PSEC

Prospect CapitalNasdaqGS:PSEC Stock Report

Market Cap

US$3.1b

7D

0.4%

1Y

54.6%

Updated

16 Sep, 2021

Data

Company Financials +
PSEC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance3/6
Financial Health2/6
Dividends3/6

PSEC Overview

Prospect Capital Corporation is a business development company.

Prospect Capital Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Prospect Capital
Historical stock prices
Current Share PriceUS$7.84
52 Week HighUS$4.91
52 Week LowUS$9.25
Beta0.94
1 Month Change-3.80%
3 Month Change-6.89%
1 Year Change54.64%
3 Year Change6.09%
5 Year Change-5.09%
Change since IPO-47.73%

Recent News & Updates

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.

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.

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.

Jun 18

Prospect Capital: 8% Yield, 5% Discount, Outperforming Monthly Payer

PSEC yields 8.10%. Mgt. already declared steady monthly dividends through August. It's trading at a -5.22% discount to NAV/share, much lower than the BDC industry avg.

May 10

Prospect Capital NII beats by $0.02, beats on total investment income

Prospect Capital (PSEC): Q3 GAAP NII of $0.19 beats by $0.02.Total investment income of $159.46M (+3.2% Y/Y) beats by $8.33M.Press Release

Shareholder Returns

PSECUS Capital MarketsUS Market
7D0.4%-0.8%-0.6%
1Y54.6%63.2%33.6%

Return vs Industry: PSEC underperformed the US Capital Markets industry which returned 63.9% over the past year.

Return vs Market: PSEC exceeded the US Market which returned 33.7% over the past year.

Price Volatility

Is PSEC's price volatile compared to industry and market?
PSEC volatility
PSEC Beta0.94
Industry Beta1.19
Market Beta1

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

Volatility Over Time: PSEC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2004n/aJohn Barryhttps://www.prospectstreet.com

Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, market place lending and bridge transactions. It also makes real estate investments particularly in multi-family residential real estate asset class.

Valuation

Is Prospect Capital undervalued compared to its fair value and its price relative to the market?

3.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PSEC ($7.84) is trading above our estimate of fair value ($5.58)

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 (3.2x) compared to the US Capital Markets industry average (15.3x).

PE vs Market: PSEC is good value based on its PE Ratio (3.2x) compared to the US market (17.8x).


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 (61.2x).

Future Growth

How is Prospect Capital forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-62.4%

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 (-62.4% per year).

Earnings vs Market: PSEC's earnings are forecast to decline over the next 3 years (-62.4% per year).

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

Revenue vs Market: PSEC's revenue (8.2% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: PSEC's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PSEC's Return on Equity is forecast to be low in 3 years time (7.8%).

Past Performance

How has Prospect Capital performed over the past 5 years?

19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSEC has a large one-off gain of $678.1M impacting its June 30 2021 financial results.

Growing Profit Margin: PSEC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PSEC's earnings have grown by 19.4% per year over the past 5 years.

Accelerating Growth: PSEC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PSEC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (77.4%).


Return on Equity

High ROE: PSEC's Return on Equity (24.4%) is considered high.

Financial Health

How is Prospect Capital's financial position?


Financial Position Analysis

Short Term Liabilities: PSEC's short term assets ($90.2M) do not cover its short term liabilities ($124.1M).

Long Term Liabilities: PSEC's short term assets ($90.2M) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: PSEC's debt to equity ratio (56.6%) is considered high.

Reducing Debt: PSEC's debt to equity ratio has reduced from 77.6% to 56.6% over the past 5 years.

Debt Coverage: PSEC's debt is not well covered by operating cash flow (1.4%).

Interest Coverage: PSEC's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Dividend

What is Prospect Capital current dividend yield, its reliability and sustainability?

9.18%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 17 2021Ex Dividend DateSep 27 2021Dividend Pay DateOct 21 202124 days from Ex DividendBuy in the next 10 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PSEC's dividend (9.18%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: PSEC's dividend (9.18%) is in the top 25% of dividend payers in the US market (3.58%)


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 reasonably low payout ratio (28.6%), PSEC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSEC's dividends in 3 years are not forecast to be well covered by earnings (94.7% payout ratio).

Management

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

10.4yrs

Average management tenure


CEO

John Barry (69 yo)

17.42yrs

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

Experienced Management: PSEC's management team is seasoned and experienced (10.4 years average tenure).


Board Members

Experienced Board: PSEC's board of directors are seasoned and experienced ( 15.1 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 3.2%.


Top Shareholders

Company Information

Prospect Capital Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Prospect Capital Corporation
  • Ticker: PSEC
  • Exchange: NasdaqGS
  • Founded: 2004
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$3.051b
  • Shares outstanding: 389.13m
  • Website: https://www.prospectstreet.com

Location

  • Prospect Capital Corporation
  • 10 East 40th Street
  • 42nd Floor
  • New York
  • New York
  • 10016
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:53
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.