PFLT
Financial ServicesPennantPark Floating Rate Capital Ltd. · Asset Management · $800M
What is PennantPark Floating Rate Capital Ltd.?
PennantPark Floating Rate Capital Ltd. is a business development company (BDC) focused on lending to middle-market businesses across the United States. It generates income primarily through floating rate loans and debt investments in private or thinly traded companies.
PFLT deploys capital into senior secured loans, mezzanine debt, and select equity positions — primarily targeting middle-market companies that lack ratings from major national agencies. The fund concentrates the large majority of its assets in floating rate instruments, which means its income tends to move with prevailing interest rates. It also holds a portion of assets in non-qualifying investments such as high-yield bonds, distressed debt, and securities of larger public companies.
PennantPark Floating Rate Capital was established in 2011 and is headquartered in Miami Beach, Florida.
- Senior secured floating rate loans to middle-market companies
- Mezzanine debt and subordinated loan investments
- Equity co-investments including preferred stock and warrants
- Exposure to select non-U.S. middle-market borrowers
Is PFLT a Good Stock to Buy?
UQS Score rates PFLT as Good overall, reflecting a balanced but nuanced profile across its five quality pillars.
The Quality and Growth pillars both register as Good, suggesting the portfolio generates reasonably consistent income and has demonstrated meaningful expansion relative to its BDC peer group. The Valuation pillar is rated Attractive, meaning the market price appears to offer a reasonable entry point compared to the underlying fundamentals.
The Moat and Risk pillars are both rated Weak — a common characteristic among BDCs, where competitive differentiation is limited and credit risk exposure to unrated, leveraged borrowers is an inherent structural feature.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does PFLT pay dividends?
Yes — PennantPark Floating Rate Capital Ltd. pays a dividend.
PFLT pays a regular dividend, which is central to its appeal as a BDC. Business development companies are required by regulation to distribute the substantial majority of their taxable income to shareholders, making consistent income distributions a defining feature of the structure. The floating rate focus of the portfolio means dividend levels can be sensitive to changes in benchmark interest rates.
When does PFLT report earnings?
PennantPark Floating Rate Capital reports earnings on a quarterly cadence, consistent with other US-listed BDCs.
Quarterly results for BDCs like PFLT typically center on net investment income, net asset value per share, and portfolio credit quality. Floating rate exposure means income generation tends to track the interest rate environment closely. For the most current results, check the company's investor relations page.
For the most recent quarter's results, see PennantPark Floating Rate Capital's official investor relations page.
PFLT Price History
+17.3% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in PennantPark Floating Rate Capital Ltd.?
Based on PennantPark Floating Rate Capital Ltd.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
PFLT Long-term Outlook
The combination of Good Growth and Attractive Valuation suggests PFLT's fundamental trajectory is constructive relative to its current price. However, the Weak Risk pillar is a meaningful counterweight — credit losses in a deteriorating economic environment could pressure net asset value and, in turn, distribution levels. Investors weighing the long-term outlook should balance the income potential of floating rate exposure against the inherent credit risk of lending to unrated, leveraged middle-market borrowers.
Growth drivers
- Floating rate loan structure benefits income when benchmark rates remain elevated
- Continued deployment into underserved middle-market lending opportunities
- Potential for equity co-investment gains alongside debt positions
Key risks
- Credit deterioration among unrated, leveraged borrowers in a slowdown
- Rate cuts reducing net investment income on floating rate assets
- Limited competitive moat in a crowded BDC lending landscape
PFLT vs Peers
PFLT operates in a competitive BDC landscape alongside several peers that share a focus on middle-market credit.
Eagle Point focuses primarily on collateralized loan obligation equity tranches rather than direct middle-market lending, giving it a structurally different risk and income profile.
SLR Investment targets asset-based lending and specialty finance niches, differentiating its portfolio construction from PFLT's floating rate loan focus.
Bain Capital Specialty Finance brings the backing of a large private equity platform, potentially offering sourcing advantages in middle-market deal flow.
Frequently Asked Questions
What does PennantPark Floating Rate Capital do?
PennantPark Floating Rate Capital is a business development company that lends to middle-market businesses primarily through floating rate senior secured loans and mezzanine debt. It also takes equity positions alongside some debt investments. The portfolio targets private or thinly traded companies that typically lack ratings from major agencies.
Does PFLT pay dividends?
Yes, PFLT pays a regular dividend. As a BDC, it is required to distribute the large majority of its taxable income to shareholders. The floating rate nature of its loan portfolio means dividend levels can shift alongside changes in benchmark interest rates.
When does PFLT report earnings?
PennantPark Floating Rate Capital reports on a quarterly cadence, in line with other US-listed BDCs. Specific upcoming dates are not maintained in our data — visit the company's investor relations page for the current earnings calendar.
Is PFLT a good stock to buy?
UQS Score rates PFLT as Good overall. The Valuation pillar is Attractive and both Quality and Growth are Good, but the Weak Moat and Weak Risk pillars reflect structural challenges common to BDC lending. Whether it fits your portfolio depends on your income needs and risk tolerance. View the full pillar breakdown on UQS Pro.
Is PFLT overvalued?
The UQS Valuation pillar for PFLT is rated Attractive, suggesting the current market price is reasonable relative to the underlying fundamentals. That said, valuation for BDCs is best assessed alongside credit quality and net asset value trends, which are detailed in the full UQS analysis.
How does PFLT compare to its competitors?
PFLT's floating rate loan focus distinguishes it from peers like Eagle Point Credit, which concentrates on CLO equity, and SLR Investment, which emphasizes asset-based lending. Bain Capital Specialty Finance shares a similar middle-market orientation but benefits from a large private equity sourcing network. See the full comparison on UQS Score.
What is PFLT's market cap bracket?
PFLT is classified as a small-cap company. Within the BDC universe, smaller market caps can mean less liquidity and greater sensitivity to credit market conditions, factors that are reflected in the UQS Risk pillar assessment.
Who founded PennantPark Floating Rate Capital?
PennantPark Floating Rate Capital was established in 2011. Founding and management context is publicly available through the company's official filings and investor relations materials, which provide the most accurate and current leadership information.
Is PFLT a long-term quality investment?
As a long-term quality indicator, PFLT's Good UQS Score reflects a reasonably sound income-generating model, but the Weak Moat and Weak Risk pillars highlight that sustained outperformance depends heavily on credit cycle conditions and interest rate trends. Long-term holders should monitor net asset value and portfolio credit quality closely.
What is the main competitive advantage of PennantPark Floating Rate Capital?
PFLT's primary structural advantage is its floating rate loan focus, which positions the portfolio to benefit from elevated interest rate environments. However, the UQS Moat pillar is rated Weak, indicating that durable competitive differentiation relative to other BDC lenders is limited.
What sector does PFLT belong to?
PFLT operates in the Financial Services sector, specifically as a business development company. BDCs are a regulated investment structure that provides retail investors with access to private middle-market lending — an asset class typically reserved for institutional investors.
Is PFLT a growth stock or value stock?
PFLT sits closer to the income and value end of the spectrum. The UQS Growth pillar is Good and Valuation is Attractive, but the primary draw for most investors is its regular dividend income rather than capital appreciation. It is generally considered an income-oriented holding within the BDC category.
Unlock Full PFLT Analysis
Sign in to unlock the detailed analysis behind the UQS Score.
- ✓View the complete five-pillar UQS Score breakdown
- ✓Access detailed financial metrics and trend data
- ✓Compare PFLT against BDC peers side by side
- ✓Track Quality, Risk, and Valuation changes over time
- ✓Get the full analyst view available to Pro members
Pro Analysis
PFLT — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| Apr 18, 2026 | 53.5 | 68.1 | 24.0 | 66.4 | 34.7 | 80.0 | -3.0 |
| Apr 2, 2026 | 56.5 | 68.1 | 24.0 | 66.4 | 34.7 | 100.0 | — |
PFLT — Pillar Breakdown
Quality
— 82.3/100 (25%)PennantPark Floating Rate Capital Ltd. demonstrates outstanding capital efficiency and profitability, placing it among the highest-quality businesses in the market.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Free cash flow relative to market value.
Growth
— 66.4/100 (20%)PennantPark Floating Rate Capital Ltd. demonstrates healthy growth trends across revenue and earnings.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 44.7/100 (15%)PennantPark Floating Rate Capital Ltd. has some risk factors including moderate leverage or solvency concerns.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 80.0/100 (15%)PennantPark Floating Rate Capital Ltd. appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 24/100 (25%)PennantPark Floating Rate Capital Ltd. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for PFLT.
Score Composition
Financial Data
More Stock Analysis
How is the PFLT UQS Score Calculated?
The UQS (Unified Quality Score) for PennantPark Floating Rate Capital Ltd. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses PennantPark Floating Rate Capital Ltd.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether PennantPark Floating Rate Capital Ltd. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.