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PSEC

BEARISH
$2.81 Live
Prospect Capital Corporation · NASDAQ
Target $2.5 (-11.0%)
$2.45 52W Range $3.77

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Apr 18, 2026
Market cap
$1.37B
P/E
N/A
ROE
-4.9%
Profit margin
-34.9%
Debt/Equity
0.4
Dividend yield
19.22%

AI Analysis

AI-powered fundamental assessment

Confidence
85%
PSEC exhibits significant financial distress as evidenced by a weak Piotroski F-Score of 2/9 and a bearish technical trend. While the stock trades at a deep discount to book value (P/B 0.45), this is offset by an unsustainable dividend payout ratio of 211.76% and negative profit margins. The combination of negative ROE and a current ratio below 1.0 suggests liquidity risks and poor capital efficiency. Despite short-term price momentum, the long-term trajectory and fundamental health indicators point to a 'yield trap' scenario.

Key Strengths

Deeply undervalued relative to book value (P/B 0.45)
Extremely high current dividend yield (19.22%)
Positive short-term price momentum (1-month and 1-week gains)
Consistent history of beating EPS estimates in most quarters
Low Debt/Equity ratio (0.40) relative to sector average

Key Risks

Unsustainable dividend payout ratio (211.76%) indicating capital erosion
Very weak financial health (Piotroski F-Score 2/9)
Negative profit margins (-34.88%) and negative ROE (-4.85%)
Liquidity risk with a current ratio of 0.74
Long-term value destruction (5-year price change of -34.8%)
AI Fair Value Estimate
Based on comprehensive analysis
$2.5
-11.0% below current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
29
Weak
Value
55
Future
30
Past
25
Health
20
Dividend
15
AI Verdict
High-Risk Yield Trap
Key drivers: Unsustainable dividend payout, Weak Piotroski health score, Negative profitability, Long-term bearish price trend
Confidence
90%
Value
55/100

Trades significantly below book value, but lacks a Graham Number for defensive valuation.

Positives
  • P/B ratio of 0.45 is very low
  • Forward P/E of 6.69 is attractive if earnings stabilize
Watchpoints
  • Low valuation is likely a reflection of poor fundamental health
Future
30/100

Growth metrics are volatile and inconsistent.

Positives
  • Strong Q/Q revenue growth (95.10%)
Watchpoints
  • Negative YoY revenue growth (-5.10%)
  • Dividend payout exceeds earnings
Past
25/100

Historical performance shows a pattern of value erosion.

Positives
  • Recent 6-month recovery (+13.9%)
Watchpoints
  • Severe 5-year decline (-34.8%)
  • Consistent long-term downward trend
Health
20/100

Deterministic health scores are in the 'Weak' category.

Positives
  • Debt/Equity is lower than sector average
Watchpoints
  • Piotroski F-Score of 2/9 is critically weak
  • Current ratio < 1.0 indicates liquidity pressure
Dividend
15/100

The dividend is likely being paid out of capital or debt rather than earnings.

Positives
  • Very high nominal yield
Watchpoints
  • Payout ratio of 211.76% is fundamentally unsustainable
  • Dividend strength score is low (40/100)

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$2.81
Analyst Target
$2.5
Upside/Downside
-11.0%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for PSEC and closest competitors.

Updated 2026-04-17
PSE
Prospect Capital Corporation
Primary
5Y
-34.8%
3Y
-36.5%
1Y
-4.9%
6M
+13.9%
1M
+10.0%
1W
+7.2%
CNO
ConnectOne Bancorp, Inc.
Peer
5Y
+25.6%
3Y
+75.0%
1Y
+29.6%
6M
+9.1%
1M
+6.8%
1W
+2.5%
ASA
ASA Gold and Precious Metals Limited
Peer
5Y
+247.3%
3Y
+344.9%
1Y
+233.9%
6M
+125.9%
1M
+20.0%
1W
+16.0%
BST
BlackRock Science and Technology Trust
Peer
5Y
+18.2%
3Y
+67.5%
1Y
+17.2%
6M
+12.0%
1M
+2.5%
1W
+0.1%
BTX
BlackRock Innovation and Growth Term Trust
Peer
5Y
-44.5%
3Y
+26.4%
1Y
-6.8%
6M
-2.8%
1M
+1.2%
1W
-1.6%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
N/A
Forward P/E
6.69
PEG Ratio
1.55
P/B Ratio
0.45
P/S Ratio
2.04
EV/Revenue
7.14
EV/EBITDA
N/A
Market Cap
$1.37B

Profitability

Profit margins and return metrics

Profit Margin -34.88%
Operating Margin 70.27%
Gross Margin 100.0%
ROE -4.85%
ROA 4.26%

Growth

Revenue and earnings growth rates

Revenue Growth -5.1%
Earnings Growth N/A
Q/Q Revenue Growth +95.1%
Q/Q Earnings Growth N/A

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.4
Low debt
Current Ratio
0.74
Weak
Quick Ratio
0.7
Poor
Cash/Share
$0.07

Financial Statement Flow

Interactive flow visualization showing how money moves through the company Q4 2025

Revenue
$0.0B
Net Margin
82.0%
Total Assets
$6.5B
Liabilities
$3.6B
Equity
$3.0B
Debt/Equity
1.21x
Operating CF
$0.1B
Free Cash Flow
$0.1B
FCF Yield
100%

Quarterly Earnings History

EPS performance vs analyst estimates

2026-05-07
$N/A
2026-02-09
$0.19
+90.0% surprise
2025-11-06
$0.17
+54.5% surprise
2025-08-26
$-0.5
-493.7% surprise

Financial Services Sector Comparison

Comparing PSEC against 497 companies in the Financial Services sector (90 bullish, 207 neutral, 200 bearish)
Return on Equity (ROE)
-4.85%
This Stock
vs
0.05%
Sector Avg
-10610.2% (Below Avg)
Profit Margin
-34.88%
This Stock
vs
48.99%
Sector Avg
-171.2% (Weaker)
Debt to Equity
0.4
This Stock
vs
1.45
Sector Avg
-72.2% (Less Debt)
Revenue Growth
-5.1%
This Stock
vs
36.6%
Sector Avg
-113.9% (Slower)
Current Ratio
0.74
This Stock
vs
3.32
Sector Avg
-77.7% (Weaker)

Similar Companies

Peer comparison within the same industry

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

ELIASEK M GRIER
Chief Operating Officer
Buy
2026-02-11
942,800 shares · $2,749,770
Insider transactions can signal confidence or concerns about company prospects

SEC Filings

Recent regulatory filings from the SEC EDGAR database

DEF 14A
DEF 14A
2026-03-11

Prospect Capital Corporation (PSEC) filed a definitive proxy statement on March 11, 2026, providing shareholders with necessary information and voting materials for the upcoming annual meeting.

8-K
8-K
2026-02-11

Prospect Capital Corporation (PSEC) filed an 8-K on February 11, 2026, likely to announce its fourth-quarter and full-year financial results or a dividend declaration.

10-Q
10-Q
2026-02-09

Prospect Capital Corporation (PSEC) filed its 10-Q on February 9, 2026. The filing includes a section on risk factors under Item 1A, although specific financial highlights and risk details were not provided in the available excerpt.

8-K
8-K
2026-02-09

Prospect Capital Corporation likely reported its fourth-quarter and full-year financial results.

8-K
8-K
2026-01-15

Prospect Capital Corporation filed an 8-K on January 15, 2026, likely announcing its year-end financial results or a dividend declaration.

8-K
8-K
2025-11-06

Prospect Capital Corporation likely reported its third-quarter financial results.

10-Q
10-Q
2025-11-06

Prospect Capital Corporation (PSEC) filed its 10-Q on November 6, 2025. The filing includes a detailed discussion of risk factors under Item 1A, although specific financial highlights were not provided in the available excerpt.

8-K
8-K
2025-10-31

Prospect Capital Corporation likely reported its third-quarter financial results.

8-K
8-K
2025-10-28

Prospect Capital Corporation likely filed this 8-K to report its third-quarter financial results.

DEF 14A
DEF 14A
2025-09-18

Prospect Capital Corporation (PSEC) filed a definitive proxy statement on September 18, 2025, providing shareholders with information regarding matters to be voted on at its upcoming meeting.

8-K
8-K
2025-08-27
10-K
10-K
2025-08-26
8-K
8-K
2025-06-17
8-K
8-K
2025-05-09
10-Q
10-Q
2025-05-08
Data sourced from SEC EDGAR. AI summaries generated automatically.

Past News Coverage

Recent headlines mentioning PSEC from our newsroom.

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