Pennantpark $ (PFLT) AI Stock Analysis

• Market Cap: $906.85M
• Dividend Yield: 13.46%
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.60
• Revenue Growth: 55.25%
• EPS Growth: -47.71%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.25
• Shares Outstanding: 99,217,896
• 10 Day Avg. Volume: 1,092,668
• 30 Day Avg. Volume: 1,419,986
• PEG Ratio: 0.10
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 4.08
• P/FCF Ratio: -0.95
• Enterprise Value/Market Cap: 2.55
• Enterprise Value/Revenue: 10.08
• Enterprise Value/Gross Profit: 15.10
• Enterprise Value/Ebitda: 13.61
• 1Y Price Target: $10.70
• Price Target Upside: 17.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $11.00 ▲(20.35% Upside)

The overall stock score is primarily influenced by strong valuation metrics, despite challenges in cash flow management and bearish technical indicators. The mixed sentiment from the earnings call also contributes to a moderate outlook.

Positive Factors

Strong Credit Metrics

The low nonaccrual rate highlights PennantPark's rigorous underwriting process, ensuring high-quality investments and reducing credit risk, which supports long-term financial stability.

Joint Venture Formation

The joint venture with Hamilton Lane expands PennantPark's investment capacity, potentially enhancing revenue through diversified opportunities and strategic growth over the next 12-18 months.

Portfolio Growth

Consistent portfolio growth indicates effective investment strategies and market demand, supporting long-term revenue generation and competitive positioning in the asset management sector.

Negative Factors

Cash Flow Challenges

Persistent cash flow issues may strain liquidity and operational flexibility, potentially impacting PennantPark's ability to fund new investments and meet financial obligations.

Net Asset Value Decline

A decline in NAV suggests potential challenges in asset valuation and performance, which could affect investor confidence and the company's ability to attract capital.

Realized and Unrealized Losses

Losses on investments indicate potential issues in asset selection or market conditions, which could impact profitability and long-term return on investment.

Pennantpark $ Business Overview & Revenue Model

Company Description

PennantPark Floating Rate Capital Ltd. (PFLT) is a business development company that focuses on providing financing solutions primarily to private middle-market companies in the United States. The company invests in a diversified portfolio of floating-rate loans and debt securities, primarily targeting sectors such as healthcare, technology, and business services. Through its investment strategy, PFLT aims to generate attractive risk-adjusted returns for its shareholders.

How the Company Makes Money

PennantPark Floating Rate Capital Ltd. generates revenue primarily through interest income from its portfolio of floating-rate loans and debt securities. The company typically invests in senior secured loans, which provides a higher priority in the capital structure and often yields higher interest rates compared to unsecured debt. Additionally, PFLT may earn management fees from its investment activities and could realize capital gains when it sells assets in its portfolio. The company’s revenue model is underpinned by its ability to identify and invest in high-quality companies with strong growth potential. Strategic partnerships with financial institutions and advisors also enhance PFLT's ability to source deals and provide financing solutions, contributing to its earnings stability.

Pennantpark $ Financial Statement Overview

Summary

PennantPark demonstrates strong profitability and a solid balance sheet with low leverage, but faces significant challenges with cash flow management. The income statement shows consistent revenue growth and healthy margins, but the negative cash flows pose risks to liquidity and operational flexibility.

Income Statement

The income statement shows a strong performance with a consistent revenue growth rate of 7.3% in the TTM period. The company maintains healthy margins with a gross profit margin of 66.76% and a net profit margin of 37.35%. EBIT and EBITDA margins are also robust at 73.93% and 74.09%, respectively. However, the revenue growth rate has slowed compared to previous periods, indicating potential challenges in sustaining high growth.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.17 in the TTM period, indicating low leverage. The return on equity is moderate at 8.58%, suggesting efficient use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is -3.68, indicating cash flow issues despite profitability. This could pose risks to liquidity and operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	229.43M	186.35M	139.34M	94.38M	82.69M	49.79M
Gross Profit	153.16M	186.35M	139.34M	70.25M	52.98M	22.68M
EBITDA	169.99M	92.92M	-28.23M	33.21M	81.06M	18.81M
Net Income	104.98M	91.84M	39.26M	3.45M	56.52M	18.41M
Balance Sheet
Total Assets	2.52B	2.11B	1.18B	1.22B	1.17B	1.15B
Cash, Cash Equivalents and Short-Term Investments	102.73M	112.05M	100.56M	51.49M	49.83M	57.51M
Total Debt	184.41M	1.18B	495.43M	672.78M	652.63M	653.21M
Total Liabilities	1.43B	1.23B	526.01M	700.38M	680.25M	671.02M
Stockholders Equity	1.09B	877.29M	653.61M	527.09M	490.61M	477.27M
Cash Flow
Free Cash Flow	-677.79M	-801.38M	140.56M	-46.58M	49.57M	-4.94M
Operating Cash Flow	-677.79M	-801.38M	140.56M	-46.58M	49.80M	-4.94M
Investing Cash Flow	-756.76M	0.00	0.00	0.00	41.02M	-39.84M
Financing Cash Flow	695.93M	812.87M	-91.53M	47.70M	-56.31M	-909.00K

Pennantpark $ Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFLT, the sentiment is Neutral. The current price of 9.14 is above the 20-day moving average (MA) of 8.89, below the 50-day MA of 9.24, and below the 200-day MA of 9.78, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 57.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PFLT.

Pennantpark $ Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRIN	74 Outperform	$1.07B	6.80	17.31%	13.44%	31.43%	30.85%
SLRC	71 Outperform	$838.50M	9.44	8.95%	10.67%	5.87%	-12.64%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CGBD	67 Neutral	$909.10M	10.65	6.60%	13.63%	-17.05%	-40.15%
BCSF	66 Neutral	$906.21M	8.40	9.42%	12.88%	-3.29%	-16.86%
NMFC	65 Neutral	$993.39M	12.73	6.18%	13.40%	39.05%	-32.62%
PFLT	63 Neutral	$906.85M	10.82	7.37%	13.46%	55.25%	-47.71%

Pennantpark $ Corporate Events

PennantPark to Announce Q4 Earnings on Nov 24

On October 3, 2025, PennantPark Floating Rate Capital Ltd. announced its plans to release its fourth fiscal quarter earnings results for the period ending September 30, 2025, on November 24, 2025. The company will host a conference call the following day to discuss these results, which could provide insights into its financial health and strategic direction, potentially impacting its stakeholders and market positioning.

The most recent analyst rating on (PFLT) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Pennantpark $ stock, see the PFLT Stock Forecast page.

PennantPark Announces October 2025 Distribution

On October 2, 2025, PennantPark Floating Rate Capital Ltd. announced a monthly distribution of $0.1025 per share for October 2025, payable on November 3, 2025, to stockholders of record as of October 15, 2025. This distribution is expected to be paid from taxable net investment income, with specific tax characteristics to be reported to stockholders on Form 1099 after the calendar year ends. The announcement highlights the company’s ongoing commitment to providing returns to its investors and its strategic positioning within the investment landscape, particularly in offering tax-efficient distributions to non-U.S. stockholders.

The most recent analyst rating on (PFLT) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Pennantpark $ stock, see the PFLT Stock Forecast page.

PennantPark Announces September 2025 Distribution

On September 3, 2025, PennantPark Floating Rate Capital Ltd. announced a monthly distribution of $0.1025 per share for September 2025, payable on October 1, 2025, to stockholders of record as of September 15, 2025. This distribution is expected to be paid from taxable net investment income and may have tax implications for non-U.S. stockholders, as certain distributions could be exempt from U.S. withholding tax under specific conditions.

The most recent analyst rating on (PFLT) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Pennantpark $ stock, see the PFLT Stock Forecast page.

PennantPark Acquires $250M Asset Portfolio

On September 2, 2025, PennantPark Floating Rate Capital Ltd. announced the acquisition of a $250 million asset portfolio, including assets from TSO Puma SPV, LLC, as part of the winding down of PennantPark-TSO Senior Loan Fund, LP. This acquisition is expected to optimize PFLT’s portfolio and increase net investment income by approximately two cents per share per quarter, aligning with the company’s existing investment strategy.

The most recent analyst rating on (PFLT) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Pennantpark $ stock, see the PFLT Stock Forecast page.

PennantPark’s Mixed Earnings Call: Joint Ventures & Challenges

PennantPark Floating Rate Capital’s recent earnings call presented a mixed sentiment, balancing positive developments with some challenges. The company announced a promising new joint venture and highlighted strong credit metrics and increased deal activity. However, these positives were tempered by a decline in net asset value (NAV), realized and unrealized losses, and a temporary slowdown in deal flow, painting a picture of cautious optimism.

PennantPark Enters Joint Venture with Hamilton Lane

On August 8, 2025, PennantPark Floating Rate Capital Ltd. and Hamilton Lane entered into a joint venture agreement to co-manage PennantPark Senior Secured Loan Fund II LLC, focusing on middle market loans. The joint venture involves a combined investment commitment of up to $200 million, with PennantPark committing $150 million and Hamilton Lane $50 million, requiring equal representation and decision-making from both parties.

The most recent analyst rating on (PFLT) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Pennantpark $ stock, see the PFLT Stock Forecast page.

PennantPark Floating Rate Capital Reports Q3 2025 Results

PennantPark Floating Rate Capital Ltd. is a business development company that primarily invests in U.S. middle-market companies through floating rate senior secured loans, including first lien secured debt, second lien secured debt, and subordinated debt. The company is managed by PennantPark Investment Advisers, LLC.

PennantPark Announces August 2025 Monthly Distribution

On August 4, 2025, PennantPark Floating Rate Capital Ltd. announced a monthly distribution of $0.1025 per share for August 2025, payable on September 2, 2025, to stockholders of record as of August 15, 2025. The distribution is expected to be paid from taxable net investment income and may offer tax advantages to non-U.S. stockholders under U.S. tax law, potentially impacting the company’s attractiveness to international investors.

The most recent analyst rating on (PFLT) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Pennantpark $ stock, see the PFLT Stock Forecast page.