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Pennantpark
(NYSE:PFLT)
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Rating:64Neutral
Price Target:
$7.50
â–²(1.08% Upside)
Action:Downgraded
Date:10/02/26
PFLT scores as a mid-range opportunity: solid underlying profitability and improved leverage are the primary supports, reinforced by dividend coverage commentary from the earnings call and an attractive income-oriented valuation (high yield, moderate P/E). The main drags are weak technicals (price below key moving averages with negative MACD) and fundamental watch items highlighted on the call—NAV declines from write-downs plus higher funding costs and rate-related credit risk.
Positive Factors
Strong Profitability
PFLT continues to generate strong profitability from its lending model, with healthy gross, operating, and net margins. This earnings base supports ongoing investment activity and distributions, while providing some capacity to absorb credit losses or funding-cost pressure over the next several quarters.
Negative Factors
Revenue Contraction
The recent revenue contraction shows that PFLT’s earnings momentum has weakened despite still-strong margins. Lower revenue and normalized profitability could reduce the amount available for distributions, reinvestment, or balance-sheet growth if the slowdown persists across upcoming reporting periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
PFLT continues to generate strong profitability from its lending model, with healthy gross, operating, and net margins. This earnings base supports ongoing investment activity and distributions, while providing some capacity to absorb credit losses or funding-cost pressure over the next several quarters.
Read all positive factors
Pennantpark (PFLT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$662.78M
Dividend Yield17.26%
Average Volume (3M)739.97K
Price to Earnings (P/E)13.0
Beta (1Y)0.71
Revenue Growth12.58%
EPS Growth-40.06%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.51
Shares Outstanding99,217,896
10 Day Avg. Volume842,258
30 Day Avg. Volume739,971
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)0.77
Price to Sales (P/S)4.80
P/FCF Ratio8.66
Enterprise Value/Market Cap3.34
Enterprise Value/Revenue12.48
Enterprise Value/Gross Profit22.60
Enterprise Value/Ebitda22.14
Forecast
1Y Price Target
$9.33Price Target Upside25.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.06
Revenue Forecast (FY)$268.28M
Pennantpark Business Overview & Revenue Model
Company Description
PennantPark Floating Rate Capital Ltd. functions as a business development company (BDC). It pursues a diverse investment strategy, engaging in direct secondary market acquisitions, various debt and equity instruments, and loan investments. The fu...
How the Company Makes Money
PFLT makes money primarily by earning investment income on its credit portfolio. The core revenue stream is interest income collected from its floating-rate loans (and, where applicable, other debt securities) extended to middle-market borrowers; ...
Pennantpark Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 23, 2026
Earnings Call Sentiment Positive
The call emphasized several encouraging operating and portfolio metrics: core NII covered the base dividend, robust recent and JV yields (quarterly JV cash yield 12.7%), a standout 14x equity realization, conservative underwriting (low PIK, high first-lien exposure), and a strong long-term credit record. Offsetting these positives were a ~2% NAV decline driven by write-downs (net unrealized/realized loss of $18.3M), a small set of post-COVID problem credits (10–15% vintage exposure), and rising funding costs with potential rate-driven credit risks. Overall, management conveyed confidence in underwriting discipline, pipeline activity, and the ability to grow PSSL II while maintaining conservative leverage targets.Positive Updates
Core Earnings Above Base Dividend
Core net investment income (NII) of $0.26 per share for the quarter exceeded the base dividend of $0.24 per share; company will pay an aggregate supplemental dividend of $0.01 (0.0033 per share monthly) representing 50% of NII above the base dividend.
Negative Updates
NAV Decline and Quarter Losses
Net asset value (NAV) per share decreased to $10.26 from $10.47 last quarter, a decline of ~2%; net realized and unrealized loss on investments was $18.3 million for the quarter.
Read all updates
Q3-2026 Updates
Positive
Negative
Core Earnings Above Base Dividend
Core net investment income (NII) of $0.26 per share for the quarter exceeded the base dividend of $0.24 per share; company will pay an aggregate supplemental dividend of $0.01 (0.0033 per share monthly) representing 50% of NII above the base dividend.
Read all positive updates
Company Guidance
Guidance from the call emphasized maintaining a well-covered base dividend and disciplined growth: core/net investment income was $0.26 per share (covering the base dividend of $0.08/month or $0.24/quarter) and PFLT will pay a supplemental dividend of $0.0033 per share monthly for three months (aggregate $0.01); NAV was $10.26 (down ~2% from $10.47) with 4 nonaccruals representing ~1% of the portfolio at cost (0.4% at market). Management expects increased transaction activity to drive repayments, equity monetizations and redeployment into income-producing loans, and plans to scale the PSSL II JV from $390 million today to >$1 billion over the next 12–18 months (PSSL II generated a 12.7% cash yield this quarter). Capital management targets a debt-to-equity range of 1.4–1.6x (1.56x at quarter-end, reduced to ~1.5x subsequently) while keeping underwriting conservative: portfolio median debt/EBITDA 4.6x, median interest coverage 2.1x, loan-to-value 44%, weighted-average yield on debt investments ~9.8% (99% floating rate), quarter investments $212 million at ~9% weighted yield (including $106 million into 5 new platforms with median debt/EBITDA 2.3x, interest coverage 4.2x, LTV 30% and $106 million across 18 existing platforms), and PIK income only ~2.3–2.4% of investment income.Pennantpark Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
73
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 177.61M | 171.52M | 167.82M | 80.32M | 41.37M | 83.56M |
| Gross Profit | 98.05M | 78.29M | 108.60M | 42.16M | 11.61M | 61.91M |
| EBITDA | 100.07M | 67.50M | 94.91M | 39.14M | 8.42M | 56.92M |
| Net Income | 50.25M | 66.36M | 91.84M | 39.26M | 3.45M | 56.52M |
Balance Sheet | ||||||
| Total Assets | 2.63B | 2.91B | 2.11B | 1.18B | 1.23B | 1.17B |
| Cash, Cash Equivalents and Short-Term Investments | 50.73M | 122.69M | 112.05M | 100.56M | 51.49M | 49.83M |
| Total Debt | 1.57B | 1.78B | 1.18B | 495.43M | 672.78M | 652.63M |
| Total Liabilities | 1.62B | 1.84B | 1.23B | 526.01M | 700.38M | 680.25M |
| Stockholders Equity | 1.02B | 1.07B | 877.29M | 653.61M | 527.09M | 490.61M |
Cash Flow | ||||||
| Free Cash Flow | 317.49M | 95.04M | -801.38M | 140.56M | -46.58M | 49.80M |
| Operating Cash Flow | 317.49M | 95.04M | -801.38M | 140.56M | -46.58M | 49.80M |
| Investing Cash Flow | -10.30M | -815.62M | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | 56.48M | 731.22M | 812.87M | -91.53M | 47.70M | -56.31M |
Pennantpark Technical Analysis
Negative
7.42
Price Trends
7.11
Negative
7.21
Negative
7.66
Negative
Market Momentum
-0.12
Positive
32.75
Neutral
18.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFLT, the sentiment is Negative. The current price of 7.42 is above the 20-day moving average (MA) of 6.94, above the 50-day MA of 7.11, and below the 200-day MA of 7.66, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 32.75 is Neutral, neither overbought nor oversold. The STOCH value of 18.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PFLT.
Pennantpark Risk Analysis
Pennantpark disclosed 98 risk factors in its most recent earnings report. Pennantpark reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pennantpark Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $620.29M | 8.42 | 7.45% | 12.66% | -3.92% | -16.93% | |
66 Neutral | $688.90M | 10.70 | 5.79% | 17.51% | -11.58% | -40.72% | |
64 Neutral | $662.78M | 13.00 | 4.82% | 16.92% | 12.58% | -40.06% | |
62 Neutral | $635.66M | -14.02 | -4.28% | 16.94% | -50.21% | -161.42% | |
60 Neutral | $207.64M | 20.14 | <0.01% | 30.14% | 138.32% | -27.91% | |
57 Neutral | $697.70M | -23.53 | -2.39% | 15.47% | 1.24% | -132.48% |
* Financial Sector Average
PFLT
Pennantpark
6.68
-0.96
-12.55%
MFIC
MidCap Financial Investment Corporation
8.47
-1.86
-17.97%
NMFC
New Mountain Finance
6.73
-1.31
-16.35%
PNNT
Pennantpark Investment
3.18
-2.14
-40.21%
SLRC
SLR Investment Corp.
11.37
-1.52
-11.81%
BCSF
Bain Capital Specialty Finance
10.62
-1.20
-10.12%
Pennantpark Corporate Events
Dividends
PennantPark Announces October 2026 Monthly Dividend Distribution
Positive
Oct 2, 2026
On October 2, 2026, PennantPark Floating Rate Capital Ltd. declared its monthly distribution for October 2026 of $0.0833 per share, combining a $0.08 base dividend and a $0.0033 supplemental dividend. The payout will be made on November 2, 2026 to...
Dividends
PennantPark Floating Rate Capital Declares September Dividend
Positive
Sep 2, 2026
PennantPark Floating Rate Capital Ltd., a regulated investment company, focuses on generating qualified interest income and short-term capital gains from its portfolio of floating rate senior secured loans to U.S. middle-market borrowers, which ca...
Business Operations and StrategyDividends
PennantPark Declares August Monthly Dividend Distribution
Positive
Aug 4, 2026
On August 4, 2026, PennantPark Floating Rate Capital Ltd. declared a monthly distribution for August 2026 of $0.0833 per share, combining a $0.08 base dividend and a $0.0033 supplemental dividend. The payout is scheduled for September 1, 2026 to s...
Business Operations and StrategyFinancial Disclosures
PennantPark Schedules Third-Quarter Results Release and Call
Neutral
Jul 6, 2026
On July 6, 2026, PennantPark Floating Rate Capital Ltd. announced that it would release financial results for its third fiscal quarter ended June 30, 2026 on Monday, August 10, 2026, after the close of the financial markets. The company’s de...
Dividends
PennantPark Declares July Monthly Dividend and Distribution
Positive
Jul 2, 2026
On July 2, 2026, PennantPark Floating Rate Capital Ltd. declared a monthly distribution for July 2026 of $0.0833 per share, combining a $0.08 base dividend and a $0.0033 supplemental dividend. The payout is scheduled for August 3, 2026 to sharehol...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.