MeritValue

PennantPark Floating Rate Capital Ltd.

PFLTdata completeness 63%6 fiscal years on file

Data notes: no data for concept 'revenue'; no data for concept 'capex'; no data for concept 'totalDebt'; no data for concept 'epsDiluted'; no data for concept 'interestExpense'; no data for concept 'incomeTaxExpense'; no data for concept 'pretaxIncome'

The thesis, from the filings

PennantPark Floating Rate Capital Ltd. earns about 7% on equity, but has diluted owners by 155% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $5.9 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue—————
Net income$56.5M1$3.45M2$39.3M3$91.8M3$66.4M3
Operating cash flow$49.8M4−$46.6M5$140.6M6−$801.4M6−$720.6M6
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$49.8M7$51.5M8$100.6M9$112.1M10$122.7M10
Diluted shares38.9M45.3M58.7M77.6M99.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$108.3
your share of equity
Profit it earned you last year
$6.69
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $108.3 of net worth that earned you $6.69 last year.

iii. Is this a good business?
Moat signal · return on equity
7% avg · 5y
FY21 12%FY22 1%FY23 6%FY24 10%FY25 6%

It earned an average 7% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+155% shares · 5y

Share count is up 155% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$5.9
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$56.5M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-09-30 · accession 0000950170-23-068908 (NetIncomeLoss)
  2. 10-K · period ending 2022-09-30 · accession 0000950170-24-130666 (NetIncomeLoss)
  3. 10-K · period ending 2023-09-30 · accession 0001193125-25-293672 (NetIncomeLoss)
  4. 10-K · period ending 2021-09-30 · accession 0000950170-23-068908 (NetCashProvidedByUsedInOperatingActivities)
  5. 10-K · period ending 2022-09-30 · accession 0000950170-24-130666 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2023-09-30 · accession 0001193125-25-293672 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2021-09-30 · accession 0000950170-22-025351 (CashAndCashEquivalentsAtCarryingValue)
  8. 10-K · period ending 2022-09-30 · accession 0000950170-23-068908 (CashAndCashEquivalentsAtCarryingValue)
  9. 10-K · period ending 2023-09-30 · accession 0000950170-24-130666 (CashAndCashEquivalentsAtCarryingValue)
  10. 10-K · period ending 2024-09-30 · accession 0001193125-25-293672 (CashAndCashEquivalentsAtCarryingValue)