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Upturn AI SWOT - About
PSEC 
Prospect Capital Corporation (PSEC)
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Upturn Advisory Summary
04/01/2025: PSEC (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type Stock | Historic Profit -44% | Avg. Invested days 30 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.83B USD | Price to earnings Ratio - | 1Y Target Price 4 |
Price to earnings Ratio - | 1Y Target Price 4 | ||
Volume (30-day avg) 2648723 | Beta 0.94 | 52 Weeks Range 3.92 - 5.17 | Updated Date 03/31/2025 |
52 Weeks Range 3.92 - 5.17 | Updated Date 03/31/2025 | ||
Dividends yield (FY) 13.17% | Basic EPS (TTM) -0.21 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 5% | Operating Margin (TTM) 67.08% |
Management Effectiveness
Return on Assets (TTM) 4.42% | Return on Equity (TTM) 0.78% |
Valuation
Trailing PE - | Forward PE - | Enterprise Value 5445772288 | Price to Sales(TTM) 2.3 |
Enterprise Value 5445772288 | Price to Sales(TTM) 2.3 | ||
Enterprise Value to Revenue 38.52 | Enterprise Value to EBITDA 9.42 | Shares Outstanding 445760992 | Shares Floating - |
Shares Outstanding 445760992 | Shares Floating - | ||
Percent Insiders 28.48 | Percent Institutions 10.71 |
Analyst Ratings
Rating 1 | Target Price 4 | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold - | Sell - | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Prospect Capital Corporation
Company Overview
History and Background
Prospect Capital Corporation was founded in 2004 and is a business development company (BDC) focused on lending to and investing in middle-market companies. It provides financing for acquisitions, recapitalizations, growth, development, and other purposes.
Core Business Areas
- Direct Lending: Providing senior and subordinated debt and equity to private companies, often to support acquisitions or growth.
- Real Estate: Investing in real estate, typically through debt financing of real estate projects.
- Online Lending: Investing in and originating consumer and small business loans through online platforms.
Leadership and Structure
John F. Barry, III is the Chairman and CEO. The company is structured as a business development company (BDC), operating under a board of directors and an investment advisory team.
Top Products and Market Share
Key Offerings
- Senior Secured Debt: Loans secured by company assets, offering lower risk. Market share data unavailable, significant competition from other BDCs, banks, and private credit funds.
- Subordinated Debt: Loans with a lower priority claim on assets. Market share data unavailable, competition includes other BDCs and mezzanine funds.
- Equity Investments: Minority ownership stakes in companies. Market share data unavailable, competition includes private equity firms and venture capital funds.
Market Dynamics
Industry Overview
The BDC industry is competitive, with companies vying to provide financing to middle-market firms. Interest rate environments and economic conditions significantly impact BDC performance.
Positioning
Prospect Capital Corporation focuses on providing financing solutions to companies that often cannot access traditional bank financing, offering higher yields but also higher risk.
Total Addressable Market (TAM)
The estimated TAM for private credit is in the trillions of dollars. Prospect Capital Corporation targets a portion of this market focused on middle-market companies. Prospect Capital Corporation is positioned as a flexible capital provider within this market.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Diversified investment portfolio
- Established relationships with private equity sponsors
- Access to capital markets
Weaknesses
- High operating expenses
- Reliance on external financing
- Sensitivity to interest rate fluctuations
- Potential for credit losses
Opportunities
- Growing demand for private credit
- Increased deal flow in the middle market
- Expansion into new investment areas
- Strategic acquisitions
Threats
- Economic downturns
- Increased competition from other BDCs
- Rising interest rates
- Regulatory changes
Competitors and Market Share
Key Competitors
- ARCC
- MAIN
- TCPC
- OAKS
Competitive Landscape
Prospect Capital Corporation competes with other BDCs, private credit funds, and traditional lenders. Its ability to generate higher yields comes with increased risk and operational complexities.
Major Acquisitions
Credit Management Corporation
- Year: 2016
- Acquisition Price (USD millions): 15.5
- Strategic Rationale: Expanded Prospect Capital Corporation's direct lending capabilities.
Growth Trajectory and Initiatives
Historical Growth: To be populated with current figures.
Future Projections: To be populated with current figures.
Recent Initiatives: Prospect Capital Corporation has focused on growing its direct lending portfolio and expanding into new investment areas such as real estate and online lending.
Summary
Prospect Capital Corporation operates as a BDC, focusing on lending to middle-market companies. While it offers high dividend yields, its performance is sensitive to economic conditions and interest rate fluctuations. Its diversified investment portfolio mitigates risk, but high operating expenses and potential credit losses remain concerns. The company needs to focus on efficient operations and risk management. Expanding into new investment areas could improve future performance.
Similar Companies
ARCC
Ares Capital Corporation
ARCC
Ares Capital Corporation
MAIN
Main Street Capital Corporation
MAIN
Main Street Capital Corporation
TCPC
BlackRock TCP Capital Corp
TCPC
BlackRock TCP Capital Corp
Sources and Disclaimers
Data Sources:
- SEC filings
- Company website
- Financial news articles
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Prospect Capital Corporation
Exchange NASDAQ | Headquaters New York, NY, United States | ||
IPO Launch date 2004-07-27 | Chairman of the Board & CEO Mr. John Francis Barry III, J.D. | ||
Sector Financial Services | Industry Asset Management | Full time employees - | |
Full time employees - | |||
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 betw
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