Prospect Capital Corp Analysis

Prospect Capital Corp has over 2.37 Billion in debt which may indicate that it relies heavily on debt financing. With a high degree of financial leverage come high-interest payments, which usually reduce Prospect Capital's Earnings Per Share (EPS).

Asset vs Debt

Equity vs Debt

Prospect Capital's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Prospect Capital's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Prospect Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Prospect Capital's stakeholders.
For most companies, including Prospect Capital, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Prospect Capital Corp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Prospect Capital's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Given that Prospect Capital's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Prospect Capital is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Prospect Capital to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Prospect Capital is said to be less leveraged. If creditors hold a majority of Prospect Capital's assets, the Company is said to be highly leveraged.
Prospect Capital Corp is undervalued with Real Value of 0.0 and Hype Value of 0.0. The main objective of Prospect Capital delisted stock analysis is to determine its intrinsic value, which is an estimate of what Prospect Capital Corp is worth, separate from its market price. There are two main types of Prospect Capital's stock analysis: fundamental analysis and technical analysis.
The Prospect Capital stock is traded in the USA on New York Stock Exchange, with the market opening at 09:30:00 and closing at 16:00:00 every Mon,Tue,Wed,Thu,Fri except for officially observed holidays in the USA. Prospect Capital is usually not traded on Labour Day, Thanksgiving Day, Christmas Day, New Year 's Day, Dr . Martin Luther King Jr 's Birthday, Washington 's Birthday, Good Friday, Memorial Day, Juneteenth Holiday, Independence Day ( substitute day ), Independence Day. Prospect Stock trading window is adjusted to America/New York timezone.
  
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.

Prospect Stock Analysis Notes

About 93.0% of the company shares are owned by institutional investors. The book value of Prospect Capital was at this time reported as 9.23. The company last dividend was issued on the May 30, 2019. Prospect Capital Corp had 3:1 split on the July 28, 1987. Prospect Capital Corporation is a business development company. The fund focuses on sole, agented, club, or syndicated deals. Prospect Capital operates under Auto Parts Stores classification in USA and is traded on BATS Exchange. To find out more about Prospect Capital Corp contact John Barry at 212-448-0702 or learn more at http://www.prospectstreet.com.

Prospect Capital Corp Investment Alerts

Prospect Capital is not yet fully synchronised with the market data
Prospect Capital has some characteristics of a very speculative penny stock
Prospect Capital has a very high chance of going through financial distress in the upcoming years
Prospect Capital has accumulated $2.37 Billion in debt which can lead to volatile earnings
Over 93.0% of the company shares are owned by institutional investors

Prospect Market Capitalization

The company currently falls under 'Mid-Cap' category with a total capitalization of 2.55 B.

Prospect Profitablity

The company has Net Profit Margin of 36.39 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is very large. In the same way, it shows Net Operating Margin of 67.42 %, which entails that for every 100 dollars of revenue, it generated $67.42 of operating income.

Prospect Capital Outstanding Bonds

Prospect Capital issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Prospect Capital Corp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Prospect bonds can be classified according to their maturity, which is the date when Prospect Capital Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Prospect Capital Corp Debt to Cash Allocation

As Prospect Capital Corp follows its natural business cycle, the capital allocation decisions will not magically go away. Prospect Capital's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors.
Prospect Capital Corp has 2.37 B in debt with debt to equity (D/E) ratio of 70.9, demonstrating that the company may be unable to create cash to meet all of its financial commitments. Prospect Capital Corp has a current ratio of 0.98, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Prospect to invest in growth at high rates of return.

Prospect Capital Assets Financed by Debt

Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Prospect Capital's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Prospect Capital, which in turn will lower the firm's financial flexibility.

Prospect Capital Corporate Bonds Issued

Be your own money manager

As an investor, your ultimate goal is to build wealth. Optimizing your investment portfolio is an essential element in this goal. Using our stock analysis tools, you can find out how much better you can do when adding Prospect Capital to your portfolios without increasing risk or reducing expected return.

Did you try this?

Run Bonds Directory Now

   

Bonds Directory

Find actively traded corporate debentures issued by US companies
All  Next Launch Module
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.
You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

Other Consideration for investing in Prospect Stock

If you are still planning to invest in Prospect Capital Corp check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Prospect Capital's history and understand the potential risks before investing.
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years