MAIN STREET CAPITAL CORP (MAIN) Stock Fundamental Analysis
NYSE:MAIN - New York Stock Exchange, Inc. - US56035L1044 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MAIN. MAIN was compared to 233 industry peers in the Capital Markets industry. While MAIN belongs to the best of the industry regarding profitability, 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
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
The Return On Assets of MAIN (9.80%) is better than 87.98% of its industry peers.
Looking at the Return On Equity, with a value of 18.20%, MAIN belongs to the top of the industry, outperforming 85.41% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.41%, MAIN is doing good in the industry, outperforming 64.38% 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 7.86%.
| 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
MAIN's Profit Margin of 94.61% is amongst the best of the industry. MAIN outperforms 99.14% of its industry peers.
MAIN's Profit Margin has improved in the last couple of years.
The Operating Margin of MAIN (64.97%) is better than 97.42% of its industry peers.
MAIN's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 76.61%, MAIN belongs to the best of the industry, outperforming 81.97% 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
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 1.85. 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.
With a decent Altman-Z score value of 1.85, MAIN is doing good in the industry, outperforming 68.24% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 213.37, MAIN is doing worse than 60.09% of the companies in the same industry.
A Debt/Equity ratio of 0.79 indicates that MAIN is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.79, MAIN is doing good in the industry, outperforming 61.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 213.37 | ||
| Altman-Z | 1.85 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
MAIN has a Current Ratio of 2.33. This indicates that MAIN is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.33, MAIN is doing good in the industry, outperforming 75.11% of the companies in the same industry.
A Quick Ratio of 2.33 indicates that MAIN has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.33, MAIN is doing good in the industry, outperforming 75.11% of the companies in the same industry.
| 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
The Earnings Per Share is expected to decrease by -2.22% on average over the next years.
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
The Price/Earnings ratio is 15.59, which indicates a correct valuation of MAIN.
MAIN's Price/Earnings ratio is in line with the industry average.
MAIN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
MAIN is valuated correctly with a Price/Forward Earnings ratio of 16.28.
MAIN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of MAIN to the average of the S&P500 Index (35.19), we can say MAIN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.59 | ||
| Fwd PE | 16.28 |
4.2 Price Multiples
60.52% of the companies in the same industry are cheaper than MAIN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 530.89 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of MAIN 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)1.53
EPS Next 2Y-2.63%
EPS Next 3Y-2.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.92%, MAIN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.77, MAIN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, MAIN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
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.
The Dividend Rate of MAIN has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP63.07%
EPS Next 2Y-2.63%
EPS Next 3Y-2.22%
62.97
+0.74 (+1.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners23.05%
Inst Owner Change0%
Ins Owners1.62%
Ins Owner Change-4.76%
Market Cap5.61B
Analysts73.33
Price Target56.87 (-9.69%)
Short Float %6.06%
Short Ratio9.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
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)5.19%
PT rev (3m)0.27%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)-1.65%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-1.48%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.59 | ||
| Fwd PE | 16.28 | ||
| P/S | 10.26 | ||
| P/FCF | 530.89 | ||
| P/OCF | 530.89 | ||
| P/B | 1.97 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.04
EY6.42%
EPS(NY)3.87
Fwd EY6.14%
FCF(TTM)0.12
FCFY0.19%
OCF(TTM)0.12
OCFY0.19%
SpS6.14
BVpS31.9
TBVpS31.9
PEG (NY)N/A
PEG (5Y)1.53
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 | 1.85 |
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-1.16%
EPS Next 2Y-2.63%
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 Year1.52%
Revenue Next 2Y1.48%
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