NasdaqGS:PSEC

Stock Analysis Report

Executive Summary

Prospect Capital Corporation is a business development company.

Snowflake

Risks

  • Prospect Capital is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.

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


Market Performance


7 Day Return

1.1%

NasdaqGS:PSEC

1.6%

US Capital Markets

0.6%

US Market


1 Year Return

-1.9%

NasdaqGS:PSEC

-5.7%

US Capital Markets

4.1%

US Market

PSEC outperformed the Capital Markets industry which returned -4.9% over the past year.

PSEC underperformed the Market in United States of America which returned 4.7% over the past year.


Share holder returns

PSECIndustryMarket
7 Day1.1%1.6%0.6%
30 Day6.0%4.5%3.8%
90 Day0.3%0.7%2.8%
1 Year9.1%-1.9%-3.7%-5.7%6.4%4.1%
3 Year13.3%-19.0%63.9%54.3%47.0%37.3%
5 Year13.2%-38.2%75.3%59.0%60.3%42.5%

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

Valuation

Is Prospect Capital undervalued based on future cash flows and its price relative to the stock market?

11.14x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Prospect Capital's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Prospect Capital's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Prospect Capital is good value based on earnings compared to the US Capital Markets industry average.

Prospect Capital is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Prospect Capital is good value based on expected growth next year.


Price Based on Value of Assets

Prospect Capital is good value based on assets compared to the US Capital Markets industry average.

Future Growth

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

32.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Prospect Capital's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Prospect Capital's earnings are expected to grow significantly at over 20% yearly.

Prospect Capital's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Prospect Capital's earnings growth is expected to exceed the United States of America market average.

Prospect Capital's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Prospect Capital will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Past Performance

How has Prospect Capital performed over the past 5 years?

-5.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Prospect Capital's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Prospect Capital's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Prospect Capital's 1-year earnings growth is negative, it can't be compared to the US Capital Markets industry average.


Return on Equity

Prospect Capital has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Prospect Capital used its assets more efficiently than the US Capital Markets industry average last year based on Return on Assets.


Return on Capital Employed

Prospect Capital's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

Financial Health

How is Prospect Capital's financial position?


Financial Position Analysis

Prospect Capital is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Prospect Capital's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Prospect Capital's level of debt (71.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (75.6% vs 71.5% today).

Debt is not well covered by operating cash flow (11.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.1x debt.

Dividend

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

10.73%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Prospect Capital before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Prospect Capital's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.42%).

Prospect Capital's dividend is above the markets top 25% of dividend payers in United States of America (3.73%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.8x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.

Management

What is the CEO of Prospect Capital's salary, the management and board of directors tenure and is there insider trading?

13.0yrs

Average board tenure


CEO

John Barry (67yo)

15.3yrs

Tenure

Mr. John Francis Barry, III, J.D. serves as the Chief Executive Officer and Chairman of the Board of Prospect Capital Management L.P. Mr. Barry serves as a Managing Director at Prospect Street Ventures. Mr ...


Board Age and Tenure

13.0yrs

Average Tenure

61yo

Average Age

The average tenure for the Prospect Capital board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by Prospect Capital individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$874,48619 Jun 19
John Barry
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares137,839
Max PriceUS$6.35
BuyUS$1,474,43918 Jun 19
John Barry
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares233,482
Max PriceUS$6.32
BuyUS$2,608,15717 Jun 19
John Barry
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares408,911
Max PriceUS$6.38
BuyUS$680,57507 Jun 19
John Barry
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares107,358
Max PriceUS$6.34
BuyUS$399,63106 Jun 19
John Barry
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares63,496
Max PriceUS$6.30
BuyUS$12,87214 Feb 19
Kristin Van Dask
EntityIndividual
Role
CFO, Treasurer
Shares2,000
Max PriceUS$6.44
BuyUS$8,32014 Feb 19
John Barry
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares1,300
Max PriceUS$6.40
BuyUS$638,88013 Feb 19
John Barry
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares100,000
Max PriceUS$6.39
BuyUS$11,712,90207 Jan 19
John And Daria Barry Foundation
EntityCompany
Shares1,873,994
Max PriceUS$6.51
BuyUS$1,891,15103 Jan 19
John Barry
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares299,707
Max PriceUS$6.31
BuyUS$14,85028 Dec 18
William Gremp
EntityIndividual
Role
Member of the Board of Directors
Shares2,500
Max PriceUS$5.94
BuyUS$1,772,60927 Dec 18
John Barry
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares304,792
Max PriceUS$5.82
BuyUS$14,37527 Dec 18
Eugene Stark
EntityIndividual
Role
Member of the Board of Directors
Shares2,500
Max PriceUS$5.75
BuyUS$9,353,49026 Dec 18
John Barry
EntityIndividual
Role
Chairman & CEO
Chairman of the Board
Shares1,600,000
Max PriceUS$5.87
BuyUS$5,81026 Dec 18
Kristin Van Dask
EntityIndividual
Role
CFO, Treasurer
Shares1,000
Max PriceUS$5.81
BuyUS$290,58026 Dec 18
Michael Eliasek
EntityIndividual
Role
President & COO
Member of the Board of Directors
Shares50,000
Max PriceUS$5.86
BuyUS$6,72011 Dec 18
Eugene Stark
EntityIndividual
Role
Member of the Board of Directors
Shares1,000
Max PriceUS$6.72
BuyUS$17,49613 Nov 18
Kristin Van Dask
EntityIndividual
Role
CFO, Treasurer
Shares2,500
Max PriceUS$7.00

Ownership Breakdown


Management Team

  • Michael Eliasek (45yo)

    President & COO

  • Daria Becker

    Head of Administration

  • Al Faella

    Chief Technology Officer

  • David Belzer (50yo)

    Managing Director

  • Mark Hull (43yo)

    Principal

  • Jon Li

    Deputy General Counsel

  • Trisha Blackman

    Deputy CCO

    • Tenure: 0.5yrs
  • Kristin Van Dask (39yo)

    CFO, Treasurer

  • John Barry (67yo)

    Chairman & CEO

    • Tenure: 15.3yrs
  • Bart deBie (46yo)

    Managing Director


Board Members

  • Bill Gremp (76yo)

    Director

    • Tenure: 9.3yrs
    • Compensation: $150.00k
  • Andy Cooper (58yo)

    Lead Independent Director

    • Compensation: $150.00k
  • John Barry (67yo)

    Chairman & CEO

    • Tenure: 15.1yrs
  • Michael Eliasek (45yo)

    President & COO

    • Tenure: 15.1yrs
  • Gene Stark (61yo)

    Director

    • Tenure: 10.8yrs
    • Compensation: $150.00k

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$2.462b
  • Shares outstanding: 366.97m
  • Website: Click here

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSECNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2004
RK8DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2004
PSECSWX (SIX Swiss Exchange)YesCommon StockCHCHFJul 2004
0R25LSE (London Stock Exchange)YesCommon StockGBUSDJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/16 23:54
End of Day Share Price2019/07/16 00:00
Earnings2019/03/31
Annual Earnings2018/06/30


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.