| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 3/6 |
| Financial Health | 2/6 |
| Dividends | 3/6 |
PSEC Overview
Prospect Capital Corporation is a business development company.
Prospect Capital Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$7.84 |
| 52 Week High | US$4.91 |
| 52 Week Low | US$9.25 |
| Beta | 0.94 |
| 1 Month Change | -3.80% |
| 3 Month Change | -6.89% |
| 1 Year Change | 54.64% |
| 3 Year Change | 6.09% |
| 5 Year Change | -5.09% |
| Change since IPO | -47.73% |
Recent News & Updates
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.
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.
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.
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.
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
| PSEC | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | 0.4% | -0.8% | -0.6% |
| 1Y | 54.6% | 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
| PSEC volatility | |
|---|---|
| PSEC Beta | 0.94 |
| Industry Beta | 1.19 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2004 | n/a | John Barry | https://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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/16 22:53 |
| End of Day Share Price | 2021/09/16 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
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.