NasdaqGS:PSEC

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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

PSECIndustryMarket
7 Day5.1%4.0%2.8%
30 Day6.6%11.7%8.0%
90 Day7.8%9.6%6.8%
1 Year-3.8%-15.2%14.3%11.4%22.4%19.7%
3 Year13.1%-19.5%31.2%21.0%47.3%37.5%
5 Year34.7%-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

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

NamePositionTenureCompensationOwnership
John Barry
Chairman & CEO16.58yrsno data19.53%
$ 411.0m
Michael Eliasek
President16.42yrsno data0.37%
$ 7.9m
Kristin Van Dask
CFO, Treasurer2.58yrsno data0.011%
$ 228.1k
Alexandra Krasinets
Vice President of Accountingno datano datano data
Al Faella
Chief Technology Officerno datano datano data
Daria Becker
Head of Administrationno datano datano data
Carlynn Finn
Vice President – Investor Relationsno datano datano data
Jonathan Li
Chief Compliance Officer and Deputy General Counselno datano datano data
Trisha Blackman
Deputy CCO1.83yrsno datano data
Bart deBie
Managing Directorno datano datano data
Mark Hull
Principalno datano datano data
David Belzer
Managing Directorno datano datano 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

NamePositionTenureCompensationOwnership
John Barry
Chairman & CEO16.58yrsno data19.53%
$ 411.0m
Michael Eliasek
President16.42yrsno data0.37%
$ 7.9m
William Gremp
Independent Director10.58yrsUS$150.00k0.0086%
$ 181.6k
Andrew Cooper
Lead Independent Directorno dataUS$150.00kno data
Eugene Stark
Independent Director12.17yrsUS$150.00k0.012%
$ 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

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 Analysis2020/11/26 00:26
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2020/06/30


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.