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Upturn AI SWOT - About
PSEC 
Prospect Capital Corporation (PSEC)
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Upturn Advisory Summary
08/28/2025: 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 -38.6% | 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 08/28/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.34B 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 2.69 - 4.83 | Updated Date 08/28/2025 |
52 Weeks Range 2.69 - 4.83 | Updated Date 08/28/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -1.35 |
Earnings Date
Report Date 2025-08-26 | When - | Estimate 0.13 | Actual 0.17 |
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 4989541376 | Price to Sales(TTM) 1.86 |
Enterprise Value 4989541376 | Price to Sales(TTM) 1.86 | ||
Enterprise Value to Revenue 14.9 | Enterprise Value to EBITDA 9.42 | Shares Outstanding 451535008 | Shares Floating - |
Shares Outstanding 451535008 | Shares Floating - | ||
Percent Insiders 27.68 | Percent Institutions 14.97 |
Upturn AI SWOT
Prospect Capital Corporation
Company Overview
History and Background
Prospect Capital Corporation was founded in 2004. It is a business development company (BDC) that focuses on lending to and investing in middle-market companies in the United States.
Core Business Areas
- Direct Lending: Provides secured debt financing to private companies for acquisitions, recapitalizations, and growth.
- Buyouts: Investing in sponsored and unsponsored management and employee buyouts of companies.
- Real Estate: Investing in a range of real estate opportunities.
- Online Lending: Investment in performing consumer credit.
Leadership and Structure
John F. Barry III is the Chairman and Chief Executive Officer. The company operates with a management team overseeing investments and portfolio management.
Top Products and Market Share
Key Offerings
- Senior Secured Loans: These are Prospect's primary offering, providing financing for acquisitions, recapitalizations, and growth. While specific market share data for Prospect's senior secured lending is difficult to ascertain, the overall market is competitive with many BDCs and private credit funds participating. Competitors include Ares Capital, Main Street Capital and Owl Rock Capital.
- Subordinated Debt: Prospect also offers subordinated debt financing, which carries a higher risk but also higher potential returns. Specific market share data unavailable. Competitors include Ares Capital, Main Street Capital and Owl Rock Capital.
- Equity Investments: Prospect takes equity positions in companies alongside its debt investments. Market Share data unavailable and the market is very fragmented. Competitors include Venture capital and private equity firms.
Market Dynamics
Industry Overview
The BDC industry is competitive, with numerous firms vying to provide capital to middle-market companies. The industry is influenced by interest rates, economic conditions, and regulatory changes.
Positioning
Prospect Capital Corporation is a well-established BDC focusing on direct lending and investing in middle-market companies. It aims to generate income for its shareholders through interest payments and capital gains.
Total Addressable Market (TAM)
The TAM for middle-market lending is estimated to be in the hundreds of billions of dollars. Prospect Capital aims to address a segment of this TAM by providing financing solutions to businesses underserved by traditional banks.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Diversified investment portfolio
- Established track record in middle-market lending
Weaknesses
- High operating expenses compared to competitors
- Sensitivity to interest rate fluctuations
- Dependence on external financing
Opportunities
- Growing demand for private credit
- Expanding into new industry sectors
- Capitalizing on market dislocations
Threats
- Increased competition from other BDCs
- Economic downturns impacting portfolio companies
- Regulatory changes affecting BDCs
Competitors and Market Share
Key Competitors
- ARCC
- MAIN
- OAK
- TCPC
Competitive Landscape
Prospect Capital faces competition from other BDCs, private equity firms, and traditional lenders. Its competitive advantages include its experienced management team and established track record, while its disadvantages include its higher expense ratio and reliance on external funding.
Major Acquisitions
First Tower Finance
- Year: 2012
- Acquisition Price (USD millions): 233
- Strategic Rationale: Expanded Prospect's portfolio and access to consumer finance markets.
Growth Trajectory and Initiatives
Historical Growth: Growth has been driven by increased investment activity and strategic acquisitions. Historical data unavailable without a specific time period.
Future Projections: Future growth is expected to be driven by continued demand for private credit and the company's ability to source attractive investment opportunities. Analyst estimates unavailable.
Recent Initiatives: Recent initiatives involve focusing on secured lending and strategic partnerships.
Summary
Prospect Capital Corporation is a BDC focused on providing capital to middle-market companies. It has a diversified portfolio and experienced management team but faces challenges related to its expense ratio and reliance on external funding. While the market demand for private credit offers opportunity it faces increasing competition. Prospect needs to focus on expense management and diversifying its funding sources to enhance shareholder value.
Peer Comparison
Sources and Disclaimers
Data Sources:
- SEC Filings
- Company Website
- Analyst Reports
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market share data is approximate and may vary based on source.
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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