Stock fact sheet · data as of
PennantPark Investment Corporation (PNNT): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · High Yield Income
Is PNNT undervalued?
At 3.15 (close of 16 Oct 2026), PNNT trades 80% 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.
The nightly engine files PNNT under High Yield Income: a dividend yield above 4%.
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 | +55% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 2.56 | -19% | 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 | +208% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 74.92 | +2278% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 15.68 | +398% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 14.13 | +348% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 1.76 | -44% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -12.77 | -505% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 5.00 | +59% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health PNNT scores 8/9 (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 2.2 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 2.7%, ROE 7.1%, ROA 2.4% - with debt at 1.59 times equity and a free-cash-flow yield of 115.6%.
The dividend yield is high at 30.48% (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 2/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 2.7% |
|---|---|---|---|
| GLS Moat | 2.2 / 10 | ROE | 7.1% |
| Debt / equity | 1.59 | ROA | 2.4% |
| Free-cash-flow yield | 115.6% | Payout ratio | 722% |
| Institutions | 2 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 74: Good
PNNT scores 74 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (18/20), the GLS moat (3/15), the option premium on offer (17/20) and how easily the stock trades (11/20). Moat (3/15) is the part holding the score back.
Implied volatility is 71% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (17 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 1,114 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 554k shares a day on a market cap of $206M, 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 gives that 11 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 80% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 3 / 15 | moat 2.2/10 | |
| Premium | 17 / 20 | implied volatility 71% | |
| Stability | 11 / 20 | 554k shares/day, $206M cap, beta 0.66 |
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 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. | 21.82 | 29.21 | +25% | 39No options | $206M |
| EICA Eagle Point Income Company Inc. | 24.94 | 38.11 | +35% | 39No options | $206M |
| MFM Aberdeen Municipal Income Fund | 4.98 | 8.66 | +42% | 39No options | $205M |
| SRV NXG Cushing Midstream Energy Fund | 43.85 | 124.29 | +65% | 39No options | $205M |
| GMSAX Goldman Sachs Managed Futures Strategy Fund | 10.14 | 26.60 | +62% | 39No options | $203M |
| LIEN Chicago Atlantic BDC, Inc. | 9.15 | 107.97 | +92% | 39No options | $209M |
| FIFNX Fidelity Founders Fund | 27.65 | 4.92 | -462% | 20No options | $202M |
| EIC Eagle Point Income Company Inc. | 8.97 | 38.11 | +76% | 39No options | $210M |
| SCM Stellus Capital Investment Corporation | 7.05 | 4,324,121.34 | +100% | 70Good | $201M |
| ACTIX Advisors Capital Tactical Fixed Income Fund | 9.31 | 4.33 | -115% | 20No options | $211M |
| TRTFX T. Rowe Price Target Retirement 2060 Fund | 20.33 | 125.00 | +84% | 39No options | $212M |
| PRIHX T. Rowe Price Intermediate Tax-Free High Yield Fund, Inc. | 9.58 | 23.71 | +60% | 39No options | $200M |
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Start free See the Sunday ScanQuestions about PNNT
Is PNNT undervalued right now?
By the GLS models, yes: at 3.15 the stock is 80% below the average fair value of 15.53 (data as of 16 Oct 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 74 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 PNNT?
15.53 per share as of 16 Oct 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), 38 days from the data date of 16 Oct 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 30 listed contracts with 1,114 open interest across all expiries and implied volatility of 71% 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.