Prospect Capital Corporation cash flow to debt ratio of 27.75% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Prospect Capital Corporation's free cash flow has decreased 1.31% from $523.17M last year to $516.31M, signaling decreasing performance

Prospect Capital Corporation's debt to equity ratio is 0.34, which means that the company's assets are healthy financed, signaling financial stability.

Prospect Capital Corporation's debt has decreased relative to shareholder equity from 0.70 last year to 0.34 today, signaling strengthened financials

Prospect Capital Corporation has a net debt to EBITDA ratio of 6.41x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Prospect Capital Corporation earns at least as much interest as it pays. Interest obligations are fully covered.

Prospect Capital Corporation's profit margin was 169.75% last year and is 10.19% this year, signaling decreasing performance

Prospect Capital Corporation's short-term liabilities of $378.91M exceed its short-term assets of $43.57M, signaling financial risk

Prospect Capital Corporation's return on assets of 0.90% is lower than the 5.00% threshold, indicating inefficient asset utilization

Prospect Capital Corporation's return on equity of 1.32%, is lower than 15.00%, indicating bad performance

Prospect Capital Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Prospect Capital Corporation had positive net income in 3 out of 5 years, indicating stable and consistent earnings

Prospect Capital Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

Prospect Capital Corporation has a free cash flow yield of 68.60%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Prospect Capital Corporation's yearly earnings has increased 132.70% since last year from $-469.92M to $153.66M, signaling increasing performance

Prospect Capital Corporation's yearly revenue has increased 218.53% since last year from $200.75M to $639.45M, signaling increasing performance

ROIC 3.81% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Prospect Capital Corporation's 3-year revenue CAGR of 94.20% is positive, indicating growing revenue over the past 3 years

Prospect Capital Corporation had revenue growth in only 2 out of 5 years, indicating inconsistent revenue performance

Prospect Capital Corporation had positive ROE in 3 out of 5 years, indicating consistent and reliable returns on equity

Prospect Capital Corporation is undervalued relative to its fair value price of 19.19 based on Base Cash Flow Valuation (DCF) model

Prospect Capital Corporation has an earnings yield of 7.32%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Prospect Capital Corporation is overvalued relative to its fair value price of 0.35 based on Base EBITDA Valuation model

Prospect Capital Corporation has an EV/EBITDA ratio of 9.06x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Prospect Capital Corporation has insufficient data to evaluate this check.

Prospect Capital Corporation's earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

Prospect Capital Corporation has a price-to-book ratio of 0.26x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Prospect Capital Corporation has a price-to-sales ratio of 1.39x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue