Stock fact sheet · data as of
PennantPark Floating Rate Capital Ltd. (PFLT): fair value, margin of safety and Wheel Score
Ticker symbol PFLT · Financial Services · Asset Management · United States · Blend Income
Is PFLT undervalued?
PennantPark Floating Rate Capital Ltd. (PFLT) closed at 6.98 on 5 Nov 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 28.89, which puts the price 76% below it. 7 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 9 models disagree widely: Lynch gives 2.03 while DCF gives 71.52. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for PFLT, so the nightly engine files it under Blend (value score 77, growth score 57, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for PFLT
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 71.52 | +925% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 10.81 | +55% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 8.17 | +17% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 2.03 | -71% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 31.00 | +344% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 64.00 | +817% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 50.14 | +618% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 16.69 | +139% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 5.63 | -19% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -17.16 | -346% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 8.75 | +25% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - PFLT passes 5 of the nine Piotroski tests, which falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 5.2 out of 10: a record that is solid on some of the four parts the score weighs (returns on capital, pricing power, lasting growth, balance sheet) and weaker on others.
Returns on capital are thin or negative - ROIC 2.3%, ROE 6.2%, ROA 2.3% - with debt at 1.65 times equity and a free-cash-flow yield of 45.8%.
The dividend yield is high at 16.25% (payout ratio 304%) - a payout above 100% of earnings, which is not covered by profits. A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 3/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 2.3% |
|---|---|---|---|
| GLS Moat | 5.2 / 10 | ROE | 6.2% |
| Debt / equity | 1.65 | ROA | 2.3% |
| Free-cash-flow yield | 45.8% | Payout ratio | 304% |
| Institutions | 3 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 44: Weak
PFLT scores 44 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 1, options that actually trade - options too quiet (1,816 open interest, 22 a day); and filter 4, financially healthy - Piotroski 5/9 (under 6); and filter 8, big enough - market cap $693M (under $1.0B), and the parts are thin too - value strong, premium strong, moat fair, health fair, red flags weak, option trading weak, stability fair. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 42% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 1,816 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 1.0M shares a day on a market cap of $693M, with a beta of 0.79 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (1,816 open interest, 22 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Fails | market cap $693M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 76% below fair value | |
| Premium | Strong | implied volatility 42% | |
| Moat | Fair | moat 5.2/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Weak | Red Flags score 60/100 | |
| Option trading | Weak | 22 contracts a day, 1,816 open interest | |
| Stability | Fair | beta 0.79, $693M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 23 Nov 2026 (after the close), 18 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Analysts upgraded PFLT 1 time in the last 30 days with no downgrades; the latest action was an upgrade by UBS on 9 Oct 2026.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to PennantPark Floating Rate Capital Ltd. by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| RMT Royce Micro-Cap Trust, Inc. | 13.11 | 164.20 | +92% | 30No options | $689M |
| ESMAX Invesco Global Small Cap Equity A | 13.43 | 64.69 | +79% | 25No options | $696M |
| SMYIX Franklin Global Equity Fund Class I | 32.05 | 13.99 | -129% | 10No options | $698M |
| OCCIN OFS Credit Company, Inc. | 25.04 | 17.36 | -44% | 12No options | $687M |
| CMDT PIMCO Commodity & Bond Strategy Active ETF | 30.28 | 30.77 | +2% | 25Weak | $700M |
| CRF Cornerstone Total Return Fund, Inc. | 5.94 | 28.00 | +79% | 25No options | $703M |
| BUI BlackRock Utilities, Infrastructure & Power Opportunities Trust | 26.65 | 113.09 | +76% | 34No options | $707M |
| NMFC New Mountain Finance Corporation | 7.10 | 74.80 | +91% | 43Weak | $671M |
| NMFCZ New Mountain Finance Corporation 8.250% Notes due 2028 | 25.11 | 74.91 | +66% | 26No options | $671M |
| VLEOX Value Line Small Cap Opportunities Fund, Inc. Investor Class | 62.92 | 25.20 | -150% | 15No options | $717M |
| FCIRX NYLI PineStone International Equity Fund Class A | 19.16 | 1.37 | -1297% | 10No options | $668M |
| GEGGL Great Elm Group, Inc. 7.25% Notes due 2027 | 24.66 | 6.30 | -292% | 13No options | $719M |
⚖ Compare PFLT with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about PFLT
Is PFLT undervalued right now?
By the GLS models, yes: at 6.98 the stock is 76% below the average fair value of 28.89 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of PFLT and what does it mean?
PFLT scores 44 out of 100 (Weak) - it fails Wheel Trade Filters 1, 4, 8. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for PFLT?
28.89 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does PennantPark Floating Rate Capital Ltd. report earnings next?
The next earnings report is due on 23 Nov 2026 (after the close), 18 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does PFLT have listed options, and how liquid are they?
Yes. The nightly snapshot found 8 listed contracts with 1,816 open interest across all expiries and implied volatility of 42% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.