Is PROSPECT CAPITAL CORP (PSEC) Halal?
Shariah Screening — 5 Standards
Based on financial data from June 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | Excluded — Asset Management | ✗ NOT HALAL | |||
| DJIM | Excluded — Asset Management | ✗ NOT HALAL | |||
| MSCI | Excluded — Asset Management | ✗ NOT HALAL | |||
| S&P | Excluded — Asset Management | ✗ NOT HALAL | |||
| FTSE | Excluded — Asset Management | ✗ NOT HALAL | |||
Financial Highlights
Profitability
| Gross Margin | 100.0% | |
| Operating Margin | 70.3% | |
| Net Margin | -34.9% | |
| Return on Equity (ROE) | -4.9% | |
| Return on Assets (ROA) | 4.3% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $523M |
| Free Cash Flow | $523M |
| Total Debt | $2.1B |
| Debt-to-Equity | 40.3 |
| Current Ratio | 0.7 |
| Total Assets | $6.8B |
Price & Trading
| Last Close | $2.55 |
| 50-Day MA | $2.74 |
| 200-Day MA | $2.83 |
| Avg Volume | 4.5M |
| Beta | 0.8 |
|
52-Week Range
$2.45
| |
About PROSPECT CAPITAL CORP (PSEC)
Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, market place lending and bridge transactions. It also makes real estate investments particularly in multi-family residential real estate asset class. The fund makes secured debt, senior debt, senior and secured term loans, unitranche debt, first-lien and second lien, private debt, private equity, mezzanine debt, and equity investments in private and microcap public businesses. It focuses on both primary origination and secondary loans/portfolios and invests in situations like debt financings for private equity sponsors, acquisitions, dividend recapitalizations, growth financings, bridge loans, cash flow term loans, real estate financings/investments. It also focuses on investing in small-sized and medium-sized private companies rather than large public companies. The fund typically invests across all industry sectors, with a particular expertise in the energy and industrial sectors. It invests in aerospace and defense, chemicals, conglomerate services, consumer services, ecological, electronics, financial services, machinery, manufacturing, media, pharmaceuticals, retail, software, specialty minerals, textiles and leather, transportation, oil and gas production, coal production, materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors. It prefers to invest in the United States and Canada. The fund seeks to invest between $10 million to $500 million per transaction in companies with EBITDA between $5 million and $150 million, sales value between $25 million and $500 million, and enterprise value between $5 million and $1000 million. It fund also co-invests for larger deals. The fund seeks control acquisitions by providing multiple levels of the capital structure. The fund focuses on sole, agented, club, or syndicated deals.
Related Halal Stocks in Financial Services
Frequently Asked Questions
Is PROSPECT CAPITAL CORP (PSEC) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), PROSPECT CAPITAL CORP is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is PROSPECT CAPITAL CORP's debt ratio?
PROSPECT CAPITAL CORP's debt ratio is not available under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%.
What are PROSPECT CAPITAL CORP's key financial metrics?
PROSPECT CAPITAL CORP has a market capitalization of $1.2B, and revenue of -$407M. The company maintains a gross margin of 100.0% and a net margin of -34.9%. Return on equity stands at -4.9%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.