| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 86 | 7.6x | 17.8x | Top tier | |
Growth | 25 | -13.3% | 7.1% | Bottom tier | |
Quality | 27 | — | — | Bottom tier | |
Safety | 59 | — | — | Around median | |
Capital Return | 96 | 28.80% | 2.12% | Top tier | |
Momentum | 21 | -19.7% | 2.9% | Bottom tier | |
Sentiment | 80 | 1 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Prospect Capital Corporation operates as a business development company focused primarily on lending to and investing in private middle-market companies in the United States, generating its income mainly from loan interest alongside returns from real estate investments and equity interests associated with its portfolio. In June 2026, middle-market lending represented 85% of investments at cost, senior and secured debt accounted for 84% of the portfolio at cost, while the real estate portfolio at National Property REIT Corp represented about 14%. The portfolio’s total fair value was $6.3 billion, distributed across 91 companies in 31 industries, while interest income accounted for 91% of total investment income during fiscal year 2026.
In fiscal year 2026, Prospect Capital recorded revenue of $581.9 million and net income of $153.7 million, equivalent to a calculated net income margin of about 26.4%, compared with revenue of $671.1 million and a net loss of $469.9 million in fiscal year 2025. Earnings per share reported in EDGAR filings were about $0.06 for fiscal year 2026, and the data did not include a figure for gross profit or its margin. These figures reflect the company’s return to profitability, but they coincide with an annual revenue decline of about 13.3%.
In Q4 of fiscal year 2026, ended June 2026, net investment income was $78 million, or $0.15 per common share, and remained consistent with the previous quarter. Net asset value was $2.9 billion, or $5.71 per share, while new investments reached $166 million, 91% of which were in the middle market, versus $46 million of repayments and exits, resulting in net investments of $120 million. Management declared monthly distributions of $0.035 per share for each of September and October 2026.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on PSEC is Neutral, with an average target of $2.50 and identical high and low targets at the same level, making the available comparison base narrow. This target falls within the 52-week range of $2.11–$3.13 and is about 20.1% below the top of that range; no valid price-to-earnings ratio is available in the data, so the valuation assessment is based on the Neutral target, the historical trading range, and earnings volatility between the fiscal year 2025 loss and fiscal year 2026 profitability.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Fiscal year 2026 revenue was about $581.9 million, down approximately 13.3% from $671.1 million in fiscal year 2025. Nevertheless, the company moved from a net loss of $469.9 million to net income of $153.7 million. In Q4 of fiscal year 2026, it recorded net investment income of $78 million, or $0.15 per share. These figures demonstrate an improvement in the bottom line, but they do not establish a return to revenue growth.
Prospect Capital closed the sale of Valley Electric on July 1, 2026 for total proceeds of about $328 million, with expected net proceeds from the exit of $281 million. Since 2012, the investment generated a realized and annualized aggregate internal rate of return of 20.5% and a multiple equal to 4.8 times invested capital. Management stated that if the cash had been received before June 30, 2026 and used to repay the revolving credit facility, the amount drawn would have been $323 million on a pro forma basis. The exit therefore supports liquidity and provides tangible evidence of the company’s ability to realize value from some of its controlling equity investments.
The portfolio included 91 companies across 31 industries, with a total fair value of $6.3 billion in June 2026. Net leverage among middle-market companies was 4.9 times versus 6.1 times for peers, and cash interest coverage was 223% versus 160% for peers, according to the comparison presented by management. The annualized realized net loss rate was also 20 basis points versus 100 basis points for peers, while non-accrual investments represented 0.7% of total assets at fair value. Senior and secured debt represented 84% of the portfolio at cost.
The company recorded net investment income of $0.15 per share in Q4 of fiscal year 2026. It declared monthly distributions of $0.035 per share for each of September and October 2026, or $0.07 in total for the two declared months. From the initial public offering 22 years ago through the declared October 2026 distribution, the company said its total distributions would exceed $4.8 billion, or $22.14 per share. However, continued coverage depends on interest income, which represented 91% of total investment income in fiscal year 2026.
Middle-market lending represented 85% of investments at cost in June 2026 and accounted for 91% of investments in the quarter ended that month. The company had nearly completed its exit from the subordinated structured notes portfolio, whose weighting declined from 8.4% in June 2024 to about zero in June 2026. Meanwhile, National Property REIT Corp’s real estate portfolio represented 14% of investments at cost and included 52 properties with a quarterly income yield of 5.3%. Management intends to redeploy proceeds from future real estate exits primarily into senior secured first-lien corporate loans with selected equity-related investments.
Management said during the August 21, 2026 call that it is applying large language models, generative and predictive artificial intelligence, machine learning, and automation across Prospect’s business, its portfolio companies, and its real estate properties. Management estimated that these initiatives could generate tens of millions of dollars in annual cash flow benefits through increased revenue and reduced costs. It stated that some of the benefit had already been realized, but did not provide a separate realized figure, a timeline, or specific financial guidance. The initiative therefore represents a potential efficiency driver, but is not yet an independent quantitative basis for valuation.
