MAIN STREET CAPITAL CORP (MAIN) Stock Fundamental Analysis
USA - NYSE:MAIN - US56035L1044 - Common Stock
58.38 USD
+1.81 (+3.2%)
58.52 USD
+0.14 (+0.24%)
We assign a fundamental rating of 5 out of 10 to MAIN. MAIN was compared to 237 industry peers in the Capital Markets industry. MAIN scores excellent on profitability, but there are some minor concerns on its financial health. MAIN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MAIN had positive earnings in the past year.
MAIN had a positive operating cash flow in the past year.
In the past 5 years MAIN has always been profitable.
MAIN had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
MAIN's Return On Assets of 10.15% is amongst the best of the industry. MAIN outperforms 88.61% of its industry peers.
MAIN has a Return On Equity of 18.61%. This is amongst the best in the industry. MAIN outperforms 84.81% of its industry peers.
MAIN has a better Return On Invested Capital (5.50%) than 69.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MAIN is below the industry average of 7.58%.
The last Return On Invested Capital (5.50%) for MAIN is above the 3 year average (5.48%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 96.16%, MAIN belongs to the top of the industry, outperforming 99.16% of the companies in the same industry.
In the last couple of years the Profit Margin of MAIN has grown nicely.
MAIN has a Operating Margin of 64.75%. This is amongst the best in the industry. MAIN outperforms 97.47% of its industry peers.
MAIN's Operating Margin has been stable in the last couple of years.
MAIN's Gross Margin of 76.50% is amongst the best of the industry. MAIN outperforms 83.12% 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 | 64.75% | ||
| 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
Compared to 1 year ago, MAIN has more shares outstanding
Compared to 5 years ago, MAIN has more shares outstanding
MAIN has a worse debt/assets ratio than last year.
2.2 Solvency
MAIN has an Altman-Z score of 1.73. This is a bad value and indicates that MAIN is not financially healthy and even has some risk of bankruptcy.
MAIN has a better Altman-Z score (1.73) than 68.35% of its industry peers.
The Debt to FCF ratio of MAIN is 7.39, which is on the high side as it means it would take MAIN, 7.39 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.39, MAIN is in the better half of the industry, outperforming 61.60% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that MAIN is somewhat dependend on debt financing.
MAIN has a Debt to Equity ratio (0.77) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 7.39 | ||
| Altman-Z | 1.73 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MAIN has a Current Ratio of 1.86. This is a normal value and indicates that MAIN is financially healthy and should not expect problems in meeting its short term obligations.
MAIN has a better Current ratio (1.86) than 69.62% 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 70.04% 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%.
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.
Looking at the last year, MAIN shows a quite strong growth in Revenue. The Revenue has grown by 8.14% 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)-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
Based on estimates for the next years, MAIN will show a decrease in Earnings Per Share. The EPS will decrease by -0.84% 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 Y0.41%
EPS Next 2Y-0.5%
EPS Next 3Y-0.84%
EPS Next 5YN/A
Revenue Next Year3.89%
Revenue Next 2Y3.68%
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 14.52, MAIN is valued correctly.
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 27.50, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.45 indicates a correct valuation of MAIN.
MAIN's Price/Forward Earnings ratio is in line with the industry average.
MAIN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 14.45 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MAIN is valued a bit cheaper than 61.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.4 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MAIN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of MAIN may justify a higher PE ratio.
PEG (NY)35.66
PEG (5Y)1.42
EPS Next 2Y-0.5%
EPS Next 3Y-0.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.36%, MAIN is a good candidate for dividend investing.
MAIN's Dividend Yield is comparable with the industry average which is at 8.33.
Compared to an average S&P500 Dividend Yield of 2.44, MAIN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.36% |
5.2 History
The dividend of MAIN is nicely growing with an annual growth rate of 7.16%!
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
61.74% of the earnings are spent on dividend by MAIN. 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.
DP61.74%
EPS Next 2Y-0.5%
EPS Next 3Y-0.84%
58.38
+1.81 (+3.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners23.95%
Inst Owner Change-0.13%
Ins Owners1.59%
Ins Owner Change-1.25%
Market Cap5.22B
Analysts72.31
Price Target63.24 (8.32%)
Short Float %5.81%
Short Ratio9.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.36% |
Yearly Dividend3.7
Dividend Growth(5Y)7.16%
DP61.74%
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)-0.64%
PT rev (3m)11.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.75%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 14.45 | ||
| P/S | 9.35 | ||
| P/FCF | 17.4 | ||
| P/OCF | 17.4 | ||
| P/B | 1.81 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.02
EY6.89%
EPS(NY)4.04
Fwd EY6.92%
FCF(TTM)3.35
FCFY5.75%
OCF(TTM)3.35
OCFY5.75%
SpS6.24
BVpS32.25
TBVpS32.25
PEG (NY)35.66
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.15% | ||
| ROE | 18.61% | ||
| ROCE | 6.96% | ||
| ROIC | 5.5% | ||
| ROICexc | 5.59% | ||
| ROICexgc | 5.59% | ||
| OM | 64.75% | ||
| PM (TTM) | 96.16% | ||
| GM | 76.5% | ||
| FCFM | 53.74% |
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 | 7.39 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 2.81 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 55.88% | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | 1.73 |
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 Y0.41%
EPS Next 2Y-0.5%
EPS Next 3Y-0.84%
EPS Next 5YN/A
Revenue 1Y (TTM)8.14%
Revenue growth 3Y23.25%
Revenue growth 5Y17.32%
Sales Q2Q%8.94%
Revenue Next Year3.89%
Revenue Next 2Y3.68%
Revenue Next 3Y-3.72%
Revenue Next 5YN/A
EBIT growth 1Y3.54%
EBIT growth 3Y24.79%
EBIT growth 5Y17.67%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y287.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y287.74%
OCF growth 3YN/A
OCF growth 5YN/A