6.66 USD
-0.04 (-0.6%)
6.71 USD
+0.05 (+0.75%)
MRCC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. MRCC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MRCC has a valuation in line with the averages, 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.
- MRCC had positive earnings in 4 of the past 5 years.
- In the past 5 years MRCC always reported a positive cash flow from operatings.
1.2 Ratios
- MRCC's Return On Assets of -1.08% is on the low side compared to the rest of the industry. MRCC is outperformed by 79.83% of its industry peers.
- Looking at the Return On Equity, with a value of -2.42%, MRCC is doing worse than 74.79% of the companies in the same industry.
- MRCC has a Return On Invested Capital (3.13%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MRCC is below the industry average of 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.08% | ||
| ROE | -2.42% | ||
| ROIC | 3.13% |
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's Profit Margin has declined in the last couple of years.
- MRCC's Operating Margin of 34.79% is fine compared to the rest of the industry. MRCC outperforms 65.55% of its industry peers.
- In the last couple of years the Operating Margin of MRCC has remained more or less at the same level.
- MRCC has a Gross Margin (40.56%) which is in line with its industry peers.
- MRCC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.79% | ||
| PM (TTM) | N/A | ||
| GM | 40.56% |
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
- Compared to 1 year ago, MRCC has about the same amount of shares outstanding.
- MRCC has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for MRCC is higher compared to a year ago.
2.2 Solvency
- MRCC has an Altman-Z score of 0.26. This is a bad value and indicates that MRCC is not financially healthy and even has some risk of bankruptcy.
- MRCC's Altman-Z score of 0.26 is on the low side compared to the rest of the industry. MRCC is outperformed by 68.49% of its industry peers.
- The Debt to FCF ratio of MRCC is 1.97, which is an excellent value as it means it would take MRCC, only 1.97 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.97, MRCC belongs to the top of the industry, outperforming 86.55% of the companies in the same industry.
- A Debt/Equity ratio of 1.23 is on the high side and indicates that MRCC has dependencies on debt financing.
- MRCC's Debt to Equity ratio of 1.23 is on the low side compared to the rest of the industry. MRCC is outperformed by 62.18% of its industry peers.
- Even though the debt/equity ratio score it not favorable for MRCC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 0.26 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 5.80 indicates that MRCC has no problem at all paying its short term obligations.
- MRCC's Current ratio of 5.80 is amongst the best of the industry. MRCC outperforms 86.97% of its industry peers.
- MRCC has a Quick Ratio of 5.80. This indicates that MRCC is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Quick ratio value of 5.80, MRCC belongs to the best of the industry, outperforming 86.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.8 | ||
| Quick Ratio | 5.8 |
3. Growth
3.1 Past
- MRCC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.14%.
- MRCC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.96% yearly.
- MRCC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -29.83%.
- The Revenue has been decreasing by -2.36% on average over the past years.
EPS 1Y (TTM)-35.14%
EPS 3Y3.38%
EPS 5Y-3.96%
EPS Q2Q%-70.97%
Revenue 1Y (TTM)-29.83%
Revenue growth 3Y3.99%
Revenue growth 5Y-2.36%
Sales Q2Q%-47.72%
3.2 Future
- The Earnings Per Share is expected to decrease by -66.19% on average over the next years. This is quite bad
- The Revenue is expected to decrease by -28.54% on average over the next years. This is quite bad
EPS Next Y-54.28%
EPS Next 2Y-66.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-38.84%
Revenue Next 2Y-28.54%
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.
- 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
- A Price/Earnings ratio of 9.25 indicates a reasonable valuation of MRCC.
- Compared to the rest of the industry, the Price/Earnings ratio of MRCC indicates a somewhat cheap valuation: MRCC is cheaper than 73.11% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. MRCC is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 50.23, the valuation of MRCC can be described as expensive.
- Based on the Price/Forward Earnings ratio, MRCC is valued a bit more expensive than 71.85% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of MRCC to the average of the S&P500 Index (25.98), we can say MRCC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.25 | ||
| Fwd PE | 50.23 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRCC indicates a rather cheap valuation: MRCC is cheaper than 96.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.33 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- A cheap valuation may be justified as MRCC's earnings are expected to decrease with -66.19% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-66.19%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- MRCC has a Yearly Dividend Yield of 10.75%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.87, MRCC pays a bit more dividend than its industry peers.
- MRCC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.75% |
5.2 History
- The dividend of MRCC decreases each year by -6.55%.
- MRCC has paid a dividend for at least 10 years, which is 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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- The Dividend Rate of MRCC has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-517.21%
EPS Next 2Y-66.19%
EPS Next 3YN/A
MONROE CAPITAL CORP / MRCC FAQ
What is the fundamental rating for MRCC stock?
ChartMill assigns a fundamental rating of 4 / 10 to MRCC.
Can you provide the valuation status for MONROE CAPITAL CORP?
ChartMill assigns a valuation rating of 4 / 10 to MONROE CAPITAL CORP (MRCC). This can be considered as Fairly Valued.
How profitable is MONROE CAPITAL CORP (MRCC) stock?
MONROE CAPITAL CORP (MRCC) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for MRCC stock?
The Earnings per Share (EPS) of MONROE CAPITAL CORP (MRCC) is expected to decline by -54.28% in the next year.
How sustainable is the dividend of MONROE CAPITAL CORP (MRCC) stock?
The dividend rating of MONROE CAPITAL CORP (MRCC) is 5 / 10 and the dividend payout ratio is -517.21%.