MAIN STREET CAPITAL CORP (MAIN) Stock Fundamental Analysis
NYSE:MAIN - New York Stock Exchange, Inc. - US56035L1044 - Common Stock - Currency: USD
MAIN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 238 industry peers in the Capital Markets industry. While MAIN has a great profitability rating, there are some minor concerns on its financial health. MAIN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year MAIN was profitable.
In the past year MAIN had a positive cash flow from operations.
MAIN had positive earnings in each of the past 5 years.
MAIN had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.15%, MAIN belongs to the top of the industry, outperforming 89.08% of the companies in the same industry.
With an excellent Return On Equity value of 18.61%, MAIN belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.50%, MAIN is doing good in the industry, outperforming 66.81% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MAIN is below the industry average of 7.85%.
The 3 year average ROIC (5.48%) for MAIN is below the current ROIC(5.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.15% | ||
| ROE | 18.61% | ||
| ROIC | 5.5% |
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 96.16% is amongst the best of the industry. MAIN outperforms 99.16% of its industry peers.
MAIN's Profit Margin has improved in the last couple of years.
The Operating Margin of MAIN (64.68%) is better than 97.48% of its industry peers.
In the last couple of years the Operating Margin of MAIN has remained more or less at the same level.
The Gross Margin of MAIN (76.50%) is better than 82.35% of its industry peers.
MAIN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 64.68% | ||
| PM (TTM) | 96.16% | ||
| GM | 76.5% |
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 1.94. This is not the best score and indicates that MAIN is in the grey zone with still only limited risk for bankruptcy at the moment.
MAIN has a Altman-Z score of 1.94. This is in the better half of the industry: MAIN outperforms 69.75% of its industry peers.
The Debt to FCF ratio of MAIN is 7.40, which is on the high side as it means it would take MAIN, 7.40 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.40, MAIN perfoms like the industry average, outperforming 56.30% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that MAIN is somewhat dependend on debt financing.
The Debt to Equity ratio of MAIN (0.77) is better than 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 7.4 | ||
| Altman-Z | 1.94 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.86 indicates that MAIN should not have too much problems paying its short term obligations.
MAIN has a better Current ratio (1.86) than 67.23% of its industry peers.
A Quick Ratio of 1.86 indicates that MAIN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.86, MAIN is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
MAIN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.43%.
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 quite strong growth in Revenue. The Revenue has grown by 8.14% in the last year.
MAIN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.32% yearly.
EPS 1Y (TTM)-2.43%
EPS 3Y15.62%
EPS 5Y10.2%
EPS Q2Q%-1.98%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y23.25%
Revenue growth 5Y17.32%
Sales Q2Q%8.94%
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-1.16%
EPS Next 2Y-2.63%
EPS Next 3Y-2.22%
EPS Next 5YN/A
Revenue Next Year1.52%
Revenue Next 2Y1.48%
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.
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
With a Price/Earnings ratio of 16.44, MAIN is valued correctly.
MAIN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.87, MAIN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.09, the valuation of MAIN can be described as rather expensive.
MAIN's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.34. MAIN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 17.09 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as MAIN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.65 | ||
| 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)1.61
EPS Next 2Y-2.63%
EPS Next 3Y-2.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.56%, MAIN is a good candidate for dividend investing.
MAIN's Dividend Yield is comparable with the industry average which is at 7.84.
MAIN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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 61.70% of its income as dividend. 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.
DP61.7%
EPS Next 2Y-2.63%
EPS Next 3Y-2.22%
66.1
-1.05 (-1.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners22.87%
Inst Owner Change-18.95%
Ins Owners1.61%
Ins Owner Change-5.17%
Market Cap5.88B
Analysts73.33
Price Target57.38 (-13.19%)
Short Float %5.87%
Short Ratio10.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
Yearly Dividend3.7
Dividend Growth(5Y)7.16%
DP61.7%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.56%
Min EPS beat(2)-1.58%
Max EPS beat(2)-1.55%
EPS beat(4)0
Avg EPS beat(4)-2.58%
Min EPS beat(4)-3.91%
Max EPS beat(4)-1.55%
EPS beat(8)1
Avg EPS beat(8)-1.74%
EPS beat(12)5
Avg EPS beat(12)0.68%
EPS beat(16)9
Avg EPS beat(16)2.3%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-2.19%
Max Revenue beat(2)2.86%
Revenue beat(4)1
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)2.86%
Revenue beat(8)3
Avg Revenue beat(8)-0.92%
Revenue beat(12)7
Avg Revenue beat(12)1.06%
Revenue beat(16)10
Avg Revenue beat(16)2.04%
PT rev (1m)0.9%
PT rev (3m)0%
EPS NQ rev (1m)1.02%
EPS NQ rev (3m)1.23%
EPS NY rev (1m)0%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)0.95%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 17.09 | ||
| P/S | 10.54 | ||
| P/FCF | 19.65 | ||
| P/OCF | 19.65 | ||
| P/B | 2.04 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.02
EY6.08%
EPS(NY)3.87
Fwd EY5.85%
FCF(TTM)3.36
FCFY5.09%
OCF(TTM)3.36
OCFY5.09%
SpS6.27
BVpS32.4
TBVpS32.4
PEG (NY)N/A
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.15% | ||
| ROE | 18.61% | ||
| ROCE | 6.96% | ||
| ROIC | 5.5% | ||
| ROICexc | 5.59% | ||
| ROICexgc | 5.59% | ||
| OM | 64.68% | ||
| PM (TTM) | 96.16% | ||
| GM | 76.5% | ||
| FCFM | 53.66% |
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 Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 7.4 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.8 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 55.8% | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | 1.94 |
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)-2.43%
EPS 3Y15.62%
EPS 5Y10.2%
EPS Q2Q%-1.98%
EPS Next Y-1.16%
EPS Next 2Y-2.63%
EPS Next 3Y-2.22%
EPS Next 5YN/A
Revenue 1Y (TTM)8.14%
Revenue growth 3Y23.25%
Revenue growth 5Y17.32%
Sales Q2Q%8.94%
Revenue Next Year1.52%
Revenue Next 2Y1.48%
Revenue Next 3Y-3.72%
Revenue Next 5YN/A
EBIT growth 1Y3.33%
EBIT growth 3Y24.79%
EBIT growth 5Y17.67%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y287.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y287.46%
OCF growth 3YN/A
OCF growth 5YN/A