PennantPark Floating Rate Capital Ltd. (PFLT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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PennantPark Floating Rate Capital Ltd.

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Why is PennantPark Floating Rate Capital Ltd. ?

Flat results in Jun 25

NET PROFIT(HY) At USD 20.52 MM has Grown at -57.27%
NET SALES(Q) At USD 48.67 MM has Fallen at -23.75%
INTEREST(HY) At USD 48.37 MM has Grown at 55.67%

With ROE of 6.39%, it has a very attractive valuation with a 0.96 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -14.09%, its profits have fallen by -21.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -14.09% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is PennantPark Floating Rate Capital Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

PennantPark Floating Rate Capital Ltd.

-27.56%

-0.77

22.22%

S&P 500

13.68%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.44%

EBIT Growth (5y)

17.86%

EBIT to Interest (avg)

2.45

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

171.52%

Pledged Shares

Institutional Holding

28.31%

ROCE (avg)

15.68%

ROE (avg)

8.10%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.77

EV to EBIT

5.21

EV to EBITDA

5.21

EV to Capital Employed

0.75

EV to Sales

3.03

PEG Ratio

Dividend Yield

12.66%

ROCE (Latest)

14.37%

ROE (Latest)

3.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 130.27 MM

CASH AND EQV(HY)

Highest at USD 217.96 MM

-25What is not working for the Company

NET SALES(HY)

At USD 126.21 MM has Grown at -15.15%

ROCE(HY)

Lowest at 3.44%

INTEREST COVERAGE RATIO(Q)

Lowest at 86.82

RAW MATERIAL COST(Y)

Grown by 6.99% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 147.7 %

PRE-TAX PROFIT(Q)

Lowest at USD -3.58 MM

NET PROFIT(Q)

Lowest at USD -3.58 MM

EPS(Q)

Lowest at USD -0.04

Here's what is working for PennantPark Floating Rate Capital Ltd.

Operating Cash Flow

Highest at USD 130.27 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 217.96 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for PennantPark Floating Rate Capital Ltd.

Pre-Tax Profit

At USD -3.58 MM has Fallen at -121.57%

over average net sales of the previous four periods of USD 16.59 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -3.58 MM has Fallen at -121.57%

over average net sales of the previous four periods of USD 16.59 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 86.82

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At USD 126.21 MM has Grown at -15.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Pre-Tax Profit

Lowest at USD -3.58 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -3.58 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 147.7 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 6.99% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales