PennantPark Floating Rate Capital

0KH0.L

Asset Management · Financial Services

Price

7.36 GBp

-0.01 (-0.07%)

Market Cap

£729.7M

Exchange

London Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Strong

Growth

Mixed

Cash Flow

Exceptional

Stability

Mixed

Valuation

Exceptional

Dividends

Good

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Share count rising — dilution

+155.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 38.8M (2021) → 99.2M (2025)

Winston Score History

The full picture

PennantPark Floating Rate Capital is a company that lends money to mid-sized businesses in the United States. These are companies that are too small to borrow easily from big banks or public markets. PennantPark focuses on loans where the interest rate floats, meaning the rate adjusts up or down with broader market rates rather than staying fixed.

The company makes money by collecting interest payments on the loans it makes. It is structured as a Business Development Company (BDC), which means it must pay out most of its income to shareholders as dividends. It operates almost entirely in the U.S. and has roughly $800 million in market value. Its floating-rate focus is a built-in hedge when interest rates rise, since higher rates mean more income — but falling interest rates are a key risk, as they would directly reduce the interest the company earns on its loan portfolio.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+112.5% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-59.8% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

0.9%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$2.6B cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

PennantPark Floating Rate Capital grew revenue 112% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

86.7%

Premium pricing power — 86.7% gross margin

Profit after running costs

Operating Margin

31.5%

Excellent — 31.5% operating margin

Return on the money invested

ROCE

5.9%

Weak — 5.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+12.6%

Fast-growing sales (+12.6% YoY)

Profit growth

EPS YoY

-39.5%

Earnings shrinking (-39.5% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

169%

Turns 169% of profit into real cash

Spare cash per sale

FCF Margin

29.5%

Converts sales into free cash efficiently (29.5%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

1.55

Elevated debt (1.55)

Covers its interest

Interest Cover

1.51x

Dangerous — barely covers interest (1.5x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

14.4x

Attractive valuation — P/E 14.4

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+7.3

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (14.4 → 7.1)

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Dividends

Dividend

Dividend Yield

15.93%

Healthy income — 15.93% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record

Dividend Growth

-33.6%

Dividend cut (-33.6% YoY) — warning sign

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