Prospect Capital Corp. (PSEC) 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

Janus Henderson Group Plc

Hamilton Lane, Inc.

Federated Hermes, Inc.

Hercules Capital, Inc.

Artisan Partners Asset Management, Inc.

Main Street Capital Corp.

FTAI Aviation Ltd.

Golub Capital BDC, Inc.

Cohen & Steers, Inc. (New York)

Prospect Capital Corp.

AllianceBernstein Holding LP

Why is Prospect Capital Corp. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 9.98%

Poor long term growth as Operating profit has grown by an annual rate of -170.09%

The company has declared Negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 225.3 MM
NET SALES(HY) At USD 190.36 MM has Grown at -18.91%
RAW MATERIAL COST(Y) Grown by 167.86% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -42.00%, its profits have fallen by -701.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -42.00% 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 Prospect Capital Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Prospect Capital Corp.

-40.37%

-1.55

35.49%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-23.94%

EBIT Growth (5y)

-170.09%

EBIT to Interest (avg)

3.61

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

22.21%

ROCE (avg)

12.07%

ROE (avg)

9.98%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.27

EV to EBIT

-11.73

EV to EBITDA

-11.73

EV to Capital Employed

0.26

EV to Sales

7.53

PEG Ratio

Dividend Yield

19.51%

ROCE (Latest)

-2.21%

ROE (Latest)

-5.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

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

10What is working for the Company

PRE-TAX PROFIT(Q)

At USD 20.82 MM has Grown at 132.21%

NET PROFIT(Q)

At USD 20.82 MM has Grown at 132.21%

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 225.3 MM

NET SALES(HY)

At USD 190.36 MM has Grown at -18.91%

RAW MATERIAL COST(Y)

Grown by 167.86% (YoY

DIVIDEND PER SHARE(HY)

Lowest at USD 5.45

Here's what is working for Prospect Capital Corp.

Pre-Tax Profit

At USD 20.82 MM has Grown at 132.21%

over average net sales of the previous four periods of USD -64.64 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 20.82 MM has Grown at 132.21%

over average net sales of the previous four periods of USD -64.64 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Here's what is not working for Prospect Capital Corp.

Operating Cash Flow

Lowest at USD 225.3 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

At USD 190.36 MM has Grown at -18.91%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Dividend per share

Lowest at USD 5.45

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Raw Material Cost

Grown by 167.86% (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