Prospect Capital Corporation (PSEC) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Prospect Capital Corporation stock (PSEC) is currently trading at $2.60. Prospect Capital Corporation PS ratio (Price-to-Sales) is 1.81. Analyst consensus price target for PSEC is $2.50. WallStSmart rates PSEC as Underperform.
- PSEC PE ratio analysis and historical PE chart
- PSEC PS ratio (Price-to-Sales) history and trend
- PSEC intrinsic value — DCF, Graham Number, EPV models
- PSEC stock price prediction 2025 2026 2027 2028 2029 2030
- PSEC fair value vs current price
- PSEC insider transactions and insider buying
- Is PSEC undervalued or overvalued?
- Prospect Capital Corporation financial analysis — revenue, earnings, cash flow
- PSEC Piotroski F-Score and Altman Z-Score
- PSEC analyst price target and Smart Rating
Prospect Capital Corporation
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Smart Analysis
Prospect Capital Corporation (PSEC) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in operating margin, price/sales, price/book. Concerns around return on equity and revenue growth. Mixed signals suggest waiting for clearer direction before acting.
Prospect Capital Corporation (PSEC) Key Strengths (3)
Keeps $70 of every $100 in revenue after operating costs
Trading below book value, meaning the market prices it less than net assets
Paying $1.81 for every $1 of annual revenue
Supporting Valuation Data
Prospect Capital Corporation (PSEC) Areas to Watch (7)
Company is destroying shareholder value
Revenue declining -5.10%, a shrinking business
Earnings declining -78.20%, profits shrinking
Company is losing money with a negative profit margin
Low institutional interest, mostly retail-driven
Small-cap company with higher risk but more growth potential
Growth is fairly priced, not cheap, not expensive
Supporting Valuation Data
Prospect Capital Corporation (PSEC) Detailed Analysis Report
Overall Assessment
This company scores 45/100 in our Smart Analysis, earning a D+ grade. Out of 10 metrics analyzed, 3 register as strengths (avg 9.3/10) while 7 fall into concern territory (avg 2.1/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Price/Book, Price/Sales. Valuation metrics including Price/Sales (1.81), Price/Book (0.41) suggest the stock is attractively priced. Profitability is solid with Operating Margin at 70.30%.
The Bear Case
The primary concerns are Return on Equity, Revenue Growth, EPS Growth. Some valuation metrics including PEG Ratio (1.55) suggest expensive pricing. Growth concerns include Revenue Growth at -5.10%, EPS Growth at -78.20%, which may limit upside. Profitability pressure is visible in Return on Equity at -4.85%, Profit Margin at -34.90%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -4.85% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -5.10% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Return on Equity and Revenue Growth are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
PSEC Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
PSEC's Price-to-Sales ratio of 1.81x sits near its historical average of 1.9x (0th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 8% below its historical high of 1.96x set in Mar 2026, and 0% above its historical low of 1.81x in Mar 2026.
WallStSmart Analysis Synopsis
Data-driven financial summary for Prospect Capital Corporation (PSEC) · FINANCIAL SERVICES › ASSET MANAGEMENT
The Big Picture
Prospect Capital Corporation is in a turnaround phase, with management focused on restoring profitability. Revenue reached 671M with 5% decline year-over-year. The company is currently unprofitable, posting a -34.9% profit margin.
Key Findings
Generating 86M in free cash flow and 86M in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 5% YoY. Worth determining whether this is cyclical or structural.
The company is unprofitable with a -34.9% profit margin. The path to breakeven will be the key catalyst.
What to Watch Next
Dividend sustainability with a current yield of 20.8%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor ASSET MANAGEMENT industry trends, competitive moves, and regulatory changes that could impact Prospect Capital Corporation.
Bottom Line
Prospect Capital Corporation is in turnaround mode. The path to profitability remains the critical question. Speculative investors may see opportunity in the recovery story, but conservative investors should wait for consistent positive earnings before committing capital.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(1 last 3 months)
| Insider | Type | Shares |
|---|---|---|
ELIASEK, M GRIER Director, Chief Operating Officer | Buy | +942,800 |
Data sourced from SEC Form 4 filings
Last updated: 8:21:24 AM
About Prospect Capital Corporation(PSEC)
NASDAQ
FINANCIAL SERVICES
ASSET MANAGEMENT
USA
Prospect Capital Corporation (PSEC) is a leading publicly traded business development company dedicated to providing flexible financing solutions primarily to middle-market enterprises. With a well-diversified portfolio that includes both debt and equity investments, PSEC strives to deliver attractive, risk-adjusted returns to shareholders while prudently managing its capital. Leveraging extensive industry expertise, the firm targets promising growth-oriented businesses across various sectors, emphasizing sustainable investment practices and social responsibility alongside financial performance. This strategic approach positions Prospect Capital as a vital partner in fostering the growth of its portfolio companies while aligning with investor interests in both profitability and ethical business practices.