MAIN STREET CAPITAL CORP (MAIN) Stock Fundamental Analysis
NYSE:MAIN - New York Stock Exchange, Inc. - US56035L1044 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MAIN. MAIN was compared to 232 industry peers in the Capital Markets industry. MAIN has an excellent profitability rating, but there are some minor concerns on its financial health. MAIN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
MAIN had positive earnings in the past year.
In the past year MAIN had a positive cash flow from operations.
In the past 5 years MAIN has always been profitable.
In the past 5 years MAIN reported 4 times negative operating cash flow.
1.2 Ratios
MAIN has a better Return On Assets (9.80%) than 87.93% of its industry peers.
With an excellent Return On Equity value of 18.20%, MAIN belongs to the best of the industry, outperforming 84.91% of the companies in the same industry.
MAIN has a better Return On Invested Capital (5.41%) than 64.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MAIN is below the industry average of 7.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.8% | ||
| ROE | 18.2% | ||
| ROIC | 5.41% |
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 has a better Profit Margin (94.61%) than 99.14% of its industry peers.
MAIN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 64.97%, MAIN belongs to the top of the industry, outperforming 97.41% 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 (76.61%) than 81.47% of its industry peers.
MAIN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 64.97% | ||
| PM (TTM) | 94.61% | ||
| GM | 76.61% |
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
The number of shares outstanding for MAIN has been increased compared to 1 year ago.
Compared to 5 years ago, MAIN has more shares outstanding
Compared to 1 year ago, MAIN has a worse debt to assets ratio.
2.2 Solvency
MAIN has an Altman-Z score of 1.74. This is a bad value and indicates that MAIN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.74, MAIN is in the better half of the industry, outperforming 67.24% of the companies in the same industry.
MAIN has a debt to FCF ratio of 213.37. This is a negative value and a sign of low solvency as MAIN would need 213.37 years to pay back of all of its debts.
MAIN has a Debt to FCF ratio of 213.37. This is in the lower half of the industry: MAIN underperforms 61.21% of its industry peers.
MAIN has a Debt/Equity ratio of 0.79. This is a neutral value indicating MAIN is somewhat dependend on debt financing.
The Debt to Equity ratio of MAIN (0.79) is better than 61.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 213.37 | ||
| Altman-Z | 1.74 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MAIN has a Current Ratio of 2.33. This indicates that MAIN is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.33, MAIN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 2.33 indicates that MAIN has no problem at all paying its short term obligations.
MAIN's Quick ratio of 2.33 is fine compared to the rest of the industry. MAIN outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 |
3. Growth
3.1 Past
The earnings per share for MAIN have decreased by -3.12% in the last year.
The Earnings Per Share has been growing by 10.20% on average over the past years. This is quite good.
Looking at the last year, MAIN shows a small growth in Revenue. The Revenue has grown by 6.79% in the last year.
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)6.79%
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 -2.22% yearly.
The Revenue is expected to decrease by -3.72% on average over the next years.
EPS Next Y-1.44%
EPS Next 2Y-3.23%
EPS Next 3Y-2.22%
EPS Next 5YN/A
Revenue Next Year1.43%
Revenue Next 2Y1.29%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MAIN is valuated correctly with a Price/Earnings ratio of 14.38.
MAIN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.34, MAIN is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.20, which indicates a correct valuation of MAIN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MAIN is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of MAIN to the average of the S&P500 Index (21.03), we can say MAIN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 15.2 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MAIN is valued a bit more expensive than 61.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 489.66 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of MAIN may justify a higher PE ratio.
MAIN's earnings are expected to decrease with -2.22% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.41
EPS Next 2Y-3.23%
EPS Next 3Y-2.22%
5. Dividend
5.1 Amount
MAIN has a Yearly Dividend Yield of 5.23%, which is a nice return.
Compared to an average industry Dividend Yield of 8.07, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
5.2 History
On average, the dividend of MAIN grows each year by 7.16%, which is quite nice.
MAIN has paid a dividend for at least 10 years, which is 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
MAIN pays out 63.07% of its income as dividend. This is not a sustainable payout ratio.
MAIN's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP63.07%
EPS Next 2Y-3.23%
EPS Next 3Y-2.22%
58.08
-0.43 (-0.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners23.05%
Inst Owner Change3.04%
Ins Owners1.62%
Ins Owner Change-3.58%
Market Cap5.17B
Analysts73.33
Price Target56.87 (-2.08%)
Short Float %5.73%
Short Ratio7.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
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)-2.42%
Min EPS beat(2)-3.29%
Max EPS beat(2)-1.55%
EPS beat(4)0
Avg EPS beat(4)-2.77%
Min EPS beat(4)-3.91%
Max EPS beat(4)-1.55%
EPS beat(8)2
Avg EPS beat(8)-1.1%
EPS beat(12)6
Avg EPS beat(12)1.06%
EPS beat(16)10
Avg EPS beat(16)2.85%
Revenue beat(2)0
Avg Revenue beat(2)-2.58%
Min Revenue beat(2)-2.97%
Max Revenue beat(2)-2.19%
Revenue beat(4)0
Avg Revenue beat(4)-2.37%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)-1.17%
Revenue beat(8)3
Avg Revenue beat(8)-0.94%
Revenue beat(12)7
Avg Revenue beat(12)1.04%
Revenue beat(16)10
Avg Revenue beat(16)2.2%
PT rev (1m)-0.89%
PT rev (3m)0.27%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-1.99%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 15.2 | ||
| P/S | 9.46 | ||
| P/FCF | 489.66 | ||
| P/OCF | 489.66 | ||
| P/B | 1.82 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.04
EY6.96%
EPS(NY)3.82
Fwd EY6.58%
FCF(TTM)0.12
FCFY0.2%
OCF(TTM)0.12
OCFY0.2%
SpS6.14
BVpS31.9
TBVpS31.9
PEG (NY)N/A
PEG (5Y)1.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.8% | ||
| ROE | 18.2% | ||
| ROCE | 6.85% | ||
| ROIC | 5.41% | ||
| ROICexc | 5.53% | ||
| ROICexgc | 5.53% | ||
| OM | 64.97% | ||
| PM (TTM) | 94.61% | ||
| GM | 76.61% | ||
| FCFM | 1.93% |
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-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 213.37 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.76 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 2.04% | ||
| Current Ratio | 2.33 | ||
| Quick Ratio | 2.33 | ||
| Altman-Z | 1.74 |
F-Score5
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-1.44%
EPS Next 2Y-3.23%
EPS Next 3Y-2.22%
EPS Next 5YN/A
Revenue 1Y (TTM)6.79%
Revenue growth 3Y23.25%
Revenue growth 5Y17.32%
Sales Q2Q%4.13%
Revenue Next Year1.43%
Revenue Next 2Y1.29%
Revenue Next 3Y-3.72%
Revenue Next 5YN/A
EBIT growth 1Y2.07%
EBIT growth 3Y24.79%
EBIT growth 5Y17.67%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y105.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y105.96%
OCF growth 3YN/A
OCF growth 5YN/A