Pennantpark $ (PFLT) AI Stock Analysis

• Market Cap: $956.46M
• Dividend Yield: 13.64%
• Average Volume (3M): 918.58K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.51
• Revenue Growth: 36.91%
• EPS Growth: -48.79%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.28
• Shares Outstanding: 99,217,896
• 10 Day Avg. Volume: 1,028,691
• 30 Day Avg. Volume: 918,581
• PEG Ratio: -0.26
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 3.22
• P/FCF Ratio: -1.14
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 5.20
• Enterprise Value/Gross Profit: 10.68
• Enterprise Value/Ebitda: 11.19
• 1Y Price Target: $11.00
• Price Target Upside: 13.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.19
• Revenue Forecast (FY): $281.33M

• Rating: 61 Neutral
• Price Target: $10.00 ▲(2.99% Upside)

The score is driven primarily by mixed financial quality—strong recent profitability but materially volatile cash flows and leverage risk—tempered by solid technical momentum and supportive valuation characteristics (reasonable P/E and very high dividend yield). Earnings-call commentary is moderately positive on growth initiatives and credit quality, but NAV pressure and market uncertainty limit upside.

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. 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. It primarily invests in the United States and to a limited extent non-U.S. companies. The fund typically invests between $2 million and $20 million. The fund also invests in equity securities, such as preferred stock, common stock, warrants or options received in connection with debt investments or through direct investments. It primarily invests between $10 million and $50 million in investments in senior secured loans and mezzanine debt. It seeks to invest in companies not rated by national rating agencies. The companies if rated would be between BB and CCC under the Standard & Poor's system. The fund invests 30% is invested in non-qualifying assets like investments in public companies whose securities are not thinly traded or do not have a market capitalization of less than $250 million, securities of middle-market companies located outside of the United States, high-yield bonds, distressed debt, private equity, securities of public companies that are not thinly traded, and investment companies as defined in the 1940 Act. Under normal conditions, the fund expects atleast 80 percent of its net assets plus any borrowings for investment purposes to be invested in Floating Rate Loans and investments with similar economic characteristics, including cash equivalents invested in money market funds. It expects to represent 65 percent of its portfolio through senior secured loans. In case of floating rate loans, it holds investments for a period of three to ten years.

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 with healthy margins and a solid balance sheet with low leverage. However, significant challenges in cash flow management pose risks to liquidity and operational flexibility, which is a critical concern.

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	181.62M	171.52M	167.82M	80.32M	41.37M	83.56M
Gross Profit	88.39M	78.29M	108.60M	42.16M	11.61M	61.91M
EBITDA	84.35M	67.50M	92.92M	37.73M	8.42M	56.92M
Net Income	66.36M	66.36M	91.84M	39.26M	3.45M	56.52M
Balance Sheet
Total Assets	2.91B	2.91B	2.11B	1.18B	1.23B	1.17B
Cash, Cash Equivalents and Short-Term Investments	122.69M	122.69M	112.05M	100.56M	51.49M	49.83M
Total Debt	1.78B	1.78B	1.18B	495.43M	672.78M	652.63M
Total Liabilities	1.84B	1.84B	1.23B	526.01M	700.38M	680.25M
Stockholders Equity	1.07B	1.07B	877.29M	653.61M	527.09M	490.61M
Cash Flow
Free Cash Flow	-281.53M	95.04M	-801.38M	140.56M	-46.58M	49.80M
Operating Cash Flow	-281.53M	95.04M	-801.38M	140.56M	-46.58M	49.80M
Investing Cash Flow	-439.05M	-815.62M	0.00	0.00	0.00	0.00
Financing Cash Flow	731.22M	731.22M	812.87M	-91.53M	47.70M	-56.31M

Pennantpark $ Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 9.71 is above the 20-day moving average (MA) of 9.32, above the 50-day MA of 9.19, and above the 200-day MA of 9.36, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 68.77 is Neutral, neither overbought nor oversold. The STOCH value of 86.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PFLT.

Pennantpark $ Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRIN	77 Outperform	$1.22B	7.37	16.18%	13.53%	33.44%	25.22%
SLRC	70 Outperform	$835.23M	9.27	9.07%	10.80%	-6.30%	-6.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BCSF	67 Neutral	$896.48M	9.61	8.18%	13.18%	-26.08%	-27.65%
NMFC	66 Neutral	$952.13M	14.15	5.43%	14.17%	36.15%	-38.59%
PFLT	61 Neutral	$956.46M	13.44	6.80%	13.64%	36.91%	-48.79%
CGBD	60 Neutral	$933.89M	11.13	7.03%	13.63%	-8.23%	-35.72%

Pennantpark $ Corporate Events

PennantPark Schedules Q1 2026 Results and Conference Call

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 morning, February 10, to discuss the numbers. The scheduled disclosure and investor call underscore the firm’s ongoing efforts to maintain transparency with shareholders and the broader credit market at a time when performance in the U.S. middle-market lending space remains a key focus for investors in floating-rate and senior secured debt strategies.

The most recent analyst rating on (PFLT) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Pennantpark $ stock, see the PFLT Stock Forecast page.

PennantPark Declares January 2026 Monthly Cash Distribution

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 funded from taxable net investment income and its final tax characterization to be detailed on year-end tax forms and regulatory filings. As a regulated investment company, PennantPark Floating Rate Capital can generate qualified interest income and short-term capital gains that may be exempt from U.S. withholding tax for eligible non-U.S. investors, underscoring the firm’s ongoing emphasis on delivering income to shareholders and highlighting potential tax advantages for international holders under current U.S. tax law.

The most recent analyst rating on (PFLT) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Pennantpark $ stock, see the PFLT Stock Forecast page.

PennantPark Announces December 2025 Distribution

On December 2, 2025, PennantPark Floating Rate Capital Ltd. announced a monthly distribution of $0.1025 per share for December 2025, payable on January 2, 2026, to stockholders of record as of December 15, 2025. This distribution is expected to be paid from taxable net investment income, and the company highlights that certain portions of the distribution may be exempt from U.S. withholding tax for non-U.S. stockholders. The announcement underscores PennantPark’s commitment to providing returns to its investors while navigating tax regulations to benefit both domestic and international stakeholders.

The most recent analyst rating on (PFLT) stock is a Buy with a $11.50 price target. To see the full list of analyst forecasts on Pennantpark $ stock, see the PFLT Stock Forecast page.

Pennantpark Secures $150M Credit Agreement with Safeguards

On November 20, 2025, PSLF II SPV, LLC, a subsidiary of PennantPark Senior Secured Loan Fund II LLC, entered into a credit agreement involving various financial entities, including Goldman Sachs Bank USA and Western Alliance Trust Company N.A. The agreement allows for borrowings up to $150 million, with PennantPark Floating Rate Capital Ltd. providing a Non-Recourse Carveout Guaranty Agreement to cover specific obligations related to misconduct or financial mismanagement by involved parties. This move is significant for PennantPark as it secures substantial financing while also outlining strict conditions to safeguard against financial misdeeds, potentially impacting the company’s financial stability and stakeholder confidence.

The most recent analyst rating on (PFLT) stock is a Buy 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 November 2025 Monthly Distribution

On November 4, 2025, PennantPark Floating Rate Capital Ltd. announced a monthly distribution of $0.1025 per share, payable on December 1, 2025, to stockholders of record as of November 17, 2025. This distribution is expected to be paid from taxable net investment income, with tax characteristics reported to stockholders after the calendar year. As a regulated investment company, it can distribute qualified interest income and short-term capital gains potentially exempt from U.S. withholding tax for non-U.S. stockholders, impacting its attractiveness to international investors.

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.