Prospect Capital Résultats passés
Passé contrôle des critères 0/6
Les bénéfices de Prospect Capital ont diminué à un taux annuel moyen de -71.9%, tandis que le secteur Capital Markets a vu ses bénéfices augmenter de en à 6.1% par an. Les revenus ont augmenté de en à un taux moyen de 2% par an.
Informations clés
-71.92%
Taux de croissance des bénéfices
-72.04%
Taux de croissance du BPA
| Capital Markets Croissance de l'industrie | 10.26% |
| Taux de croissance des recettes | 1.97% |
| Rendement des fonds propres | -0.83% |
| Marge nette | -24.84% |
| Dernière mise à jour des bénéfices | 31 Mar 2026 |
Mises à jour récentes des performances passées
Recent updates
Seeking Alpha • May 10
Prospect Capital: 59% Discount Looks Tempting, But I Wouldn't Touch It With A 10-Foot Pole
Summary Prospect Capital Corporation is reiterated as a sell due to ongoing financial deterioration despite a 59% discount to NAV and double-digit yield. PSEC's Q3 saw net investment income and total investment income decline, with NAV dropping sequentially and year-over-year, underperforming peers. Management's portfolio shift to first-lien loans and reduced real estate exposure are positive but not expected to offset near-term financial weakness. Dividend coverage remains weak, with a recent cut and potential for further reductions, reinforcing high-risk and limited upside catalysts. Read the full article on Seeking Alpha
Nouveau récit • May 02
PSEC Contrary investing
I invested a lot in PSEC starting with a few hundred shares at average price of around $7 mid 2022. As we all know it's share price dropped to almost the level of a penny share.Seeking Alpha • Mar 08
Prospect Capital: PIK Drop A Problem, But Dividend Should Be Safe
Summary Prospect Capital slashed its dividend by 25% in November 2024, improving dividend pay-out metrics and offering a safer dividend for passive income investors. The BDC’s stock trades at a 43% discount to net asset value, reflecting investor skepticism despite improving portfolio quality and dividend coverage. Prospect Capital’s non-accrual ratio improved to 0.4% QoQ, and the dividend pay-out ratio dropped to 75%, providing a margin of safety. With a well-performing loan portfolio and a high margin of safety, Prospect Capital remains a buy for passive income investors. Read the full article on Seeking AlphaSeeking Alpha • Feb 12
Prospect Capital: Deteriorating NAV And Vulnerable To Higher Rates (Rating Downgrade)
Summary Prospect Capital's portfolio continues to show weakness in a high interest rate environment, leading to a 23% price drop over the last year and a slight dividend reduction. Despite a high dividend yield of 13%, PSEC's total return is negative, and it trades at a significant discount to NAV due to underlying weaknesses. PSEC's earnings have declined, with net investment income at its lowest levels since 2021 and NAV decreasing by 12.1% over the past year. The current interest rate environment remains a core weakness for PSEC, making it a speculative and unattractive investment despite its discounted valuation. There has been a lack of prioritization on allocating capital towards new deals that can fuel growth and portfolio improvements. Read the full article on Seeking AlphaSeeking Alpha • Jan 28
Prospect Capital: 8.9% On Bonds With Heavy Insider Buys
Summary Prospect Capital's common shares remain stagnant post-dividend cut, while preferred shares have tumbled. S&P downgraded PSEC's credit rating to junk due to portfolio turbulence and liquidity pressures, impacting its ability to raise equity funding. Insider buying in PSEC has been extremely strong. We look at 3 different securities and tell you why the bonds are relatively cheap. Read the full article on Seeking AlphaSeeking Alpha • Dec 14
Prospect Capital: Still Steering Clear For Now (Rating Upgrade)
Summary Prospect Capital's declining NAV and high concentration in a few large investments, like National Property REIT Corp., pose significant risks to stock performance. The shift towards higher-quality debt assets, especially first lien senior secured debt, is a positive development that could reduce portfolio risk over time. The recent dividend cut aligns payouts with net investment income, improving dividend sustainability despite a high percentage of payment-in-kind income. Read the full article on Seeking AlphaSeeking Alpha • Nov 12
Prospect Capital: Why I Am Buying The 25% Dividend Cut
Summary Prospect Capital's 25% dividend cut, the first since 2017, shocked the market, causing a 15% stock plunge, but still offers a 12% yield. The dividend cut stems from a strategic shift to focus on higher-quality, secured loans, enhancing long-term return potential and portfolio quality. Despite the cut, Prospect Capital's low non-accrual ratio and excessive NAV discount present a compelling risk/reward opportunity for high-risk-tolerant investors. The stock's 48% discount to NAV, compared to peers, suggests an overreaction, making it a potential buy for those with a stomach for volatility. Read the full article on Seeking AlphaSeeking Alpha • Nov 03
PSEC: Trades At A Discount For A Reason
Summary Prospect Capital (PSEC) operates as a business development company that generates its earnings through a portfolio of various debt investments. PSEC maintains a primary exposure to the real estate sector. This presents unique sensitivity to changes in the interest rate. The current dividend yield sits above 14% but the coverage remains thin. An decrease in portfolio quality could negatively impact the coverage. Non-accruals remains incredibly low at the moment, totaling only 0.3% of fair value. The price currently trades at a massive discount to NAV. This could indicate an opportunity if PSEC can improve performance going forward. Read the full article on Seeking AlphaSeeking Alpha • Oct 16
Prospect Capital: High Yield, But With Caveats
Summary Prospect Capital Corporation trades at a 40% discount to NAV with a near 14% yield, but market distrust stems from 17% PIK (payment in kind) interest income. Despite a diversified portfolio and strong investment income, concerns about non-accrual rates, significant losses, and tight dividend coverage persist. Insider buying by the CEO signals confidence, but uncertainties and market skepticism remain. An investment analysis around Prospect Capital follows in the paragraphs below. Read the full article on Seeking AlphaSeeking Alpha • Oct 02
Prospect Capital: The Yield Is Not Worth The Risk
Summary Prospect Capital has consistently failed to generate sufficient cash flow to cover dividends, leading to a significant risk of future dividend cuts. The company's NAV per share has declined substantially, eroding shareholder value due to poor financial management and unproductive investments. Issuing preferred stock has diluted common shareholders' value and further strained dividend coverage, with cash available for common dividends covering only 63% in FY 2024. The increasing use of PIK interest and rising preferred dividends are exacerbating the financial strain, making Prospect Capital a poor investment choice. Read the full article on Seeking AlphaSeeking Alpha • Sep 11
Prospect Capital: Good Dividend Yield, Not Shareholder Value
Summary Prospect Capital Corp. is ideal for retirees due to its well-covered monthly dividends, low leverage, and significant discount to NAV. However, PSEC has consistently destroyed shareholder value with negative share price returns over the past 3, 5, and 10 years. The company's NAV has declined steadily, underperforming peers even in a high interest rate environment, leading to poor long-term performance. Despite attractive dividends, I rate PSEC a hold due to its negative value creation; a steeper decline with continued strong dividend coverage might warrant a buy rating. A recession could also put the dividend at risk due to the potential rise in non-accruals loans. Read the full article on Seeking AlphaSeeking Alpha • Aug 29
Bargain: Very Undervalued Bonds From Investment Grade Prospect Capital
Summary Prospect Capital is a large investment grade business development company. Its bonds yield around 8% while other large-cap BDC bonds with the same credit rating are yielding around 5.5%. To add to the undervaluation, PSEC has by far the lowest leverage among its large-cap BDC peers, making it extremely safe. This is likely an opportunity that will disappear soon. The bonds way overreacted to a negative article on PSEC common stock selling off way more than the common stock. Read the full article on Seeking AlphaSeeking Alpha • Jun 11
Prospect Capital: This 13% Yield Is Safer Than Investors Think (Rating Upgrade)
Summary Prospect Capital is trading at a 38% discount to net asset value, potentially offering investment gains. The BDC has solid balance sheet quality with a low non-accrual percentage and strong distribution coverage. Prospect Capital has high insider ownership and a decoupled valuation, making it a potentially attractive investment for dividend investors. Read the full article on Seeking AlphaSeeking Alpha • May 23
Prospect Capital: The 12.7% Dividend Yield Could Be At Risk
Summary Prospect Capital's monthly cash dividend remains unchanged at $0.06 per share, resulting in a 12.7% dividend yield. The BDC's net investment income for the third quarter beat consensus but was down sequentially and from the year-ago quarter. Prospect Capital is not fully covering its current dividend distributions. This could be ominous as the Fed looks set to cut interest rates. Read the full article on Seeking AlphaSeeking Alpha • Feb 12
Prospect Capital: 13.4% Dividend Yield, But Will NAV Dip Forever?
Summary Prospect Capital saw its NAV per share fall by 33 cents year-over-year during its recently reported quarter. Dividend coverage at 133% remains significant, but it is down from 150% a year ago. Net investment income per share dipped by 3 cents year-over-year, with the outlook for a recovery made dark with Fed rate cuts on the horizon. Read the full article on Seeking AlphaSeeking Alpha • Jan 26
Prospect Capital: 3 Reasons To Buy This Mediocre 12% Yield (Rating Upgrade)
Summary Prospect Capital is a well-diversified BDC with solid asset quality and a low ratio of non-performing loans in its portfolio. The BDC has strong dividend coverage on a 5-quarter rolling basis, with a dividend coverage ratio of 152%. Prospect Capital trades at a massive discount to net asset value, making it an attractive buy for income investors. I explain three reasons why I see Prospect Capital as a buy for speculative income investors. Read the full article on Seeking AlphaSeeking Alpha • Jan 14
Prospect Capital: Attractive Entry Point For Investors Willing To Take Risk
Summary PSEC is the fifth largest BDC in terms of the underlying NAV base with a focus towards conventional private credit opportunities (with an exception of CLOs, which are insignificant in PSEC's case). Since 2023 (last year), PSEC has consistently outperformed the BDC market. This has pushed the dividend above the average, while having the second lowest leverage in the BDC sector. In this article I explain why I rate PSEC a hold despite the size benefits, de-risked balance sheet and zero non-accrual loans. Read the full article on Seeking AlphaSeeking Alpha • Oct 07
Prospect Capital announces additions to non-traded preferred stock offering
Prospect Capital (NASDAQ:PSEC) said Friday it added new 6.5% series A3 and M3 preferred stock to its existing $1.5B offering of non-traded preferred stock. The offering is in private wealth, registered investment advisor, and institutional channels. The offering has ~$611M now available for sale. PSEC last month said the offering, along with its other preferred stock offerings, exceeded $1B in aggregate liquidation preference issuances since its initial closing. "PSEC's non-traded preferred stock offers investors a 6.5% annualized cash dividend paid monthly, a stable stated value, ongoing twice monthly liquidity, management investment alignment, regulatory leverage limitations, and ~$4B of junior common equity credit support," said Grier Eliasek, president, PSEC.Seeking Alpha • Sep 26
Prospect Capital goes ex-dividend tomorrow
Prospect Capital (NASDAQ:PSEC) had declared $0.06/share monthly dividend, in line with previous. Payable Oct. 20; for shareholders of record Sept. 28; ex-div Sept. 27. See PSEC Dividend Scorecard, Yield Chart, & Dividend Growth.Seeking Alpha • Sep 09
Prospect Capital exceeds $1B preferred fundraising milestone and upsizes extended credit facility to $1.584B
Prospect Capital Corporation (NASDAQ:PSEC) announced on Friday that Prospect’s preferred stock offerings have exceeded $1B in aggregate liquidation preference issuances since the initial closing in the quarter ending December 31, 2020. The ongoing offering of the Series A1, M1, and M2 Preferred Stock being raised in the private wealth, institutional, and Registered Investment Advisor channels has approximately $645M now available for sale. The company entered into an extension and upsizing of the revolving credit facility for Prospect Capital Funding LLC which will become effective on September 15, 2022. The company extended the term five years and the revolving period four years from such effective date, changes the interest rate on drawn amounts from one-month LIBOR plus 2.05% to one-month Term SOFR plus 2.05% and increases the accordion feature, which allows the Facility, at Prospect's discretion, to accept additional commitments for up to a total of $2B of commitments. Credit facility has been upsized from $1.5B of commitments from 43 lenders to $1.584B of commitments from 44 lenders. After extension effect, the facility will mature on September 15, 2027 and will include a revolving period that extends through September 15, 2026, followed by an additional one-year amortization period.Seeking Alpha • Aug 29
Prospect Capital NII EPS of $0.21 beats by $0.03, total Investment Income of $184.62M beats by $8.02M
Prospect Capital press release (NASDAQ:PSEC): Q4 NII EPS of $0.21 beats by $0.03. Total Investment Income of $184.62M (+17.3% Y/Y) beats by $8.02M. Shares +0.13% AH.Seeking Alpha • Aug 21
The Best Way To Invest In Prospect Capital
The bond market crash has driven many bargains, especially for investment grade bonds. Prospect Capital has many investment grade bonds with annual yields/returns between 4.1% (7 months) and 7.6% (6 years). This article provides historical "interest expense" and "asset coverage" ratios for PSEC and compares to the BDCs covered in the previous articles. PSEC common shares are likely overpriced, driving a yield of only 8.9% (below the average BDC). However, the bonds might be appropriate, especially considering they have relatively higher yields for similar durations, as shown below. The BDC sector is highly regulated with plenty of protections for investors, especially bondholders, as discussed below. Quick Introduction To Business Development Companies ("BDCs") Business development companies ("BDCs") invest shareholder capital in privately owned, small- and medium-sized U.S. companies. BDCs aim to generate income and capital gains when the companies they invest in are sold, much like venture capital or private equity funds. Anyone can invest in BDCs, as they are public companies traded on major stock exchanges. BDC Buzz Investment Grade BDC Bonds/Notes Many BDCs have investment grade ("IG") bonds/notes for lower-risk investors that do not mind lower yields/returns. Thanks to the recent declines in fixed income, the traditional bond market is now offering some excellent values, especially in the BDC sector, and I will discuss over the coming weeks. However, many of these bonds are now rebounding and I have started making purchases of mid duration maturities, which for me is between 3 and 6 years. This article discusses Prospect Capital (PSEC) and many of its bonds, including its 2028 bond, which is currently priced at $79.67, implying a value of $796.70 for each bond. For more information on examples of how to trade bonds using CUSIPs and limit orders, please see the article linked below. Most BDC bonds (including PSEC) have credit ratings from Moody's and/or S&P and so far, no BDC has ever defaulted for the reasons discussed in: Recession Proofing With Investment Grade Bonds As shown below, BDCs are highly regulated with plenty of protections for investors in the common stock and debt obligations, such as the amount of leverage (asset coverage ratios discussed later), asset diversification, and having a portfolio that can "generate sufficient cash flows to pay interest as well as dividends to equity investors junior to debt holders". The following is from PSEC's investor presentation: PSEC Prospect Capital's Investment Grade Bonds PSEC has many investment grade notes (including CUSIPs: 74348TAJ1, 74348TAS1, 74348TAT9, 74348TAU6, 74348TAV4, and 74348TAW2) with annual yields/returns between 4.1% (7 months) and 7.6% (6 years). These bonds are rated investment grade by S&P, Moody's, Kroll, DBRS, and Egan Jones: PSEC As discussed in the previously linked article, the "Asset Coverage Ratio" is a financial metric that measures how well a company can repay its debts by selling or liquidating its assets. The higher the asset coverage ratio, the more times a company can cover its debt. Therefore, a company with a high asset coverage ratio is considered less risky than a company with a low asset coverage ratio. BDCs are required to maintain minimum asset coverage of 150% providing strong protection to bondholders, which is one of the reasons that no publicly traded BDC has ever filed for bankruptcy nor defaulted on bond holders in the history of the sector. PSEC has not reported June 30, 2022, results. As of March 31, 2022, PSEC's asset coverage ratio was 230% which is considered higher-than-average as discussed at the end of this article. BDC Buzz It's interesting to note that the company typically does not include its convertible preferred when calculating leverage and counts as "equity": PSEC On July 11, 2022, PSEC announced that its preferred stock offerings exceeded $800 million in aggregate liquidation preference issuances. For common shareholders, the perpetual preferred shares create additional risks as the preferred is cumulative and has to be paid in full before common stock shareholders receive their distributions. The preferred stockholders have the option to convert into common at any time (at prices below NAV). Also, PSEC could redeem these shares at “any time” by converting into common stock based on the most recent five-day trading price. This could be another way for management to issue additional shares below NAV. Also, management is actively issuing these preferred shares and currently does not include the dividends paid on these when calculating adjusted earnings for press releases, as discussed next. The "Interest Expense Coverage" ratio is used to see how well a company can pay the interest on outstanding debt. Also called the times-interest-earned ratio, this ratio is used by creditors and prospective lenders to assess the risk of lending capital to a firm. A higher coverage ratio is better, although the ideal ratio may vary by industry. When a company's interest coverage ratio is only 1.5 times or lower, its ability to meet interest expenses may be questionable. PSEC's interest expense coverage ratio has historically averaged around 3.0 times, as shown below: BDC Buzz Each quarter, PSEC announces net investment income (“NII”) which does not include the convertible preferred stock dividend. However, this has been accounted for in the ratios provided above. After taking this into account, the adjusted NII is now around 11% lower. I am pointing this out because this discrepancy will continue to grow larger as the company issues additional preferred stock. This was discussed on a previous call: Q. “Has there been any internal discussions regarding maybe an adjusted NII figure that takes out the preferred dividend again, given that it's recurring and impacts common shareholder dividend coverage.” A. “Sure. It's a great question. It's something we have an active dialogue about. It's fairly simple arithmetic to the preferred interest rate, which is another item shown on the income statement. But it's something we'll keep talking about.” Source: PSEC Investor Call I will continue to add each BDC to the following table comparing to PSEC to ARCC and MAIN which were discussed in the previous articles: Ares Capital: 9% Stock Yield Or 6% For Its IG Bonds Fixed 6.5% Return On Main Street's Investment Grade Bond Please see below for discussion of PSEC's "Portfolio Quality". BDC Buzz Current Yields For Common Stock and Bonds PSEC is currently paying a monthly dividend of $0.06 or $0.72 annually, which is a yield of 8.9%. The following table shows the current annual dividends divided by NAV per share as a simple proxy for current returns on equity ("ROE") to shareholders. BDCs with higher risk should be able to deliver higher returns through increased portfolio yields. Conversely, lower-risk BDCs have lower portfolio yields due to safer assets/investments, which is why many of the safer BDCs have lower return ratios. However, many of the other BDCs with lower return ratios are due to higher operating costs (including PSEC) and/or credit issues driving lower prices paid by investors. It should also be noted that I think PSEC management uses aggressive valuations for some of its equity investments, as discussed later, and is partially responsible for having a lower payout ratio relative to its inflated NAV per share. BDC Buzz PSEC's 2028 bond was trading around 77 on July 20, 2022, and is now almost 80 but still yielding over 7.6% (as of August 18, 2022). It is important to note that is a 4% gain (from 77 to 80) and you are still getting a yield-to-maturity of over 7.6% for new purchases: FINRA FINRA FINRA The following chart is from the BDC Google Sheets showing PSEC's bonds and I will continue to cover many other BDCs listed below, including their asset and interest expense coverage ratios. It is interesting to note that many of PSEC's bonds are currently at relatively higher yields for similar maturities and likely related to having a lower quality portfolio as discussed next. BDC Google Sheets PSEC Portfolio Credit Quality I consider PSEC to have a higher risk portfolio mostly related to its aggressive valuation policies driving continued unrealized appreciation related to the same control/affiliate investments as previous quarters (National Property REIT during the previously reported quarter - March 31, 2022).Seeking Alpha • Aug 08
Prospect Capital: Deep Value Alert, Dividend Hike Could Come Soon
Prospect Capital's net investment income is on the rise and is now well above its payout level of 18 cents per quarter. This is another in a series of stock picks with a theme - Margin of Safety stocks for a weak global economy. We will dive into why Prospect Capital is the best value in the BDC - Business Development Company sector. The BDC sector should outperform other sectors in a rising interset rate environment. The US economy may currently be in recession as we have had 2 consecutive quarters of negative GDP. Interest rates and borrowing costs have been rising around the globe. How can investors position their portfolio for the predicted weak global economic growth for the rest of 2022? Prospect Capital (PSEC) is our 2nd pick for 2022. You can read our 1st pick for 2022: Olympic Steel (ZEUS). This article is part of a new series of articles with the theme of stock picks for higher interest rates, inflation and weak growth. The main driver of our stock picks for the rest of 2022 will be the "Margin of Safety" concept pioneered by Benjamin Graham. Benjamin Graham was an investor and is generally considered the father of security analysis and value investing. Margin of safety is the principle of buying a security at a significant discount to its intrinsic value, which is thought to not only provide high-return opportunities but also minimize the downside risk of an investment. In simple terms, Graham's goal was to buy assets worth $1 for 50 cents. He did this very, very well. Prospect Capital's Profile Prospect Capital invests primarily in first-lien and second-lien senior loans and mezzanine debt, which in some cases include an equity component. It provides capital to middle-market companies and private equity financial sponsors for refinancings, leveraged buyouts, acquisitions, recapitalizations, later-stage growth investments, and capital expenditures. It seeks to invest between $10M to $500M per transaction in companies with EBITDA between $5M and $150M, sales value between $25M and $500M, and enterprise value between $5M and $1000M. It funds also co-invests for larger deals. It's one of the largest BDCs, with $7.5B in assets under management. PSEC has made over 375 investments totaling more than $18.7 billion of capital with 127 current portfolio companies spanning 39 separate industries. Prospect Capital's website Prospect Capital is a publicly-traded closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. PSEC completed its initial public offering in 2004. Since their creation by Congress in 1980, BDCs have become an important source of capital by lending to American businesses that might not otherwise obtain financing from the banking or capital markets. Our industry today has grown to approximately 50 publicly traded BDCs, which pay no corporate income tax if, among other requirements, they distribute at least 90% of their taxable income to shareholders. BDCs are regulated under the Securities Act of 1933 and the Investment Company Act of 1940. As a result, shareholders of BDCs receive the investor protections of our securities laws while having an opportunity to participate in the types of investments that otherwise are only available to deep-pocketed investors through private partnerships. For many of the companies in which a BDC invests, traditional sources of financing like bank lending or public offerings are unavailable. BDCs are also required to offer managerial assistance to the companies in which they invest. In summary, BDCs provide substantial benefits to the American economy, providing an alternative source of capital for small-sized and medium-sized private companies subject to public disclosure and transparency. BDCs also serve as a tax-efficient and income-oriented investment vehicle for shareholders. Prospect Capital's Financials And Trends Prospect Capital is one of the largest BDCs, with $7.5B in assets under management. Prospect Capital has 127 current portfolio companies spanning 39 separate industries and non-accrual loans remain low at 0.4%. Here is a look at Prospect Capital's financial metrics for the past year: Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Net Investment Income - NII $73,402 $73,229 $81,369 $85,557 $87,005 Shares Outstanding 387,400 388,400 389,500 390,600 391,700 NII per share $0.189 $0.189 $0.209 $0.219 $0.222 Dividend per share $0.180 $0.180 $0.180 $0.180 $0.180 Dividend coverage 105.26% 104.74% 116.06% 121.69% 123.40% GAAP earnings $246,008 $242,421 $209,724 $246,441 $157,157 Shares Outstanding 387,400 388,400 389,500 390,600 391,700 EPS $0.635 $0.624 $0.538 $0.631 $0.401 NAV per share $9.38 $9.81 $10.12 $10.60 $10.81 Total Debt $2,160 $2,233 $2,079 $2,360 $2,589 Debt to equity ratio 56.50% 55.90% 48.20% 51.30% 53.90% Unsecured debt % of total debt 84.30% 100.00% 96.00% 80.30% 73.30% Prospect Capital's 10-Q Our key trends of note: NII is up 18% from a year ago, and now sustained over 20 cents for 3 straight quarters. Dividend coverage is now at 123%. NAV per share up a healthy 15% even after Prospect Capital paying its 9% monthly dividends. Total debt up 20% from a year ago, but Debt to Equity falling from a year ago and below 55%. This is the lowest debt to equity in the BDC space. Unsecured debt is still over 70% of the capital stack, one of the best in the BDC space. While we will expand later in this article, one can see the direct relationship between the amount of debt and the amount of Net Investment Income - NII. This makes sense, the more you borrow, the more you can lend out to your portfolio companies. This is a significant advantage for Prospect Capital as it has the lowest debt levels of any BDC, hence can now borrow more going forward, increasing its NII and dividend. Prospect Capital is also a bit different than many other BDCs as they also invest directly in equity positions of some of their portfolio companies. These equity investments are 23% of Prospect Capital's portfolio. Here are their top 5 equity holdings: Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 National Property REIT Corp. $1,084,385 $1,189,755 $1,239,596 $1,223,798 $1,528,576 First Tower Finance Company LLC $579,086 $592,356 $611,228 $625,097 $645,156 InterDent, Inc. $363,399 $412,339 $451,344 $448,134 $409,757 Valley Electric Company, Inc. $145,707 $149,695 $142,919 $146,517 $148,367 Credit Central Loan Company, LLC $71,144 $78,023 $88,469 $89,525 $86,156 Top 5 totals $2,243,721 $2,422,168 $2,533,556 $2,533,071 $2,818,012 Prospect Capital's 10-Qs As we can see from the above data, Prospect Capital's top 5 holdings have increased in value by about 25% from a year ago. This is the best performance in the BDC space. Also of note is that these top 5 equity positions are a large % of Prospect Capital's total equity holdings. One could argue that this is not a very diversified asset based, but we could argue that just having a significant amount of investment in equity is more diversified than the other BDCs players that are 100% loan machines. Of the top 5 holdings, one stands out as its largest investment - National Property REIT Corp or NPRC. NPRC's real estate portfolio consists of equity investments in 58 properties in 47 cities, across 19 states, aggregating more than 20.6 million rentable square feet and more than 22,000 units. NPRC website So basically, NPRC is a multifamily housing REIT. Again, this goes back to our theme of "Margin of Safety" for investing in today market of interest rates rising quickly - like mortgage rates. With mortgage rates rising a record 24% in just 1 month after the federal Reserve announced its rates to move higher. These much higher borrowing costs for buying a home has caused severe market dislocations, forcing many potential home buyers out of the market and into the multifamily rental market - and NPRC could not be more pleased to help! This is a great set-up for Prospect Capital, as it has seen a 40% increase in value from its investment in NPRC. This is one of the many reasons I like owning Prospect Capital stock. I receive my 9% monthly dividend, plus own assets like the growing NPRC. Even better is Prospect Capital's DRIP program with a 5% discount. Will Prospect Capital raise its Dividend soon? We will soon get the answer to this question. Looking at the trends and financial metrics above, we believe there is a greater than 50% chance that Prospect Capital will raise its dividend this month. BDCs were created by Congress to encourage investment in the real economy, and both benefit from preferential tax treatment, paying no income tax at the corporate level so long as they pay out at least 90% of their net income as dividends. Finally, a BDC's net investment income (NII) is what funds the dividend. NII represents a BDC's total investment income reduced by operating expenses such as financing costs and management fees. So, the 90% rule may "push" Prospect Capital into raising its dividend. Prospect Capital has paid out 6 cents per month now for 5 years - or 18 cents per quarter. It NII has been at or just slightly above that 18-cent level for quite a while. For the 2021 March and June quarters, Prospect Capital earned .189 cents of NII, so above the 90% threshold. Then as stated above, Prospect Capital started increasing its debt load and invested in more loans to its portfolio companies increasing its NII. Now we see a higher NII for Prospect Capital - .209 for Q3 2021, .219 for Q4 2021, and .222 for Q1 2022. So, for 3 consecutive quarters, we would be below that 90% level of dividends. Prospect Capital for the past year has been growing its NII, and can easily continue this trend by increase its very low level of debt. We do not know what exact legal requirements for this 90% rule, so we will have to wait and see if Prospect Capital increases its dividend. Prospect Capital also has issued preferred share that may factor into this rule. Prospect Capital's Margin of Safety So, as we can see from the above data points, Prospect Capital is growing its earnings, NII, NAV while keeping its debt at lower levels than other BDCs. So what are our Margin of Safety talking points? Like in our last article on a small US based steel firm Olympic Steel, Prospect Capital is trading well below its liquidation value - 30% below NAV. Net Asset Value for a BDC is a good proxy for liquidation value in our opinion. These BDC's firms own loans and equity positions that can be sold and are "fungable" and sellable. It would obviously take time to unwind all these assets. For other data points on Prospect Capital's Margin of Safety, I will provide direct quotes from their last conference call: John Barry CEO: In the March quarter, our net debt-to-equity ratio was 53.9%, down 20.2 percentage points from March 2020 and up 2.6 percentage points from the December quarter as we continue to run an underleveraged balance sheet, which has been the case for us for multiple quarters. Over the past four years, other listed BDCs overall have increased leverage with a typical listed BDC now at around 114% debt to total equity or approximately 60 percentage points higher than for Prospect. Running at half the debt leverage of the rest of the industry So Prospect Capital has 50% less debt than the other BDCs - Safety... We have no plans to increase our actual drawn debt leverage beyond our historical target of 0.70 to 0.85 debt to equity, and we are currently significantly below such target range. Prospect's balance sheet is highly differentiated from peers with 100% of Prospect's funding coming from unsecured and nonrecourse debt, which has been the case for Prospect for more than 14 years. Prospect's management is the largest shareholder in Prospect and has never sold a share. Our senior management team and employees eat our own cooking, currently owning approximately 28% of shares outstanding We like a management team that stays invested in its own shares - Margin of Safety...Seeking Alpha • Jul 20
Opportunity: Investment Grade Bond, +8% Yield From Prospect Capital
An explanation of how traditional bonds work and how they differ from baby bonds. We discuss how to locate information on traditional bonds. A favorite traditional bond – the deeply discounted 2028 Prospect Capital investment-grade bond with an 8% yield-to-maturity. Co-produced with Preferred Stock Trader How Traditional Bonds differ from Baby Bonds When speaking of “traditional” bonds, we are speaking of bonds that do not trade on the stock exchanges as baby bonds do. The differences between traditional bonds and baby bonds are as follows: Traditional bonds typically have a face value or maturity value of $1,000 where baby bonds commonly have a $25 maturity value (although not always). Traditional bonds all have unique CUSIP numbers, and they trade using this CUSIP number, whereas baby bonds are traded via ticker symbols. Traditional bonds may or may not have call dates, whereas baby bonds are almost all callable prior to their maturity date (convertible baby bonds usually are not callable early, however those are rare). Traditional bonds pro-rate the interest payment based on the purchase date. Baby bonds do not prorate, as the owner of the baby bond on the record date gets the whole interest payment, even if they purchased it just a few days ago. Traditional bonds generally pay interest semi-annually and baby bonds usually pay interest quarterly. Baby bond issuances are often not large, often having a face value of less than $100 million. Traditional bonds tended to be much larger issuances, but this isn’t a hard and fast rule. In my experience, most traditional bonds have credit ratings from Moody’s and/or S&P, while most baby bonds are not rated. Traditional bonds are available in various sizes, or “face value”, most frequently at $1,000. Bond brokers will express the trading “price” as a percentage of the face value. So when a $1,000 bond is quoted at 78.35 (78.35% of $1,000), then the price that you will pay is $783.50. When you see that the bid/ask on a bond is $92/$94, that means that someone is bidding $920 for the bond, while someone is looking to sell the bond at $940. Researching Bonds The best place for finding the CUSIP of a bond, and other information about a bond, is at FINRA (Financial Industry Regulatory Authority). When you follow this link, you then click on “Search” and this is what you see. FINRA You can then search by company name or by CUSIP number. In the above example, I used the issuer name (Prospect Capital) and then clicked on “Show Results” and here is what came up. FINRA It gives you a nice summary of each bond issued – maturity date, coupon rate, credit ratings, price, and yield. Then you can click on the bond that interests you most, and this is the detail page that opens: FINRA If you peruse the top of the display, you can see that the CUSIP number is provided, as well as the call date, the last price, the yield, and a historical price chart. A link to the trading history is also available. Underneath the price chart, you can see the Moody’s and S&P ratings, and further down you can see that this bond is callable on 8/15/2028 at $100.00 ($1,000.00). Once you know a bond’s CUSIP, you can create a Watchlist at FINRA. A very useful summary about a bond is available by entering the CUSIP at Bond Facts by FINRA Interest Payments In terms of how the interest payments work, as stated above, they are pro-rated and traditional bonds generally pay interest semi-annually. If the payout dates for a bond are June 30th and December 30th, and you purchased this bond on September 30th, 3 months after its last payment date, you would not only pay for the bond but also pay the seller 3 months of interest. So if the bond has an 8% coupon, and thus pays $80 per year in interest, you would pay the seller $20 per bond for the 3 months of accrued interest. But 3 months later you will get compensated by receiving 6 months ($40) worth of interest for holding the bond only 3 months. And when you sell, you will be paid by the buyer for the amount of interest accrued since the last payout date. Buying Bonds The one variable with traditional bonds is how to place buy and sell orders, but all brokers should know which bond you are referring to by the CUSIP number. Each broker may have a different method for placing orders and some brokers may also require a minimum number of bonds be purchased in order to place an order. Some may require that you place the order over the phone while some may accept online orders that have little flexibility. Your broker may give you a price and you either accept it or reject it. They might not allow for limit orders that can stay in effect until canceled. Quotes on bonds will vary among brokers, depending on which bonds they have in their inventory or have access to. Compare quotes if you have multiple brokerage accounts. A “depth of book” listing for a bond will show the various bid/ask prices and quantities. Your trade confirmation might be confusing, at first look. A purchase of ten $1,000 bonds, for example, may read as 10,000 @ 78.35, meaning that you paid 78.45% of 10,000 total face value = $7,835. The settlement will also include the accrued interest that is paid to the seller. It is not unusual for brokers to also include a commission fee or markup of $1 or $2 per bond in the transaction. There may be other brokers that have very good online trading platforms, but I am most familiar with Interactive Brokers. Their bond trading platform is superb. You can set up a screen of bonds that you follow and see in real-time the current bid/offer prices of each. And you place your orders very easily online. They accept limit orders, day orders, and good-till-canceled orders. It is just like trading a stock. In fact, you don’t even need to know the CUSIP number, as you can simply type in the name or ticker symbol of the company that issued the bond and it will bring up all bonds issued by that company, and you can add whichever of those bonds you want to your trading screen and follow them regularly like you would a stock. I own no stock in Interactive Brokers, so I have no financial incentive to say this, but if you think you will be buying traditional bonds, I do recommend an account at Interactive Brokers. Additionally, for most bonds they do not have a minimum purchase requirement, so if all you want to buy is two bonds, you can do that. Prospect Capital Bond Due 8/15/2028 CUSIP 74348TAW2 I have noticed that the bonds trading in the bond market are now more attractive than baby bonds. In the past, baby bonds generally provided higher yields than equivalent traditional bonds, but for some reason this bear market has changed that. In the past, there were a large number of baby bonds from BDCs (Business Development Companies). These were excellent bonds because BDCs are restricted in how much leverage they can take, and thus no BDC bond has ever defaulted. But most BDC baby bonds have been called in recent years making it much more difficult to find high-yielding and safe baby bonds. But there are a lot of traditional bonds that trade by CUSIP that look like good values. One stands out to us, not just because of its high yield relative to equivalently rated bonds, but also because it is liquid with a narrow spread between the bid and offer price. This bond is from Prospect Capital (PSEC). As can be seen in our examples above, this PSEC bond (CUSIP 74348TAW2) has a coupon of 3.437% but trades well below the $100 par value at around $77.60. Amazingly, this bond came out just 10 months ago with a YTM (yield-to-maturity) of 3.437% but now can be purchased with a YTM of 8%. This shows you just how much damage has been done in the fixed-income market in a short period of time.Seeking Alpha • Jun 26
Prospect Capital: A Dividend Cut Could Come Soon
Prospect Capital’s book value discount has widened to 32%. Portfolio is still well performing, but growing BV discount implies that investors are concerned about recession-driven book losses. Prospect Capital may have to cut its dividend again.Seeking Alpha • Apr 28
Prospect Capital: The Superstar Stock You Do Not Want To Miss
Prospect Capital Corporation is a business development company that focuses on funding small to mid-sized American businesses through equity and debt financing. PSEC holds low risk, given its highly diversified nature, and has stellar financial performance, making it a sustainable investment option. Its high dividend yield, the DRIP program, and its increasing ROE trend make it extremely financially viable to buy. In comparison to similar-sized capital management stocks, the price shows clear signs of being heavily undervalued.Seeking Alpha • Feb 13
Prospect Capital: 8% Yield, 21% Discount, Steady Dividends
PSEC yields 8.64% and pays monthly. It's selling a 21.42% discount to NAV. Valuations, Performance, Profitability & Leverage vs. the BDC industry are all covered in this article.Seeking Alpha • Jan 06
Prospect Capital: A Value Trap
Prospect Capital’s stock trades at a 17% NAV discount. Prospect Capital has previously bled a significant portion of its net asset value, so the discount is far from adequate to compensate for business and portfolio risks. The dividend may be reduced again during the next recession.Seeking Alpha • Sep 07
Prospect Capital: Preferred Offers Attractive Risk-Reward
We take a look at the recently issued Prospect Capital Corp. 5.25% preferred PSEC.PA. The stock has struggled, continuing to trend lower and is trading at a 5.7% yield despite a BB credit rating, high coverage, low leverage and a primarily secured loan portfolio. We find the stock much more attractive relative to PSEC debt and discuss some of the potential reasons why it has not yet found favor.Seeking Alpha • Aug 29
Prospect Capital: 9% Yield, 18% Discount, Monthly Payer
PSEC yields 8.96%, with coverage rising to 1.17X in Q2 '21, and averaging 1.5X during the past four quarters. It's trading at an -18% discount to NAV/share, much lower than the BDC industry average. Management declared steady monthly dividends through October.Seeking Alpha • Jul 19
Prospect Capital: Not Yet A Buy But No Longer Fool's Gold
Despite my prediction 3 years ago, PSEC hasn't cut the dividend again. NAV is increasing and the dividend has been covered over the last year. Management has a long track record of poor performance that the last year isn't enough to erase. I'll wait for more good performance before buying even though the price does look good.Ventilation des recettes et des dépenses
Ventilation des recettes et des dépenses
Comment Prospect Capital gagne et dépense de l'argent. Sur la base des derniers bénéfices déclarés, sur une base LTM.
Historique des gains et des recettes
| Date | Recettes | Les revenus | Dépenses G+A | Dépenses de R&D |
|---|---|---|---|---|
| 31 Mar 26 | 651 | -162 | 191 | 0 |
| 31 Dec 25 | 671 | -356 | 202 | 0 |
| 30 Sep 25 | 681 | -381 | 210 | 0 |
| 30 Jun 25 | 719 | -594 | 232 | 0 |
| 31 Mar 25 | 765 | -376 | 248 | 0 |
| 31 Dec 24 | 796 | -91 | 265 | 0 |
| 30 Sep 24 | 822 | -112 | 278 | 0 |
| 30 Jun 24 | 862 | 147 | 282 | 0 |
| 31 Mar 24 | 871 | 143 | 282 | 0 |
| 31 Dec 23 | 884 | -80 | 289 | 0 |
| 30 Sep 23 | 886 | 27 | 284 | 0 |
| 30 Jun 23 | 852 | -172 | 283 | 0 |
| 31 Mar 23 | 815 | -215 | 278 | 0 |
| 31 Dec 22 | 782 | 51 | 267 | 0 |
| 30 Sep 22 | 744 | 242 | 259 | 0 |
| 30 Jun 22 | 711 | 557 | 250 | 0 |
| 31 Mar 22 | 684 | 856 | 239 | 0 |
| 31 Dec 21 | 662 | 945 | 228 | 0 |
| 30 Sep 21 | 659 | 1,004 | 224 | 0 |
| 30 Jun 21 | 632 | 962 | 216 | 0 |
| 31 Mar 21 | 620 | 882 | 214 | 0 |
| 31 Dec 20 | 615 | 451 | 209 | 0 |
| 30 Sep 20 | 605 | 133 | 209 | 0 |
| 30 Jun 20 | 624 | -16 | 209 | 0 |
| 31 Mar 20 | 643 | -140 | 212 | 0 |
| 31 Dec 19 | 659 | 135 | 219 | 0 |
| 30 Sep 19 | 685 | 79 | 228 | 0 |
| 30 Jun 19 | 704 | 144 | 234 | 0 |
| 31 Mar 19 | 713 | 220 | 235 | 0 |
| 31 Dec 18 | 705 | 183 | 235 | 0 |
| 30 Sep 18 | 680 | 372 | 221 | 0 |
| 30 Jun 18 | 658 | 300 | 217 | 0 |
| 31 Mar 18 | 651 | 237 | 215 | 0 |
| 31 Dec 17 | 659 | 204 | 220 | 0 |
| 30 Sep 17 | 680 | 184 | 226 | 0 |
| 30 Jun 17 | 701 | 253 | 231 | 0 |
| 31 Mar 17 | 727 | 297 | 237 | 0 |
| 31 Dec 16 | 746 | 353 | 235 | 0 |
| 30 Sep 16 | 772 | 157 | 243 | 0 |
| 30 Jun 16 | 792 | 103 | 251 | 0 |
| 31 Mar 16 | 798 | 103 | 256 | 0 |
| 31 Dec 15 | 800 | 109 | 260 | 0 |
| 30 Sep 15 | 789 | 290 | 258 | 0 |
| 30 Jun 15 | 791 | 346 | 255 | 0 |
Des revenus de qualité: PSEC n'est actuellement pas rentable.
Augmentation de la marge bénéficiaire: PSEC n'est actuellement pas rentable.
Analyse des flux de trésorerie disponibles par rapport aux bénéfices
Analyse de la croissance passée des bénéfices
Tendance des revenus: PSEC n'est pas rentable et les pertes ont augmenté au cours des 5 dernières années à un rythme de 71.9% par an.
Accélération de la croissance: Impossible de comparer la croissance des bénéfices de PSEC au cours de l'année écoulée à sa moyenne sur 5 ans car elle n'est actuellement pas rentable
Bénéfices par rapport au secteur d'activité: PSEC n'est pas rentable, ce qui rend difficile la comparaison de sa croissance des bénéfices de l'année écoulée avec celle du secteur Capital Markets ( 36.1% ).
Rendement des fonds propres
ROE élevé: PSEC a un retour sur capitaux propres négatif ( -0.83% ), car il n'est actuellement pas rentable.
Rendement des actifs
Rendement des capitaux employés
Analyse de l'entreprise et données financières
| Données | Dernière mise à jour (heure UTC) |
|---|---|
| Analyse de l'entreprise | 2026/05/22 13:19 |
| Cours de l'action en fin de journée | 2026/05/22 00:00 |
| Les revenus | 2026/03/31 |
| Revenus annuels | 2025/06/30 |
Sources de données
Les données utilisées dans notre analyse de l'entreprise proviennent de S&P Global Market Intelligence LLC. Les données suivantes sont utilisées dans notre modèle d'analyse pour générer ce rapport. Les données sont normalisées, ce qui peut entraîner un délai avant que la source ne soit disponible.
| Paquet | Données | Cadre temporel | Exemple de source américaine * |
|---|---|---|---|
| Finances de l'entreprise | 10 ans |
| |
| Estimations consensuelles des analystes | +3 ans |
|
|
| Prix du marché | 30 ans |
| |
| Propriété | 10 ans |
| |
| Gestion | 10 ans |
| |
| Principaux développements | 10 ans |
|
* Exemple pour les titres américains ; pour les titres non américains, des formulaires réglementaires et des sources équivalentes sont utilisés.
Sauf indication contraire, toutes les données financières sont basées sur une période annuelle mais mises à jour trimestriellement. C'est ce qu'on appelle les données des douze derniers mois (TTM) ou des douze derniers mois (LTM). En savoir plus.
Modèle d'analyse et flocon de neige
Les détails du modèle d’analyse utilisé pour générer ce rapport sont disponibles sur notre page Github; nous proposons également des guides expliquant comment utiliser nos rapports et des tutoriels sur Youtube.
Découvrez l'équipe de classe mondiale qui a conçu et construit le modèle d'analyse Simply Wall St.
Indicateurs de l'industrie et du secteur
Nos indicateurs de secteur et de section sont calculés toutes les 6 heures par Simply Wall St. Les détails de notre processus sont disponibles sur Github.
Sources des analystes
Prospect Capital Corporation est couverte par 15 analystes. 1 de ces analystes ont soumis les estimations de revenus ou de bénéfices utilisées comme données d'entrée dans notre rapport. Les soumissions des analystes sont mises à jour tout au long de la journée.
| Analyste | Institution |
|---|---|
| Kannan Venkateshwar | Barclays |
| Mark DeVries | Barclays |
| David Chiaverini | BMO Capital Markets Equity Research |