Home 
Today's Top Picks 
Top Performers 
Watchlist 
My Robo Portfolios 
ETF Zone 
Help & Tutorial - Chart
- Upturn Summary
- Highlights
- Valuation
- About
PSEC 
Prospect Capital Corporation (PSEC)
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- Pass (Skip investing)
Stock price based on last close (see disclosures)
- ALL
- 1Y
- 1M
- 1W
Upturn Advisory Summary
01/09/2026: PSEC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
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 -33.25% | Avg. Invested days 21 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 01/09/2026 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.30B 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 2.40 - 3.84 | Updated Date 01/10/2026 |
52 Weeks Range 2.40 - 3.84 | Updated Date 01/10/2026 | ||
Dividends yield (FY) 20.18% | Basic EPS (TTM) -0.89 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -37.89% | Operating Margin (TTM) 71.71% |
Management Effectiveness
Return on Assets (TTM) 4.13% | Return on Equity (TTM) -5.29% |
Valuation
Trailing PE - | Forward PE - | Enterprise Value 4762301440 | Price to Sales(TTM) 1.91 |
Enterprise Value 4762301440 | Price to Sales(TTM) 1.91 | ||
Enterprise Value to Revenue 14.9 | Enterprise Value to EBITDA 9.42 | Shares Outstanding 470910990 | Shares Floating - |
Shares Outstanding 470910990 | Shares Floating - | ||
Percent Insiders 28.22 | Percent Institutions 18.58 |
Upturn AI SWOT
Prospect Capital Corporation
Company Overview
History and Background
Prospect Capital Corporation (NASDAQ: PSEC) was founded in 2004. It is a leading provider of financing for United States businesses. The company has grown significantly over the years, evolving its investment strategies to focus on a diverse portfolio of debt and equity investments.
Core Business Areas
- Direct Lending: Prospect Capital Corporation provides capital directly to middle-market companies, often in the form of senior secured loans, mezzanine debt, and subordinated debt. This includes both origination and underwriting of new loans.
- Sponsorship Investments: The company invests in businesses sponsored by private equity firms, providing a crucial capital component for buyouts, recapitalizations, and growth financing.
- Acquisition Financing: Prospect Capital offers financing solutions to support the acquisition activities of its portfolio companies.
- Strategic Investments: Beyond traditional lending, Prospect Capital also engages in strategic equity investments in various businesses, aiming for capital appreciation and dividend income.
Leadership and Structure
Prospect Capital Corporation is externally managed by Prospect Capital Management LLC. The leadership team is comprised of experienced professionals in finance and investment. The company operates as a business development company (BDC).
Top Products and Market Share
Key Offerings
- Senior Secured Loans: Provides debt financing with a primary claim on a company's assets. This is a core offering, generating consistent interest income for Prospect. Competitors include other BDCs, commercial banks, and private credit funds.
- Mezzanine Debt: Offers a hybrid of debt and equity financing, typically ranking below senior debt but above equity. This allows for higher yields. Competitors include specialized mezzanine funds and private equity firms.
- Subordinated Debt: Long-term debt that ranks below senior and secured debt, offering higher interest rates due to increased risk. Competitors are similar to mezzanine debt providers.
- Equity Investments: Takes minority or majority stakes in companies, aiming for capital appreciation and dividend income. This is a more opportunistic offering. Competitors are venture capital and private equity firms.
Market Dynamics
Industry Overview
Prospect Capital operates within the private credit and business development company (BDC) sector, which is a segment of the broader financial services industry. This sector has seen significant growth driven by demand for flexible financing solutions from middle-market companies and a search for yield by investors.
Positioning
Prospect Capital is positioned as a significant player in the BDC space, known for its diverse investment strategy and ability to originate and underwrite a wide range of debt and equity instruments. Its competitive advantages include its experienced management team, broad industry coverage, and ability to execute complex transactions.
Total Addressable Market (TAM)
The TAM for private credit and middle-market financing is substantial and continues to grow, estimated to be in the trillions of dollars globally. Prospect Capital is positioned to capture a portion of this market by providing capital to companies underserved by traditional banking. Its specific market share within this vast TAM is a small but growing percentage, focused on its target middle-market segment.
Upturn SWOT Analysis
Strengths
- Experienced and stable management team.
- Diversified portfolio across various industries and investment types.
- Strong origination and underwriting capabilities.
- Access to capital markets for funding.
Weaknesses
- External management structure can lead to potential conflicts of interest.
- Sensitivity to interest rate fluctuations.
- Potential for concentration risk within certain investments.
- Valuation of illiquid investments can be subjective.
Opportunities
- Continued growth in the private credit market.
- Increased demand for flexible financing solutions from middle-market companies.
- Potential for strategic acquisitions or partnerships.
- Leveraging technology to improve operational efficiency.
Threats
- Economic downturns and increased default rates.
- Rising interest rate environment could increase borrowing costs and impact portfolio company performance.
- Increased competition from other BDCs and private credit funds.
- Regulatory changes affecting the BDC industry.
Competitors and Market Share
Key Competitors
- Apollo Investment Corporation (AINV)
- BlackRock Capital Investment Corporation (BKCC)
- Golub Capital BDC, Inc. (GBDC)
Competitive Landscape
Prospect Capital competes with other BDCs and private credit funds. Its advantages lie in its diversified strategy and experienced management. However, it faces competition from firms with larger scale or more specialized expertise in certain sectors.
Growth Trajectory and Initiatives
Historical Growth: Prospect Capital has shown consistent growth in its investment portfolio and assets under management over the years. This growth has been fueled by both organic origination of new investments and strategic deployment of capital.
Future Projections: Future growth is expected to be driven by the expanding private credit market and Prospect's ability to source and execute attractive investment opportunities. Analyst estimates typically focus on projected NII and NAV growth, which are key indicators for BDCs.
Recent Initiatives: Recent initiatives likely focus on optimizing the existing portfolio, identifying new investment themes, and managing the cost of capital. This may include deleveraging, selective exits, and exploring new avenues for capital deployment.
Summary
Prospect Capital Corporation is a well-established BDC with a diversified portfolio and experienced management, making it a strong contender in the private credit market. Its consistent dividend payouts are attractive to income investors, and it is well-positioned to capitalize on the growing demand for middle-market financing. However, investors should be aware of its sensitivity to interest rate changes and the inherent risks associated with its investment strategy.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q)
- Financial News and Analysis Websites (e.g., Yahoo Finance, Bloomberg)
- Industry Reports on Private Credit and BDCs
Disclaimers:
This JSON output is for informational purposes only and does not constitute financial advice. Investment decisions should be made after consulting with a qualified financial advisor and conducting thorough personal due diligence.
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
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.