-0.46%
-0.23%
-17.15%
-20.96%
-26.62%
-48.81%
-33.95%
AI Spotlight on PSEC
Company Description
Prospect Capital Corporation is a business development company.It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, market place lending and bridge transactions.It also makes real estate investments particularly in multi-family residential real estate asset class.
The fund makes secured debt, senior debt, senior and secured term loans, unitranche debt, first-lien and second lien, private debt, private equity, mezzanine debt, and equity investments in private and microcap public businesses.It focuses on both primary origination and secondary loans/portfolios and invests in situations like debt financings for private equity sponsors, acquisitions, dividend recapitalizations, growth financings, bridge loans, cash flow term loans, real estate financings/investments.It also focuses on investing in small-sized and medium-sized private companies rather than large public companies.
The fund typically invests across all industry sectors, with a particular expertise in the energy and industrial sectors.It invests in aerospace and defense, chemicals, conglomerate services, consumer services, ecological, electronics, financial services, machinery, manufacturing, media, pharmaceuticals, retail, software, specialty minerals, textiles and leather, transportation, oil and gas production, coal production, materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors.It prefers to invest in the United States and Canada.
The fund seeks to invest between $10 million to $500 million per transaction in companies with EBITDA between $5 million and $150 million, sales value between $25 million and $500 million, and enterprise value between $5 million and $1000 million.It fund also co-invests for larger deals.The fund seeks control acquisitions by providing multiple levels of the capital structure.
The fund focuses on sole, agented, club, or syndicated deals.
Market Data
| Last Price | 4.3 |
| Change Percentage | -0.46% |
| Open | 4.31 |
| Previous Close | 4.32 |
| Market Cap ( Millions) | 1876 |
| Volume | 2304486 |
| Year High | 5.86 |
| Year Low | 4.09 |
| M A 50 | 4.42 |
| M A 200 | 5.11 |
Financial Ratios
| FCF Yield | 20.68% |
| Dividend Yield | 15.70% |
| ROE | 0.27% |
| Debt / Equity | 4.44% |
| Net Debt / EBIDTA | 142.35% |
| Price To Book | 0.53 |
| Price Earnings Ratio | 151.64 |
| Price To FCF | 4.84 |
| Price To sales | 3.31 |
| EV / EBITDA | 28.46 |
News
- Jan -31 - 5 BDC Investment Criteria And 3 Picks I'd Recommend For Retirees
- Jan -31 - Prospect Capital Corporation Makes $65 Million Investment in Taos Footwear
- Jan -28 - Prospect Capital: 8.9% On Bonds With Heavy Insider Buys
- Jan -17 - Why BDCs Will Likely Outperform In 2025
- Dec -20 - Want Over $1,000 Every Month in Passive Income: Invest $10,000 Into These Dividend Stocks
- Dec -19 - NewStar Exchange Acquires Newly Constructed Built-to-Rent ("BTR") Community in Charlotte, North Carolina and Launches New 1031 Delaware Statutory Trust Offering
- Dec -16 - 4 Ultra-High-Yield Stocks Will Pay a Landslide of Monthly Dividends
- Dec -14 - Prospect Capital: Still Steering Clear For Now (Rating Upgrade)
- Dec -14 - KBW Announces Index Rebalancing for Fourth-Quarter 2024
- Dec -10 - Bargains Galore? 3 Stocks With Insider Buying in the Millions
- Dec -09 - Prospect Capital Corporation Hosting Upcoming Webinar: “Preferred Stock as a Low Volatility, Downside Protected, and Income Generating Asset Class”
- Nov -30 - 5 Stocks Trading Near $5 That Pay Massive Double-Digit Ultra-High-Yield Dividends
- Nov -25 - National Property REIT Corp. Exits Arlington Park Investment with 2.4 Times Cash on Cash Return
- Nov -24 - Struggling Cosmetics Giant and Asset Manager See Huge Insider Buying
- Nov -23 - BDC Weekly Review: Key Q3 Earnings Trends
- Nov -22 - Priority Income Fund Announces Redemption of its 6.250% Series G Term Preferred Stock Due 2026
- Nov -21 - Want $3,000 per Year in Passive Income Paid Monthly? Invest Just $2,500 in These Dividend Stocks
- Nov -21 - National Property REIT Corp. Exits Dylan at Grayson Investment with 1.7 Times Cash on Cash Return
- Nov -18 - Ultra-High-Yield Wake-Up Call: 4 Monthly Dividend Stocks Yielding as Much as 14.5%
- Nov -18 - 3 Ultra-High Dividend Yield Stocks for the New Year
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Investment and Related Activities
Expected Growth : 10.4 %
What the company do ?
Prospect Capital Corporation's Investment and Related Activities segment involves investing in and lending to middle-market companies, with a focus on generating income and capital appreciation.
Why we expect these perspectives ?
Growing demand for middle-market financing, increasing need for income generation, and capital appreciation drive growth in Prospect Capital's Investment and Related Activities segment.
Prospect Capital Corporation Products
| Product Range | What is it ? |
|---|---|
| Middle Market Lending | Prospect Capital Corporation provides financing solutions to middle market companies, offering senior secured loans, mezzanine debt, and equity co-investments. |
| Real Estate Investment | The company invests in real estate investment trusts (REITs), real estate debt, and real estate equity, providing financing for property acquisitions, developments, and redevelopments. |
| Structured Credit | Prospect Capital Corporation offers structured credit solutions, including collateralized loan obligations (CLOs) and other structured finance products. |
| Private Equity | The company invests in private equity funds, co-invests in private equity transactions, and provides financing for private equity-sponsored transactions. |
| Energy Investments | Prospect Capital Corporation invests in energy-related assets, including oil and gas properties, renewable energy projects, and energy infrastructure. |
| Corporate Finance | The company provides financing solutions to corporations, including senior secured loans, mezzanine debt, and equity co-investments. |
Prospect Capital Corporation's Porter Forces
Threat Of Substitutes
The threat of substitutes for Prospect Capital Corporation is medium due to the presence of alternative investment options for investors, such as stocks, bonds, and other investment funds.
Bargaining Power Of Customers
The bargaining power of customers for Prospect Capital Corporation is low due to the company's diversified investor base and the lack of concentration of investors.
Bargaining Power Of Suppliers
The bargaining power of suppliers for Prospect Capital Corporation is low due to the company's ability to source investments from a diverse range of suppliers.
Threat Of New Entrants
The threat of new entrants for Prospect Capital Corporation is high due to the relatively low barriers to entry in the investment management industry.
Intensity Of Rivalry
The intensity of rivalry for Prospect Capital Corporation is high due to the competitive nature of the investment management industry and the presence of several established players.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 42.33% |
| Debt Cost | 5.73% |
| Equity Weight | 57.67% |
| Equity Cost | 8.87% |
| WACC | 7.54% |
| Leverage | 73.39% |
Prospect Capital Corporation : Quality Control
Prospect Capital Corporation passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| STT | State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. The company offers investment servicing products and services, including custody; product accounting; … |
| CNS | Cohen & Steers, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to institutional investors, including pension funds, endowments, and foundations. It … |
| AMG | Affiliated Managers Group, Inc., through its affiliates, operates as an asset management company providing investment management services to mutual funds, institutional clients, and high net worth individuals in the United … |
| FHI | Federated Hermes, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, … |
| SEIC | SEI Investments Company is a publicly owned asset management holding company. Through its subsidiaries, the firm provides wealth management, retirement and investment solutions, asset management, asset administration, investment processing outsourcing … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Federated Hermes
A-Score
1-Year Total Return ->
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Cohen & Steers
A-Score
1-Year Total Return ->
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SEI Investments
A-Score
1-Year Total Return ->
4
State Street
A-Score
1-Year Total Return ->
5
Prospect Capital
A-Score
1-Year Total Return ->
6
