PennantPark Floating Rate Capital

Dividend Yield: 8.10%

PennantPark Floating Rate Capital (NASDAQ: PFLT) shares currently have a dividend yield of 8.10%.

PennantPark Floating Rate Capital Ltd. is a business development company. It seeks to make secondary direct, debt, equity, and loan investments. The fund seeks to invest through floating rate loans in private or thinly traded or small market-cap, public middle market companies. The company has a P/E ratio of 12.18.

The average volume for PennantPark Floating Rate Capital has been 85,200 shares per day over the past 30 days. PennantPark Floating Rate Capital has a market cap of $197.1 million and is part of the financial services industry. Shares are up 5.5% year to date as of the close of trading on Friday.

TheStreet Ratings rates PennantPark Floating Rate Capital as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and increase in net income. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share and disappointing return on equity.

Highlights from the ratings report include:
  • PFLT's very impressive revenue growth greatly exceeded the industry average of 8.6%. Since the same quarter one year prior, revenues leaped by 74.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Capital Markets industry average. The net income increased by 38.1% when compared to the same quarter one year prior, rising from $3.94 million to $5.45 million.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • PENNANTPARK FLOATING RT CAP's earnings per share declined by 13.8% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, PENNANTPARK FLOATING RT CAP reported lower earnings of $1.36 versus $1.75 in the prior year. For the next year, the market is expecting a contraction of 19.1% in earnings ($1.10 versus $1.36).
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Capital Markets industry and the overall market, PENNANTPARK FLOATING RT CAP's return on equity is below that of both the industry average and the S&P 500.

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