Education
About Us
Working with TipRanks
Follow Us
Pennantpark Investment Corp. (PNNT)
NYSE:PNNT
Top Page
Pennantpark Investment
(NYSE:PNNT)
53Neutral
Pennantpark Investment (PNNT) vs. S&P 500 (SPY)
Market Cap
$468.17M
Dividend Yield12.69%
Average Volume (3M)429.10K
Price to Earnings (P/E)28.9
Beta (1Y)0.56
Revenue GrowthN/A
EPS Growth-66.59%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength77
IndustryAsset Management Services
Share Statistics
EPS (TTM)0.25
Shares Outstanding65,296,100
10 Day Avg. Volume438,686
30 Day Avg. Volume429,095
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)6.30
P/FCF Ratio3.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.00Price Target Upside0.14% Upside
Rating ConsensusHold
Number of Analyst Covering4
Pennantpark Investment Business Overview & Revenue Model
Company DescriptionPennantPark Investment Corporation (PNNT) is a business development company that primarily invests in middle-market companies in the United States. It focuses on private equity and debt investments, providing capital to financially sound, established businesses. PNNT's investment strategy typically involves generating both current income and capital appreciation through a diversified portfolio of debt and equity investments.
How the Company Makes MoneyPennantPark Investment Corporation makes money primarily through interest income and capital gains on its investment portfolio. The company generates revenue by lending to and investing in middle-market companies, earning interest on loans, and realizing gains on equity investments. PNNT's portfolio primarily consists of senior secured loans, mezzanine debt, and equity co-investments. Additionally, the company may partner with private equity sponsors to source investment opportunities, leveraging these relationships to enhance deal flow and investment returns. The firm's earnings are significantly influenced by the performance of its portfolio companies, interest rate fluctuations, and the broader economic environment.
Pennantpark Investment Financial Statement Overview
Summary
Pennantpark Investment exhibits a mixed financial position characterized by inconsistent income and cash flow performance and high leverage, posing potential risks. Improved TTM net income is a positive, but overall stability and growth remain concerns.Income Statement
The income statement shows mixed performance with a positive TTM net income but a negative EBIT indicating challenges in operational efficiency. Revenue growth is inconsistent with significant fluctuations year-over-year.55
Neutral
Balance Sheet
The balance sheet reflects high leverage with a substantial debt-to-equity ratio, indicating potential financial risk. Equity has decreased over the period, impacting the company's stability.40
Negative
Cash Flow
Cash flow statements reveal volatility, with inconsistent operating cash flow trends. The operating cash flow to net income ratio shows potential issues in cash generation relative to profitability.45
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 297.22M | 115.25M | 145.37M | 104.97M | 171.31M | 100.22M | Gross Profit |
| 282.52M | 115.25M | 145.37M | -9.92M | 151.63M | -19.72M | EBIT |
| 194.27M | 111.47M | 109.24M | 11.90M | 167.22M | -14.77M | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | -18.53M | 152.95M | Net Income Common Stockholders |
| 36.92M | 48.85M | -33.81M | -24.74M | 166.62M | -15.97M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 112.69M | 49.86M | 38.77M | 52.67M | 20.36M | 25.81M | Total Assets |
| 1.41B | 1.39B | 1.16B | 1.32B | 1.30B | 1.11B | Total Debt |
| 231.11M | 148.57M | 516.84M | 704.51M | 607.34M | 568.31M | Net Debt |
| 118.42M | -49.86M | 478.06M | 651.85M | 586.98M | 542.51M | Total Liabilities |
| 1.26B | 895.18M | 654.79M | 732.95M | 634.95M | 588.64M | Stockholders Equity |
| 133.23M | 493.91M | 502.19M | 585.57M | 660.14M | 525.71M |
| Cash Flow | Free Cash Flow | ||||
| 23.57M | -172.40M | 222.94M | -19.40M | 7.91M | -129.60M | Operating Cash Flow |
| 23.57M | -172.40M | 222.94M | -19.40M | 7.91M | -129.60M | Investing Cash Flow |
| -22.11M | 0.00 | 0.00 | -22.14M | -6.89B | -156.61B | Financing Cash Flow |
| 17.55M | 183.43M | -239.16M | 52.04M | -13.42M | 95.78M |
Pennantpark Investment Technical Analysis
Neutral
6.99
Price Trends
7.03
Negative
6.84
Positive
6.76
Positive
Market Momentum
0.03
Positive
43.34
Neutral
36.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNNT, the sentiment is Neutral. The current price of 6.99 is below the 20-day moving average (MA) of 7.14, below the 50-day MA of 7.03, and above the 200-day MA of 6.76, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 43.34 is Neutral, neither overbought nor oversold. The STOCH value of 36.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PNNT.
Pennantpark Investment Risk Analysis
Pennantpark Investment disclosed 85 risk factors in its most recent earnings report. Pennantpark Investment reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pennantpark Investment Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.11B | 10.02 | 19.26% | 5.15% | 51.80% | 12.05% | |
76 Outperform | $15.07B | 9.43 | 12.40% | 8.55% | 19.95% | -10.57% | |
72 Outperform | $1.44B | 22.62 | 3.96% | 14.52% | -28.04% | -69.52% | |
67 Neutral | $3.22B | 11.74 | 13.71% | 8.60% | -1.49% | -29.48% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
58 Neutral | $702.74M | ― | -8.57% | 16.35% | 8.24% | -207.60% | |
53 Neutral | $468.17M | 28.87 | 3.28% | 12.69% | ― | -66.59% |
* Financial Sector Average
Performance Comparison
PNNT
Pennantpark Investment
6.99
1.01
16.89%
HTGC
Hercules Capital
18.04
1.50
9.07%
MAIN
Main Street Capital
55.76
13.17
30.92%
ARCC
Ares Capital
21.86
2.95
15.60%
TCPC
BlackRock TCP Capital
8.04
-1.22
-13.17%
GSBD
Goldman Sachs BDC
11.98
-1.69
-12.36%
Pennantpark Investment Earnings Call Summary
Earnings Call Date: Feb 10, 2025 | % Change Since: -1.69% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong investment opportunities and portfolio growth, particularly in the joint venture segment. However, challenges remain with net investment income not covering dividends, high nonaccruals, and slow equity rotation. Despite the positive aspects, these issues present significant concerns.Highlights
Attractive Investment Opportunities and Portfolio Growth
During the quarter, $296 million was invested in 12 new and 61 existing portfolio companies at a weighted average yield of 10.6%. The portfolio's weighted average leverage ratio was 4.9x, with an interest coverage of 1.9x.
Strong Performance of Joint Venture (JV) Portfolio
The JV portfolio grew to $1.3 billion, with an 18.4% return on invested capital over the last 12 months. The JV has the capacity to increase its portfolio to $1.6 billion.
Positive Financial Metrics
GAAP and adjusted NAV increased by 0.1% to $7.57 per share from $7.56. The weighted average yield on debt investments was 12%.
Low Loss Ratio on Investments
Since inception, PNNT has invested $8.6 billion at an average yield of 11.3% with a loss ratio on invested capital of approximately 20 basis points annually.
Lowlights
Net Investment Income Below Dividend
GAAP and core net investment income was $0.20 per share, which is $0.04 below the quarterly dividend.
High Percentage of Nonaccruals
Two nonaccruals represented 4.3% of the portfolio at cost and 1.5% at market value.
Equity Rotation Challenges
Efforts to reduce equity investment exposure have been slower than desired, aiming to cut the 20% equity exposure in half over time.
Company Guidance
During PennantPark Investment Corporation's first fiscal quarter of 2025 earnings call, key metrics were disclosed in relation to the company's financial performance and portfolio management. For the quarter ending December 31, the GAAP and core net investment income stood at $0.20 per share, slightly below the $0.24 quarterly dividend. Despite this, the company has $65 million or $0.99 per share of undistributed spillover income. The portfolio was valued at $1.3 billion, with $296 million invested in 12 new and 61 existing companies at a weighted average yield of 10.6%. The portfolio's weighted average debt-to-EBITDA ratio was 4x, with a weighted average interest coverage of 2.2x. Additionally, the JV portfolio grew to $1.3 billion, and investments in the JV yielded an 18.4% return on invested capital. The company reported two nonaccruals, representing 4.3% of the portfolio at cost and 1.5% at market value. These metrics reflect PennantPark's commitment to strategic investment and capital preservation in the core middle market.Pennantpark Investment Corporate Events
Dividends
PennantPark Investment Declares March 2025 Distribution
Positive
Mar 4, 2025
On March 4, 2025, PennantPark Investment Corporation announced a monthly distribution of $0.08 per share for March 2025, payable on April 1, 2025, to stockholders of record as of March 14, 2025. This distribution is expected to be paid from taxable net investment income, and its final tax characteristics will be reported to stockholders after the end of the calendar year. This announcement reflects the company’s ongoing commitment to providing returns to its investors and maintaining its position in the middle-market investment sector.
DividendsBusiness Operations and Strategy
PennantPark Announces February 2025 Monthly Distribution
Positive
Feb 5, 2025
On February 5, 2025, PennantPark Investment Corporation announced a monthly distribution of $0.08 per share for February 2025, payable on March 3, 2025, to stockholders of record as of February 18, 2025. This distribution is expected to be paid from taxable net investment income, and its final tax characteristics will be reported after the end of the calendar year. This announcement reflects the company’s ongoing financial strategies and can impact stakeholders by providing consistent returns, showcasing its commitment to maintaining reliable investment income distribution.
Business Operations and StrategyFinancial Disclosures
PennantPark Investment to Announce Q1 2024 Results
Neutral
Jan 8, 2025
PennantPark Investment Corporation has announced its financial results for the first fiscal quarter ended December 31, 2024, to be released on February 10, 2025. The company will hold a conference call on February 11, 2025, to discuss these results, which could provide insights into its operational performance and strategic positioning in the market.
DividendsBusiness Operations and Strategy
PennantPark Investment Declares January 2025 Distribution
Positive
Jan 3, 2025
PennantPark Investment Corporation announced a monthly distribution of $0.08 per share for January 2025, payable to stockholders on February 3, 2025. This distribution is expected to be derived from taxable net investment income and will be detailed in the company’s year-end tax documentation. This announcement reflects the company’s ongoing strategy to provide consistent returns to its investors, thereby reinforcing its position in the middle-market investment sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.