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Upturn AI SWOT - About
PSEC 
Prospect Capital Corporation (PSEC)
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Upturn Advisory Summary
10/15/2025: 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.
Number of Analysts
1 Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $2.5
1 Year Target Price $2.5
| 0 | Strong Buy |
| 0 | Buy |
| 0 | Hold |
| 0 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -40.45% | Avg. Invested days 27 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/15/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.31B USD | Price to earnings Ratio - | 1Y Target Price 2.5 |
Price to earnings Ratio - | 1Y Target Price 2.5 | ||
Volume (30-day avg) 1 | Beta 0.84 | 52 Weeks Range 2.53 - 4.66 | Updated Date 10/15/2025 |
52 Weeks Range 2.53 - 4.66 | Updated Date 10/15/2025 | ||
Dividends yield (FY) 21.20% | Basic EPS (TTM) -1.35 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -65.32% | Operating Margin (TTM) 67.94% |
Management Effectiveness
Return on Assets (TTM) 4.15% | Return on Equity (TTM) -9.48% |
Valuation
Trailing PE - | Forward PE - | Enterprise Value 4970890240 | Price to Sales(TTM) 1.82 |
Enterprise Value 4970890240 | Price to Sales(TTM) 1.82 | ||
Enterprise Value to Revenue 14.9 | Enterprise Value to EBITDA 9.42 | Shares Outstanding 465087009 | Shares Floating - |
Shares Outstanding 465087009 | Shares Floating - | ||
Percent Insiders 28.57 | Percent Institutions 14.96 |
Upturn AI SWOT
Prospect Capital Corporation
Company Overview
History and Background
Prospect Capital Corporation was founded in 2004 and went public that same year. It is a business development company (BDC) that focuses on lending to and investing in middle-market companies.
Core Business Areas
- Private Debt: Investments in senior and subordinated debt of private companies, often secured.
- Private Equity: Investments in equity positions of private companies, often alongside debt investments.
- Real Estate: Investments in real estate assets, including both debt and equity positions.
Leadership and Structure
Prospect Capital is led by a management team headed by John F. Barry III, CEO. The company operates as a BDC and is governed by a board of directors.
Top Products and Market Share
Key Offerings
- Senior Secured Loans: Loans made to private companies, often secured by assets. Competitors include Ares Capital (ARCC) and Main Street Capital (MAIN). Market share not precisely available for this specific product within Prospect Capital's overall portfolio.
- Subordinated Debt: Higher-yielding debt that is subordinated to senior debt. Competitors include Apollo Investment (AINV) and NewtekOne(NEWT). Market share not precisely available for this specific product within Prospect Capital's overall portfolio.
- Equity Investments: Investments in the equity of private companies. Competitors vary widely depending on the specific industry and stage of the company.
Market Dynamics
Industry Overview
The BDC industry is influenced by interest rates, economic growth, and credit market conditions. BDCs provide capital to middle-market companies that may have difficulty accessing traditional financing.
Positioning
Prospect Capital is a diversified BDC with a focus on income generation and capital preservation. Its competitive advantages include its experienced management team and its ability to source and structure deals.
Total Addressable Market (TAM)
The TAM for middle-market lending is substantial, estimated in the hundreds of billions of dollars. Prospect Capital aims to capture a share of this market through its diversified investment strategy.
Upturn SWOT Analysis
Strengths
- Experienced Management Team
- Diversified Investment Portfolio
- Focus on Income Generation
- Access to Capital Markets
- Established Track Record
Weaknesses
- High Operating Expenses
- Reliance on External Financing
- Sensitivity to Interest Rate Changes
- Complexity of Business Model
- Past Dividend Cuts
Opportunities
- Growing Middle-Market Lending Market
- Increasing Demand for Private Credit
- Potential for Acquisitions
- Expansion into New Industries
- Strategic Partnerships
Threats
- Economic Downturn
- Increased Competition
- Rising Interest Rates
- Regulatory Changes
- Credit Losses
Competitors and Market Share
Key Competitors
- ARCC
- MAIN
- TCPC
- AINV
Competitive Landscape
Prospect Capital faces intense competition from other BDCs. Its success depends on its ability to differentiate itself through its investment strategy, risk management, and cost control.
Growth Trajectory and Initiatives
Historical Growth: Prospect Capital's growth has been driven by its ability to raise capital and deploy it into income-generating investments. Past growth has been uneven due to market fluctuations and credit cycles.
Future Projections: Future growth projections are uncertain and depend on the company's ability to manage its portfolio, control expenses, and maintain its dividend.
Recent Initiatives: Recent initiatives may include portfolio adjustments, cost-cutting measures, and efforts to improve asset quality.
Summary
Prospect Capital is a business development company that focuses on income generation from middle market investments. It has faced challenges with dividend sustainability and operates in a competitive industry. Key areas for improvement include expense management and portfolio diversification. Investors should closely monitor the company's financial performance and dividend policy.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (SEC)
- Industry Reports
- Analyst Estimates
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market share estimates may not be precise and are subject to change. 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 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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