MAIN STREET CAPITAL CORP (MAIN) Stock Fundamental Analysis
NYSE:MAIN - New York Stock Exchange, Inc. - US56035L1044 - Common Stock - Currency: USD
Taking everything into account, MAIN scores 4 out of 10 in our fundamental rating. MAIN was compared to 231 industry peers in the Capital Markets industry. MAIN has an excellent profitability rating, but there are concerns on its financial health. MAIN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year MAIN was profitable.
MAIN had a negative operating cash flow in the past year.
Each year in the past 5 years MAIN has been profitable.
MAIN had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of MAIN (9.92%) is better than 89.18% of its industry peers.
MAIN's Return On Equity of 18.16% is amongst the best of the industry. MAIN outperforms 86.15% of its industry peers.
MAIN's Return On Invested Capital of 5.60% is fine compared to the rest of the industry. MAIN outperforms 72.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MAIN is in line with the industry average of 7.24%.
The last Return On Invested Capital (5.60%) for MAIN is above the 3 year average (5.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.92% | ||
| ROE | 18.16% | ||
| ROIC | 5.6% |
ROA(3y)8.42%
ROA(5y)7.06%
ROE(3y)15.64%
ROE(5y)13.47%
ROIC(3y)5.48%
ROIC(5y)4.88%
1.3 Margins
MAIN's Profit Margin of 93.91% is amongst the best of the industry. MAIN outperforms 98.27% of its industry peers.
MAIN's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 65.63%, MAIN belongs to the best of the industry, outperforming 97.40% of the companies in the same industry.
In the last couple of years the Operating Margin of MAIN has remained more or less at the same level.
MAIN has a better Gross Margin (77.19%) than 81.82% of its industry peers.
In the last couple of years the Gross Margin of MAIN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 65.63% | ||
| PM (TTM) | 93.91% | ||
| GM | 77.19% |
OM growth 3Y1.25%
OM growth 5Y0.3%
PM growth 3Y-6.38%
PM growth 5Y12.02%
GM growth 3Y-1.04%
GM growth 5Y-0.55%
2. Health
2.1 Basic Checks
Compared to 1 year ago, MAIN has more shares outstanding
MAIN has more shares outstanding than it did 5 years ago.
MAIN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.76, we must say that MAIN is in the distress zone and has some risk of bankruptcy.
MAIN's Altman-Z score of 1.76 is fine compared to the rest of the industry. MAIN outperforms 69.26% of its industry peers.
MAIN has a Debt/Equity ratio of 0.76. This is a neutral value indicating MAIN is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.76, MAIN is doing good in the industry, outperforming 63.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.76 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.53 indicates that MAIN should not have too much problems paying its short term obligations.
The Current ratio of MAIN (1.53) is better than 64.50% of its industry peers.
A Quick Ratio of 1.53 indicates that MAIN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.53, MAIN is in the better half of the industry, outperforming 64.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
MAIN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.12%.
Measured over the past years, MAIN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.20% on average per year.
The Revenue has grown by 8.12% in the past year. This is quite good.
Measured over the past years, MAIN shows a quite strong growth in Revenue. The Revenue has been growing by 17.32% on average per year.
EPS 1Y (TTM)-3.12%
EPS 3Y15.62%
EPS 5Y10.2%
EPS Q2Q%-3.81%
Revenue 1Y (TTM)8.12%
Revenue growth 3Y23.25%
Revenue growth 5Y17.32%
Sales Q2Q%4.13%
3.2 Future
MAIN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.10% yearly.
The Revenue is expected to decrease by -3.72% on average over the next years.
EPS Next Y-1.38%
EPS Next 2Y-2.6%
EPS Next 3Y-1.1%
EPS Next 5YN/A
Revenue Next Year2.07%
Revenue Next 2Y1.84%
Revenue Next 3Y-3.72%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.08 indicates a correct valuation of MAIN.
MAIN's Price/Earnings ratio is in line with the industry average.
MAIN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.69, MAIN is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as MAIN.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, MAIN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 14.69 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of MAIN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.38
EPS Next 2Y-2.6%
EPS Next 3Y-1.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.53%, MAIN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.17, MAIN has a dividend in line with its industry peers.
MAIN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.53% |
5.2 History
On average, the dividend of MAIN grows each year by 7.16%, which is quite nice.
MAIN has been paying a dividend for at least 10 years, so it has a reliable track record.
MAIN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.16%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
63.07% of the earnings are spent on dividend by MAIN. This is not a sustainable payout ratio.
The Dividend Rate of MAIN has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP63.07%
EPS Next 2Y-2.6%
EPS Next 3Y-1.1%
56.88
+0.21 (+0.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners22.71%
Inst Owner Change3.74%
Ins Owners1.74%
Ins Owner Change-3.81%
Market Cap5.06B
Analysts73.33
Price Target57.38 (0.88%)
Short Float %4.43%
Short Ratio6.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.53% |
Yearly Dividend3.7
Dividend Growth(5Y)7.16%
DP63.07%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.6%
Min EPS beat(2)-3.91%
Max EPS beat(2)-3.29%
EPS beat(4)0
Avg EPS beat(4)-2.45%
Min EPS beat(4)-3.91%
Max EPS beat(4)-0.26%
EPS beat(8)3
Avg EPS beat(8)-0.5%
EPS beat(12)7
Avg EPS beat(12)1.43%
EPS beat(16)11
Avg EPS beat(16)3.25%
Revenue beat(2)0
Avg Revenue beat(2)-3.06%
Min Revenue beat(2)-3.15%
Max Revenue beat(2)-2.97%
Revenue beat(4)1
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)0.79%
Revenue beat(8)4
Avg Revenue beat(8)-0.26%
Revenue beat(12)7
Avg Revenue beat(12)0.86%
Revenue beat(16)11
Avg Revenue beat(16)2.79%
PT rev (1m)1.17%
PT rev (3m)11.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)-1.34%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.57%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 14.69 | ||
| P/S | 9.36 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.81 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.04
EY7.1%
EPS(NY)3.87
Fwd EY6.81%
FCF(TTM)-0.98
FCFYN/A
OCF(TTM)-0.98
OCFYN/A
SpS6.08
BVpS31.43
TBVpS31.43
PEG (NY)N/A
PEG (5Y)1.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.92% | ||
| ROE | 18.16% | ||
| ROCE | 7.09% | ||
| ROIC | 5.6% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 5.69% | ||
| OM | 65.63% | ||
| PM (TTM) | 93.91% | ||
| GM | 77.19% | ||
| FCFM | N/A |
ROA(3y)8.42%
ROA(5y)7.06%
ROE(3y)15.64%
ROE(5y)13.47%
ROIC(3y)5.48%
ROIC(5y)4.88%
ROICexc(3y)5.55%
ROICexc(5y)4.95%
ROICexgc(3y)5.55%
ROICexgc(5y)4.95%
ROCE(3y)6.93%
ROCE(5y)6.18%
ROICexcg growth 3Y12.2%
ROICexcg growth 5Y3.63%
ROICexc growth 3Y12.2%
ROICexc growth 5Y3.63%
OM growth 3Y1.25%
OM growth 5Y0.3%
PM growth 3Y-6.38%
PM growth 5Y12.02%
GM growth 3Y-1.04%
GM growth 5Y-0.55%
F-Score3
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 3.13 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 1.76 |
F-Score3
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.12%
EPS 3Y15.62%
EPS 5Y10.2%
EPS Q2Q%-3.81%
EPS Next Y-1.38%
EPS Next 2Y-2.6%
EPS Next 3Y-1.1%
EPS Next 5YN/A
Revenue 1Y (TTM)8.12%
Revenue growth 3Y23.25%
Revenue growth 5Y17.32%
Sales Q2Q%4.13%
Revenue Next Year2.07%
Revenue Next 2Y1.84%
Revenue Next 3Y-3.72%
Revenue Next 5YN/A
EBIT growth 1Y4.72%
EBIT growth 3Y24.79%
EBIT growth 5Y17.67%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-130.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-130.53%
OCF growth 3YN/A
OCF growth 5YN/A