NasdaqGS:MRCC

Stock Analysis Report

Executive Summary

Monroe Capital Corporation is a business development company specializing in senior, unitranche and junior secured debt and to a lesser extent, unsecured debt and equity investments, and buyouts in middle-market companies.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has Monroe Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MRCC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

MRCC

-4.2%

US Capital Markets

-4.2%

US Market


1 Year Return

-11.5%

MRCC

12.0%

US Capital Markets

14.0%

US Market

Return vs Industry: MRCC underperformed the US Capital Markets industry which returned 15.4% over the past year.

Return vs Market: MRCC underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

MRCCIndustryMarket
7 Day-0.2%-4.2%-4.2%
30 Day-6.0%-2.1%-1.8%
90 Day-1.2%1.1%2.6%
1 Year-0.07%-11.5%14.3%12.0%16.3%14.0%
3 Year-2.5%-29.7%35.2%27.6%43.2%34.0%
5 Year22.3%-27.2%74.5%58.3%65.9%47.6%

Price Volatility Vs. Market

How volatile is Monroe Capital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Monroe Capital undervalued compared to its fair value and its price relative to the market?

13.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MRCC ($11.24) is trading above our estimate of fair value ($8.01)

Significantly Below Fair Value: MRCC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MRCC is good value based on its PE Ratio (14.1x) compared to the Capital Markets industry average (33.9x).

PE vs Market: MRCC is good value based on its PE Ratio (14.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: MRCC is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: MRCC is good value based on its PB Ratio (0.9x) compared to the US Capital Markets industry average (6.6x).

Future Growth

How is Monroe Capital forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRCC's forecast earnings growth (18.2% per year) is above the savings rate (1.7%).

Earnings vs Market: MRCC's earnings (18.2% per year) are forecast to grow faster than the US market (14.1% per year).

High Growth Earnings: MRCC's earnings are forecast to grow, but not significantly.

Revenue vs Market: MRCC's revenue (4.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MRCC's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRCC's Return on Equity is forecast to be low in 3 years time (11.2%).

Past Performance

How has Monroe Capital performed over the past 5 years?

-8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRCC has a high level of non-cash earnings.

Growing Profit Margin: MRCC's current net profit margins (25%) are higher than last year (12.2%).


Past Earnings Growth Analysis

Earnings Trend: MRCC's earnings have declined by -8.4% per year over the past 5 years.

Accelerating Growth: MRCC's earnings growth over the past year (135%) exceeds its 5-year average (-8.4% per year).

Earnings vs Industry: MRCC earnings growth over the past year (135%) exceeded the Capital Markets industry 8.4%.


Return on Equity

High ROE: MRCC's Return on Equity (6.4%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is Monroe Capital's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MRCC has a low level of unsold assets or inventory.

Debt Coverage by Assets: MRCC's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: MRCC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MRCC has a sufficient allowance for bad loans.

Low Risk Liabilities: MRCC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MRCC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MRCC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MRCC has an appropriate level of bad loans.

Dividend

What is Monroe Capital's current dividend yield, its reliability and sustainability?

12.60%

Current Dividend Yield


Dividend Yield vs Market

company12.6%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years12.6%

Current dividend yield vs market & industry

Notable Dividend: MRCC's dividend (12.46%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MRCC's dividend (12.46%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MRCC has been paying a dividend for less than 10 years.

Growing Dividend: MRCC's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (176.1%), MRCC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MRCC's dividends in 3 years are not forecast to be well covered by earnings (100% payout ratio).

Management

How experienced are the management team and are they aligned to shareholders interests?

7.4yrs

Average management tenure


CEO

Ted Koenig (60yo)

9yrs

Tenure

0

Mr. Theodore L. Koenig, J.D. CPA, also known as Ted, has been the President and Chief Executive Officer at Monroe Capital LLC since 2004 and also serves as its Managing Director. Mr. Koenig founded and joi ...


Leadership Team

NamePositionTenureCompensationOwnership
Theodore Koenig
Chairman9yrsno data1.83% $4.2m
Aaron Peck
Chief Investment Officer7.3yrsno data0.054% $121.7k
David Jacobson
Chief Compliance Officer1.9yrsno datano data

7.4yrs

Average Tenure

58yo

Average Age

Experienced Management: MRCC's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Theodore Koenig
Chairman9yrsno data1.83% $4.2m
Aaron Peck
Chief Investment Officer7.3yrsno data0.054% $121.7k
Jeffrey Golman
Director7.3yrsUS$29.00k0.049% $111.1k
Thomas Allison
Director6.8yrsUS$40.00k0.064% $144.8k
Jeffrey Steele
Director7.3yrsUS$25.00k0.088% $200.0k
Robert Rubin
Director7.3yrsUS$24.00k0.17% $379.4k
Jorde Nathan
Director6.8yrsUS$25.00kno data

7.3yrs

Average Tenure

60yo

Average Age

Experienced Board: MRCC's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Monroe Capital Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Monroe Capital Corporation
  • Ticker: MRCC
  • Exchange: NasdaqGS
  • Founded: 2011
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$227.139m
  • Shares outstanding: 20.44m
  • Website: https://www.monroebdc.com

Location

  • Monroe Capital Corporation
  • 311 South Wacker Drive
  • Suite 6400
  • Chicago
  • Illinois
  • 60606-6710
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRCCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2012

Biography

Monroe Capital Corporation is a business development company specializing in senior, unitranche and junior secured debt and to a lesser extent, unsecured debt and equity investments, and buyouts in middle-market companies. The fund prefers to invest in casinos and gaming, broadcasting, publishing, alcoholic beverage and tobacco distribution, oil and gas, insurance, pharmaceuticals and bio sciences, aerospace and defense, commercial printing, natural rubber, glass, container and packaging, metals and mining, and real estate. It focuses to invest in the United States and Canada. The fund focuses on companies with a maximum of $25 million in EBITDA per year. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:30
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.