PROSPECT CAPITAL CORP (PSEC) Stock Fundamental Analysis
NASDAQ:PSEC - Nasdaq - US74348T1025 - Common Stock - Currency: USD
Overall PSEC gets a fundamental rating of 3 out of 10. We evaluated PSEC against 230 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 is valued correctly, but it does not seem to be growing.
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.
In multiple years PSEC reported negative operating cash flow during the last 5 years.
1.2 Ratios
PSEC has a Return On Assets of -1.26%. This is in the lower half of the industry: PSEC underperforms 79.48% of its industry peers.
PSEC's Return On Equity of -1.80% is on the low side compared to the rest of the industry. PSEC is outperformed by 78.17% of its industry peers.
The Return On Invested Capital of PSEC (4.14%) is comparable to the rest of the industry.
PSEC had an Average Return On Invested Capital over the past 3 years of 4.06%. This is below the industry average of 7.08%.
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.
PSEC's Operating Margin of 46.92% is amongst the best of the industry. PSEC outperforms 83.41% of its industry peers.
PSEC's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 52.94%, PSEC is doing good in the industry, outperforming 61.57% of the companies in the same industry.
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
The debt/assets ratio for PSEC has been reduced compared to a year ago.
2.2 Solvency
PSEC has an Altman-Z score of 0.57. This is a bad value and indicates that PSEC is not financially healthy and even has some risk of bankruptcy.
PSEC's Altman-Z score of 0.57 is on the low side compared to the rest of the industry. PSEC is outperformed by 62.45% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 3.69, PSEC is in the better half of the industry, outperforming 72.93% of the companies in the same industry.
PSEC has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
PSEC has a Debt to Equity ratio of 0.41. This is in the better half of the industry: PSEC outperforms 72.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 0.57 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.59 indicates that PSEC may have some problems paying its short term obligations.
The Current ratio of PSEC (0.59) is worse than 72.05% of its industry peers.
A Quick Ratio of 0.59 indicates that PSEC may have some problems paying its short term obligations.
The Quick ratio of PSEC (0.59) is worse than 72.05% 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 -13.59%.
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.
PSEC shows a decrease in Revenue. In the last year, the revenue decreased by -9.90%.
The Revenue has been growing slightly by 4.13% on average over the past years.
EPS 1Y (TTM)-13.59%
EPS 3Y9.44%
EPS 5Y2.68%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)-9.9%
Revenue growth 3Y10.89%
Revenue growth 5Y4.13%
Sales Q2Q%114.85%
3.2 Future
The Earnings Per Share is expected to decrease by -18.23% on average over the next years. This is quite bad
PSEC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -8.02% yearly.
EPS Next Y-41.11%
EPS Next 2Y-25.35%
EPS Next 3Y-18.23%
EPS Next 5YN/A
Revenue Next Year-14.92%
Revenue Next 2Y-11.21%
Revenue Next 3Y-8.02%
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.
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.
96.07% of the companies in the same industry are more expensive than PSEC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.78, PSEC is valued rather cheaply.
PSEC is valuated cheaply with a Price/Forward Earnings ratio of 6.83.
Based on the Price/Forward Earnings ratio, PSEC is valued cheaper than 90.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.32. PSEC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.15 | ||
| Fwd PE | 6.83 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PSEC is valued cheaply inside the industry as 88.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.95 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as PSEC's earnings are expected to decrease with -18.23% in the coming years.
PEG (NY)N/A
PEG (5Y)1.55
EPS Next 2Y-25.35%
EPS Next 3Y-18.23%
5. Dividend
5.1 Amount
PSEC has a Yearly Dividend Yield of 14.71%, which is a nice return.
Compared to an average industry Dividend Yield of 8.30, PSEC pays a better dividend. On top of this PSEC pays more dividend than 90.83% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, PSEC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.71% |
5.2 History
The dividend of PSEC has a limited annual growth rate of 5.35%.
PSEC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)5.35%
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-404.93%
EPS Next 2Y-25.35%
EPS Next 3Y-18.23%
3.69
+0.02 (+0.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners10.79%
Inst Owner Change-31.22%
Ins Owners18.55%
Ins Owner Change8.82%
Market Cap1.64B
Analysts40
Price Target4.08 (10.57%)
Short Float %7.14%
Short Ratio7.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.71% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.69%
EPS NY rev (1m)0%
EPS NY rev (3m)3.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.15 | ||
| Fwd PE | 6.83 | ||
| P/S | 2.07 | ||
| P/FCF | 2.95 | ||
| P/OCF | 2.95 | ||
| P/B | 0.32 | ||
| P/tB | 0.32 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.89
EY24.12%
EPS(NY)0.54
Fwd EY14.65%
FCF(TTM)1.25
FCFY33.91%
OCF(TTM)1.25
OCFY33.91%
SpS1.79
BVpS11.38
TBVpS11.38
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 | 0.57 |
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)-13.59%
EPS 3Y9.44%
EPS 5Y2.68%
EPS Q2Q%-16.67%
EPS Next Y-41.11%
EPS Next 2Y-25.35%
EPS Next 3Y-18.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.9%
Revenue growth 3Y10.89%
Revenue growth 5Y4.13%
Sales Q2Q%114.85%
Revenue Next Year-14.92%
Revenue Next 2Y-11.21%
Revenue Next 3Y-8.02%
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%