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 5 out of 10 in our fundamental rating. MAIN was compared to 232 industry peers in the Capital Markets industry. MAIN scores excellent on profitability, 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.
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
MAIN has a better Return On Assets (9.80%) than 86.64% of its industry peers.
MAIN has a better Return On Equity (18.20%) than 84.91% of its industry peers.
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
Looking at the Profit Margin, with a value of 94.61%, MAIN belongs to the top of the industry, outperforming 99.14% of the companies in the same industry.
In the last couple of years the Profit Margin of MAIN has grown nicely.
The Operating Margin of MAIN (64.97%) is better than 97.41% of its industry peers.
MAIN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 76.61%, MAIN belongs to the top of the industry, outperforming 81.47% of the companies in the same industry.
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
MAIN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MAIN has been increased compared to 5 years ago.
The debt/assets ratio for MAIN is higher compared to a year ago.
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.
MAIN has a Altman-Z score of 1.74. This is in the better half of the industry: MAIN outperforms 67.67% of its industry peers.
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.
A Debt/Equity ratio of 0.79 indicates that MAIN is somewhat dependend on debt financing.
MAIN has a better Debt to Equity ratio (0.79) 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
A Current Ratio of 2.33 indicates that MAIN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.33, MAIN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
MAIN has a Quick Ratio of 2.33. This indicates that MAIN is financially healthy and has no problem in meeting 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
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 been growing slightly by 6.79% in the past year.
The Revenue has been growing by 17.32% on average over the past years. This is quite good.
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
Based on estimates for the next years, MAIN will show a decrease in Earnings Per Share. The EPS will decrease by -2.22% on average per year.
MAIN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.72% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 14.38 indicates a correct valuation of MAIN.
Compared to the rest of the industry, the Price/Earnings ratio of MAIN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.35, MAIN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.20, the valuation of MAIN can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MAIN is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.19. MAIN is valued slightly cheaper when compared to this.
| 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 the industry average as 62.07% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 489.66 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
MAIN has a very decent profitability rating, which 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
With a Yearly Dividend Yield of 5.23%, MAIN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.87, MAIN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, MAIN pays a better dividend.
| 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 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
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