the industry, outperforming 77.64% of the companies in the same industry.
- PSEC has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
- PSEC has a better Debt to Equity ratio (0.42) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 0.39 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- PSEC has a Current Ratio of 1.01. This is a normal value and indicates that PSEC is financially healthy and should not expect problems in meeting its short term obligations.
- PSEC has a Current ratio of 1.01. This is comparable to the rest of the industry: PSEC outperforms 45.57% of its industry peers.
- A Quick Ratio of 1.01 indicates that PSEC should not have too much problems paying its short term obligations.
- The Quick ratio of PSEC (1.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
- The earnings per share for PSEC have decreased strongly by -46.24% in the last year.
- 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.
- The Revenue for PSEC has decreased by -17.16% 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 2.90% yearly.
EPS 1Y (TTM)-46.24%
EPS 3Y-8.91%
EPS 5Y-2.29%
EPS Q2Q%-71.43%
Revenue 1Y (TTM)-17.16%
Revenue growth 3Y0.4%
Revenue growth 5Y2.9%
Sales Q2Q%-19.71%
3.2 Future
- PSEC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -16.57% yearly.
- PSEC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.64% yearly.
EPS Next Y-35.66%
EPS Next 2Y-22.78%
EPS Next 3Y-16.57%
EPS Next 5YN/A
Revenue Next Year-13.77%
Revenue Next 2Y-7.6%
Revenue Next 3Y-4.64%
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
- PSEC is valuated cheaply with a Price/Earnings ratio of 5.54.
- Based on the Price/Earnings ratio, PSEC is valued cheaper than 89.03% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, PSEC is valued rather cheaply.
- The Price/Forward Earnings ratio is 7.15, which indicates a rather cheap valuation of PSEC.
- Based on the Price/Forward Earnings ratio, PSEC is valued cheaper than 88.61% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, PSEC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.54 | ||
| Fwd PE | 7.15 |
4.2 Price Multiples
- PSEC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PSEC is cheaper than 94.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.08 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- A cheap valuation may be justified as PSEC's earnings are expected to decrease with -16.57% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.78%
EPS Next 3Y-16.57%
5. Dividend
5.1 Amount
- PSEC has a Yearly Dividend Yield of 14.63%, which is a nice return.
- Compared to an average industry Dividend Yield of 6.00, PSEC pays a better dividend. On top of this PSEC pays more dividend than 90.72% of the companies listed in the same industry.
- PSEC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.63% |
5.2 History
- The dividend of PSEC has a limited annual growth rate of 3.10%.
- PSEC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.1%
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-86.23%
EPS Next 2Y-22.78%
EPS Next 3Y-16.57%
PROSPECT CAPITAL CORP / PSEC FAQ
What is the ChartMill fundamental rating of PROSPECT CAPITAL CORP (PSEC) stock?
ChartMill assigns a fundamental rating of 4 / 10 to PSEC.
What is the valuation status of PROSPECT CAPITAL CORP (PSEC) stock?
ChartMill assigns a valuation rating of 6 / 10 to PROSPECT CAPITAL CORP (PSEC). This can be considered as Fairly Valued.
How profitable is PROSPECT CAPITAL CORP (PSEC) stock?
PROSPECT CAPITAL CORP (PSEC) has a profitability rating of 4 / 10.
How financially healthy is PROSPECT CAPITAL CORP?
The financial health rating of PROSPECT CAPITAL CORP (PSEC) is 4 / 10.
Is the dividend of PROSPECT CAPITAL CORP sustainable?
The dividend rating of PROSPECT CAPITAL CORP (PSEC) is 5 / 10 and the dividend payout ratio is -86.23%.