Prospect Capital
Market Cap
US$2.1b
Last Updated
2020/11/26 00:26 UTC
Data Sources
Company Financials +
Executive Summary
Prospect Capital Corporation is a business development company. More Details
Rewards
Snowflake Analysis
Similar Companies
Share Price & News
How has Prospect Capital's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PSEC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: PSEC's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
5.1%
PSEC
4.0%
US Capital Markets
2.8%
US Market
1 Year Return
-15.2%
PSEC
11.4%
US Capital Markets
19.7%
US Market
Return vs Industry: PSEC underperformed the US Capital Markets industry which returned 11.4% over the past year.
Return vs Market: PSEC underperformed the US Market which returned 19.7% over the past year.
Shareholder returns
| PSEC | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.1% | 4.0% | 2.8% |
| 30 Day | 6.6% | 11.7% | 8.0% |
| 90 Day | 7.8% | 9.6% | 6.8% |
| 1 Year | -3.8%-15.2% | 14.3%11.4% | 22.4%19.7% |
| 3 Year | 13.1%-19.5% | 31.2%21.0% | 47.3%37.5% |
| 5 Year | 34.7%-25.3% | 83.8%61.1% | 93.6%72.3% |
Long-Term Price Volatility Vs. Market
How volatile is Prospect Capital's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 years ago | Simply Wall St
Should You Buy Prospect Capital Corporation (NASDAQ:PSEC)?3 years ago | Simply Wall St
Is Prospect Capital Corporation's (PSEC) PE Ratio A Signal To Buy For Investors?3 years ago | Simply Wall St
Does Prospect Capital Corporation's (PSEC) 142.8% EPS Growth Reflect The Long-Term Trend?Valuation
Is Prospect Capital undervalued compared to its fair value and its price relative to the market?
15.34x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PSEC ($5.53) is trading above our estimate of fair value ($4.27)
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 (15.3x) compared to the US Capital Markets industry average (23.1x).
PE vs Market: PSEC is good value based on its PE Ratio (15.3x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: PSEC is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: PSEC is good value based on its PB Ratio (0.7x) compared to the US Capital Markets industry average (4.7x).
Future Growth
How is Prospect Capital forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
31.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PSEC's forecast earnings growth (31.6% per year) is above the savings rate (2.2%).
Earnings vs Market: PSEC's earnings (31.6% per year) are forecast to grow faster than the US market (22% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PSEC's revenue (4.1% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: PSEC's revenue (4.1% 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?
-16.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PSEC has a large one-off loss of $117.3M impacting its September 30 2020 financial results.
Growing Profit Margin: PSEC's current net profit margins (22.1%) are higher than last year (11.6%).
Past Earnings Growth Analysis
Earnings Trend: PSEC's earnings have declined by 16.2% per year over the past 5 years.
Accelerating Growth: PSEC's earnings growth over the past year (68.2%) exceeds its 5-year average (-16.2% per year).
Earnings vs Industry: PSEC earnings growth over the past year (68.2%) exceeded the Capital Markets industry 3%.
Return on Equity
High ROE: PSEC's Return on Equity (4.2%) is considered low.
Financial Health
How is Prospect Capital's financial position?
Financial Position Analysis
Short Term Liabilities: PSEC's short term assets ($43.1M) do not cover its short term liabilities ($95.2M).
Long Term Liabilities: PSEC's short term assets ($43.1M) do not cover its long term liabilities ($2.2B).
Debt to Equity History and Analysis
Debt Level: PSEC's debt to equity ratio (67.9%) is considered high.
Reducing Debt: PSEC's debt to equity ratio has reduced from 78.1% to 67.9% over the past 5 years.
Debt Coverage: PSEC's debt is not well covered by operating cash flow (9.7%).
Interest Coverage: PSEC's interest payments on its debt are not well covered by EBIT (3x coverage).
Balance Sheet
Dividend
What is Prospect Capital current dividend yield, its reliability and sustainability?
13.02%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PSEC's dividend (13.02%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: PSEC's dividend (13.02%) is in the top 25% of dividend payers in the US market (4.05%)
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 high payout ratio (199.8%), PSEC's dividend payments are not well 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?
9.6yrs
Average management tenure
CEO
John Barry (68 yo)
16.58yrs
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 |
|---|---|---|---|---|
| Chairman & CEO | 16.58yrs | no data | 19.53% $ 411.0m | |
| President | 16.42yrs | no data | 0.37% $ 7.9m | |
| CFO, Treasurer | 2.58yrs | no data | 0.011% $ 228.1k | |
| Vice President of Accounting | no data | no data | no data | |
| Chief Technology Officer | no data | no data | no data | |
| Head of Administration | no data | no data | no data | |
| Vice President – Investor Relations | no data | no data | no data | |
| Chief Compliance Officer and Deputy General Counsel | no data | no data | no data | |
| Deputy CCO | 1.83yrs | no data | no data | |
| Managing Director | no data | no data | no data | |
| Principal | no data | no data | no data | |
| Managing Director | no data | no data | no data |
9.6yrs
Average Tenure
46.5yo
Average Age
Experienced Management: PSEC's management team is seasoned and experienced (9.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 16.58yrs | no data | 19.53% $ 411.0m | |
| President | 16.42yrs | no data | 0.37% $ 7.9m | |
| Independent Director | 10.58yrs | US$150.00k | 0.0086% $ 181.6k | |
| Lead Independent Director | no data | US$150.00k | no data | |
| Independent Director | 12.17yrs | US$150.00k | 0.012% $ 254.5k |
14.3yrs
Average Tenure
62yo
Average Age
Experienced Board: PSEC's board of directors are seasoned and experienced ( 14.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PSEC 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 3.6%.
Top Shareholders
Company Information
Prospect Capital Corporation's company bio, 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$2.105b
- Shares outstanding: 380.59m
- Website: https://www.prospectstreet.com
Location
- Prospect Capital Corporation
- 10 East 40th Street
- 42nd Floor
- New York
- New York
- 10016
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PSEC | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jul 2004 |
| RK8 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 2004 |
| PSEC | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Jul 2004 |
| 0R25 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jul 2004 |
Biography
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/26 00:26 |
| End of Day Share Price | 2020/11/25 00:00 |
| Earnings | 2020/09/30 |
| 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.