Prospect Capital Corp (PSEC) Stock Analysis
Verdict: AVOID
Aggressive insider buying fights a tide of deteriorating NAV, negative margins, and heavy institutional selling in a high-yield trap.
Investment score: 38/100
Analysis as of
Is Prospect Capital Corp stock worth reviewing? The TradeMates thesis
The TradeMates model recommends AVOID due to severe operational underperformance and NAV erosion that outweighs the high yield.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 15/100 (weight 15%)
- Technical Momentum: 10/100 (weight 15%)
- Earnings Quality: 25/100 (weight 15%)
- Insider Sentiment: 95/100 (weight 10%)
- Analyst Consensus: 20/100 (weight 10%)
- Risk-Adjusted Return: 30/100 (weight 15%)
Prospect Capital Corp opportunities and risks
What speaks for PSEC
- Extreme Insider Conviction
What speaks against PSEC
- Dividend Sustainability Crisis
Peers and competitors
- TSLX
- TRIN
- CSWC
- MSDL
- OCSL
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| PSEC | n/a | 11.5x | n/a | -23.3% | -38.0% | 36.0% |
| TSLX | 15.2x | 4.9x | n/a | 73.0% | 31.8% | 8.8% |
| TRIN | 9.3x | 4.6x | 13.4x | 79.6% | 55.8% | 6.8% |
| CSWC | 11.9x | 6.5x | 17.9x | 77.8% | 50.9% | -4.6% |
| MSDL | 14.9x | 4.3x | 21.3x | 66.4% | 29.3% | 17.0% |
| OCSL | 21.2x | 3.7x | 19.6x | 78.5% | 17.4% | 1.2% |
| Peer median | 14.9x | 4.6x | 17.9x | 77.8% | 31.8% | 6.8% |
Frequently asked questions about Prospect Capital Corp (PSEC)
Is PSEC stock a good investment?
The TradeMates model rates Prospect Capital Corp as AVOID with an investment score of 38/100. The TradeMates model recommends AVOID due to severe operational underperformance and NAV erosion that outweighs the high yield. This is algorithmic model output, not personal investment advice.
Is PSEC stock a buy?
The TradeMates model verdict for PSEC is AVOID with an investment score of 38/100. Treat this as a model signal to review, not a personal buy recommendation.