MONROE CAPITAL CORP (MRCC) Stock Fundamental Analysis
NASDAQ:MRCC - US6103351010 - Common Stock
7.56 USD
-0.02 (-0.26%)
MRCC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 239 industry peers in the Capital Markets industry. Both the profitability and the financial health of MRCC get a neutral evaluation. Nothing too spectacular is happening here. MRCC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MRCC had positive earnings in the past year.
In the past year MRCC had a positive cash flow from operations.
Of the past 5 years MRCC 4 years were profitable.
In the past 5 years MRCC always reported a positive cash flow from operatings.
1.2 Ratios
MRCC has a worse Return On Assets (0.49%) than 70.71% of its industry peers.
The Return On Equity of MRCC (1.07%) is worse than 71.55% of its industry peers.
MRCC's Return On Invested Capital of 4.05% is in line compared to the rest of the industry. MRCC outperforms 55.23% of its industry peers.
MRCC had an Average Return On Invested Capital over the past 3 years of 3.60%. This is below the industry average of 7.59%.
The 3 year average ROIC (3.60%) for MRCC is below the current ROIC(4.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 1.07% | ||
| ROIC | 4.05% |
ROA(3y)0.52%
ROA(5y)1.47%
ROE(3y)1.33%
ROE(5y)3.54%
ROIC(3y)3.6%
ROIC(5y)3.59%
1.3 Margins
MRCC has a Profit Margin of 3.74%. This is in the lower half of the industry: MRCC underperforms 68.20% of its industry peers.
MRCC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 38.82%, MRCC is in the better half of the industry, outperforming 68.62% of the companies in the same industry.
MRCC's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 43.93%, MRCC is in line with its industry, outperforming 41.84% of the companies in the same industry.
MRCC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.82% | ||
| PM (TTM) | 3.74% | ||
| GM | 43.93% |
OM growth 3Y-0.53%
OM growth 5Y-0.98%
PM growth 3Y-35.7%
PM growth 5Y-10.66%
GM growth 3Y0.81%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
MRCC has about the same amout of shares outstanding than it did 1 year ago.
MRCC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MRCC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.39, we must say that MRCC is in the distress zone and has some risk of bankruptcy.
MRCC has a worse Altman-Z score (0.39) than 66.11% of its industry peers.
MRCC has a debt to FCF ratio of 1.78. This is a very positive value and a sign of high solvency as it would only need 1.78 years to pay back of all of its debts.
MRCC has a Debt to FCF ratio of 1.78. This is amongst the best in the industry. MRCC outperforms 86.61% of its industry peers.
MRCC has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
MRCC's Debt to Equity ratio of 1.17 is in line compared to the rest of the industry. MRCC outperforms 40.59% of its industry peers.
Although MRCC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | 0.39 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 4.02 indicates that MRCC has no problem at all paying its short term obligations.
The Current ratio of MRCC (4.02) is better than 84.94% of its industry peers.
A Quick Ratio of 4.02 indicates that MRCC has no problem at all paying its short term obligations.
MRCC has a better Quick ratio (4.02) than 84.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.02 | ||
| Quick Ratio | 4.02 |
3. Growth
3.1 Past
The earnings per share for MRCC have decreased strongly by -10.48% in the last year.
MRCC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.96% yearly.
Looking at the last year, MRCC shows a very negative growth in Revenue. The Revenue has decreased by -17.74% in the last year.
Measured over the past years, MRCC shows a decrease in Revenue. The Revenue has been decreasing by -2.36% on average per year.
EPS 1Y (TTM)-10.48%
EPS 3Y3.38%
EPS 5Y-3.96%
EPS Q2Q%-51.61%
Revenue 1Y (TTM)-17.74%
Revenue growth 3Y3.99%
Revenue growth 5Y-2.36%
Sales Q2Q%-36.82%
3.2 Future
Based on estimates for the next years, MRCC will show a very negative growth in Earnings Per Share. The EPS will decrease by -21.41% on average per year.
Based on estimates for the next years, MRCC will show a very negative growth in Revenue. The Revenue will decrease by -14.10% on average per year.
EPS Next Y-29.55%
EPS Next 2Y-21.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-25.19%
Revenue Next 2Y-14.1%
Revenue Next 3YN/A
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
Based on the Price/Earnings ratio of 8.04, the valuation of MRCC can be described as reasonable.
84.94% of the companies in the same industry are more expensive than MRCC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.03. MRCC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.55 indicates a reasonable valuation of MRCC.
Based on the Price/Forward Earnings ratio, MRCC is valued a bit cheaper than the industry average as 68.62% of the companies are valued more expensively.
MRCC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.04 | ||
| Fwd PE | 10.55 |
4.2 Price Multiples
95.40% of the companies in the same industry are more expensive than MRCC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.39 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
MRCC's earnings are expected to decrease with -21.41% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-21.41%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MRCC has a Yearly Dividend Yield of 13.46%, which is a nice return.
Compared to an average industry Dividend Yield of 7.91, MRCC pays a better dividend. On top of this MRCC pays more dividend than 87.87% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, MRCC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.46% |
5.2 History
The dividend of MRCC decreases each year by -6.55%.
MRCC has been paying a dividend for at least 10 years, so it has a reliable track record.
MRCC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-6.55%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
MRCC pays out 1131.97% of its income as dividend. This is not a sustainable payout ratio.
MRCC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP1131.97%
EPS Next 2Y-21.41%
EPS Next 3YN/A
NASDAQ:MRCC (9/4/2025, 8:23:16 PM)
7.56
-0.02 (-0.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners17.03%
Inst Owner Change-7.86%
Ins Owners0.6%
Ins Owner Change0%
Market Cap163.83M
Analysts78
Price Target8.41 (11.24%)
Short Float %0.46%
Short Ratio0.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.46% |
Yearly Dividend1
Dividend Growth(5Y)-6.55%
DP1131.97%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-33.26%
Min EPS beat(2)-34.93%
Max EPS beat(2)-31.6%
EPS beat(4)2
Avg EPS beat(4)-13.47%
Min EPS beat(4)-34.93%
Max EPS beat(4)10.84%
EPS beat(8)3
Avg EPS beat(8)-7.76%
EPS beat(12)5
Avg EPS beat(12)-3.71%
EPS beat(16)6
Avg EPS beat(16)-2.85%
Revenue beat(2)0
Avg Revenue beat(2)-19.99%
Min Revenue beat(2)-21.36%
Max Revenue beat(2)-18.62%
Revenue beat(4)1
Avg Revenue beat(4)-12.02%
Min Revenue beat(4)-21.36%
Max Revenue beat(4)0.9%
Revenue beat(8)2
Avg Revenue beat(8)-7.99%
Revenue beat(12)3
Avg Revenue beat(12)-4.85%
Revenue beat(16)4
Avg Revenue beat(16)-3.57%
PT rev (1m)0%
PT rev (3m)8.2%
EPS NQ rev (1m)-5.75%
EPS NQ rev (3m)-22.74%
EPS NY rev (1m)-5.04%
EPS NY rev (3m)-4.8%
Revenue NQ rev (1m)-7.26%
Revenue NQ rev (3m)-20.07%
Revenue NY rev (1m)-4.97%
Revenue NY rev (3m)-16.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.04 | ||
| Fwd PE | 10.55 | ||
| P/S | 3.2 | ||
| P/FCF | 1.39 | ||
| P/OCF | 1.39 | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.94
EY12.43%
EPS(NY)0.72
Fwd EY9.48%
FCF(TTM)5.46
FCFY72.19%
OCF(TTM)5.46
OCFY72.19%
SpS2.36
BVpS8.29
TBVpS8.29
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 1.07% | ||
| ROCE | 5.12% | ||
| ROIC | 4.05% | ||
| ROICexc | 4.07% | ||
| ROICexgc | 4.08% | ||
| OM | 38.82% | ||
| PM (TTM) | 3.74% | ||
| GM | 43.93% | ||
| FCFM | 230.86% |
ROA(3y)0.52%
ROA(5y)1.47%
ROE(3y)1.33%
ROE(5y)3.54%
ROIC(3y)3.6%
ROIC(5y)3.59%
ROICexc(3y)3.65%
ROICexc(5y)3.64%
ROICexgc(3y)3.66%
ROICexgc(5y)3.64%
ROCE(3y)4.56%
ROCE(5y)4.55%
ROICexcg growth 3Y10.53%
ROICexcg growth 5Y2.79%
ROICexc growth 3Y10.52%
ROICexc growth 5Y2.76%
OM growth 3Y-0.53%
OM growth 5Y-0.98%
PM growth 3Y-35.7%
PM growth 5Y-10.66%
GM growth 3Y0.81%
GM growth 5Y0.13%
F-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 1.78 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.11 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 6179.15% | ||
| Current Ratio | 4.02 | ||
| Quick Ratio | 4.02 | ||
| Altman-Z | 0.39 |
F-Score7
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)-10.48%
EPS 3Y3.38%
EPS 5Y-3.96%
EPS Q2Q%-51.61%
EPS Next Y-29.55%
EPS Next 2Y-21.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-17.74%
Revenue growth 3Y3.99%
Revenue growth 5Y-2.36%
Sales Q2Q%-36.82%
Revenue Next Year-25.19%
Revenue Next 2Y-14.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-12.51%
EBIT growth 3Y3.43%
EBIT growth 5Y-3.31%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y424.24%
FCF growth 3Y21.58%
FCF growth 5YN/A
OCF growth 1Y424.24%
OCF growth 3Y21.58%
OCF growth 5YN/A