Is Prospect Capital undervalued compared to its fair value and its price relative to the market?
6.08x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PSEC ($7.33) is trading above our estimate of fair value ($5.07)
Significantly Below Fair Value: PSEC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: PSEC is good value based on its PE Ratio (6.1x) compared to the US Capital Markets industry average (23.8x).
PE vs Market: PSEC is good value based on its PE Ratio (6.1x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: PSEC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: PSEC is good value based on its PB Ratio (0.8x) compared to the US Capital Markets industry average (16.7x).
Future Growth
How is Prospect Capital forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
-23.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PSEC's earnings are forecast to decline over the next 3 years (-23.2% per year).
Earnings vs Market: PSEC's earnings are forecast to decline over the next 3 years (-23.2% per year).
High Growth Earnings: PSEC's earnings are forecast to decline over the next 3 years.
Revenue vs Market: PSEC's revenue (14.6% per year) is forecast to grow faster than the US market (10.1% per year).
High Growth Revenue: PSEC's revenue (14.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if PSEC's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Prospect Capital performed over the past 5 years?
-5.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PSEC has a large one-off gain of $186.2M impacting its December 31 2020 financial results.
Growing Profit Margin: PSEC's current net profit margins (73.3%) are higher than last year (20%).
Past Earnings Growth Analysis
Earnings Trend: PSEC's earnings have declined by 5.2% per year over the past 5 years.
Accelerating Growth: PSEC's earnings growth over the past year (241.6%) exceeds its 5-year average (-5.2% per year).
Earnings vs Industry: PSEC earnings growth over the past year (241.6%) exceeded the Capital Markets industry 10.4%.
Return on Equity
High ROE: PSEC's Return on Equity (13%) is considered low.
Financial Health
How is Prospect Capital's financial position?
Financial Position Analysis
Short Term Liabilities: PSEC's short term assets ($67.3M) do not cover its short term liabilities ($111.6M).
Long Term Liabilities: PSEC's short term assets ($67.3M) do not cover its long term liabilities ($2.1B).
Debt to Equity History and Analysis
Debt Level: PSEC's debt to equity ratio (61.7%) is considered high.
Reducing Debt: PSEC's debt to equity ratio has reduced from 80.1% to 61.7% over the past 5 years.
Debt Coverage: PSEC's debt is not well covered by operating cash flow (5.1%).
Interest Coverage: PSEC's interest payments on its debt are well covered by EBIT (3.1x coverage).
Balance Sheet
Dividend
What is Prospect Capital current dividend yield, its reliability and sustainability?
9.82%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: PSEC's dividend (9.82%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: PSEC's dividend (9.82%) is in the top 25% of dividend payers in the US market (3.72%)
Stability and Growth of Payments
Stable Dividend: PSEC's dividend payments have been volatile in the past 10 years.
Growing Dividend: PSEC's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (59.7%), PSEC's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Management
How experienced are the management team and are they aligned to shareholders interests?
9.9yrs
Average management tenure
CEO
John Barry (68 yo)
16.92yrs
Tenure
Mr. John Francis Barry, III, J.D. serves as Chairman and Chief Executive Officer of Pathway Capital Opportunity Fund Management, LLC. & Prospect Capital Corporation He serves as the Chief Executive Officer...
Leadership Team
Name
Position
Tenure
Compensation
Ownership
John Barry
Chairman & CEO
16.92yrs
no data
20.05% $ 566.8m
Michael Eliasek
President
16.75yrs
no data
0.37% $ 10.4m
Kristin Van Dask
CFO, Treasurer
2.92yrs
no data
0.011% $ 302.5k
Alexandra Krasinets
Vice President of Accounting
no data
no data
no data
Al Faella
Chief Technology Officer
no data
no data
no data
Daria Becker
Head of Administration
no data
no data
no data
Carlynn Finn
Vice President – Investor Relations
no data
no data
no data
Jonathan Li
Chief Compliance Officer and Deputy General Counsel
no data
no data
no data
Trisha Blackman
Deputy CCO
2.17yrs
no data
no data
Bart deBie
Managing Director
no data
no data
no data
Mark Hull
Principal
no data
no data
no data
David Belzer
Managing Director
no data
no data
no data
9.9yrs
Average Tenure
46.5yo
Average Age
Experienced Management: PSEC's management team is seasoned and experienced (9.9 years average tenure).
Board Members
Name
Position
Tenure
Compensation
Ownership
John Barry
Chairman & CEO
16.92yrs
no data
20.05% $ 566.8m
Michael Eliasek
President
16.75yrs
no data
0.37% $ 10.4m
William Gremp
Independent Director
10.92yrs
US$150.00k
0.0085% $ 240.6k
Andrew Cooper
Lead Independent Director
no data
US$150.00k
no data
Eugene Stark
Independent Director
12.5yrs
US$150.00k
0.012% $ 337.2k
14.6yrs
Average Tenure
62yo
Average Age
Experienced Board: PSEC's board of directors are seasoned and experienced ( 14.6 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.9%.
Top Shareholders
Company Information
Prospect Capital Corporation's company bio, employee growth, exchange listings and data sources
Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recap...
Company Analysis and Financial Data Status
All financial data provided by Standard & Poor's Capital IQ.
Data
Last Updated (UTC time)
Company Analysis
2021/03/04 23:48
End of Day Share Price
2021/03/04 00:00
Earnings
2020/12/31
Annual Earnings
2020/06/30
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.