PROSPECT CAPITAL CORP (PSEC) Stock Fundamental Analysis

NASDAQ:PSEC • US74348T1025

2.82 USD
-0.1 (-3.42%)
At close: Feb 20, 2026
2.83 USD
+0.01 (+0.35%)
After Hours: 2/20/2026, 8:00:12 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

Overall PSEC gets a fundamental rating of 3 out of 10. We evaluated PSEC against 238 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 is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

4

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.
PSEC Yearly Net Income VS EBIT VS OCF VS FCFPSEC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M

1.2 Ratios

  • Looking at the Return On Assets, with a value of -5.45%, PSEC is doing worse than 81.09% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of -7.77%, PSEC is doing worse than 76.05% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 4.09%, PSEC is in line with its industry, outperforming 58.40% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for PSEC is below the industry average of 7.31%.
Industry RankSector Rank
ROA -5.45%
ROE -7.77%
ROIC 4.09%
ROA(3y)-3.01%
ROA(5y)2.7%
ROE(3y)-4.47%
ROE(5y)4.51%
ROIC(3y)4.19%
ROIC(5y)3.97%
PSEC Yearly ROA, ROE, ROICPSEC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

1.3 Margins

  • PSEC has a Operating Margin of 49.57%. This is amongst the best in the industry. PSEC outperforms 88.24% of its industry peers.
  • PSEC's Operating Margin has improved in the last couple of years.
  • The Gross Margin of PSEC (55.31%) is better than 64.29% of its industry peers.
  • PSEC's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 49.57%
PM (TTM) N/A
GM 55.31%
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%
PSEC Yearly Profit, Operating, Gross MarginsPSEC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 100 150

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

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.
PSEC Yearly Shares OutstandingPSEC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
PSEC Yearly Total Debt VS Total AssetsPSEC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • PSEC has an Altman-Z score of 0.38. This is a bad value and indicates that PSEC is not financially healthy and even has some risk of bankruptcy.
  • PSEC has a worse Altman-Z score (0.38) than 62.18% of its industry peers.
  • The Debt to FCF ratio of PSEC is 4.24, which is a neutral value as it means it would take PSEC, 4.24 years of fcf income to pay off all of its debts.
  • PSEC's Debt to FCF ratio of 4.24 is fine compared to the rest of the industry. PSEC outperforms 73.53% of its industry peers.
  • A Debt/Equity ratio of 0.40 indicates that PSEC is not too dependend on debt financing.
  • PSEC has a Debt to Equity ratio of 0.40. This is in the better half of the industry: PSEC outperforms 68.07% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 4.24
Altman-Z 0.38
ROIC/WACCN/A
WACCN/A
PSEC Yearly LT Debt VS Equity VS FCFPSEC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B

2.3 Liquidity

  • PSEC has a Current Ratio of 0.52. This is a bad value and indicates that PSEC is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 0.52, PSEC is doing worse than 71.85% of the companies in the same industry.
  • PSEC has a Quick Ratio of 0.52. This is a bad value and indicates that PSEC is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.52, PSEC is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.52
Quick Ratio 0.52
PSEC Yearly Current Assets VS Current LiabilitesPSEC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

1

3. Growth

3.1 Past

  • The earnings per share for PSEC have decreased strongly by -39.76% in the last year.
  • PSEC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.29% yearly.
  • Looking at the last year, PSEC shows a very negative growth in Revenue. The Revenue has decreased by -15.69% in the last year.
  • The Revenue has been growing slightly by 2.90% on average over the past years.
EPS 1Y (TTM)-39.76%
EPS 3Y-8.91%
EPS 5Y-2.29%
EPS Q2Q%0%
Revenue 1Y (TTM)-15.69%
Revenue growth 3Y0.4%
Revenue growth 5Y2.9%
Sales Q2Q%-5.1%

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.
  • Based on estimates for the next years, PSEC will show a decrease in Revenue. The Revenue will decrease by -4.30% on average per year.
EPS Next Y-35.66%
EPS Next 2Y-22.78%
EPS Next 3Y-16.57%
EPS Next 5YN/A
Revenue Next Year-8.9%
Revenue Next 2Y-6.97%
Revenue Next 3Y-4.3%
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.
PSEC Yearly Revenue VS EstimatesPSEC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M
PSEC Yearly EPS VS EstimatesPSEC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6 0.8 1

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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 5.64 indicates a rather cheap valuation of PSEC.
  • 86.55% 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 26.99. PSEC is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 7.28, the valuation of PSEC can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, PSEC is valued cheaply inside the industry as 87.39% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of PSEC to the average of the S&P500 Index (28.06), we can say PSEC is valued rather cheaply.
Industry RankSector Rank
PE 5.64
Fwd PE 7.28
PSEC Price Earnings VS Forward Price EarningsPSEC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSEC indicates a rather cheap valuation: PSEC is cheaper than 89.50% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 3.05
EV/EBITDA N/A
PSEC Per share dataPSEC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

  • PSEC's earnings are expected to decrease with -16.57% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.78%
EPS Next 3Y-16.57%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 14.63%, PSEC is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 6.09, PSEC pays a better dividend. On top of this PSEC pays more dividend than 88.66% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, PSEC pays a better dividend.
Industry RankSector 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
PSEC Yearly Dividends per sharePSEC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • PSEC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-88.01%
EPS Next 2Y-22.78%
EPS Next 3Y-16.57%
PSEC Yearly Income VS Free CF VS DividendPSEC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M

More info and screens

Find the best dividend stocksShow peers with best dividend

PROSPECT CAPITAL CORP

NASDAQ:PSEC (2/20/2026, 8:00:12 PM)

After market: 2.83 +0.01 (+0.35%)

2.82

-0.1 (-3.42%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-09
Earnings (Next)05-06
Inst Owners18.44%
Inst Owner Change3.32%
Ins Owners1.1%
Ins Owner Change2.79%
Market Cap1.33B
Revenue(TTM)671.29M
Net Income(TTM)-356.19M
Analysts40
Price Target2.55 (-9.57%)
Short Float %10.79%
Short Ratio8.34
Dividend
Industry RankSector Rank
Dividend Yield 14.63%
Yearly Dividend0.75
Dividend Growth(5Y)3.1%
DP-88.01%
Div Incr Years0
Div Non Decr Years0
Ex-Date04-28
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.63%
Min EPS beat(2)-46.52%
Max EPS beat(2)37.25%
EPS beat(4)2
Avg EPS beat(4)2.49%
Min EPS beat(4)-46.52%
Max EPS beat(4)37.25%
EPS beat(8)5
Avg EPS beat(8)9.75%
EPS beat(12)9
Avg EPS beat(12)11.26%
EPS beat(16)13
Avg EPS beat(16)12.79%
Revenue beat(2)1
Avg Revenue beat(2)0.76%
Min Revenue beat(2)-8.85%
Max Revenue beat(2)10.37%
Revenue beat(4)1
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-8.85%
Max Revenue beat(4)10.37%
Revenue beat(8)2
Avg Revenue beat(8)-2.59%
Revenue beat(12)4
Avg Revenue beat(12)-6.85%
Revenue beat(16)7
Avg Revenue beat(16)-4.45%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)10%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.89%
Revenue NQ rev (1m)5.78%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)5.64%
Revenue NY rev (3m)-0.47%
Valuation
Industry RankSector Rank
PE 5.64
Fwd PE 7.28
P/S 1.98
P/FCF 3.05
P/OCF 3.05
P/B 0.29
P/tB 0.29
EV/EBITDA N/A
EPS(TTM)0.5
EY17.73%
EPS(NY)0.39
Fwd EY13.74%
FCF(TTM)0.92
FCFY32.8%
OCF(TTM)0.92
OCFY32.8%
SpS1.43
BVpS9.73
TBVpS9.73
PEG (NY)N/A
PEG (5Y)N/A
Graham Number10.46
Profitability
Industry RankSector Rank
ROA -5.45%
ROE -7.77%
ROCE 5.17%
ROIC 4.09%
ROICexc 4.11%
ROICexgc 4.11%
OM 49.57%
PM (TTM) N/A
GM 55.31%
FCFM 64.88%
ROA(3y)-3.01%
ROA(5y)2.7%
ROE(3y)-4.47%
ROE(5y)4.51%
ROIC(3y)4.19%
ROIC(5y)3.97%
ROICexc(3y)4.24%
ROICexc(5y)4%
ROICexgc(3y)4.24%
ROICexgc(5y)4%
ROCE(3y)5.31%
ROCE(5y)5.02%
ROICexgc growth 3Y3.61%
ROICexgc growth 5Y-0.27%
ROICexc growth 3Y3.61%
ROICexc growth 5Y-0.27%
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%
F-Score4
Asset Turnover0.1
Health
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 4.24
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 2.49
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.52
Quick Ratio 0.52
Altman-Z 0.38
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)-39.76%
EPS 3Y-8.91%
EPS 5Y-2.29%
EPS Q2Q%0%
EPS Next Y-35.66%
EPS Next 2Y-22.78%
EPS Next 3Y-16.57%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.69%
Revenue growth 3Y0.4%
Revenue growth 5Y2.9%
Sales Q2Q%-5.1%
Revenue Next Year-8.9%
Revenue Next 2Y-6.97%
Revenue Next 3Y-4.3%
Revenue Next 5YN/A
EBIT growth 1Y-10.93%
EBIT growth 3Y-0.49%
EBIT growth 5Y4.98%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y188.27%
FCF growth 3YN/A
FCF growth 5Y4.03%
OCF growth 1Y188.27%
OCF growth 3YN/A
OCF growth 5Y4.03%

PROSPECT CAPITAL CORP / PSEC FAQ

What is the ChartMill fundamental rating of PROSPECT CAPITAL CORP (PSEC) stock?

ChartMill assigns a fundamental rating of 3 / 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 3 / 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 -88.01%.