Pennantpark Floating Rate Capit (PFLT)
NYSE:PFLT
Want to see PFLT full AI Analyst Report?
Top Page
Pennantpark
(NYSE:PFLT)
Select Model
Select Model
Rating:69Neutral
Price Target:
$10.00
▲(12.11% Upside)
Action:Reiterated
Date:05/09/26
The score is driven by improved but still volatile fundamentals (strong TTM revenue growth and profitability, better leverage, but inconsistent historical cash flow and lower operating margin), reinforced by constructive technical momentum. High dividend yield supports the valuation component, while the earnings call adds confidence via stable NAV/low nonaccruals and a defined NII growth plan, tempered by a more cautious dividend framework and execution risk around the JV ramp.
Positive Factors
Conservative portfolio mix
A high first‑lien senior secured mix and very low PIK reduce loss severity and support recoveries across cycles. This durable credit bias helps preserve NAV and stabilize income generation versus peers with weaker lien or higher PIK exposure, improving long‑term downside protection.
Negative Factors
Inconsistent cash flow history
Volatile operating cash flows impair long‑term predictability of distributions and reinvestment. Large historical OCF swings mean coverage of debt and dividends can deteriorate quickly in stress, requiring conservative payout policy or asset sales to maintain liquidity.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative portfolio mix
A high first‑lien senior secured mix and very low PIK reduce loss severity and support recoveries across cycles. This durable credit bias helps preserve NAV and stabilize income generation versus peers with weaker lien or higher PIK exposure, improving long‑term downside protection.
Read all positive factors
Pennantpark (PFLT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$810.61M
Dividend Yield13.64%
Average Volume (3M)1.07M
Price to Earnings (P/E)6.9
Beta (1Y)0.65
Revenue Growth-8.63%
EPS Growth-30.41%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.67
Shares Outstanding99,217,896
10 Day Avg. Volume1,309,145
30 Day Avg. Volume1,073,448
Financial Highlights & Ratios
PEG Ratio-0.26
Price to Book (P/B)0.77
Price to Sales (P/S)4.80
P/FCF Ratio8.66
Enterprise Value/Market Cap2.90
Enterprise Value/Revenue13.21
Enterprise Value/Gross Profit26.51
Enterprise Value/Ebitda26.87
Forecast
1Y Price Target
$9.88Price Target Upside10.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.08
Revenue Forecast (FY)$273.77M
Pennantpark Business Overview & Revenue Model
Company Description
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, ...
How the Company Makes Money
PFLT makes money primarily from investment income generated by its portfolio of debt investments. The largest revenue stream is interest income earned on loans it holds—especially floating-rate senior secured loans—where the interest rate typicall...
Pennantpark Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
Overall the call emphasized portfolio strength, conservative underwriting, low nonaccruals and a material equity realization (Echelon) that supports NAV and demonstrates the value of the co-invest program. Management took a prudent approach by resetting the dividend framework to align payouts with current NII and to avoid forcing JV deployment in a muted M&A market. Key near-term risks include slower-than-expected JV ramp, muted M&A activity versus 2024, and isolated vintage-related credit stress, but these appear manageable given the firm’s conservative metrics (high first-lien mix, low PIK, strong yields, and diversified funding).Positive Updates
Stable NAV and Solid Portfolio Quality
NAV was essentially flat quarter-over-quarter at $10.47 (vs. $10.49 prior quarter, ~-0.19%). Nonaccruals remain low with three nonaccrual investments representing 0.8% of the portfolio at cost and 0.5% at market value. Median portfolio company leverage is moderate at 4.6x and median interest coverage is 2.0x.
Negative Updates
Dividend Framework Reset (Cautious Stance)
Management updated the dividend framework to a base monthly dividend of $0.08 per share plus a variable supplemental dividend equal to 50% of excess NII. This reset signals a more conservative payout aligned to current earnings and implies less predictable near-term cash distributions (initial supplemental set at $0.33 for July–September).
Read all updates
Q2-2026 Updates
Positive
Negative
Stable NAV and Solid Portfolio Quality
NAV was essentially flat quarter-over-quarter at $10.47 (vs. $10.49 prior quarter, ~-0.19%). Nonaccruals remain low with three nonaccrual investments representing 0.8% of the portfolio at cost and 0.5% at market value. Median portfolio company leverage is moderate at 4.6x and median interest coverage is 2.0x.
Read all positive updates
Company Guidance
The company guided to a new dividend framework setting a base monthly dividend of $0.08 per share ($0.24/quarter) plus a variable supplemental dividend equal to 50% of excess NII (with a $0.33 supplemental announced for July–Sept), noting core NII of $0.27/share (GAAP NII $0.26) and a longer‑term target of “north of $0.30 per share per quarter” as the PSSL 2 JV ramps; PSSL 2 invested $148M this quarter, ended the quarter at $340M and is being scaled to over $1.0B of assets over the next 12–18 months. Management reiterated balance‑sheet targets and portfolio metrics underpinning the guidance — NAV $10.47 (flat q/q from $10.49), debt/equity ~1.6x (reduced to 1.5x post‑quarter within a 1.4–1.6x target range), weighted average yield on debt ~9.8% (~99% floating), quarterly investments of $295M at a 9.3% yield, median portfolio leverage 4.6x, median interest coverage 2.0x, median LTV 44%, LTM PIK ~2.2% of interest, and very low asset stress (three nonaccruals = 0.8% of cost / 0.5% of fair value); they also noted an expected Echelon realization of ~$47M proceeds (~$40M cash + $7M stock) on a $3.2M co‑investment (~15x MOIC).Pennantpark Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
61
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 177.92M | 171.52M | 167.82M | 80.32M | 41.37M | 83.56M |
| Gross Profit | 88.66M | 78.29M | 108.60M | 42.16M | 11.61M | 61.91M |
| EBITDA | 87.48M | 67.50M | 92.92M | 37.73M | 8.42M | 56.92M |
| Net Income | 61.97M | 66.36M | 91.84M | 39.26M | 3.45M | 56.52M |
Balance Sheet | ||||||
| Total Assets | 2.75B | 2.91B | 2.11B | 1.18B | 1.23B | 1.17B |
| Cash, Cash Equivalents and Short-Term Investments | 121.87M | 122.69M | 112.05M | 100.56M | 51.49M | 49.83M |
| Total Debt | 1.67B | 1.78B | 1.18B | 495.43M | 672.78M | 652.63M |
| Total Liabilities | 1.71B | 1.84B | 1.23B | 526.01M | 700.38M | 680.25M |
| Stockholders Equity | 1.04B | 1.07B | 877.29M | 653.61M | 527.09M | 490.61M |
Cash Flow | ||||||
| Free Cash Flow | 208.90M | 95.04M | -801.38M | 140.56M | -46.58M | 49.80M |
| Operating Cash Flow | 208.90M | 95.04M | -801.38M | 140.56M | -46.58M | 49.80M |
| Investing Cash Flow | -405.82M | -815.62M | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | 207.43M | 731.22M | 812.87M | -91.53M | 47.70M | -56.31M |
Pennantpark Technical Analysis
Negative
8.92
Price Trends
8.35
Negative
8.47
Negative
8.56
Negative
Market Momentum
-0.07
Positive
35.52
Neutral
6.78
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 8.92 is above the 20-day moving average (MA) of 8.63, above the 50-day MA of 8.35, and above the 200-day MA of 8.56, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 35.52 is Neutral, neither overbought nor oversold. The STOCH value of 6.78 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.49B | 6.76 | 14.73% | 13.53% | 4.03% | -16.92% | |
69 Neutral | $810.61M | 6.94 | 5.84% | 13.64% | -8.63% | -30.41% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $862.75M | 59.32 | 6.57% | 13.18% | 2.31% | -35.07% | |
59 Neutral | $757.51M | -3.83 | -4.83% | 14.17% | -24.31% | -157.16% | |
56 Neutral | $715.76M | 11.40 | 9.04% | 10.80% | -3.59% | 2.19% | |
56 Neutral | $749.87M | -45.98 | 4.42% | 13.63% | 15.30% | -48.57% |
* Financial Sector Average
PFLT
Pennantpark
8.11
-0.71
-8.06%
NMFC
New Mountain Finance
7.94
-1.28
-13.88%
SLRC
SLR Investment Corp.
12.97
-1.82
-12.30%
CGBD
Carlyle Secured Lending Inc
10.68
-1.46
-12.06%
BCSF
Bain Capital Specialty Finance
13.21
-0.18
-1.36%
TRIN
Trinity Capital
16.49
4.13
33.41%
Pennantpark Corporate Events
Dividends
PennantPark Declares May Monthly Cash Distribution to Shareholders
Positive
May 4, 2026
On May 4, 2026, PennantPark Floating Rate Capital Ltd. declared a monthly cash distribution for May of $0.1025 per share, payable on June 1, 2026 to shareholders of record as of May 15. The payout is expected to be sourced from taxable net investm...
Business Operations and StrategyFinancial Disclosures
PennantPark Schedules Q2 2026 Results and Investor Call
Neutral
Apr 6, 2026
PennantPark Floating Rate Capital Ltd., a business development company focused on floating-rate senior secured lending to U.S. middle-market private borrowers and managed by PennantPark Investment Advisers, continues to position itself as a key pr...
Dividends
PennantPark Floating Rate Capital Declares April Monthly Distribution
Positive
Apr 2, 2026
On April 2, 2026, PennantPark Floating Rate Capital Ltd. declared a monthly distribution for April of $0.1025 per share, to be paid on May 1, 2026 to shareholders of record as of April 15, 2026. The company said the payout is expected to come from...
Business Operations and StrategyPrivate Placements and Financing
PennantPark Issues $200 Million Unsecured Notes Due 2029
Positive
Mar 4, 2026
On March 4, 2026, PennantPark Floating Rate Capital Ltd. entered into a second supplemental indenture with Equiniti Trust Company to support the issuance of $200 million in 6.75% unsecured notes due March 4, 2029, bearing semi-annual interest and ...
Dividends
PennantPark Declares March Cash Distribution for Shareholders
Positive
Mar 3, 2026
On March 3, 2026, PennantPark Floating Rate Capital Ltd., a business development company focused on floating rate senior secured loans to U.S. middle‑market private companies, declared its monthly distribution for March. The company operates...
Business Operations and StrategyPrivate Placements and Financing
PennantPark Refinances and Upsizes CLO VIII Transaction
Positive
Feb 27, 2026
On February 24, 2026, PennantPark CLO VIII, a subsidiary of PennantPark Floating Rate Capital, closed the refinancing and upsizing of a $356.5 million CLO with a four-year reinvestment period and a final maturity in April 2038. The transaction inv...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
PennantPark Issues $200 Million Notes to Bolster Capital
Positive
Feb 27, 2026
On February 25, 2026, PennantPark Floating Rate Capital Ltd. entered into an underwriting agreement with PennantPark Investment Advisers, LLC and Raymond James Associates, Inc., acting as representative of the underwriters, to issue and sell $200...
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.