PROSPECT CAPITAL CORP (PSEC)
US74348T1025 - Common Stock
Overall PSEC gets a fundamental rating of 3 out of 10. We evaluated PSEC against 212 industry peers in the Capital Markets industry. There are concerns on the financial health of PSEC while its profitability can be described as average. 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
PSEC had positive earnings in the past year.
In the past year PSEC had a positive cash flow from operations.
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
The Return On Assets of PSEC (1.80%) is worse than 60.48% of its industry peers.
PSEC has a Return On Equity of 2.69%. This is in the lower half of the industry: PSEC underperforms 71.43% of its industry peers.
PSEC has a Return On Invested Capital (4.36%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PSEC is significantly below the industry average of 10.69%.
The last Return On Invested Capital (4.36%) for PSEC is above the 3 year average (3.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 2.69% | ||
| ROIC | 4.36% |
ROA(3y)6.78%
ROA(5y)4.5%
ROE(3y)10.87%
ROE(5y)7.29%
ROIC(3y)3.85%
ROIC(5y)3.99%
1.3 Margins
With a Profit Margin value of 16.36%, PSEC perfoms like the industry average, outperforming 46.19% of the companies in the same industry.
With an excellent Operating Margin value of 49.33%, PSEC belongs to the best of the industry, outperforming 84.76% of the companies in the same industry.
PSEC's Operating Margin has improved in the last couple of years.
PSEC has a Gross Margin (54.39%) which is in line with its industry peers.
PSEC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.33% | ||
| PM (TTM) | 16.36% | ||
| GM | 54.39% |
OM growth 3Y5.04%
OM growth 5Y2.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.34%
GM growth 5Y2.75%
2. Health
2.1 Basic Checks
PSEC has more shares outstanding than it did 1 year ago.
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.
2.2 Solvency
PSEC has an Altman-Z score of 0.74. This is a bad value and indicates that PSEC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.74, PSEC perfoms like the industry average, outperforming 41.43% of the companies in the same industry.
PSEC has a debt to FCF ratio of 76.13. This is a negative value and a sign of low solvency as PSEC would need 76.13 years to pay back of all of its debts.
With a Debt to FCF ratio value of 76.13, PSEC is not doing good in the industry: 61.43% of the companies in the same industry are doing better.
PSEC has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.47, PSEC is doing good in the industry, outperforming 70.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 76.13 | ||
| Altman-Z | 0.74 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
PSEC has a Current Ratio of 0.46. 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 0.46, PSEC is doing worse than 77.14% of the companies in the same industry.
PSEC has a Quick Ratio of 0.46. 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 0.46. This is in the lower half of the industry: PSEC underperforms 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.01% over the past year.
The Earnings Per Share has been growing slightly by 6.06% on average over the past years.
The Revenue has been growing slightly by 6.81% in the past year.
Measured over the past years, PSEC shows a small growth in Revenue. The Revenue has been growing by 5.31% on average per year.
EPS 1Y (TTM)1.01%
EPS 3Y13.24%
EPS 5Y6.06%
EPS growth Q2Q-11.54%
Revenue 1Y (TTM)6.81%
Revenue growth 3Y10.98%
Revenue growth 5Y5.31%
Revenue growth Q2Q-6%
3.2 Future
Based on estimates for the next years, PSEC will show a very negative growth in Earnings Per Share. The EPS will decrease by -16.48% on average per year.
PSEC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.64% yearly.
EPS Next Y-21.09%
EPS Next 2Y-16.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.31%
Revenue Next 2Y-0.64%
Revenue Next 3YN/A
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
The Price/Earnings ratio is 5.66, which indicates a rather cheap valuation of PSEC.
Compared to the rest of the industry, the Price/Earnings ratio of PSEC indicates a rather cheap valuation: PSEC is cheaper than 92.86% of the companies listed in the same industry.
PSEC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.15.
Based on the Price/Forward Earnings ratio of 7.65, 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 84.76% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.20, PSEC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.66 | ||
| Fwd PE | 7.65 |
4.2 Price Multiples
PSEC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. PSEC is more expensive than 64.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.04 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PSEC's earnings are expected to decrease with -16.48% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y-16.48%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PSEC has a Yearly Dividend Yield of 12.72%, which is a nice return.
Compared to an average industry Dividend Yield of 7.06, PSEC pays a better dividend. On top of this PSEC pays more dividend than 87.62% 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.72% |
5.2 History
The dividend of PSEC has a limited annual growth rate of 1.22%.
PSEC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.22%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
243.05% of the earnings are spent on dividend by PSEC. This is not a sustainable payout ratio.
The Dividend Rate of PSEC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP243.05%
EPS Next 2Y-16.48%
EPS Next 3YN/A
PROSPECT CAPITAL CORP
NASDAQ:PSEC (5/17/2024, 7:21:24 PM)
After market: 5.6699 +0.01 (+0.17%)5.66
+0.05 (+0.89%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.72% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.66 | ||
| Fwd PE | 7.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 2.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 49.33% | ||
| PM (TTM) | 16.36% | ||
| GM | 54.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1.01%
EPS 3Y13.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y-21.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.81%
Revenue growth 3Y10.98%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y