PennantPark Floating Rate Capital Ltd.
PennantPark Floating Rate Capital Ltd. Fundamental Analysis
PennantPark Floating Rate Capital Ltd. (PFLT) shows moderate financial fundamentals with a PE ratio of 24.81, profit margin of 23.71%, and ROE of 3.23%. The company generates $0.1B in annual revenue with weak year-over-year growth of 2.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PFLT's fundamental strength across five key dimensions:
Efficiency Score
WeakPFLT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPFLT trades at attractive valuation levels.
Growth Score
WeakPFLT faces weak or negative growth trends.
Financial Health Score
ModeratePFLT shows balanced financial health with some risks.
Profitability Score
ModeratePFLT maintains healthy but balanced margins.
Key Financial Metrics
Is PFLT Expensive or Cheap?
P/E Ratio
PFLT trades at 24.81 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PFLT's PEG of -0.51 indicates potential undervaluation.
Price to Book
The market values PennantPark Floating Rate Capital Ltd. at 0.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -19.15 times EBITDA. This is generally considered low.
How Well Does PFLT Make Money?
Net Profit Margin
For every $100 in sales, PennantPark Floating Rate Capital Ltd. keeps $23.71 as profit after all expenses.
Operating Margin
Core operations generate 24.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.23 in profit for every $100 of shareholder equity.
ROA
PennantPark Floating Rate Capital Ltd. generates $1.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PennantPark Floating Rate Capital Ltd. generates strong operating cash flow of $99.72M, reflecting robust business health.
Free Cash Flow
PennantPark Floating Rate Capital Ltd. generates strong free cash flow of $99.72M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.01 in free cash annually.
FCF Yield
PFLT converts 11.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How PFLT Stacks Against Its Sector Peers
| Metric | PFLT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.81 | 18.97 | Worse (Expensive) |
| ROE | 3.23% | 814.00% | Weak |
| Net Margin | 23.71% | 1583.00% | Weak |
| Debt/Equity | 1.57 | 1.01 | Weak (High Leverage) |
| Current Ratio | 2.25 | 657.65 | Strong Liquidity |
| ROA | 1.27% | -19347.00% (disorted) | Weak |
PFLT outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PennantPark Floating Rate Capital Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.34%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
51.01%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
905.86%
Industry Style: Value, Dividend, Cyclical
High Growth