NYSE:MAIN

Stock Analysis Report

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Executive Summary

Main Street Capital Corporation is a private equity firm specializes in equity capital to lower 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 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

MAINIndustryMarket
7 Day4.8%-2.6%-3.6%
30 Day15.3%8.2%2.7%
90 Day17.8%16.2%7.5%
1 Year7.8%-0.7%41.5%38.2%39.5%36.5%
3 Year28.6%2.5%39.5%29.2%53.5%43.6%
5 Year80.4%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

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

NamePositionTenureCompensationOwnership
Vincent Foster
Executive Chairman2.25yrsUS$2.26m2.75%
$ 68.5m
Dwayne Hyzak
CEO & Executive Director2.25yrsUS$2.68m0.60%
$ 15.1m
David Magdol
President2.25yrsUS$3.67m0.62%
$ 15.4m
Brent Smith
CFO & Treasurer6.25yrsUS$1.41m0.12%
$ 3.0m
Jesse Morris
Executive VP & COO1.58yrsUS$2.49m0.11%
$ 2.8m
Lance Parker
VP, Chief Accounting Officer & Assistant Treasurer0.92yrno data0.024%
$ 594.6k
Ken Dennard
Investor Relations Contactno datano datano data
Jason Beauvais
Senior VPno dataUS$1.52m0.21%
$ 5.1m
Margaret Kopko
Human Resource Managerno datano datano data
Kenneth Braud
Managing Director4.08yrsno datano data
Nicholas Meserve
Managing Director9.08yrsUS$1.43m0.13%
$ 3.2m
Samuel Cashiola
Managing Director2.08yrsno datano data

2.3yrs

Average Tenure

47yo

Average Age

Experienced Management: MAIN's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vincent Foster
Executive Chairman2.25yrsUS$2.26m2.75%
$ 68.5m
Dwayne Hyzak
CEO & Executive Director2.25yrsUS$2.68m0.60%
$ 15.1m
Stephen Solcher
Independent Director5.25yrsUS$225.00k0.0098%
$ 243.8k
Valerie Banner
Independent Director3.25yrsUS$217.50k0.039%
$ 979.0k
Dunia Shive
Independent Director0.92yrno data0.0034%
$ 85.5k
John Jackson
Independent Director7.5yrsUS$245.00k0.065%
$ 1.6m
Arthur French
Lead Independent Directorno dataUS$262.50k0.086%
$ 2.1m
Jon Griffin
Independent Director9.5yrsUS$250.00k0.067%
$ 1.7m
Brian Lane
Independent Director5.25yrsUS$235.00k0.035%
$ 861.0k
Beverly Matthews
Independent Director1.08yrsno data0.0010%
$ 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

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/28 23:36
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.