| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 4/6 |
| Financial Health | 1/6 |
| Dividends | 5/6 |
PFLT Stock Overview
PennantPark Floating Rate Capital Ltd. is a business development company.
PennantPark Floating Rate Capital Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$13.08 |
| 52 Week High | US$13.92 |
| 52 Week Low | US$10.67 |
| Beta | 1.92 |
| 1 Month Change | 4.31% |
| 3 Month Change | -1.43% |
| 1 Year Change | 15.34% |
| 3 Year Change | 3.89% |
| 5 Year Change | -7.04% |
| Change since IPO | -2.39% |
Recent News & Updates
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.
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.
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.
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
| PFLT | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | -1.9% | -1.6% | -0.5% |
| 1Y | 15.3% | 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
| PFLT volatility | |
|---|---|
| PFLT Average Weekly Movement | 2.2% |
| Capital Markets Industry Average Movement | 0.7% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2010 | n/a | Art Penn | https://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
| PFLT fundamental statistics | |
|---|---|
| Market Cap | US$509.33m |
| Earnings (TTM) | US$56.52m |
| Revenue (TTM) | US$82.69m |
9.0x
P/E Ratio6.2x
P/S RatioIs PFLT overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PFLT income statement (TTM) | |
|---|---|
| Revenue | US$82.69m |
| Cost of Revenue | US$0 |
| Gross Profit | US$82.69m |
| Expenses | US$26.18m |
| Earnings | US$56.52m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 09, 2022
| Earnings per share (EPS) | 1.45 |
| Gross Margin | 100.00% |
| Net Profit Margin | 68.34% |
| Debt/Equity Ratio | 133.0% |
How did PFLT perform over the long term?
See historical performance and comparisonDividends
8.7%
Current Dividend Yield78%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 23:20 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/09/30 |
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.