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PFLT

PennantPark Floating Rate CapitalNasdaqGS:PFLT Stock Report

Last Price

US$13.08

Market Cap

US$509.3m

7D

-1.9%

1Y

15.3%

Updated

16 Jan, 2022

Data

Company Financials +
PFLT fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health1/6
Dividends5/6

PFLT Stock Overview

PennantPark Floating Rate Capital Ltd. is a business development company.

PennantPark Floating Rate Capital Competitors

Ares Capital

NasdaqGS:ARCC

US$9.9b

FS KKR Capital

NYSE:FSK

US$6.4b

Prospect Capital

NasdaqGS:PSEC

US$3.4b

Main Street Capital

NYSE:MAIN

US$3.1b

Price History & Performance

Summary of all time highs, changes and price drops for PennantPark Floating Rate Capital
Historical stock prices
Current Share PriceUS$13.08
52 Week HighUS$13.92
52 Week LowUS$10.67
Beta1.92
1 Month Change4.31%
3 Month Change-1.43%
1 Year Change15.34%
3 Year Change3.89%
5 Year Change-7.04%
Change since IPO-2.39%

Recent News & Updates

Oct 12

PennantPark Floating Rate Capital Is Set To Underperform

Sometimes the best investments are the ones that you don’t make. Avoid this name; it is one of them. PFLT has external management which has interests that may not be aligned with shareholders’; the fee structure is opaque and the returns are not as good as they should be. More than 80% of investments are reported at fair value as Level 3 assets, valued using volatile management assumptions. Right now the risk/reward balance is extremely negative and bulls should expect mediocre returns by holding this name.

Jul 29

PennantPark Floating Rate: This Overlooked Gem Is A Buy, Here's Why

PFLT is a well-managed BDC with a low base management fee, and a relatively safe portfolio structure comprised primarily of first-lien debt. Its book value has seen a recovery over the past 12 months and it has a favorable outlook for the deal pipeline. I also highlight the dividend, balance sheet, valuation, and other points worth considering.

Jun 21

PennantPark Floating Rate Capital names new finance chief

PennantPark Floating Rate Capital (PFLT) appoints Richard Cheung as its CFO and Treasurer, effective June 21, 2021.He most recently served as senior MD and head of alternative investment accounting at Guggenheim Partners where he has served in various roles since 2008.Company's current CFO and Treasurer, will move within the organization and remain in senior management where he will focus on company’s strategic growth initiatives.

May 06

PennantPark Floating Rate Capital 2021 Q2 - Results - Earnings Call Presentation

The following slide deck was published by PennantPark Floating Rate Capital in conjunction with their 2021 Q2 earnings call.

Shareholder Returns

PFLTUS Capital MarketsUS Market
7D-1.9%-1.6%-0.5%
1Y15.3%30.2%13.7%

Return vs Industry: PFLT underperformed the US Capital Markets industry which returned 30.2% over the past year.

Return vs Market: PFLT exceeded the US Market which returned 13.7% over the past year.

Price Volatility

Is PFLT's price volatile compared to industry and market?
PFLT volatility
PFLT Average Weekly Movement2.2%
Capital Markets Industry Average Movement0.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: PFLT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: PFLT's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2010n/aArt Pennhttps://pflt.pennantpark.com

PennantPark Floating Rate Capital Ltd. is a business development company. It seeks to make secondary direct, debt, equity, and loan investments.

PennantPark Floating Rate Capital Fundamentals Summary

How do PennantPark Floating Rate Capital's earnings and revenue compare to its market cap?
PFLT fundamental statistics
Market CapUS$509.33m
Earnings (TTM)US$56.52m
Revenue (TTM)US$82.69m

9.0x

P/E Ratio

6.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PFLT income statement (TTM)
RevenueUS$82.69m
Cost of RevenueUS$0
Gross ProfitUS$82.69m
ExpensesUS$26.18m
EarningsUS$56.52m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 09, 2022

Earnings per share (EPS)1.45
Gross Margin100.00%
Net Profit Margin68.34%
Debt/Equity Ratio133.0%

How did PFLT perform over the long term?

See historical performance and comparison

Dividends

8.7%

Current Dividend Yield

78%

Payout Ratio

Valuation

Is PennantPark Floating Rate Capital undervalued compared to its fair value and its price relative to the market?

4.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PFLT ($13.08) is trading below our estimate of fair value ($13.63)

Significantly Below Fair Value: PFLT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PFLT is good value based on its PE Ratio (9x) compared to the US Capital Markets industry average (15.9x).

PE vs Market: PFLT is good value based on its PE Ratio (9x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: PFLT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PFLT is good value based on its PB Ratio (1x) compared to the US Capital Markets industry average (42.4x).

Future Growth

How is PennantPark Floating Rate Capital forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFLT's earnings are forecast to decline over the next 3 years (-13% per year).

Earnings vs Market: PFLT's earnings are forecast to decline over the next 3 years (-13% per year).

High Growth Earnings: PFLT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PFLT's revenue (5.9% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: PFLT's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PFLT's Return on Equity is forecast to be low in 3 years time (9%).

Past Performance

How has PennantPark Floating Rate Capital performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFLT has a large one-off gain of $14.0M impacting its September 30 2021 financial results.

Growing Profit Margin: PFLT's current net profit margins (68.3%) are higher than last year (19.3%).


Past Earnings Growth Analysis

Earnings Trend: PFLT's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: PFLT's earnings growth over the past year (206.9%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: PFLT earnings growth over the past year (206.9%) exceeded the Capital Markets industry 86.4%.


Return on Equity

High ROE: PFLT's Return on Equity (11.5%) is considered low.

Financial Health

How is PennantPark Floating Rate Capital's financial position?


Financial Position Analysis

Short Term Liabilities: PFLT's short term assets ($89.2M) exceed its short term liabilities ($27.6M).

Long Term Liabilities: PFLT's short term assets ($89.2M) do not cover its long term liabilities ($652.6M).


Debt to Equity History and Analysis

Debt Level: PFLT's net debt to equity ratio (122.9%) is considered high.

Reducing Debt: PFLT's debt to equity ratio has increased from 62% to 133% over the past 5 years.

Debt Coverage: PFLT's debt is not well covered by operating cash flow (7.6%).

Interest Coverage: PFLT's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet

Dividend

What is PennantPark Floating Rate Capital current dividend yield, its reliability and sustainability?

8.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PFLT's dividend (8.72%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: PFLT's dividend (8.72%) is in the top 25% of dividend payers in the US market (3.44%)


Stability and Growth of Payments

Stable Dividend: PFLT's dividends per share have been stable in the past 10 years.

Growing Dividend: PFLT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.2%), PFLT's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PFLT's dividends in 3 years are not forecast to be well covered by earnings (99.6% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

10.8yrs

Average management tenure


CEO

Art Penn (58 yo)

12yrs

Tenure

Mr. Arthur Howard Penn, also known as Art, has been Chief Executive Officer of MCG Capital Corporation since August 18, 2015. Mr. Penn is the Founder of PennantPark Investment Advisers, LLC and served as i...


Leadership Team

Experienced Management: PFLT's management team is seasoned and experienced (10.8 years average tenure).


Board Members

Experienced Board: PFLT's board of directors are seasoned and experienced ( 11.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PennantPark Floating Rate Capital Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: PennantPark Floating Rate Capital Ltd.
  • Ticker: PFLT
  • Exchange: NasdaqGS
  • Founded: 2010
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Implied Market Cap: US$509.328m
  • Shares outstanding: 38.94m
  • Website: https://pflt.pennantpark.com

Location

  • PennantPark Floating Rate Capital Ltd.
  • 1691 Michigan Avenue
  • Miami Beach
  • Florida
  • 33139
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 23:20
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.