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Upturn AI Summary - About
Prospect Capital Corporation(PSEC)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for PSEC
09/25/2026: PSEC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Prospect Capital Corporation is a Business Development Company (BDC) that focuses on providing debt and equity financing to middle-market private businesses in the United States. Its primary strength lies in its ability to offer consistent monthly dividends to retail investors, making it a staple for income-oriented portfolios. The company's growth story centers on deploying capital into private credit, though it faces risks from high leverage and the complex valuation of its private assets. Competitive pressures from larger BDCs and interest rate sensitivity remain key concerns. Investors should monitor portfolio credit quality and management fee structures to assess the long-term sustainability of the dividend yield.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Weak fit | PSEC is primarily an income-oriented investment rather than a vehicle for capital appreciation. |
| Momentum investor | Weak fit | The stock often exhibits long periods of range-bound trading rather than sustained momentum. |
| Value investor | Mixed fit | While trading at a discount to book value can be attractive, asset quality concerns often cloud the true value. |
| Dividend investor | Strong fit | The company's commitment to consistent monthly dividends makes it a primary focus for income-seeking portfolios. |
| Low-risk investor | Weak fit | The use of leverage and exposure to middle-market private credit carries inherent risks that may exceed low-risk mandates. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | The share price can swing significantly based on interest rate sentiment and perceived portfolio health. |
| Valuation risk | High | A large portion of the portfolio consists of level 3 assets which are difficult to value objectively. |
| Competition risk (private credit) | High | Larger, better-capitalized BDCs exert constant pressure on interest rate spreads. |
| Business quality | Medium | External management structures can create misaligned incentives between managers and shareholders. |
| Dividend income | Medium / high | The sustainability of the dividend depends entirely on the recurring income generated by portfolio investments. |
| Execution risk | Medium | The complexity of managing such a diverse and private portfolio requires consistent operational excellence. |
Price Behavior
Downtrend
The stock has experienced a sustained decline in price over recent periods.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit -51.47% | Avg. Invested days 28 | Today’s Advisory WEAK BUY |
Upturn Advisory Rating  | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 09/25/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.17B USD | Price to earnings Ratio 36.5 | 1Y Target Price 2 |
Price to earnings Ratio 36.5 | 1Y Target Price 2 | ||
Volume (30-day avg) 4.1M shares | Beta 0.79 | 52 Weeks Range 1.98 - 2.80 | Updated Date 09/27/2026 |
52 Weeks Range 1.98 - 2.80 | Updated Date 09/27/2026 | ||
Dividends yield (FY) 23.85% | Basic EPS (TTM) 0.06 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Debt Investments | Interest income from senior and subordinated loans to private companies. | The company functions like a bank, collecting interest from corporate loans. |
| Real Estate Equity | Rental income and capital appreciation from multi-family residential properties. | Earnings are supported by property income and sales. |
| Management Fees | Income from managing the portfolio and providing advisory services. | Management earns fees regardless of performance volatility. |
Valuation
Trailing PE 36.5 | Forward PE 9.37 | Enterprise Value 4.52B | Price to Sales(TTM) 1.83 |
Enterprise Value 4.52B | Price to Sales(TTM) 1.83 | ||
Enterprise Value to Revenue 17.21 | Enterprise Value to EBITDA 9.42 | Shares Outstanding 533.82M | Shares Floating - |
Shares Outstanding 533.82M | Shares Floating - | ||
Percent Insiders 25.93 | Percent Institutions 18.18 |
Upturn AI Summary
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.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
About Prospect Capital Corporation
Exchange NASDAQ | Headquarters 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 - | Website https://www.prospectstreet.com |
Full time employees - | Website https://www.prospectstreet.com | ||
Prospect Capital Corporation is a Private Equity, Private Debt and business development company. It specializes in middle market, lower-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
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