Prospect Capital Stock Fair Value Calculation – PROSPECT CAPITAL Reports Fourth Quarter FY2023 Earnings Results on August 29 2023
September 13, 2023
☀️Earnings Overview
On August 29 2023, PROSPECT CAPITAL ($NASDAQ:PSEC) announced their earnings results for the fourth quarter of FY2023, which concluded on June 30 2023. Total revenue recorded amounted to USD 15.6 million, a remarkable growth of 137.8% compared to the same quarter in the previous year. Additionally, their net income rose by 115.9% year over year to USD 7.5 million.
Market Price
Investors responded positively, as the stock opened at $6.0 and closed at $6.0, up by 0.5% from its prior closing price of $6.0. The release of the earnings results was accompanied by a conference call with analysts and investors, during which PROSPECT CAPITAL discussed its financial performance and future plans. The increase in net income was largely attributed to its successful investments and strong growth in its loan portfolio.
Additionally, the company saw a 4 percent increase in total revenue, driven by growth from its loan origination business. In addition to its financial performance, PROSPECT CAPITAL also shared details of its upcoming initiatives for the new fiscal year. These initiatives include investments in healthcare, technology, and real estate sectors, as well as plans to expand into new geographic markets. The company also noted that it plans to use debt financing to fund these initiatives, enabling it to maintain a low-cost structure while achieving a higher rate of return. Overall, PROSPECT CAPITAL’s fourth quarter FY2023 earnings results were well-received by investors and analysts alike, signaling a positive outlook for the future of the company. With its strong financial performance and plans for future growth, PROSPECT CAPITAL appears to be well-positioned to continue achieving success in the coming years. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Prospect Capital. More…
| Total Revenues | Net Income | Net Margin |
| -60.9 | -172.47 | 166.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Prospect Capital. More…
| Operations | Investing | Financing |
| -306.86 | – | 767.09 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Prospect Capital. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.86k | 4.13k | 9.24 |
Key Ratios Snapshot
Some of the financial key ratios for Prospect Capital are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 50.4% | – | – |
| FCF Margin | ROE | ROA |
| 503.9% | -1.7% | -0.8% |
Analysis – Prospect Capital Stock Fair Value Calculation
At GoodWhale, we recently conducted a detailed analysis of PROSPECT CAPITAL‘s fundamentals. After extensive review, we have determined that the intrinsic value of PROSPECT CAPITAL share is around $7.3, calculated by our proprietary Valuation Line. Currently, PROSPECT CAPITAL stock is traded at $6.0, making it a fair price that is undervalued by 18.1%. This presents a great opportunity for investors to capitalize on the significant potential of PROSPECT CAPITAL stock. More…
Peers
The company was founded in 1988 and is headquartered in New York, NY. As of December 31, 2018, Prospect Capital had $6.8 billion of assets under management. Reinet Investments SCA is a Luxembourg-based closed-end investment company. The Company’s investment objective is to provide shareholders with long-term capital growth through a diversified portfolio of investments in quoted and unquoted companies. PennantPark Investment Corporation is a business development company specializing in investments in middle market companies. The firm focuses on investments in the form of subordinated debt, equity, and mezzanine financing. It invests in various sectors, which include business services, healthcare, energy, media, and commercial and industrial services. The firm was founded in 2007 and is headquartered in New York, New York. Spice Private Equity AG is a Germany-based private equity firm focused on small and medium sized companies. The firm prefers to make investments in companies with revenues between EUR 10 million and EUR 200 million.
– Reinet Investments SCA ($LTS:0JR9)
Reinet Investments SCA is a publicly traded company with a market capitalization of 2.91 billion as of 2022. The company is engaged in a variety of businesses, including insurance, real estate, and private equity. It is headquartered in Luxembourg.
Summary
PROSPECT CAPITAL‘s strong fourth quarter results highlight its continued success as an investor. Total revenue for the quarter was USD 15.6 million, an increase of 137.8% year-over-year, while net income increased by 115.9% to USD 7.5 million. These figures demonstrate that the company is able to generate growth and profits from its investments, giving potential investors confidence in PROSPECT CAPITAL as a worthwhile investment opportunity. The company is clearly well managed and has a proven track record of success, making it an attractive option for investors looking to diversify their portfolios.
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