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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
10/23/2026: PSEC (1-star) is currently NOT-A-BUY. Pass it for now.
Prospect Capital Corporation is a Business Development Company that provides debt and equity financing to middle-market enterprises. The firm is recognized for its focus on monthly dividend distributions, making it an attractive consideration for income-oriented investors. Its core strength lies in its diversified portfolio, though it faces risks related to high economic sensitivity and historical share price pressure. While the company offers a way to participate in private credit markets, investors should monitor the sustainability of its dividend payments and the performance of its complex asset portfolio. Overall, PSEC serves as an income vehicle that requires careful attention to credit quality and management execution.
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 | The company is structured for income generation rather than capital appreciation. |
| Momentum investor | Mixed fit | Momentum fit is conditional on a positive Upturn signal in the BDC sector sentiment. |
| Value investor | Mixed fit | The stock often trades at a discount to NAV, which may appeal to value investors looking for asset-backed yield. |
| Dividend investor | Strong fit | The company prioritizes monthly dividend payments, catering specifically to income-focused investors. |
| Low-risk investor | Weak fit | High portfolio sensitivity to economic cycles and price volatility makes this unsuitable for low-risk profiles. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock often experiences significant fluctuations tied to interest rate environments and market sentiment toward BDCs. |
| Valuation risk | Medium | Market pricing relative to Net Asset Value (NAV) can create discrepancies for investors. |
| Competition risk (Direct Lending) | High | Intense competition from well-capitalized private credit funds may pressure interest margins. |
| Business quality | Medium | Reliance on an external manager can create misaligned incentives compared to internal management. |
| Dividend income | Medium / high | Dividend sustainability depends on the consistent performance of the underlying loan portfolio. |
| Execution risk | Medium | Effective asset selection and management of credit defaults are critical to protecting capital. |
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 -51.68% | Avg. Invested days 33 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/23/2026 |
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 790.05M USD | Price to earnings Ratio 24.67 | 1Y Target Price 2 |
Price to earnings Ratio 24.67 | 1Y Target Price 2 | ||
Volume (30-day avg) 6.1M shares | Beta 0.81 | 52 Weeks Range 1.43 - 2.75 | Updated Date 10/24/2026 |
52 Weeks Range 1.43 - 2.75 | Updated Date 10/24/2026 | ||
Dividends yield (FY) 34.90% | Basic EPS (TTM) 0.06 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Interest Income | Coupon payments from senior and subordinated debt investments in private firms. | The core of the business is lending money to companies and collecting interest. |
| Equity/Capital Gains | Appreciation and dividends from equity ownership in portfolio companies. | The company also earns money when its partial ownership in other businesses becomes more valuable. |
| Real Estate Rental Income | Rental revenue from the portfolio of multi-family real estate assets. | The company collects rent from properties it owns, adding a layer of diversification. |
Valuation
Trailing PE 24.67 | Forward PE 9.37 | Enterprise Value 4.15B | Price to Sales(TTM) 1.24 |
Enterprise Value 4.15B | Price to Sales(TTM) 1.24 | ||
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 18.3 |
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.
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