PFLT Stock Analysis: PennantPark Floating Rate | NYSE
Asset Management | NYSE, USA | Market Cap: 694m USD | 12M Return: -11.5% | US70806A1060 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 5.03M
EPS Trend: -96.7%
Qual. Beats: 0
Rev. Trend: 71.0%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
PennantPark Floating Rate Capital Ltd. (PFLT) is a business development company (BDC) that primarily invests in floating rate loans issued by private or thinly traded U.S. middle-market companies, with limited exposure to non-U.S. issuers. The fund targets companies that are either unrated or would be rated between BB and CCC under the S&P system, and it allocates the majority of its portfolio to senior secured loans and mezzanine debt, with typical individual investments ranging from $2 million to $20 million. It may also take equity positions such as preferred stock, common stock, or warrants received through its debt investments.
Under normal market conditions, the fund invests at least 80% of its net assets (plus borrowings for investment purposes) in floating rate loans and instruments with similar economic characteristics, with senior secured loans expected to represent roughly 65% of the portfolio. Investments are generally held for three to ten years, and up to 30% of assets may be allocated to non-qualifying assets, including public companies above the small-cap threshold, non-U.S. middle-market securities, high-yield bonds, distressed debt, and private equity.
As a BDC regulated under the Investment Company Act of 1940, PFLT is required to distribute at least 90% of its taxable income to shareholders, which generally classifies the company as a regulated investment company (RIC) for tax purposes. The floating rate structure of its loan portfolio is designed to provide a natural hedge against interest rate fluctuations, as loan yields reset periodically based on benchmark rates such as SOFR.
- SOFR rate movements drive floating rate loan income higher
- Rising non-accruals erode NAV and threaten dividend coverage
- Private credit competition pressures underwriting spreads on middle market loans
| Net Income: 50.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 36.46 > 1.0 |
| NWC/Revenue: 48.41% < 20% (prev 45.83%; Δ 2.58% < -1%) |
| CFO/TA 0.12 > 3% & CFO 317.5m > Net Income 50.2m |
| Net Debt (1.52b) to EBITDA (125.9m): 12.10 < 3 |
| Current Ratio: 3.04 > 1.5 & < 3 |
| Outstanding Shares: last quarter (99.2m) vs 12m ago 21.50% < -2% |
| Gross Margin: 55.20% > 18% (prev 53.55%; Δ 1.65% > 0.5%) |
| Asset Turnover: 6.89% > 50% (prev 7.40%; Δ -0.52% > 0%) |
| Interest Coverage Ratio: 0.99 > 6 (EBIT TTM 100.8m / Interest Expense TTM 102.1m) |
| A: 0.03 (Total Current Assets 128.1m - Total Current Liabilities 42.1m) / Total Assets 2.63b |
| B: -0.08 (Retained Earnings -202.0m / Total Assets 2.63b) |
| C: 0.04 (EBIT TTM 100.8m / Avg Total Assets 2.58b) |
| D: 0.63 (Book Value of Equity 1.02b / Total Liabilities 1.62b) |
| Altman-Z'' = 0.89 = B |
As of October 05, 2026, the stock is trading at USD 6.84 with a total of 938,400 shares traded. Over the past week, the price has changed by -2.15%, over one month by -6.85%, over three months by -5.35% and over the past year by -11.48%.
Current recommended Stop Loss: 6.60 (which is 3.5% or 1.7 ATR below the current price).
PennantPark Floating Rate has received a consensus analysts rating of 3.75. Therefore, it is recommended to hold PFLT.
- StrongBuy: 2
- Buy: 2
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 9.8 | 42.5% |
P/E Trailing = 13.7059
P/E Forward = 6.6445
P/S = 2.5581
P/B = 0.6932
P/EG = 0.2623
Revenue TTM = 177.6m USD
EBIT TTM = 100.8m USD
EBITDA TTM = 125.9m USD
Long Term Debt = 1.28b USD (estimated: total debt 1.57b - short term 297.5m)
Short Term Debt = 297.5m USD (from shortTermDebt, last quarter)
Debt = 1.57b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.52b USD (calculated: Debt 1.57b - CCE 50.7m)
Enterprise Value = 2.22b USD (693.5m + Debt 1.57b - CCE 50.7m)
Interest Coverage Ratio = 0.99 (Ebit TTM 100.8m / Interest Expense TTM 102.1m)
EV/FCF = 6.98x (Enterprise Value 2.22b / FCF TTM 317.5m)
FCF Yield = 14.32% (FCF TTM 317.5m / Enterprise Value 2.22b)
FCF Margin = 178.8% (FCF TTM 317.5m / Revenue TTM 177.6m)
Net Margin = 28.29% (Net Income TTM 50.2m / Revenue TTM 177.6m)
Gross Margin = 55.20% ((Revenue TTM 177.6m - Cost of Revenue TTM 79.6m) / Revenue TTM)
Gross Margin QoQ = 72.55% (prev 76.44%)
Tobins Q-Ratio = 0.84 (Enterprise Value 2.22b / Total Assets 2.63b)
Interest Expense / Debt = 6.49% (Interest Expense 102.1m / Debt 1.57b)
Taxrate = 1.32% (662k / 50.2m)
NOPAT = 99.5m (EBIT 100.8m * (1 - 1.32%))
Current Ratio = 3.04 (Total Current Assets 128.1m / Total Current Liabilities 42.1m)
Debt / Equity = 1.55 (Debt 1.57b / totalStockholderEquity, last quarter 1.02b)
Debt / EBITDA = 12.10 (Net Debt 1.52b / EBITDA 125.9m)
Debt / FCF = 4.80 (Net Debt 1.52b / FCF TTM 317.5m)
Total Stockholder Equity = 1.04b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.95% (Net Income 50.2m / Total Assets 2.63b)
RoE = 4.82% (Net Income TTM 50.2m / Total Stockholder Equity 1.04b)
RoCE = 4.35% (EBIT 100.8m / Capital Employed (Equity 1.04b + L.T.Debt 1.28b))
RoIC = 3.45% (NOPAT 99.5m / Invested Capital 2.88b)
WACC = 6.89% (E(693.5m)/V(2.27b) * Re(8.0%) + D(1.57b)/V(2.27b) * Rd(6.49%) * (1-Tc(0.01)))
Discount Rate = 8.0% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 95.52 | Cagr: 24.00%
[DCF] Terminal Value 75.44% ; FCFF base≈317.5m ; Y1≈318.8m ; Y5≈337.7m
[DCF] Fair Price = 37.58 (EV 5.25b - Net Debt 1.52b = Equity 3.73b / Shares 99.2m; r=8.35% [WACC [floored]]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: -96.70 | EPS CAGR: -8.95% | SUE: -0.33 | # QB: 0
Revenue Correlation: 71.04 | Revenue CAGR: 23.51% | SUE: -0.65 | # QB: 0
EPS current Quarter (2026-12-31): EPS=0.27 | Chg30d=-1.59% | Revisions=-17% | Analysts=7
EPS current Year (2026-09-30): EPS=1.05 | Chg30d=-1.00% | Revisions=-38% | GrowthEPS=-9.1% | GrowthRev=+2.4%
EPS next Year (2027-09-30): EPS=1.06 | Chg30d=-2.01% | Revisions=-12% | GrowthEPS=+0.5% | GrowthRev=-0.8%
[Analyst] Revisions Ratio: -31% (up=4, down=9)