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 4 out of 10 to MAIN. MAIN was compared to 225 industry peers in the Capital Markets industry. While MAIN has a great profitability rating, there are quite some concerns on its financial health. MAIN is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MAIN was profitable.
MAIN had a negative operating cash flow in the past year.
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
The Return On Assets of MAIN (9.28%) is better than 86.76% of its industry peers.
MAIN has a Return On Equity of 17.57%. This is amongst the best in the industry. MAIN outperforms 82.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.63%, MAIN is in the better half of the industry, outperforming 72.15% of the companies in the same industry.
MAIN had an Average Return On Invested Capital over the past 3 years of 4.94%. This is in line with the industry average of 6.76%.
The last Return On Invested Capital (5.63%) for MAIN is above the 3 year average (4.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.28% | ||
| ROE | 17.57% | ||
| ROIC | 5.63% |
ROA(3y)8.1%
ROA(5y)6.03%
ROE(3y)15.75%
ROE(5y)11.52%
ROIC(3y)4.94%
ROIC(5y)4.7%
1.3 Margins
With an excellent Profit Margin value of 89.25%, MAIN belongs to the best of the industry, outperforming 97.26% of the companies in the same industry.
MAIN's Profit Margin has improved in the last couple of years.
MAIN has a Operating Margin of 66.97%. This is amongst the best in the industry. MAIN outperforms 98.17% of its industry peers.
MAIN's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 78.52%, MAIN belongs to the best of the industry, outperforming 82.19% 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 | 66.97% | ||
| PM (TTM) | 89.25% | ||
| GM | 78.52% |
OM growth 3Y3.03%
OM growth 5Y0.19%
PM growth 3Y86.46%
PM growth 5Y3.51%
GM growth 3Y0.76%
GM growth 5Y-0.46%
2. Health
2.1 Basic Checks
Compared to 1 year ago, MAIN has more shares outstanding
The number of shares outstanding for MAIN has been increased compared to 5 years ago.
MAIN has a better debt/assets ratio than last year.
2.2 Solvency
MAIN has an Altman-Z score of 1.80. This is a bad value and indicates that MAIN is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.80, MAIN is doing good in the industry, outperforming 68.95% of the companies in the same industry.
MAIN has a Debt/Equity ratio of 0.82. This is a neutral value indicating MAIN is somewhat dependend on debt financing.
MAIN has a Debt to Equity ratio (0.82) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.8 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.53 indicates that MAIN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.53, MAIN is in the better half of the industry, outperforming 62.56% of the companies in the same industry.
MAIN has a Quick Ratio of 1.53. This is a normal value and indicates that MAIN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MAIN (1.53) is better than 62.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
MAIN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.98%.
Measured over the past years, MAIN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.67% on average per year.
Looking at the last year, MAIN shows a quite strong growth in Revenue. The Revenue has grown by 9.26% in the last year.
The Revenue has been growing by 16.48% on average over the past years. This is quite good.
EPS 1Y (TTM)1.98%
EPS 3Y25.39%
EPS 5Y9.67%
EPS Q2Q%1.01%
Revenue 1Y (TTM)9.26%
Revenue growth 3Y31%
Revenue growth 5Y16.48%
Sales Q2Q%11.03%
3.2 Future
Based on estimates for the next years, MAIN will show a decrease in Earnings Per Share. The EPS will decrease by -1.49% on average per year.
Based on estimates for the next years, MAIN will show a decrease in Revenue. The Revenue will decrease by -7.12% on average per year.
EPS Next Y1.11%
EPS Next 2Y-1.45%
EPS Next 3Y-1.49%
EPS Next 5YN/A
Revenue Next Year9.21%
Revenue Next 2Y7.2%
Revenue Next 3Y-7.12%
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
The Price/Earnings ratio is 15.08, which indicates a correct valuation of MAIN.
Compared to the rest of the industry, the Price/Earnings ratio of MAIN is on the same level as its industry peers.
MAIN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 15.49, MAIN is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as MAIN.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, MAIN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 15.49 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of MAIN may justify a higher PE ratio.
PEG (NY)13.55
PEG (5Y)1.56
EPS Next 2Y-1.45%
EPS Next 3Y-1.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.78%, MAIN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 9.98, MAIN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, MAIN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
5.2 History
The dividend of MAIN has a limited annual growth rate of 5.04%.
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)5.04%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
MAIN pays out 66.14% 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.
DP66.14%
EPS Next 2Y-1.45%
EPS Next 3Y-1.49%
62.27
-0.47 (-0.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners22.71%
Inst Owner Change2.31%
Ins Owners1.74%
Ins Owner Change-0.21%
Market Cap5.49B
Analysts73.33
Price Target51.41 (-17.44%)
Short Float %4.41%
Short Ratio7.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
Yearly Dividend3.33
Dividend Growth(5Y)5.04%
DP66.14%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.12%
Min EPS beat(2)-3.91%
Max EPS beat(2)-2.33%
EPS beat(4)1
Avg EPS beat(4)-1.24%
Min EPS beat(4)-3.91%
Max EPS beat(4)1.56%
EPS beat(8)4
Avg EPS beat(8)1.01%
EPS beat(12)8
Avg EPS beat(12)2.54%
EPS beat(16)12
Avg EPS beat(16)4.23%
Revenue beat(2)0
Avg Revenue beat(2)-2.16%
Min Revenue beat(2)-3.15%
Max Revenue beat(2)-1.17%
Revenue beat(4)2
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)0.87%
Revenue beat(8)5
Avg Revenue beat(8)0.62%
Revenue beat(12)8
Avg Revenue beat(12)2.01%
Revenue beat(16)12
Avg Revenue beat(16)3.69%
PT rev (1m)1.61%
PT rev (3m)3.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.08 | ||
| Fwd PE | 15.49 | ||
| P/S | 10.36 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.04 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.13
EY6.63%
EPS(NY)4.02
Fwd EY6.46%
FCF(TTM)-0.89
FCFYN/A
OCF(TTM)-0.89
OCFYN/A
SpS6.01
BVpS30.53
TBVpS30.53
PEG (NY)13.55
PEG (5Y)1.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.28% | ||
| ROE | 17.57% | ||
| ROCE | 7.12% | ||
| ROIC | 5.63% | ||
| ROICexc | 5.72% | ||
| ROICexgc | 5.72% | ||
| OM | 66.97% | ||
| PM (TTM) | 89.25% | ||
| GM | 78.52% | ||
| FCFM | N/A |
ROA(3y)8.1%
ROA(5y)6.03%
ROE(3y)15.75%
ROE(5y)11.52%
ROIC(3y)4.94%
ROIC(5y)4.7%
ROICexc(3y)5%
ROICexc(5y)4.76%
ROICexgc(3y)5%
ROICexgc(5y)4.76%
ROCE(3y)6.25%
ROCE(5y)5.94%
ROICexcg growth 3Y15.64%
ROICexcg growth 5Y4.24%
ROICexc growth 3Y15.64%
ROICexc growth 5Y4.24%
OM growth 3Y3.03%
OM growth 5Y0.19%
PM growth 3Y86.46%
PM growth 5Y3.51%
GM growth 3Y0.76%
GM growth 5Y-0.46%
F-Score3
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 3.25 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 1.8 |
F-Score3
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)1.98%
EPS 3Y25.39%
EPS 5Y9.67%
EPS Q2Q%1.01%
EPS Next Y1.11%
EPS Next 2Y-1.45%
EPS Next 3Y-1.49%
EPS Next 5YN/A
Revenue 1Y (TTM)9.26%
Revenue growth 3Y31%
Revenue growth 5Y16.48%
Sales Q2Q%11.03%
Revenue Next Year9.21%
Revenue Next 2Y7.2%
Revenue Next 3Y-7.12%
Revenue Next 5YN/A
EBIT growth 1Y9.25%
EBIT growth 3Y34.96%
EBIT growth 5Y16.7%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y87.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y87.22%
OCF growth 3YN/A
OCF growth 5YN/A