Main Street Capital
Market Cap
US$2.5b
Last Updated
2021/02/28 23:36 UTC
Data Sources
Company Financials +
Executive Summary
Main Street Capital Corporation is a private equity firm specializes in equity capital to lower middle market companies. More Details
Rewards
Risk Analysis
Dividend of 6.71% is not well covered by earnings or forecast to be in the next 3 years
+ 1 more risk
Snowflake Analysis
Moderate growth potential second-rate dividend payer.
Similar Companies
Share Price & News
How has Main Street Capital's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MAIN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: MAIN's weekly volatility has decreased from 9% to 3% over the past year.
Market Performance
7 Day Return
4.8%
MAIN
-2.6%
US Capital Markets
-3.6%
US Market
1 Year Return
-0.7%
MAIN
38.2%
US Capital Markets
36.5%
US Market
Return vs Industry: MAIN underperformed the US Capital Markets industry which returned 38.1% over the past year.
Return vs Market: MAIN underperformed the US Market which returned 36.4% over the past year.
Shareholder returns
| MAIN | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.8% | -2.6% | -3.6% |
| 30 Day | 15.3% | 8.2% | 2.7% |
| 90 Day | 17.8% | 16.2% | 7.5% |
| 1 Year | 7.8%-0.7% | 41.5%38.2% | 39.5%36.5% |
| 3 Year | 28.6%2.5% | 39.5%29.2% | 53.5%43.6% |
| 5 Year | 80.4%23.5% | 140.6%110.9% | 117.5%93.2% |
Long-Term Price Volatility Vs. Market
How volatile is Main Street Capital's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Is Main Street Capital Corporation's (NYSE:MAIN) 7.3% Dividend Sustainable?2 months ago | Simply Wall St
What Type Of Returns Would Main Street Capital's(NYSE:MAIN) Shareholders Have Earned If They Purchased Their SharesYear Ago?4 months ago | Simply Wall St
Is Main Street Capital Corporation (NYSE:MAIN) A Strong Dividend Stock?Valuation
Is Main Street Capital undervalued compared to its fair value and its price relative to the market?
82.02x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MAIN ($36.68) is trading above our estimate of fair value ($33.55)
Significantly Below Fair Value: MAIN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MAIN is poor value based on its PE Ratio (82x) compared to the US Capital Markets industry average (23.5x).
PE vs Market: MAIN is poor value based on its PE Ratio (82x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: MAIN is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: MAIN is good value based on its PB Ratio (1.6x) compared to the US Capital Markets industry average (14.4x).
Next Steps
Future Growth
How is Main Street Capital forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
63.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MAIN's forecast earnings growth (63.8% per year) is above the savings rate (2%).
Earnings vs Market: MAIN's earnings (63.8% per year) are forecast to grow faster than the US market (20.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MAIN's revenue (9.9% per year) is forecast to grow slower than the US market (10.4% per year).
High Growth Revenue: MAIN's revenue (9.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MAIN's Return on Equity is forecast to be low in 3 years time (10.4%).
Next Steps
Past Performance
How has Main Street Capital performed over the past 5 years?
-18.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MAIN has a large one-off loss of $121.6M impacting its December 31 2020 financial results.
Growing Profit Margin: MAIN's current net profit margins (13.2%) are lower than last year (52.3%).
Past Earnings Growth Analysis
Earnings Trend: MAIN's earnings have declined by 18% per year over the past 5 years.
Accelerating Growth: MAIN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MAIN had negative earnings growth (-76.9%) over the past year, making it difficult to compare to the Capital Markets industry average (9%).
Return on Equity
High ROE: MAIN's Return on Equity (1.9%) is considered low.
Next Steps
Financial Health
How is Main Street Capital's financial position?
Financial Position Analysis
Short Term Liabilities: MAIN's short term assets ($81.7M) exceed its short term liabilities ($43.4M).
Long Term Liabilities: MAIN's short term assets ($81.7M) do not cover its long term liabilities ($1.2B).
Debt to Equity History and Analysis
Debt Level: MAIN's debt to equity ratio (79.4%) is considered high.
Reducing Debt: MAIN's debt to equity ratio has increased from 72.9% to 79.4% over the past 5 years.
Debt Coverage: MAIN's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: MAIN's interest payments on its debt are well covered by EBIT (3.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Main Street Capital current dividend yield, its reliability and sustainability?
6.71%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: MAIN's dividend (6.71%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: MAIN's dividend (6.71%) is in the top 25% of dividend payers in the US market (3.77%)
Stability and Growth of Payments
Stable Dividend: MAIN's dividend payments have been volatile in the past 10 years.
Growing Dividend: MAIN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (550.1%), MAIN's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MAIN's dividends in 3 years are not forecast to be well covered by earnings (101.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Dwayne Hyzak (47 yo)
2.25yrs
Tenure
US$2,681,625
Compensation
Mr. Dwayne Louis Hyzak, CPA, serves as Chief Executive Officer, Senior Managing Director and Chairman of the Board at MSC Income Fund, Inc. (formerly known as HMS Income Fund, Inc.) since October 30, 2020....
CEO Compensation Analysis
Compensation vs Market: Dwayne's total compensation ($USD2.68M) is below average for companies of similar size in the US market ($USD4.98M).
Compensation vs Earnings: Dwayne's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 2.25yrs | US$2.26m | 2.75% $ 68.5m | |
| CEO & Executive Director | 2.25yrs | US$2.68m | 0.60% $ 15.1m | |
| President | 2.25yrs | US$3.67m | 0.62% $ 15.4m | |
| CFO & Treasurer | 6.25yrs | US$1.41m | 0.12% $ 3.0m | |
| Executive VP & COO | 1.58yrs | US$2.49m | 0.11% $ 2.8m | |
| VP, Chief Accounting Officer & Assistant Treasurer | 0.92yr | no data | 0.024% $ 594.6k | |
| Investor Relations Contact | no data | no data | no data | |
| Senior VP | no data | US$1.52m | 0.21% $ 5.1m | |
| Human Resource Manager | no data | no data | no data | |
| Managing Director | 4.08yrs | no data | no data | |
| Managing Director | 9.08yrs | US$1.43m | 0.13% $ 3.2m | |
| Managing Director | 2.08yrs | no data | no data |
2.3yrs
Average Tenure
47yo
Average Age
Experienced Management: MAIN's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 2.25yrs | US$2.26m | 2.75% $ 68.5m | |
| CEO & Executive Director | 2.25yrs | US$2.68m | 0.60% $ 15.1m | |
| Independent Director | 5.25yrs | US$225.00k | 0.0098% $ 243.8k | |
| Independent Director | 3.25yrs | US$217.50k | 0.039% $ 979.0k | |
| Independent Director | 0.92yr | no data | 0.0034% $ 85.5k | |
| Independent Director | 7.5yrs | US$245.00k | 0.065% $ 1.6m | |
| Lead Independent Director | no data | US$262.50k | 0.086% $ 2.1m | |
| Independent Director | 9.5yrs | US$250.00k | 0.067% $ 1.7m | |
| Independent Director | 5.25yrs | US$235.00k | 0.035% $ 861.0k | |
| Independent Director | 1.08yrs | no data | 0.0010% $ 25.9k |
3.3yrs
Average Tenure
61yo
Average Age
Experienced Board: MAIN's board of directors are considered experienced (3.3 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.2%.
Top Shareholders
Company Information
Main Street Capital Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Main Street Capital Corporation
- Ticker: MAIN
- Exchange: NYSE
- Founded: 2007
- Industry: Asset Management and Custody Banks
- Sector: Diversified Financials
- Market Cap: US$2.493b
- Shares outstanding: 67.96m
- Website: https://www.mainstcapital.com
Number of Employees
Location
- Main Street Capital Corporation
- 1300 Post Oak Boulevard
- 8th Floor
- Houston
- Texas
- 77056
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MAIN | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Oct 2007 |
| 13M | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Oct 2007 |
| 0JXQ | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Oct 2007 |
Biography
Main Street Capital Corporation is a private equity firm specializes in equity capital to lower middle market companies. The firm also provides debt capital to middle market companies for acquisitions, man...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/28 23:36 |
| End of Day Share Price | 2021/02/26 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.