NYSE:MAIN

Stock Analysis Report

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Executive Summary

Main Street Capital Corporation is a principal investment firm that primarily provides equity capital to lower middle market companies and debt capital to middle market companies. More Details


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

MAIN

-1.5%

US Capital Markets

-1.4%

US Market


1 Year Return

-30.4%

MAIN

8.9%

US Capital Markets

17.8%

US Market

Return vs Industry: MAIN underperformed the US Capital Markets industry which returned 9.9% over the past year.

Return vs Market: MAIN underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

MAINIndustryMarket
7 Day-1.3%-1.5%-1.4%
30 Day-1.7%5.7%4.7%
90 Day-2.1%3.0%8.2%
1 Year-25.0%-30.4%11.6%8.9%20.5%17.8%
3 Year-8.1%-26.3%21.7%12.3%42.2%32.7%
5 Year42.9%-2.4%68.7%47.6%83.4%62.7%

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

Valuation

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

8.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MAIN ($29.44) is trading below our estimate of fair value ($32.22)

Significantly Below Fair Value: MAIN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MAIN is unprofitable, so we can't compare its PE Ratio to the US Capital Markets industry average.

PE vs Market: MAIN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MAIN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MAIN is good value based on its PB Ratio (1.4x) compared to the US Capital Markets industry average (4.8x).


Next Steps

Future Growth

How is Main Street Capital forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

195.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAIN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: MAIN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MAIN's is expected to become profitable in the next 3 years.

Revenue vs Market: MAIN's revenue (3.7% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: MAIN's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MAIN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Main Street Capital performed over the past 5 years?

-7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAIN is currently unprofitable.

Growing Profit Margin: MAIN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MAIN is unprofitable, and losses have increased over the past 5 years at a rate of 7.9% per year.

Accelerating Growth: Unable to compare MAIN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MAIN is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (11.9%).


Return on Equity

High ROE: MAIN has a negative Return on Equity (-5.7%), as it is currently unprofitable.


Next Steps

Financial Health

How is Main Street Capital's financial position?


Financial Position Analysis

Short Term Liabilities: MAIN's short term assets ($118.6M) exceed its short term liabilities ($87.3M).

Long Term Liabilities: MAIN's short term assets ($118.6M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: MAIN's debt to equity ratio (82.5%) is considered high.

Reducing Debt: MAIN's debt to equity ratio has increased from 65.8% to 82.5% over the past 5 years.

Debt Coverage: MAIN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: MAIN is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Main Street Capital current dividend yield, its reliability and sustainability?

8.36%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: MAIN's dividend (8.36%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: MAIN's dividend (8.36%) is in the top 25% of dividend payers in the US market (4.68%)


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: MAIN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Dwayne Hyzak (47 yo)

1.92yrs

Tenure

US$2,681,625

Compensation

Mr. Dwayne Louis Hyzak, CPA, serves as Director at HMS Income Fund, Inc. since June 29, 2020. He has been Chief Executive Officer of Main Street Capital Corporation since November 15, 2018 and has been its ...


CEO Compensation Analysis

Compensation vs Market: Dwayne's total compensation ($USD2.68M) is below average for companies of similar size in the US market ($USD4.48M).

Compensation vs Earnings: Dwayne's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vincent Foster
Executive Chairman13.5yrsUS$2.26m2.75%
$ 53.4m
Dwayne Hyzak
CEO & Director1.92yrsUS$2.68m0.61%
$ 11.7m
David Magdol
President1.92yrsUS$3.67m0.62%
$ 12.0m
Brent Smith
CFO & Treasurer5.92yrsUS$1.41m0.12%
$ 2.4m
Jesse Morris
Executive VP & COO1.25yrsUS$2.49m0.11%
$ 2.2m
Lance Parker
VP, Chief Accounting Officer & Assistant Treasurer0.58yrno data0.024%
$ 461.7k
Ken Dennard
Investor Relations Contactno datano datano data
Jason Beauvais
Senior VP8.75yrsUS$1.52m0.21%
$ 4.0m
Kenneth Braud
Managing Director3.75yrsno datano data
Nicholas Meserve
Managing Director8.75yrsUS$1.43m0.13%
$ 2.5m
Samuel Cashiola
Managing Director1.75yrsno datano data
Damian Burke
Managing Director1.08yrsno datano data

1.9yrs

Average Tenure

47.5yo

Average Age

Experienced Management: MAIN's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Vincent Foster
Executive Chairman13.5yrsUS$2.26m2.75%
$ 53.4m
Dwayne Hyzak
CEO & Director1.92yrsUS$2.68m0.61%
$ 11.7m
Stephen Solcher
Independent Director4.92yrsUS$225.00k0.0098%
$ 190.8k
Valerie Banner
Independent Director2.92yrsUS$217.50k0.039%
$ 748.5k
Dunia Shive
Independent Director0.58yrno data0.0099%
$ 191.4k
John Jackson
Independent Director7.17yrsUS$245.00k0.064%
$ 1.2m
Arthur French
Lead Independent Directorno dataUS$262.50k0.088%
$ 1.7m
Jon Griffin
Independent Director9.17yrsUS$250.00k0.065%
$ 1.3m
Brian Lane
Independent Director4.92yrsUS$235.00k0.034%
$ 657.3k
Kay Matthews
Independent Director0.75yrno data0.0010%
$ 20.4k

4.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: MAIN's board of directors are considered experienced (4.9 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 4.3%.


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$1.939b
  • Shares outstanding: 65.87m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MAINNYSE (New York Stock Exchange)YesCommon SharesUSUSDOct 2007
13MDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2007
0JXQLSE (London Stock Exchange)YesCommon SharesGBUSDOct 2007

Biography

Main Street Capital Corporation is a principal investment firm that primarily provides equity capital to lower middle market companies and debt capital to middle market companies. Main Street's portfolio i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 00:07
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.