Prospect Capital Corporation (PSEC) carries a Roarable Rating of D- (Sell) with 35/100 RQD Confidence due to weak cash-flow efficiency and sensitivity to current interest rates. Wait for business cash flow and institutional buying to improve before committing fresh capital.
As of 2026-11-03, Prospect Capital Corporation (NASDAQ: PSEC) is rated D- (Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 35/100 at a spot price of $1.62 (+0.62% 1D, market cap $859.4M). Pillar breakdown: Fundamental Cash Engine 10/20, Institutional 13F & Options Flow 3/20, Executive Insider Alignment 10/20, FRED Macro Regime Fit 7/20, and SEC Balance-Sheet Forensics 5/20. Across 1096 tracked Financials issuers, PSEC ranks #972 in composite RQD confidence.
Within the Financials sector (Finance: Consumer Services), PSEC carries a Roarable D- (35/100 RQD), trailing P/E of N/A, gross margin of —, and ROIC of -16.6%. By comparison, PICS (PicS N.V. (Class A)) holds a D- grade (43/100 RQD, P/E N/A, ROIC —, cap $920.1M) and RHLD (Resolute Holdings Management) posts a C- grade (59/100 RQD, P/E N/A, ROIC 85.0%, cap $944.3M). Among the 5-stock peer group, BUR leads on earnings multiple (12.2x) while RHLD leads on capital efficiency (85.0% ROIC).
Per PSEC's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-08-31, CIK 0001287032), Prospect Capital Corporation generated $2.74B in revenue (-9.7% YoY), -$490.5M in net income, and $523.2M in free cash flow against $6.53B in total assets and $0 in total debt. Key quantitative strengths: Established market leader in Financials with deep daily trading liquidity.. Primary risk factors monitored: Company executives have done more routine share selling than personal cash buying lately.. Institutional options positioning shows a 50% call / 50% put premium split.
Impersonal quantitative research (0–100 RQD rubric) — not individualized investment advice. Past performance does not guarantee future results. Full Disclaimer
SEC XBRL FY 2025 (10-K): 19.1% FCF Margin ($523.2M FCF) & 52% Gross Margin
Altman Z-Score 3.80 (FORTRESS SAFE (>3.0)) • Piotroski F-Score 3/9
Put hedging (50% put share) caps near-term gamma upside (-16 pts vs max)
While PSEC currently carries a cautious 35/100 (D-) rating due to Whale & Options Positioning (4/20), shorts face asymmetric squeeze risk if free cash flow inflects or management executes accretive buybacks.
Established market leader in Financials with deep daily trading liquidity.
Options & Short-Covering Gamma: Reclaiming the 50-day SMA ($1.95) and Max Pain ($1.70) forces dealer call-delta covering toward $3.29.
Forensic Repair Trigger: Halting share dilution (Disciplined Float (+0.72% YoY Shares)) or retiring high-cost debt immediately upgrades the SEC 10-K Forensic pillar.
Prospect Capital Corporation (PSEC) advanced +0.62% to $1.62, trading at 11% of its 52-week range ($1.43 – $3.13). Stretched risk/reward at current multiples (-17% return on capital) under elevated 10-year interest-rate pressure.
Seeking Alpha report covering Prospect Capital Corporation (PSEC) market action, institutional positioning, and fundamental catalysts.
StockInvest.us report covering Prospect Capital Corporation (PSEC) market action, institutional positioning, and fundamental catalysts.
www.marketscreener.com report covering Prospect Capital Corporation (PSEC) market action, institutional positioning, and fundamental catalysts.
Seeking Alpha report covering Prospect Capital Corporation (PSEC) market action, institutional positioning, and fundamental catalysts.
Pluang report covering Prospect Capital Corporation (PSEC) market action, institutional positioning, and fundamental catalysts.
Stock Titan report covering Prospect Capital Corporation (PSEC) market action, institutional positioning, and fundamental catalysts.
Pluang report covering Prospect Capital Corporation (PSEC) market action, institutional positioning, and fundamental catalysts.
Stock Titan report covering Prospect Capital Corporation (PSEC) market action, institutional positioning, and fundamental catalysts.
A 38% yield sounds like a jackpot until you see what is actually funding it. Six popular income stocks are flashing warning signs that most dividend investors overlook until a cut hits their account.
NEW YORK, Oct. 28, 2026 (GLOBE NEWSWIRE) -- Prospect Enhanced Yield Fund (“PENF” or the “Fund”) announced today that the Fund’s Board of Directors has declared a monthly cash shareholder distribution for October 2026. Th
Multi-year comparable XBRL diluted share count not disclosed (ETF or recent listing).
vs. +6.0% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).
No active Ellis Vennor swing setup published on PSEC today. View full Setup Ledger →
No direct multi-tier Butterfly edges indexed yet for PSEC. Explore sector supply chains on /butterfly.
Across 1096 tracked Financials securities in the Roarable RQD universe, Prospect Capital Corporation (PSEC) ranks #972 by composite RQD confidence (35/100, grade D-) and #583 by equity capitalization ($859.4M). Within this direct 5-issuer industry benchmark cohort, BUR leads on earnings valuation at 12.2x trailing P/E, while RHLD leads on capital efficiency and profitability with 85.0% ROIC and — gross margin. RHLD currently holds the highest overall quantitative score in the immediate peer group at 59/100 (C-) compared with PSEC at 35/100 (D-).
| Ticker / Company | Roarable Grade | RQD Score | Trailing P/E | Gross Margin | ROIC | 1D Change | Market Cap | Head-to-Head |
|---|---|---|---|---|---|---|---|---|
| PSEC
ACTIVE
Prospect Capital Corporation | D- | 35/100 | — | — | -16.6% | +0.62% | $859.4M | Benchmark Subject |
| PICS PicS N.V. (Class A) | D- | 43/100 | — | — | — | -4.37% | $920.1M | /pics-vs-psec → |
| RHLD Resolute Holdings Management | C- | 59/100 | — | — | 85.0% | -1.50% | $944.3M | /rhld-vs-psec → |
| WRLD World Acceptance Corporation | D+ | 55/100 | 23.7x | — | 9.8% | +0.58% | $767.0M | /wrld-vs-psec → |
| BUR Burford Capital Limited | E | 33/100 | 12.2x | — | 9.7% | +10.29% | $744.0M | /bur-vs-psec → |
In its most recent audited fiscal period (FY2025, filed 2025-08-31), Prospect Capital Corporation (PSEC) reported GAAP revenue of $2.74B (-9.7% vs. FY2024 revenue of $3.04B , and +227.0% cumulative change since FY2023) , GAAP net income of -$490.5M, operating cash flow of $523.2M, and free cash flow of $523.2M (+86.9% YoY). On the balance sheet, PSEC closed FY2025 with $6.53B in total assets against $0 in total debt (Altman Z-Score: N/A, Piotroski F-Score: 3/9).
| Fiscal Period | Filing Date | Revenue | Net Income | Operating Cash Flow | Free Cash Flow | Total Assets | Total Debt |
|---|---|---|---|---|---|---|---|
| FY2025 (FY) | 2025-08-31 | $2.74B | -$490.5M | $523.2M | $523.2M | $6.53B | — |
| FY2024 (FY) | 2024-08-31 | $3.04B | $234.1M | $280.0M | $280.0M | $7.23B | — |
| FY2023 (FY) | 2023-08-31 | $839.2M | -$88.0M | -$220.8M | -$220.8M | — | — |
As of 2026-11-03, Prospect Capital Corporation (NASDAQ: PSEC) is rated D- (Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 35/100 at a spot price of $1.62 (+0.62% 1D, market cap $859.4M). Pillar breakdown: Fundamental Cash Engine 10/20, Institutional 13F & Options Flow 3/20, Executive Insider Alignment 10/20, FRED Macro Regime Fit 7/20, and SEC Balance-Sheet Forensics 5/20. Across 1096 tracked Financials issuers, PSEC ranks #972 in composite RQD confidence.
Within the Financials sector (Finance: Consumer Services), PSEC carries a Roarable D- (35/100 RQD), trailing P/E of N/A, gross margin of —, and ROIC of -16.6%. By comparison, PICS (PicS N.V. (Class A)) holds a D- grade (43/100 RQD, P/E N/A, ROIC —, cap $920.1M) and RHLD (Resolute Holdings Management) posts a C- grade (59/100 RQD, P/E N/A, ROIC 85.0%, cap $944.3M). Among the 5-stock peer group, BUR leads on earnings multiple (12.2x) while RHLD leads on capital efficiency (85.0% ROIC).
Per PSEC's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-08-31, CIK 0001287032), Prospect Capital Corporation generated $2.74B in revenue (-9.7% YoY), -$490.5M in net income, and $523.2M in free cash flow against $6.53B in total assets and $0 in total debt. Key quantitative strengths: Established market leader in Financials with deep daily trading liquidity.. Primary risk factors monitored: Company executives have done more routine share selling than personal cash buying lately.. Institutional options positioning shows a 50% call / 50% put premium split.
PSEC last traded at $1.62 (+0.62% on volume of 7,318,628 shares), positioning the stock -16.92% below its 50-day simple moving average ($1.95) and -31.36% below its 200-day simple moving average ($2.36). Across its 52-week range of $1.43 to $3.13, PSEC sits at the 11.2% percentile with a 14-day RSI of 39.1 (NEUTRAL RANGE) and an implied next-earnings move of ±10.9% ($1.44 to $1.80).
The Roarable RQD Score is 35, a letter grade of D-, with the verdict "Roarable Sell — Vulnerable Balance Sheet & Flow" (). The five pillars break down as follows:
Investor implications: The combination of negative ROIC, zero FCF yield, weak institutional and insider flow, and a middling forensic profile means the rating framework identifies more downside risk than upside drivers. Upside in this framework would require improvement in cash generation and in institutional or insider conviction, neither of which is evidenced in the current data. This is an analytical summary, not personalized financial advice.
Prospect Capital Corporation is a NASDAQ-listed issuer classified in the Financials sector and Finance: Consumer Services industry. The profile does not describe its products, customers, or revenue model..9B.
Net income swung from $234.1M in FY 2024 to -$490.5M in FY 2025, and FCF was $523.2M in FY 2025. Margins are reported as 0% for gross, operating, and net (per the market data). ROIC is -16.6% (per the market data), and the Altman Z-Score is 2.5 and the Piotroski F-Score is 3/9 (). The Debt/Equity ratio is 0.5 (). Revenue and debt figures are reported as — and N/A respectively in the SEC financials, so balance sheet leverage cannot be fully evaluated from the source data.
Upstream and downstream dependencies, sector correlations, and second-order bottlenecks cannot be mapped from the source data. The one sector-level reference is the RQD macro regime pillar, which cites sector sensitivity but provides no specific linkages.
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Seeking Alpha report covering Prospect Capital Corporation (PSEC) market action, institutional positioning, and fundamental catalysts.
StockInvest.us report covering Prospect Capital Corporation (PSEC) market action, institutional positioning, and fundamental catalysts.
www.marketscreener.com report covering Prospect Capital Corporation (PSEC) market action, institutional positioning, and fundamental catalysts.
Seeking Alpha report covering Prospect Capital Corporation (PSEC) market action, institutional positioning, and fundamental catalysts.
Pluang report covering Prospect Capital Corporation (PSEC) market action, institutional positioning, and fundamental catalysts.
Stock Titan report covering Prospect Capital Corporation (PSEC) market action, institutional positioning, and fundamental catalysts.
Pluang report covering Prospect Capital Corporation (PSEC) market action, institutional positioning, and fundamental catalysts.
Stock Titan report covering Prospect Capital Corporation (PSEC) market action, institutional positioning, and fundamental catalysts.
Prospect Capital's Macro Regime Fit and beta of 1.0 keep it tied to broad market moves, and the 8.95% notes financing with semiannual interest starting April 2027 shows continued market access.. When you look under the hood at PSEC, Fundamental Cash Engine is 10/20 with 0.0% gross margins and -16.6% ROIC. Bears are staring in the rearview mirror while institutional 13F flow (3/20) has been quietly accumulating below $3.13. My 12M target is $1.85.
@RiskArb_Desk Fair point on current EV/EBITDA multiples, but you're ignoring the forward operating leverage in Finance: Consumer Services. If gross margin (0.0%) holds, EPS grows into the multiple faster than bears think.
Fading this rally in PSEC at $1.61. ROIC of -16.6%, a 0% FCF yield, and a 3/20 whale flow score point to weak cash generation and little institutional support.. With a beta of 1.0 and the stock sitting at $1.61 (52-wk range $1.43–$3.13), the easy multiple expansion is already priced in.
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