Stock fact sheet · data as of
PennantPark Floating Rate Capital Ltd. (PFLT): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · High Yield Income
Is PFLT undervalued?
PennantPark Floating Rate Capital Ltd. (PFLT) closed at 6.57 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 28.75, which puts the price 77% 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 70.27. 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.
The nightly engine files PFLT under High Yield Income: a dividend yield above 4%.
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 | 70.27 | +970% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 10.81 | +65% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 8.17 | +24% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 2.03 | -69% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 31.00 | +372% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 64.00 | +874% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 50.14 | +663% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 16.69 | +154% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 5.63 | -14% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -17.16 | -361% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 8.75 | +33% | 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 Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 2.8 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
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 48.7%.
The dividend yield is high at 17.26% (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 | 2.8 / 10 | ROE | 6.2% |
| Debt / equity | 1.65 | ROA | 2.3% |
| Free-cash-flow yield | 48.7% | Payout ratio | 304% |
| Institutions | 3 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 73: Good
PFLT scores 73 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (11/20), the GLS moat (4/15), the option premium on offer (20/20) and how easily the stock trades (13/20). Moat (4/15) is the part holding the score back.
Implied volatility is 44% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 5,417 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 758k shares a day on a market cap of $652M, with a beta of 0.80 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 13 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 77% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 4 / 15 | moat 2.8/10 | |
| Premium | 20 / 20 | implied volatility 44% | |
| Stability | 13 / 20 | 758k shares/day, $652M cap, beta 0.80 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 23 Nov 2026 (after the close), 38 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
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 |
|---|---|---|---|---|---|
| NMFC New Mountain Finance Corporation | 6.90 | 78.29 | +91% | 45Weak | $651M |
| ACGP Associated Capital Group, Inc. | 31.43 | 79.20 | +60% | 39No options | $650M |
| NMFCZ New Mountain Finance Corporation 8.250% Notes due 2028 | 25.37 | 78.42 | +68% | 39No options | $645M |
| FCIRX NYLI PineStone International Equity Fund Class A | 18.29 | 1.37 | -1234% | 22No options | $638M |
| BIT BlackRock Multi-Sector Income Trust | 11.16 | 13.70 | +19% | 39No options | $637M |
| DLY DoubleLine Yield Opportunities Fund | 13.10 | 38.13 | +66% | 39No options | $636M |
| TYG Tortoise Energy Infrastructure Corporation | 38.94 | 57.14 | +32% | 39No options | $671M |
| BUI BlackRock Utilities, Infrastructure & Power Opportunities Trust | 25.29 | 112.99 | +78% | 39No options | $671M |
| RA Brookfield Real Assets Income | 11.43 | 20.04 | +43% | 39No options | $632M |
| RPC Ridgepost Capital, Inc. | 7.99 | 6.53 | -22% | 52Fair | $631M |
| TBLD Thornburg Income Builder Opportunities Trust | 20.21 | 125.16 | +84% | 39No options | $628M |
| SMYIX Franklin Global Equity Fund Class I | 32.12 | 13.99 | -130% | 22No options | $676M |
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Start free See the Sunday ScanQuestions about PFLT
Is PFLT undervalued right now?
By the GLS models, yes: at 6.57 the stock is 77% below the average fair value of 28.75 (data as of 16 Oct 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 73 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for PFLT?
28.75 per share as of 16 Oct 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), 38 days from the data date of 16 Oct 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 56 listed contracts with 5,417 open interest across all expiries and implied volatility of 44% 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.