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

Hamilton Lane, Inc.

Federated Hermes, Inc.

Janus Henderson Group Plc

FTAI Aviation Ltd.

Artisan Partners Asset Management, Inc.

Cohen & Steers, Inc. (New York)

Hercules Capital, Inc.

Main Street Capital Corp.

Prospect Capital Corp.

Golub Capital BDC, Inc.

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%

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 -30.50%, its profits have fallen by -701.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -30.50% 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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Prospect Capital Corp.

-30.5%

-1.65

36.40%

S&P 500

25.41%

1.92

13.25%

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

24.83%

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

0.26

EV to EBIT

-11.58

EV to EBITDA

-11.58

EV to Capital Employed

0.26

EV to Sales

7.44

PEG Ratio

Dividend Yield

19.90%

ROCE (Latest)

-2.21%

ROE (Latest)

-5.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

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

19What is working for the Company

PRE-TAX PROFIT(Q)

At USD 56.56 MM has Grown at 195.29%

NET PROFIT(Q)

At USD 56.56 MM has Grown at 195.29%

DEBT-EQUITY RATIO (HY)

Lowest at 37.16 %

DIVIDEND PAYOUT RATIO(Y)

Highest at 475.35%

NET SALES(9M)

Higher at USD 260.9 MM

-10What is not working for the Company

NET SALES(HY)

At USD 105.16 MM has Grown at -57.31%

RAW MATERIAL COST(Y)

Grown by 19.45% (YoY

CASH AND EQV(HY)

Lowest at USD 72.64 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.12 times

Here's what is working for Prospect Capital Corp.

Pre-Tax Profit

At USD 56.56 MM has Grown at 195.29%

over average net sales of the previous four periods of USD -59.36 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 56.56 MM has Grown at 195.29%

over average net sales of the previous four periods of USD -59.36 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at 37.16 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 475.35%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Net Sales

At USD 105.16 MM has Grown at -57.31%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Cash and Eqv

Lowest at USD 72.64 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 5.12 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 19.45% (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