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 231 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 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.
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
The Return On Assets of PSEC (-1.26%) is worse than 78.36% of its industry peers.
With a Return On Equity value of -1.80%, PSEC is not doing good in the industry: 76.62% of the companies in the same industry are doing better.
The Return On Invested Capital of PSEC (4.14%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PSEC is below the industry average of 7.24%.
The last Return On Invested Capital (4.14%) for PSEC is above the 3 year average (4.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.26% | ||
| ROE | -1.8% | ||
| ROIC | 4.14% |
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.
With an excellent Operating Margin value of 46.92%, PSEC belongs to the best of the industry, outperforming 83.12% of the companies in the same industry.
PSEC's Operating Margin has improved in the last couple of years.
PSEC has a Gross Margin of 52.94%. This is in the better half of the industry: PSEC outperforms 61.04% of its industry peers.
PSEC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.92% | ||
| PM (TTM) | N/A | ||
| GM | 52.94% |
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
The number of shares outstanding for PSEC has been increased compared to 1 year ago.
Compared to 5 years ago, PSEC has more shares outstanding
PSEC has a better debt/assets ratio than last year.
2.2 Solvency
PSEC has an Altman-Z score of 0.54. This is a bad value and indicates that PSEC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.54, PSEC is doing worse than 63.20% of the companies in the same industry.
The Debt to FCF ratio of PSEC is 3.69, which is a good value as it means it would take PSEC, 3.69 years of fcf income to pay off all of its debts.
PSEC has a better Debt to FCF ratio (3.69) than 71.43% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that PSEC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.41, PSEC is in the better half of the industry, outperforming 72.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 0.54 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
PSEC has a Current Ratio of 0.59. This is a bad value and indicates that PSEC is not financially healthy enough and could expect problems in meeting its short term obligations.
PSEC has a worse Current ratio (0.59) than 71.86% of its industry peers.
A Quick Ratio of 0.59 indicates that PSEC may have some problems paying its short term obligations.
PSEC's Quick ratio of 0.59 is on the low side compared to the rest of the industry. PSEC is outperformed by 71.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
PSEC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.00%.
Measured over the past 5 years, PSEC shows a small growth in Earnings Per Share. The EPS has been growing by 2.68% on average per year.
Looking at the last year, PSEC shows a small growth in Revenue. The Revenue has grown by 1.11% in the last year.
Measured over the past years, PSEC shows a small growth in Revenue. The Revenue has been growing by 4.13% on average per year.
EPS 1Y (TTM)-21%
EPS 3Y9.44%
EPS 5Y2.68%
EPS Q2Q%-43.48%
Revenue 1Y (TTM)1.11%
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.
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
Based on the Price/Earnings ratio of 4.15, the valuation of PSEC can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of PSEC indicates a rather cheap valuation: PSEC is cheaper than 96.10% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, PSEC is valued rather cheaply.
PSEC is valuated cheaply with a Price/Forward Earnings ratio of 6.84.
Based on the Price/Forward Earnings ratio, PSEC is valued cheaper than 90.04% of the companies in the same industry.
PSEC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.15 | ||
| Fwd PE | 6.84 |
4.2 Price Multiples
PSEC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PSEC is cheaper than 89.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.66 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PSEC's earnings are expected to decrease with -23.25% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.55
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 -25.45%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
PSEC's Dividend Yield is rather good when compared to the industry average which is at 8.18. PSEC pays more dividend than 90.91% of the companies 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 paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.35%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of PSEC are negative and hence is the payout ratio. PSEC will probably not be able to sustain this dividend level.
DP-404.93%
EPS Next 2Y-29.7%
EPS Next 3Y-23.25%
3.28
-0.12 (-3.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners10.79%
Inst Owner Change29.01%
Ins Owners18.55%
Ins Owner Change4.11%
Market Cap1.48B
Analysts40
Price Target3.57 (8.84%)
Short Float %7.3%
Short Ratio7.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.63% |
Yearly Dividend0.87
Dividend Growth(5Y)5.35%
DP-404.93%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.58%
Min EPS beat(2)21.11%
Max EPS beat(2)40.06%
EPS beat(4)4
Avg EPS beat(4)27.52%
Min EPS beat(4)12.75%
Max EPS beat(4)40.06%
EPS beat(8)8
Avg EPS beat(8)20.9%
EPS beat(12)12
Avg EPS beat(12)19.72%
EPS beat(16)16
Avg EPS beat(16)18.35%
Revenue beat(2)0
Avg Revenue beat(2)-5.07%
Min Revenue beat(2)-6.01%
Max Revenue beat(2)-4.14%
Revenue beat(4)1
Avg Revenue beat(4)-4.07%
Min Revenue beat(4)-7.33%
Max Revenue beat(4)1.21%
Revenue beat(8)3
Avg Revenue beat(8)-9.72%
Revenue beat(12)6
Avg Revenue beat(12)-5.57%
Revenue beat(16)9
Avg Revenue beat(16)-3.76%
PT rev (1m)-12.5%
PT rev (3m)-12.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-1.08%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.15 | ||
| Fwd PE | 6.84 | ||
| P/S | 1.86 | ||
| P/FCF | 2.66 | ||
| P/OCF | 2.66 | ||
| P/B | 0.29 | ||
| P/tB | 0.29 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.79
EY24.09%
EPS(NY)0.48
Fwd EY14.62%
FCF(TTM)1.24
FCFY37.66%
OCF(TTM)1.24
OCFY37.66%
SpS1.76
BVpS11.23
TBVpS11.23
PEG (NY)N/A
PEG (5Y)1.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.26% | ||
| ROE | -1.8% | ||
| ROCE | 5.24% | ||
| ROIC | 4.14% | ||
| ROICexc | 4.18% | ||
| ROICexgc | 4.18% | ||
| OM | 46.92% | ||
| PM (TTM) | N/A | ||
| GM | 52.94% | ||
| FCFM | 70.04% |
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-Score3
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.69 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.56 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 0.54 |
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)-21%
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)1.11%
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-14.59%
EBIT growth 3Y13.69%
EBIT growth 5Y6.06%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y180.7%
FCF growth 3Y108.25%
FCF growth 5Y4.58%
OCF growth 1Y180.7%
OCF growth 3Y108.25%
OCF growth 5Y4.58%