Prospect Capital Corporation

Dividend Yield: 11.80%

Prospect Capital Corporation (NASDAQ: PSEC) shares currently have a dividend yield of 11.80%.

Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, buyouts, recapitalizations, turnaround, growth capital, development, cash flow term loans, and bridge transactions. The company has a P/E ratio of 10.29.

The average volume for Prospect Capital Corporation has been 2,980,800 shares per day over the past 30 days. Prospect Capital Corporation has a market cap of $3.2 billion and is part of the financial services industry. Shares are up 4% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Prospect Capital Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 8.8%. Since the same quarter one year prior, revenues rose by 30.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 69.1% when compared to the same quarter one year prior, rising from $47.25 million to $79.90 million.
  • The gross profit margin for PROSPECT CAPITAL CORP is rather high; currently it is at 68.15%. Regardless of PSEC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PSEC's net profit margin of 49.61% significantly outperformed against the industry.
  • Net operating cash flow has significantly increased by 50.05% to -$245.45 million when compared to the same quarter last year. Despite an increase in cash flow of 50.05%, PROSPECT CAPITAL CORP is still growing at a significantly lower rate than the industry average of 269.25%.

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