(PSEC) Prospect Capital - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NASDAQ (USA) | Market Cap: 1.092m USD | Total Return: -17.4% in 12m
Avg Turnover: 13.8M
EPS Trend: -73.3%
Qual. Beats: 0
Qual. Beats: 0
Warnings
Choppy
Tailwinds
No distinct edge detected
Prospect Capital Corporation (PSEC) is a business development company (BDC) that provides financing solutions to middle-market firms and private equity sponsors. The firm invests across the capital structure, including senior secured debt, unitranche loans, mezzanine debt, and equity, typically targeting companies with EBITDA between $5 million and $150 million. Beyond corporate lending, Prospect maintains a significant portfolio in multi-family residential real estate and collateralized loan obligations (CLOs).
As a BDC, the company is required by federal law to distribute at least 90% of its taxable income to shareholders, a structure designed to provide retail investors access to private debt markets. The firm diversifies its holdings across numerous sectors, maintaining specific concentrations in energy, industrials, and financial services. For a deeper look at these holdings and their performance metrics, you may find it useful to explore the data on ValueRay.
The fund primarily focuses on primary originations and secondary market purchases within the United States and Canada. By targeting small-to-medium-sized private companies rather than large-cap public entities, the business model seeks to capture higher yields through bespoke lending arrangements and specialized structural protections.
- Net investment income sensitivity to fluctuating Federal Reserve interest rate benchmarks
- Performance of multi-family residential real estate portfolio impacts net asset value
- Credit quality and default rates within middle market private debt holdings
- Management of dividend payout ratios relative to recurring net investment income
- Valuation volatility of subordinated collateralized loan obligation equity tranches
| Net Income: -37.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA -2.95 > 1.0 |
| NWC/Revenue: 42.54% < 20% (prev -7.00%; Δ 49.55% < -1%) |
| CFO/TA 0.06 > 3% & CFO 412.7m > Net Income -37.8m |
| Current Ratio: 3.10 > 1.5 & < 3 |
| Outstanding Shares: last quarter (472.3m) vs 12m ago 6.50% < -2% |
| Gross Margin: -23.29% > 18% (prev 0.71%; Δ -2.40k% > 0.5%) |
| Asset Turnover: 1.49% > 50% (prev 6.68%; Δ -5.19% > 0%) |
| Interest Coverage Ratio: -0.05 > 6 (EBITDA TTM 6.25m / Interest Expense TTM 119.4m) |
| A: 0.01 (Total Current Assets 62.4m - Total Current Liabilities 20.1m) / Total Assets 6.38b |
| B: -0.22 (Retained Earnings -1.38b / Total Assets 6.38b) |
| C: -0.00 (EBIT TTM -6.13m / Avg Total Assets 6.69b) |
| D: -0.76 (Book Value of Equity -1.38b / Total Liabilities 1.82b) |
| Altman-Z'' = -1.46 = CCC |
As of May 24, 2026, the stock is trading at USD 2.26 with a total of 5,431,033 shares traded.
Over the past week, the price has changed by +4.59%,
over one month by -14.47%,
over three months by -15.29% and
over the past year by -17.37%.
Prospect Capital has received a consensus analysts rating of 1.00. Therefore, it is recommended to sell PSEC.
- StrongBuy: 0
- Buy: 0
- Hold: 0
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 2 | -11.5% |
P/S = 1.6787
P/B = 0.4207
P/EG = 1.5483
Revenue TTM = 99.4m USD
EBIT TTM = -6.13m USD
EBITDA TTM = 6.25m USD
Long Term Debt = 1.71b USD (estimated: total debt 1.73b - short term 20.1m)
Short Term Debt = 20.1m USD (from shortTermDebt, last quarter)
Debt = 1.73b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.70b USD (calculated: Debt 1.73b - CCE 34.6m)
Enterprise Value = 2.79b USD (1.09b + Debt 1.73b - CCE 34.6m)
Interest Coverage Ratio = -0.05 (Ebit TTM -6.13m / Interest Expense TTM 119.4m)
EV/FCF = 6.76x (Enterprise Value 2.79b / FCF TTM 412.7m)
FCF Yield = 14.79% (FCF TTM 412.7m / Enterprise Value 2.79b)
FCF Margin = 415.3% (FCF TTM 412.7m / Revenue TTM 99.4m)
Net Margin = -38.00% (Net Income TTM -37.8m / Revenue TTM 99.4m)
Gross Margin = -23.29% ((Revenue TTM 99.4m - Cost of Revenue TTM 122.5m) / Revenue TTM)
Gross Margin QoQ = 50.94% (prev 50.77%)
Tobins Q-Ratio = 0.44 (Enterprise Value 2.79b / Total Assets 6.38b)
Interest Expense / Debt = 6.90% (Interest Expense 119.4m / Debt 1.73b)
Taxrate = 21.0% (US default 21%)
NOPAT = -4.84m (EBIT -6.13m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 3.10 (Total Current Assets 62.4m / Total Current Liabilities 20.1m)
Debt / Equity = 0.38 (Debt 1.73b / totalStockholderEquity, last quarter 4.57b)
Debt / EBITDA = 271.5 (Net Debt 1.70b / EBITDA 6.25m)
Debt / FCF = 4.11 (Net Debt 1.70b / FCF TTM 412.7m)
Total Stockholder Equity = 3.38b (last 4 quarters mean from totalStockholderEquity)
RoA = -0.56% (Net Income -37.8m / Total Assets 6.38b)
RoE = -0.79% (Net Income TTM -37.8m / Total Stockholder Equity 4.76b)
RoCE = -0.09% (EBIT -6.13m / Capital Employed (Equity 4.76b + L.T.Debt 1.71b))
RoIC = -0.08% (negative operating profit) (NOPAT -4.84m / Invested Capital 6.38b)
WACC = 6.62% (E(1.09b)/V(2.82b) * Re(8.47%) + D(1.73b)/V(2.82b) * Rd(6.90%) * (1-Tc(0.21)))
Discount Rate = 8.47% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 89.89 | Cagr: 6.38%
[DCF] Terminal Value 73.10% ; FCFF base≈511.0m ; Y1≈448.1m ; Y5≈362.1m
[DCF] Fair Price = 8.21 (EV 5.81b - Net Debt 1.70b = Equity 4.11b / Shares 501.0m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -73.31 | EPS CAGR: -49.33% | SUE: 0.29 | # QB: 0
Revenue Correlation: N/A | Revenue CAGR: N/A | SUE: -0.29 | # QB: 0
EPS next Quarter (2026-09-30): EPS=0.10 | Chg30d=-9.09% | Revisions=-20% | Analysts=1
EPS current Year (2026-06-30): EPS=0.46 | Chg30d=-2.13% | Revisions=-20% | GrowthEPS=-40.3% | GrowthRev=-11.9%
EPS next Year (2027-06-30): EPS=0.35 | Chg30d=-16.67% | Revisions=-20% | GrowthEPS=-23.9% | GrowthRev=-9.4%