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PFLT 
PennantPark Floating Rate Capital Ltd (PFLT)
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Upturn Advisory Summary
01/09/2026: PFLT (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
8 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $10.79
1 Year Target Price $10.79
| 2 | Strong Buy |
| 2 | Buy |
| 4 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -10.95% | Avg. Invested days 44 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 01/09/2026 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 948.52M USD | Price to earnings Ratio 13.28 | 1Y Target Price 10.79 |
Price to earnings Ratio 13.28 | 1Y Target Price 10.79 | ||
Volume (30-day avg) 8 | Beta 0.74 | 52 Weeks Range 8.03 - 10.43 | Updated Date 01/9/2026 |
52 Weeks Range 8.03 - 10.43 | Updated Date 01/9/2026 | ||
Dividends yield (FY) 13.20% | Basic EPS (TTM) 0.72 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 25.39% | Operating Margin (TTM) 77.63% |
Management Effectiveness
Return on Assets (TTM) 5.09% | Return on Equity (TTM) 6.8% |
Valuation
Trailing PE 13.28 | Forward PE 8.4 | Enterprise Value 971399091 | Price to Sales(TTM) 3.63 |
Enterprise Value 971399091 | Price to Sales(TTM) 3.63 | ||
Enterprise Value to Revenue 34.81 | Enterprise Value to EBITDA 26.01 | Shares Outstanding 99217896 | Shares Floating - |
Shares Outstanding 99217896 | Shares Floating - | ||
Percent Insiders 0.87 | Percent Institutions 23.46 |
Upturn AI SWOT
PennantPark Floating Rate Capital Ltd
Company Overview
History and Background
PennantPark Floating Rate Capital Ltd. (NASDAQ: PFLT) is a business development company (BDC) that invests primarily in the debt of U.S. middle-market companies. It was founded in 2010 and has since evolved into a significant player in the BDC space, focusing on providing flexible debt financing solutions. Its primary goal is to generate current income and capital appreciation for its shareholders.
Core Business Areas
- Senior Secured Loans: Investing in first lien senior secured loans, which represent the least risky debt investments in the capital structure, offering a higher degree of principal protection. These loans are typically floating rate, meaning their interest payments adjust with prevailing interest rates.
- Unitranche Facilities: Providing unitranche facilities, which combine senior secured and subordinated debt into a single loan agreement. This offers borrowers a streamlined financing solution.
- Subordinated Debt: Investing in subordinated debt, which ranks below senior secured debt but above equity. These investments generally carry higher interest rates to compensate for the increased risk.
- Equity Co-Investments: Occasionally making equity investments alongside its debt investments, providing an additional avenue for potential capital appreciation.
Leadership and Structure
PennantPark Floating Rate Capital Ltd. is externally managed by PennantPark Investment Advisers, LLC. The leadership team includes Chief Executive Officer and Chief Investment Officer Arthur L. Kindler, Chief Financial Officer and Treasurer Jonathan L. Gold, and President and Chief Operating Officer Marc J. Mandel. The company operates as a BDC, regulated by the Investment Company Act of 1940.
Top Products and Market Share
Key Offerings
- Floating Rate Senior Secured Loans: The primary offering, consisting of loans to middle-market companies. The market for middle-market direct lending is highly competitive, with numerous BDCs and private credit funds. Key competitors include Ares Capital Corporation (ARCC), Golub Capital Partners, and Owl Rock Capital Corporation (ORCC). Specific market share data for individual BDCs within this niche is not publicly disclosed in a granular manner.
- Unitranche Facilities: A flexible financing product that competes with traditional syndicated loans and other direct lending solutions. Competitors include a broad range of private debt funds and institutional lenders.
Market Dynamics
Industry Overview
The middle-market direct lending industry is characterized by significant demand for flexible and customized financing solutions from companies that may not have access to traditional capital markets. The industry is influenced by interest rate movements, economic conditions, and the availability of capital. The regulatory environment for BDCs also plays a role.
Positioning
PennantPark Floating Rate Capital Ltd. is positioned as a provider of flexible, floating-rate debt capital to U.S. middle-market companies. Its competitive advantages include its experienced management team, diversified portfolio, and focus on generating current income for shareholders. It aims to offer attractive risk-adjusted returns.
Total Addressable Market (TAM)
The total addressable market for middle-market lending is substantial, estimated to be in the hundreds of billions of dollars. PennantPark Floating Rate Capital Ltd. targets a specific segment of this market, focusing on companies with EBITDA typically between $10 million and $50 million. Its positioning is within this significant, but not all-encompassing, segment of the broader credit market.
Upturn SWOT Analysis
Strengths
- Experienced and stable management team with a long track record.
- Focus on floating-rate debt, which can benefit from rising interest rates.
- Diversified portfolio across various industries and borrowers.
- Access to a large network for deal origination.
- Strong dividend payout history.
Weaknesses
- Sensitivity to economic downturns and credit defaults.
- Reliance on external manager for investment advisory services.
- Potential for increased competition in the direct lending space.
- Limited diversification in equity co-investments.
Opportunities
- Increasing demand for middle-market financing solutions.
- Potential for growth in unitranche and other flexible debt products.
- Opportunities to originate new deals in a dynamic economic environment.
- Leveraging existing relationships for new investment opportunities.
Threats
- Rising interest rates could increase borrowing costs for portfolio companies.
- Increased competition from other BDCs and private credit funds.
- Potential for credit deterioration in the portfolio due to economic slowdown.
- Regulatory changes impacting BDCs.
- Interest rate volatility affecting investment income.
Competitors and Market Share
Key Competitors
- Ares Capital Corporation (ARCC)
- Golub Capital Partners (Private)
- Owl Rock Capital Corporation (ORCC)
- BlackRock Capital Investment Corporation (BKCC)
- Hercules Capital, Inc. (HTGC)
Competitive Landscape
PFLT competes in a crowded BDC and private credit market. Its advantages lie in its experienced management and focus on floating-rate senior secured debt, which can be attractive in certain interest rate environments. Disadvantages include its smaller scale compared to some larger BDCs, which can impact its ability to compete for the largest deals, and the inherent risks associated with credit investments.
Growth Trajectory and Initiatives
Historical Growth: Historically, PFLT has grown its asset base and investment income through prudent originations and strategic deployments of capital. Its growth has been characterized by expanding its loan portfolio and maintaining a consistent dividend payout, reflecting its strategy of generating current income.
Future Projections: Future growth projections for PFLT are generally tied to the health of the middle-market economy, interest rate environments, and its ability to originate new investments. Analyst estimates typically focus on forward-looking net investment income per share and dividend sustainability. Growth is expected to be driven by continued deployment of capital into its target market.
Recent Initiatives: Recent initiatives have likely focused on optimizing its existing portfolio, managing credit risk, and potentially exploring new investment opportunities within its mandate. Given the rising interest rate environment, a key initiative would be managing the impact on its portfolio companies and its own borrowing costs.
Summary
PennantPark Floating Rate Capital Ltd. is a well-established BDC with a solid history of dividend payments and a focus on senior secured floating-rate debt. Its experienced management team and diversified portfolio are key strengths. However, it faces significant competition and is susceptible to economic downturns and interest rate fluctuations. Continued focus on prudent underwriting and efficient capital deployment will be crucial for its future success.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q)
- Financial news and analysis websites (e.g., Yahoo Finance, Seeking Alpha)
- Industry reports on the BDC and middle-market lending sectors.
Disclaimers:
This analysis is based on publicly available information and should not be considered investment advice. Financial data and market share estimates are subject to change and may not be exhaustive. Investors should conduct their own due diligence before making any investment decisions.
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 PennantPark Floating Rate Capital Ltd
Exchange NYSE | Headquaters Miami Beach, FL, United States | ||
IPO Launch date 2011-04-08 | Founder, Chairman & CEO Mr. Arthur Howard Penn | ||
Sector Financial Services | Industry Asset Management | Full time employees - | Website https://pflt.pennantpark.com |
Full time employees - | Website https://pflt.pennantpark.com | ||
PennantPark Floating Rate Capital Ltd. is a business development company. It seeks to make secondary direct, debt, equity, and loan investments. The fund seeks to invest through floating rate loans in private or thinly traded or small market-cap, public middle market companies. It primarily invests in the United States and to a limited extent non-U.S. companies. The fund typically invests between $2 million and $20 million. The fund also invests in equity securities, such as preferred stock, common stock, warrants or options received in connection with debt investments or through direct investments. It primarily invests between $10 million and $50 million in investments in senior secured loans and mezzanine debt. It seeks to invest in companies not rated by national rating agencies. The companies if rated would be between BB and CCC under the Standard & Poor's system. The fund invests 30% is invested in non-qualifying assets like investments in public companies whose securities are not thinly traded or do not have a market capitalization of less than $250 million, securities of middle-market companies located outside of the United States, high-yield bonds, distressed debt, private equity, securities of public companies that are not thinly traded, and investment companies as defined in the 1940 Act. Under normal conditions, the fund expects atleast 80 percent of its net assets plus any borrowings for investment purposes to be invested in Floating Rate Loans and investments with similar economic characteristics, including cash equivalents invested in money market funds. It expects to represent 65 percent of its portfolio through senior secured loans. In case of floating rate loans, it holds investments for a period of three to ten years.
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