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Upturn AI SWOT - About
PSEC 
Prospect Capital Corporation (PSEC)
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Stock price based on last close (see disclosures)
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Upturn Advisory Summary
06/27/2025: 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
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Year Target Price $3
Year Target Price $3
| 0 | Strong Buy |
| 0 | Buy |
| 0 | Hold |
| 0 | Under performing |
| 1 | Sell |
Analysis of Past Performance
Type Stock | Historic Profit -32.91% | Avg. Invested days 31 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/27/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.44B USD | Price to earnings Ratio - | 1Y Target Price 3 |
Price to earnings Ratio - | 1Y Target Price 3 | ||
Volume (30-day avg) - | Beta 0.84 | 52 Weeks Range 3.06 - 4.97 | Updated Date 06/29/2025 |
52 Weeks Range 3.06 - 4.97 | Updated Date 06/29/2025 | ||
Dividends yield (FY) 17.06% | Basic EPS (TTM) -0.86 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -31.96% | Operating Margin (TTM) 70.08% |
Management Effectiveness
Return on Assets (TTM) 4.33% | Return on Equity (TTM) -4.8% |
Valuation
Trailing PE - | Forward PE - | Enterprise Value 5044100608 | Price to Sales(TTM) 1.88 |
Enterprise Value 5044100608 | Price to Sales(TTM) 1.88 | ||
Enterprise Value to Revenue 14.9 | Enterprise Value to EBITDA 9.42 | Shares Outstanding 451535008 | Shares Floating - |
Shares Outstanding 451535008 | Shares Floating - | ||
Percent Insiders 28.34 | Percent Institutions 13.74 |
Analyst Ratings
Rating 1 | Target Price 3 | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold - | Sell - | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Prospect Capital Corporation
Company Overview
History and Background
Prospect Capital Corporation was founded in 2004 and is a business development company (BDC) that invests in middle-market companies in the United States. It aims to generate both current income and long-term capital appreciation through debt and equity investments.
Core Business Areas
- Direct Lending: Provides secured and unsecured debt financing to middle-market companies for acquisitions, recapitalizations, growth, and other purposes.
- Real Estate: Invests in real estate, typically through debt instruments, to generate income.
- Structured Credit: Invests in structured credit instruments, including collateralized loan obligations (CLOs).
Leadership and Structure
The CEO of Prospect Capital Corporation is Rafael Roberto Aguas. The company operates under a typical corporate structure with a board of directors and various executive officers responsible for different aspects of the business.
Top Products and Market Share
Key Offerings
- First Lien Senior Secured Debt: Provides loans secured by the assets of the borrower. Market share data for Prospect Capital's specific share in this segment is difficult to precisely ascertain, but the overall BDC market is fragmented. Competitors include Ares Capital Corporation (ARCC) and Golub Capital BDC (GBDC).
- number of users: unavailable
- revenue from this product: unavailable
- Second Lien Senior Secured Debt: Provides loans with a secondary claim on the borrower's assets. Competitors are similar to those in the first lien market, including ARCC and GBDC.
- number of users: unavailable
- revenue from this product: unavailable
- Subordinated Debt: Higher-risk debt with a lower priority claim on assets. Competitors include Blackstone Secured Lending Fund (BXSL) and HPS Corporate Lending Fund (HPSL).
- number of users: unavailable
- revenue from this product: unavailable
Market Dynamics
Industry Overview
The BDC industry is influenced by interest rates, credit spreads, and the overall health of the middle-market economy. Increased regulatory scrutiny and competition also impact the industry.
Positioning
Prospect Capital Corporation is a prominent BDC focusing on middle-market lending. Its competitive advantage lies in its experience and established relationships in the lending space. However, it faces strong competition from other BDCs.
Total Addressable Market (TAM)
The TAM for middle-market lending is estimated to be hundreds of billions of dollars. Prospect Capital Corporation is a small player relative to this large TAM, giving it significant growth potential.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Diversified investment portfolio
- Established relationships with middle-market companies
- High current income generation potential
Weaknesses
- High operating expenses
- Sensitivity to interest rate changes
- Potential for credit losses
- Complex organizational structure
Opportunities
- Growth in middle-market lending
- Expansion into new sectors
- Strategic acquisitions
- Increased demand for alternative investments
Threats
- Increased competition from other BDCs
- Economic downturn
- Rising interest rates
- Regulatory changes
Competitors and Market Share
Key Competitors
- ARCC
- GBDC
- BXSL
- TCPC
- FSK
Competitive Landscape
Prospect Capital Corporation faces intense competition from other BDCs. Its advantages include an experienced management team and a diversified portfolio. Disadvantages include high operating expenses and sensitivity to interest rate changes. Specific market share data for individual BDCs is difficult to obtain and often changes.
Growth Trajectory and Initiatives
Historical Growth: Prospect Capital Corporation's growth has been driven by investments in middle-market companies. The pace of growth depends on market conditions and the company's ability to source and close deals.
Future Projections: Future growth projections depend on the company's ability to manage its portfolio and capitalize on opportunities in the lending market. Analyst estimates should be consulted for specifics.
Recent Initiatives: Recent initiatives may include new investment strategies, partnerships, or cost-cutting measures. Consult press releases and investor presentations for the latest developments.
Summary
Prospect Capital Corporation is a business development company that invests in middle-market companies, focusing primarily on direct lending. While it offers a high dividend yield, its financial performance is susceptible to economic fluctuations and credit risks. The company faces stiff competition in the BDC sector and high operating costs. Prospect needs to manage its expenses effectively and maintain a disciplined approach to credit selection to achieve long-term success.
Peer Comparison
Sources and Disclaimers
Data Sources:
- SEC Filings
- Company Investor Relations
- Market Research Reports
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Market share estimates are approximate and may vary based on source and methodology. Consult with a qualified financial advisor 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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