Should I say good bye to my Prospect Capital holdings?
 | By Rifka Kats | Macroaxis Story |
This firm chance of financial distress is now about 49.0 percent. We found thirty-two available financial ratios for Prospect Capital which can be compared to its competitors. To make sure the equity is not overpriced, please check all Prospect Capital fundamentals including its Price to Sales, Total Debt, Earnings Per Share, as well as the relationship between Net Income and Book Value Per Share . Given that Prospect Capital has Number of Shares Shorted of 21.2M, we recommend you check out Prospect Capital recent market performance to make sure the company can sustain itself down the road. Use Prospect Capital to enhance returns of your portfolios. The stock experiences normal upward fluctuation. Check odds of Prospect Capital to be traded at $7.01 in 30 days.
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Reviewed by Raphi Shpitalnik
Prospect Capital has beta of 0.88. Prospect Capital returns are very sensitive to returns on the market. As market goes up or down, Prospect Capital is expected to follow. Prospect Capital dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.17 per share. About 17.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 0.72. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Prospect Capital has Price/Earnings To Growth (PEG) ratio of 1.48. The entity last dividend was issued on 2019-01-30.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Prospect Capital. Your research has to be compared to or analyzed against Prospect Capital's peers to derive any actionable benefits. When done correctly, Prospect Capital's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Prospect Capital.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Prospect Capital. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Prospect Capital
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Prospect Capital's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Prospect Capital's Liquidity
Prospect Capital financial leverage refers to using borrowed capital as a funding source to finance Prospect Capital ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Prospect Capital financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Prospect Capital's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Prospect Capital's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Prospect Capital's total debt and its cash.
Prospect Capital Gross Profit
Prospect Capital Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Prospect Capital previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Prospect Capital Gross Profit growth over the last 10 years. Please check Prospect Capital's gross profit and other fundamental indicators for more details.
What is driving Prospect Capital Investor Appetite?
The company reported previous year revenue of 679.69M. Net Income was 371.68M with profit before overhead, payroll, taxes, and interest of 657.85M. The small decline in market price for the last few months may encourage investors to take a closer look at the company as it closed today at a share price of 6.58 on 1244557 in trading volume. The company directors and management did not add much value to Prospect Capital investors in December. However, diversifying your holdings with Prospect Capital or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.0478. The current volatility is consistent with the ongoing market swings in December 2018 as well as with Prospect Capital unsystematic, company specific events. Prospect Capital preserves 77.50% of debt to equity. Prospect Capital is trading at 6.68. This is 0.02% increase. Today lowest is 6.58. Prospect Capital Cash and Equivalents USD is increasing over the last 5 years. Prospect Capital Earnings per Diluted Share is decreasing over the last 5 years. Additionally, Prospect Capital Cash and Equivalents is increasing over the last 5 years. The previous year value of Prospect Capital Cash and Equivalents was 120,050,000. Taking everything into account, our analysis show that Prospect Capital Almost neglects market trends. The company is fairly valued and projects chance of distress close to average for the next 2 years. Our concluding buy/sell recommendation on the company is Strong Sell.
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