PROSPECT CAPITAL CORP (PSEC) Fundamental Analysis & Valuation

NASDAQ:PSEC • US74348T1025

Current stock price

2.52 USD
-0.04 (-1.56%)
At close:
2.53 USD
+0.01 (+0.4%)
After Hours:

This PSEC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. PSEC Profitability Analysis

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.
  • 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

  • PSEC has a worse Return On Assets (-5.45%) than 81.82% of its industry peers.
  • The Return On Equity of PSEC (-7.77%) is worse than 76.86% of its industry peers.
  • PSEC's Return On Invested Capital of 4.09% is fine compared to the rest of the industry. PSEC outperforms 61.98% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for PSEC is below the industry average of 7.15%.
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

  • Looking at the Operating Margin, with a value of 49.57%, PSEC belongs to the top of the industry, outperforming 88.43% of the companies in the same industry.
  • In the last couple of years the Operating Margin of PSEC has grown nicely.
  • PSEC has a better Gross Margin (55.31%) than 64.05% 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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3

2. PSEC Health Analysis

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.
  • PSEC has a better debt/assets ratio than last year.
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 0.35. 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 (0.35) than 63.64% 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.
  • Looking at the Debt to FCF ratio, with a value of 4.24, PSEC is in the better half of the industry, outperforming 73.14% of the companies in the same industry.
  • A Debt/Equity ratio of 0.40 indicates that PSEC is not too dependend on debt financing.
  • PSEC has a better Debt to Equity ratio (0.40) than 69.01% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 4.24
Altman-Z 0.35
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.
  • PSEC has a Current ratio of 0.52. This is in the lower half of the industry: PSEC underperforms 74.38% of its industry peers.
  • 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.
  • PSEC has a Quick ratio of 0.52. This is in the lower half of the industry: PSEC underperforms 73.97% of its industry peers.
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. PSEC Growth Analysis

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.
  • Measured over the past years, PSEC shows a small growth in Revenue. The Revenue has been growing by 2.90% on average per year.
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

  • The Earnings Per Share is expected to decrease by -14.38% on average over the next years. This is quite bad
  • The Revenue is expected to decrease by -4.30% on average over the next years.
EPS Next Y-26.25%
EPS Next 2Y-18.82%
EPS Next 3Y-14.38%
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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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6

4. PSEC Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 5.04 indicates a rather cheap valuation of PSEC.
  • Based on the Price/Earnings ratio, PSEC is valued cheaply inside the industry as 86.78% of the companies are valued more expensively.
  • PSEC is valuated cheaply when we compare the Price/Earnings ratio to 25.96, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 5.88, the valuation of PSEC can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, PSEC is valued cheaper than 90.50% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 24.04. PSEC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 5.04
Fwd PE 5.88
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

  • Based on the Price/Free Cash Flow ratio, PSEC is valued cheaply inside the industry as 91.32% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 2.79
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

  • A cheap valuation may be justified as PSEC's earnings are expected to decrease with -14.38% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-18.82%
EPS Next 3Y-14.38%

More info and screens

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

5

5. PSEC Dividend Analysis

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 6.96, PSEC pays a better dividend. On top of this PSEC pays more dividend than 86.78% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, 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

  • The earnings of PSEC are negative and hence is the payout ratio. PSEC will probably not be able to sustain this dividend level.
DP-88.01%
EPS Next 2Y-18.82%
EPS Next 3Y-14.38%
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

PSEC Fundamentals: All Metrics, Ratios and Statistics

PROSPECT CAPITAL CORP

NASDAQ:PSEC (3/16/2026, 7:47:43 PM)

After market: 2.53 +0.01 (+0.4%)

2.52

-0.04 (-1.56%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-09
Earnings (Next)05-06
Inst Owners18.05%
Inst Owner Change3.03%
Ins Owners1.27%
Ins Owner Change2.79%
Market Cap1.22B
Revenue(TTM)671.29M
Net Income(TTM)-356.19M
Analysts40
Price Target2.55 (1.19%)
Short Float %10.87%
Short Ratio8.71
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)10%
EPS NY rev (1m)14.63%
EPS NY rev (3m)4.44%
Revenue NQ rev (1m)5.78%
Revenue NQ rev (3m)5.78%
Revenue NY rev (1m)5.64%
Revenue NY rev (3m)-0.47%
Valuation
Industry RankSector Rank
PE 5.04
Fwd PE 5.88
P/S 1.81
P/FCF 2.79
P/OCF 2.79
P/B 0.27
P/tB 0.27
EV/EBITDA N/A
EPS(TTM)0.5
EY19.84%
EPS(NY)0.43
Fwd EY17%
FCF(TTM)0.9
FCFY35.82%
OCF(TTM)0.9
OCFY35.82%
SpS1.39
BVpS9.5
TBVpS9.5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number10.34
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 0.35
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-26.25%
EPS Next 2Y-18.82%
EPS Next 3Y-14.38%
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 Fundamental Analysis 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%.