| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 1/6 |
| Financial Health | 2/6 |
| Dividends | 4/6 |
MAIN Stock Overview
Main Street Capital Corporation is a private equity firm specializes in equity capital to lower middle market companies.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 37% per year for the next 3 years
+ 1 more risk
Main Street Capital Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$44.60 |
| 52 Week High | US$47.13 |
| 52 Week Low | US$31.32 |
| Beta | 1.44 |
| 1 Month Change | 6.06% |
| 3 Month Change | 2.15% |
| 1 Year Change | 36.73% |
| 3 Year Change | 21.73% |
| 5 Year Change | 23.03% |
| Change since IPO | 197.33% |
Recent News & Updates
Main Street Capital: 5.75% Dividend Yield, Monthly Payer
MAIN yields 5.75% and pays monthly. It's internally managed, with a lower percent of operating expenses than BDC averages. It has outperformed the BDC industry's average performance in 2021.
Why Main Street Capital Is A Money Minting Machine
Main Street Capital is firing on all cylinders, with robust NAV/share and DNII/share growth. It saw record investment activity in its LMM portfolio last quarter, and is seeing favorable growth in its asset management business. MAIN is essentially "minting money" at the current valuation, given its low cost of equity and debt, and strong investment spread.
Shareholder Returns
| MAIN | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | -0.5% | -5.0% | -3.5% |
| 1Y | 36.7% | 25.7% | 10.2% |
Return vs Industry: MAIN exceeded the US Capital Markets industry which returned 30.2% over the past year.
Return vs Market: MAIN exceeded the US Market which returned 13.7% over the past year.
Price Volatility
| MAIN volatility | |
|---|---|
| MAIN Average Weekly Movement | 2.2% |
| Capital Markets Industry Average Movement | 0.7% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.8% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: MAIN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: MAIN's weekly volatility (2%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2007 | 76 | Dwayne Hyzak | https://www.mainstcapital.com |
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, management buyouts, growth financings, recapitalizations and refinancing. The firm seeks to partner with entrepreneurs, business owners and management teams and generally provides "one stop" financing alternatives within its lower middle market portfolio.
Main Street Capital Fundamentals Summary
| MAIN fundamental statistics | |
|---|---|
| Market Cap | US$3.10b |
| Earnings (TTM) | US$315.67m |
| Revenue (TTM) | US$269.39m |
9.8x
P/E Ratio11.5x
P/S RatioIs MAIN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| MAIN income statement (TTM) | |
|---|---|
| Revenue | US$269.39m |
| Cost of Revenue | US$0 |
| Gross Profit | US$269.39m |
| Expenses | -US$46.28m |
| Earnings | US$315.67m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 4.54 |
| Gross Margin | 100.00% |
| Net Profit Margin | 117.18% |
| Debt/Equity Ratio | 87.5% |
How did MAIN perform over the long term?
See historical performance and comparisonDividends
5.8%
Current Dividend Yield53%
Payout RatioDoes MAIN pay a reliable dividends?
See MAIN dividend history and benchmarks| Main Street Capital dividend dates | |
|---|---|
| Ex Dividend Date | Feb 01 2022 |
| Dividend Pay Date | Feb 15 2022 |
| Days until Ex dividend | 12 days |
| Days until Dividend pay date | 26 days |
Does MAIN pay a reliable dividends?
See MAIN dividend history and benchmarksValuation
Is Main Street Capital undervalued compared to its fair value and its price relative to the market?
9.83x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MAIN ($44.53) is trading above our estimate of fair value ($38.19)
Significantly Below Fair Value: MAIN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MAIN is good value based on its PE Ratio (9.8x) compared to the US Capital Markets industry average (15.9x).
PE vs Market: MAIN is good value based on its PE Ratio (9.8x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: MAIN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: MAIN is good value based on its PB Ratio (1.8x) compared to the US Capital Markets industry average (42.4x).
Future Growth
How is Main Street Capital forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
-37.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MAIN's earnings are forecast to decline over the next 3 years (-37% per year).
Earnings vs Market: MAIN's earnings are forecast to decline over the next 3 years (-37% per year).
High Growth Earnings: MAIN's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MAIN's revenue (5.9% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: MAIN's revenue (5.9% 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
Past Performance
How has Main Street Capital performed over the past 5 years?
-0.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MAIN has a large one-off gain of $168.0M impacting its September 30 2021 financial results.
Growing Profit Margin: MAIN became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: MAIN's earnings have declined by 0.7% per year over the past 5 years.
Accelerating Growth: MAIN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: MAIN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (86.4%).
Return on Equity
High ROE: MAIN's Return on Equity (18.7%) is considered low.
Financial Health
How is Main Street Capital's financial position?
Financial Position Analysis
Short Term Liabilities: MAIN's short term assets ($118.2M) exceed its short term liabilities ($58.3M).
Long Term Liabilities: MAIN's short term assets ($118.2M) do not cover its long term liabilities ($1.5B).
Debt to Equity History and Analysis
Debt Level: MAIN's net debt to equity ratio (84%) is considered high.
Reducing Debt: MAIN's debt to equity ratio has increased from 70.7% to 87.5% 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 (4.1x coverage).
Balance Sheet
Dividend
What is Main Street Capital current dividend yield, its reliability and sustainability?
5.78%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: MAIN's dividend (5.79%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: MAIN's dividend (5.79%) is in the top 25% of dividend payers in the US market (3.44%)
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 reasonable payout ratio (53.1%), MAIN's dividend payments are covered by earnings.
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?
4.1yrs
Average management tenure
CEO
Dwayne Hyzak (48 yo)
3.17yrs
Tenure
US$1,706,550
Compensation
Mr. Dwayne Louis Hyzak, CPA, serves as Director at Gulf Publishing Holdings LLC. He serves as Chief Executive Officer, Senior Managing Director and Chairman of the Board at MSC Income Fund, Inc. (formerly...
CEO Compensation Analysis
Compensation vs Market: Dwayne's total compensation ($USD1.71M) is below average for companies of similar size in the US market ($USD5.13M).
Compensation vs Earnings: Dwayne's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: MAIN's management team is considered experienced (4.1 years average tenure).
Board Members
Experienced Board: MAIN's board of directors are considered experienced (6.2 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 5%.
Top Shareholders
Company Information
Main Street Capital Corporation's 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
- Implied Market Cap: US$3.099b
- Shares outstanding: 69.58m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/19 23:17 |
| End of Day Share Price | 2022/01/19 00:00 |
| Earnings | 2021/09/30 |
| 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.