Stock fact sheet · data as of
PennantPark Investment Corporation (PNNT): fair value, margin of safety and Wheel Score
Ticker symbol PNNT · Financial Services · Asset Management · United States · Value Income
Is PNNT undervalued?
At 3.23 (close of 5 Nov 2026), PNNT trades 79% below the GLS average fair value of 15.53. That average comes from 8 models run on the latest filings, and 5 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns PennantPark Investment Corporation the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 8 models disagree widely: Lynch gives 0.6335 while 10 Cap gives 74.92. 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, PNNT is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 72, growth score 45, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for PNNT
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 | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 4.88 | +51% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 2.56 | -21% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.6335 | -80% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 9.70 | +200% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 74.92 | +2219% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 15.68 | +385% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 14.13 | +337% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 1.76 | -46% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -12.77 | -495% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 5.00 | +55% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health PNNT scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 4.6 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are thin or negative - ROIC 2.7%, ROE 7.1%, ROA 2.4% - with debt at 1.59 times equity and a free-cash-flow yield of 112.7%.
The dividend yield is high at 29.72% (payout ratio 722%) - 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 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 2.7% |
|---|---|---|---|
| GLS Moat | 4.6 / 10 | ROE | 7.1% |
| Debt / equity | 1.59 | ROA | 2.4% |
| Free-cash-flow yield | 112.7% | Payout ratio | 722% |
| Institutions | 3 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 35: Weak
PNNT scores 35 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 1, options that actually trade - options too quiet (58 open interest, 26 a day); and filter 7, a premium worth selling - implied volatility 110% (over 80%); and filter 8, big enough - market cap $211M (under $1.0B); and filter 9, not a penny stock - price 3.23 (under $5), and the parts are thin too - value strong, premium weak, moat fair, health good, red flags fair, 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 110%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is thin - 58 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 1.9M shares a day on a market cap of $211M, with a beta of 0.66 - 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 (58 open interest, 26 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 | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 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 | Fails | implied volatility 110% (over 80%) |
| 8 | Big enough | Fails | market cap $211M (under $1.0B) |
| 9 | Not a penny stock | Fails | price 3.23 (under $5) |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 79% below fair value | |
| Premium | Weak | implied volatility 110% | |
| Moat | Fair | moat 4.6/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Fair | Red Flags score 70/100 | |
| Option trading | Weak | 26 contracts a day, 58 open interest | |
| Stability | Fair | beta 0.66, $211M 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.
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 Investment Corporation 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 |
|---|---|---|---|---|---|
| IIF Morgan Stanley India Investment Fund, Inc. | 22.34 | 29.21 | +24% | 22No options | $211M |
| ACTIX Advisors Capital Tactical Fixed Income Fund | 9.40 | 4.33 | -117% | 11No options | $211M |
| SAJ Saratoga Investment Corp 8.00% | 25.41 | 32.50 | +22% | 19No options | $211M |
| SAZ Saratoga Investment Corp 8.50% | 25.32 | 32.50 | +22% | 22No options | $210M |
| SAY Saratoga Investment Corp. | 25.39 | 32.50 | +22% | 26No options | $212M |
| LIEN Chicago Atlantic BDC, Inc. | 9.20 | 39.20 | +77% | 29No options | $210M |
| MFM Aberdeen Municipal Income Fund | 5.19 | 8.67 | +40% | 28No options | $214M |
| FIFNX Fidelity Founders Fund | 27.69 | 4.92 | -463% | 11No options | $207M |
| EIC Eagle Point Income Company Inc. | 8.83 | 38.54 | +77% | 30No options | $207M |
| SCM Stellus Capital Investment Corporation | 7.26 | 4,324,121.19 | +100% | 48Weak | $207M |
| SAR Saratoga Investment Corp. | 13.90 | 32.50 | +57% | 41Weak | $216M |
| PVCMX Palm Valley Capital Fund Investor Class | 12.78 | 28.81 | +56% | 25No options | $217M |
⚖ Compare PNNT with 7 of them All Financial Services stocks →
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about PNNT
Is PNNT undervalued right now?
By the GLS models, yes: at 3.23 the stock is 79% below the average fair value of 15.53 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of PNNT and what does it mean?
PNNT scores 35 out of 100 (Weak) - it fails Wheel Trade Filters 1, 7, 8, 9. 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 PNNT?
15.53 per share as of 5 Nov 2026 - the simple average of the 8 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 Investment Corporation 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 PNNT have listed options, and how liquid are they?
Yes. The nightly snapshot found 4 listed contracts with 58 open interest across all expiries and implied volatility of 110% 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.