MeritValue

PENNANTPARK INVESTMENT CORP

PNNTdata 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 INVESTMENT CORP earns about 6% on equity, and has bought back 3% of its shares over 5 years. The applicable estimate puts fair value near $5.19 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$166.6M1−$24.7M2−$33.8M3$48.9M3$32.7M3
Operating cash flow$7.91M4−$17.3M5$222.9M6−$172.4M6$104.8M6
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$20.4M7$54.8M8$38.8M9$49.9M10$51.8M10
Diluted shares67.0M65.2M65.2M65.2M65.3M

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
$71.05
your share of equity
Profit it earned you last year
$5.01
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $71.05 of net worth that earned you $5.01 last year.

iii. Is this a good business?
Moat signal · return on equity
6% avg · 5y
FY21 25%FY22 -4%FY23 -7%FY24 10%FY25 7%

It earned an average 6% 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
−3% shares · 5y

Share count is down 3% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

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
$5.19
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$32.7M
  • 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 0000950170-23-068909 (NetIncomeLoss)
  2. 10-K · period ending 2022-09-30 · accession 0000950170-24-130670 (NetIncomeLoss)
  3. 10-K/A · period ending 2023-09-30 · accession 0001193125-26-021227 (NetIncomeLoss)
  4. 10-K · period ending 2021-09-30 · accession 0000950170-23-068909 (NetCashProvidedByUsedInOperatingActivities)
  5. 10-K · period ending 2022-09-30 · accession 0000950170-24-130670 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K/A · period ending 2023-09-30 · accession 0001193125-26-021227 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2021-09-30 · accession 0000950170-22-025352 (CashAndCashEquivalentsAtCarryingValue)
  8. 10-K · period ending 2022-09-30 · accession 0000950170-23-068909 (CashAndCashEquivalentsAtCarryingValue)
  9. 10-K · period ending 2023-09-30 · accession 0000950170-24-130670 (CashAndCashEquivalentsAtCarryingValue)
  10. 10-K/A · period ending 2024-09-30 · accession 0001193125-26-021227 (CashAndCashEquivalentsAtCarryingValue)