PennantPark Investment Corporation Common Stock (PNNT)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at PennantPark as a lender and part-owner of middle-market businesses, not as a wonderful franchise. The filed figures show a volatile earnings record: a fiscal 2023 net loss of $33.8M, fiscal 2024 net income of $48.9M, then fiscal 2025 net income of $32.7M. More recently, fiscal Q1 2026 earned $9.0M, fiscal Q2 2026 lost $2.3M, and fiscal Q3 2026 earned $4.5M, down from $8.2M in fiscal Q3 2025. That is not smooth compounding; it is a credit-sensitive turnaround. The computed Lynch category is TURNAROUND, because it returned to profit after a loss within the last three years, and the Piotroski F-score of 7/9 suggests some accounting improvement. But FairStock's ROE of 2.23% and ROCE of 3.89% are thin, D/E of 1.28 means leverage, and an Altman Z-score of -0.19 warns of financial strain. I see no durable moat: capital is abundant, and borrowers can shop among lenders. At the $3.18 close on 2026-10-13, the FairStock P/B of 0.49 and Graham Number of $4.71 imply a margin of safety of 32.48%, if book value is real. The 14.12% dividend yield and 54.5% FCF yield look tempting, but BDC cash flow can be misleading, and the FairStock P/E of 21.20 shows earnings are weak. The FairStock score of 55/100 fits: statistically cheap, but not clearly safe. I would want evidence that net income is recovering and leverage is controlled before calling it a bargain.

In plain English: PennantPark Investment lends to and invests in middle-sized companies, mostly through debt and some ownership stakes. The business has swung back to profit after a loss three years ago, but recent earnings have been uneven and returns on the money it uses are low. The shares trade below the company's accounting value, which can look cheap, but the large dividend and weak recent results mean the situation carries real risk.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K/A (period ended 2025-09-30) · FY2024 10-K/A (period ended 2024-09-30) · FY2023 10-K/A (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer