Pennantpark Floating Rate Capit (PFLT)
NYSE:PFLT
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Pennantpark
(NYSE:PFLT)
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Rating:54Neutral
Price Target:
$8.00
â–¼(-4.99% Downside)
Action:ReiteratedDate:04/03/26
The score is held back primarily by weakening fundamentals (revenue decline), elevated leverage, and historically volatile cash flow, alongside a bearish technical backdrop. Offsetting these risks are a supportive earnings-call narrative around conservative credit metrics and the ramp of PSSL2 to improve dividend coverage, plus a very high dividend yield.
Positive Factors
Conservative portfolio construction
A portfolio concentrated in first‑lien, senior secured and overwhelmingly floating‑rate instruments with modest PIK exposure materially reduces long‑term credit and recovery risk. This structural conservatism supports durable income generation and downside protection across credit cycles.
Negative Factors
Elevated leverage
Sustained debt/equity above 1.5x constrains financial flexibility, increases sensitivity to rising funding costs, and amplifies NAV volatility if assets mark down. Higher leverage limits cushion for losses and can force asset sales or more expensive financing during stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative portfolio construction
A portfolio concentrated in first‑lien, senior secured and overwhelmingly floating‑rate instruments with modest PIK exposure materially reduces long‑term credit and recovery risk. This structural conservatism supports durable income generation and downside protection across credit cycles.
Read all positive factors
Pennantpark (PFLT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$835.41M
Dividend Yield13.64%
Average Volume (3M)1.02M
Price to Earnings (P/E)―
Beta (1Y)0.59
Revenue Growth36.91%
EPS Growth-48.79%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.27
Shares Outstanding99,217,896
10 Day Avg. Volume1,023,547
30 Day Avg. Volume1,023,997
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 Cap2.84
Enterprise Value/Revenue16.32
Enterprise Value/Gross Profit50.15
Enterprise Value/Ebitda66.62
Forecast
1Y Price Target
$10.25Price Target Upside21.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.14
Revenue Forecast (FY)$276.81M
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 private credit investments. The key revenue stream is interest income earned on loans it makes to middle-market borrowers, with a significant portion of the portfolio ...
Pennantpark Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational execution: a successful launch and rapid ramp of the PSSL2 joint venture, solid origination activity ($301M at 10% yield), conservative underwriting metrics (median leverage 4.5x, 2.1x coverage, 2.5% PIK, 89% first-lien) and attractive long-term equity co-invest returns (25% IRR, 1.9x MOIC). Offsetting these positives were a $30 million net mark loss and a 3.1% NAV decline driven by limited markdowns tied to certain 2021-vintage names, plus notable operating and financing expenses. Management has reduced leverage into its target range and believes PSSL2 can materially support dividend coverage as it scales, though timing depends on M&A activity. Overall, the positives—conservative portfolio construction, healthy yields, strong JV momentum and low non-accruals—outweigh the quarter-specific markdowns and NAV pressure.Positive Updates
Core and GAAP Net Investment Income
Core net investment income (NII) and GAAP NII were both $0.27 per share for the quarter ended December 31, 2025, demonstrating stable operating earnings generation.
Negative Updates
NAV Decline
Net asset value (NAV) declined to $10.49 per share as of December 31, down 3.1% from $10.83 per share in the prior quarter, reflecting mark-to-market impacts during the period.
Read all updates
Q1-2026 Updates
Positive
Negative
Core and GAAP Net Investment Income
Core net investment income (NII) and GAAP NII were both $0.27 per share for the quarter ended December 31, 2025, demonstrating stable operating earnings generation.
Read all positive updates
Company Guidance
Management guided that the new joint venture PSSL2—which invested $197M in the quarter and $133M post‑quarter (total portfolio $326M) and recently closed an additional $100M commitment to bring the credit facility to $250M with a $350M accordion—is targeted to scale to over $1B in assets (with PFLT’s ~75% ownership) and that run‑rate net investment income should cover the current dividend as the JV ramps (management suggested a broad 12–24 month pathway, citing ~18 months as a midpoint, dependent on M&A activity). Key portfolio and financial metrics cited in support of this guidance include weighted average yield on debt investments of ~9.9% (quarterly investment of $301M at a 10% weighted average yield; $95M new, $206M follow‑ons), ~99% floating‑rate debt, 89% first‑lien senior secured, median leverage 4.5x, median interest coverage 2.1x, PIK just 2.5% of interest income, four new platform originations with median debt/EBITDA 4.0x, interest coverage 2.9x and LTV 43%, NAV $10.49 (down 3.1% from $10.83), debt/equity ~1.57x (reduced to 1.5x post‑quarter within the 1.4–1.6x target range), and a long‑term track record ($8.7B invested in 545 companies, 26 non‑accruals, 13 bps annual loss ratio; $615M of equity co‑investments with a 25% IRR and 1.9x MOIC).Pennantpark Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
45
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 145.32M | 171.52M | 167.82M | 80.32M | 41.37M | 83.56M |
| Gross Profit | 47.30M | 78.29M | 108.60M | 42.16M | 11.61M | 61.91M |
| EBITDA | 35.61M | 67.50M | 92.92M | 37.73M | 8.42M | 56.92M |
| Net Income | 34.46M | 66.36M | 91.84M | 39.26M | 3.45M | 56.52M |
Balance Sheet | ||||||
| Total Assets | 2.72B | 2.91B | 2.11B | 1.18B | 1.23B | 1.17B |
| Cash, Cash Equivalents and Short-Term Investments | 95.27M | 122.69M | 112.05M | 100.56M | 51.49M | 49.83M |
| Total Debt | 1.63B | 1.78B | 1.18B | 495.43M | 672.78M | 652.63M |
| Total Liabilities | 1.68B | 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 | 99.72M | 95.04M | -801.38M | 140.56M | -46.58M | 49.80M |
| Operating Cash Flow | 99.72M | 95.04M | -801.38M | 140.56M | -46.58M | 49.80M |
| Investing Cash Flow | -203.02M | -815.62M | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | 332.31M | 731.22M | 812.87M | -91.53M | 47.70M | -56.31M |
Pennantpark Technical Analysis
Positive
8.42
Price Trends
8.38
Positive
8.67
Negative
8.88
Negative
Market Momentum
0.02
Negative
56.67
Neutral
77.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFLT, the sentiment is Positive. The current price of 8.42 is above the 20-day moving average (MA) of 8.15, above the 50-day MA of 8.38, and below the 200-day MA of 8.88, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.67 is Neutral, neither overbought nor oversold. The STOCH value of 77.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $817.99M | 9.13 | 8.72% | 13.18% | -26.08% | -27.65% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $1.26B | 7.49 | 14.09% | 13.53% | 33.44% | 25.22% | |
61 Neutral | $805.44M | 59.29 | 1.29% | 14.17% | 36.15% | -38.59% | |
60 Neutral | $772.50M | 12.09 | 5.87% | 13.63% | -8.23% | -35.72% | |
58 Neutral | $818.87M | 9.11 | 9.32% | 10.80% | -6.30% | -6.92% | |
54 Neutral | $835.41M | -64.26 | 3.23% | 13.64% | 36.91% | -48.79% |
* Financial Sector Average
PFLT
Pennantpark
8.42
-0.04
-0.48%
NMFC
New Mountain Finance
7.99
-0.13
-1.65%
SLRC
SLR Investment Corp.
15.01
1.63
12.22%
CGBD
Carlyle Secured Lending Inc
10.93
-1.47
-11.85%
BCSF
Bain Capital Specialty Finance
12.61
-0.06
-0.46%
TRIN
Trinity Capital
15.12
2.78
22.49%
Pennantpark Corporate Events
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...
Executive/Board ChangesShareholder Meetings
PennantPark Shareholders Approve Directors and Auditor Ratification
Positive
Feb 5, 2026
At its annual meeting of stockholders held on February 3, 2026, PennantPark Floating Rate Capital Ltd. reported that shareholders elected two Class III directors, Arthur H. Penn and José A. Briones, Jr., to serve on the board until the 2029 a...
Dividends
PennantPark Declares February 2026 Monthly Cash Distribution
Positive
Feb 3, 2026
On February 3, 2026, PennantPark Floating Rate Capital Ltd. declared a monthly cash distribution for February 2026 of $0.1025 per share, payable on March 2, 2026 to shareholders of record as of February 17, 2026. The payout, expected to be sourced...
Financial Disclosures
PennantPark Schedules Q1 2026 Results and Conference Call
Neutral
Jan 6, 2026
On January 6, 2026, PennantPark Floating Rate Capital Ltd. announced it would report financial results for its first fiscal quarter ended December 31, 2025, after the market close on February 9, 2026, and would host a conference call the following...
Dividends
PennantPark Declares January 2026 Monthly Cash Distribution
Positive
Jan 5, 2026
On January 5, 2026, PennantPark Floating Rate Capital Ltd. declared a monthly cash distribution for January 2026 of $0.1025 per share, payable on February 2, 2026 to shareholders of record as of January 16, 2026, with the payment expected to be fu...
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.