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Main Street Capital (MAIN)
:MAIN
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Main Street Capital
(NYSE:MAIN)
Rating:74Outperform
Price Target:―
Main Street Capital (MAIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.14B
Dividend Yield5.19%
Average Volume (3M)588.03K
Price to Earnings (P/E)9.8
Beta (1Y)0.62
Revenue Growth51.80%
EPS Growth12.05%
CountryUS
Employees104
SectorFinancial
Sector Strength73
IndustryAsset Management
Share Statistics
EPS (TTM)1.01
Shares Outstanding89,029,360
10 Day Avg. Volume462,109
30 Day Avg. Volume588,032
Financial Highlights & Ratios
PEG Ratio-0.79
Price to Book (P/B)1.77
Price to Sales (P/S)0.00
P/FCF Ratio-80.22
Enterprise Value/Market Cap0.73
Enterprise Value/Revenue1.49
Enterprise Value/Gross Profit6.91
Enterprise Value/Ebitda1.82
Forecast
1Y Price Target
$53.50Price Target Upside-7.38% Downside
Rating ConsensusHold
Number of Analyst Covering3
Main Street Capital Business Overview & Revenue Model
Company DescriptionMain Street Capital Corporation (MAIN) is a principal investment firm that primarily focuses on providing long-term debt and equity capital to lower middle market companies and debt capital to middle market companies. The firm invests in a variety of sectors including manufacturing, distribution, and business services, among others. Main Street Capital aims to partner with entrepreneurs, business owners, and management teams to support the growth and success of their companies.
How the Company Makes MoneyMain Street Capital makes money primarily through interest income and capital gains from its investment portfolio. The company generates revenue by providing debt financing solutions, such as first lien, second lien, and mezzanine loans, to lower middle market companies. Additionally, Main Street Capital takes equity positions in these companies, allowing it to benefit from capital appreciation and dividends. The firm also earns income from its asset management operations, which include management fees and performance-based incentives from managing investment funds or separate accounts for third parties. Key factors contributing to its earnings include the performance of its portfolio companies, interest rates, and the broader economic environment affecting small and medium-sized businesses.
Main Street Capital Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 9.39%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
Main Street Capital has reported strong financial performance with record NAV per share, successful investment exits, and ongoing shareholder returns through supplemental dividends. However, challenges such as increased investments on non-accrual status and market uncertainties due to tariffs and geopolitical events present potential risks. On balance, the highlights significantly outweigh the lowlights, revealing a strong performance and positive outlook.Q1-2025 Updates
Positive Updates
Record NAV per Share
Main Street Capital achieved a new record for NAV per share for the 11th consecutive quarter, indicating strong financial performance and platform strength.
Successful Exit of Heritage Vet Partners
Main Street Capital exited its investment in Heritage Vet Partners at a realized gain of over $55 million, demonstrating the effectiveness of its lower middle market investment strategy.
Supplemental Dividend Announcement
The board declared a supplemental dividend of $0.30 per share, representing the 15th consecutive quarterly supplemental dividend, reflecting strong financial health and shareholder returns.
Strong Asset Management Business Performance
Main Street's Asset Management Business contributed significant incentive fee income for the 10th consecutive quarter, showcasing the success of its external manager strategy.
Favorable Investment Portfolio Performance
The investment portfolio, with a fair value 18% above cost, continues to perform at a high level, delivering strong returns on equity and investment income.
Negative Updates
Increased Investments on Non-Accrual Status
Interest income decreased due to an increase in investments on non-accrual status, reflecting some challenges within the portfolio.
Interest Rate and Fee Income Challenges
Interest income was negatively impacted by decreases in benchmark index rates and lower closing fees, indicating potential pressure on income streams.
Market Uncertainty Impact
The company is facing significant market uncertainty due to tariffs and geopolitical events, which could impact future performance.
Company Guidance
During the Main Street Capital Corporation's Q1 2025 earnings call, the company reported strong financial performance, including an annualized return on equity (ROE) of 16.5% and a new record for net asset value (NAV) per share for the 11th consecutive quarter. Distributable Net Investment Income (DNII) per share exceeded the dividends paid to shareholders. The NAV per share increased due to net fair value increases in the investment portfolio and accretive equity issuances. The company achieved a realized gain of over $55 million from the exit of its investment in Heritage Vet Partners. Main Street's lower middle market investment activity resulted in a net increase of $57 million, while private loan investments saw a $26 million increase. The company declared a supplemental dividend of $0.30 per share for June, marking the 15th consecutive quarterly supplemental dividend, and announced a 4% increase in regular monthly dividends for Q4 2025. Despite market uncertainties, Main Street expressed confidence in its portfolio companies' ability to navigate the environment and maintained a strong liquidity position, with over $1.3 billion in cash and credit facility availability.Main Street Capital Financial Statement Overview
Summary
Main Street Capital shows strong revenue growth and profitability with robust margins. The balance sheet is solid with strong equity and no debt. However, cash flow issues are evident with negative operating cash flows, indicating potential cash management challenges.Income Statement
The company has shown strong revenue growth over the years, with a significant increase from $50.1 million in 2020 to $541 million in 2024. The gross profit margin is consistently at 100%, which is typical for asset management firms due to the nature of their revenue recognition. However, the net profit margin is not calculable for 2024 due to missing net income data. EBIT margins are robust, reflecting efficient cost management, but the lack of EBITDA data limits full profitability analysis.75
Positive
Balance Sheet
The balance sheet is solid, with a strong equity base and a debt-free status in 2024, reflecting reduced leverage from previous years. The equity ratio has improved, indicating financial stability and a strong asset base. There is a significant increase in cash reserves, contributing to a healthier liquidity position. However, the absence of debt-to-equity calculations for 2024 limits full leverage analysis.80
Positive
Cash Flow
The cash flow statement shows fluctuations with negative operating cash flows in recent years, which could indicate potential cash management issues. Despite this, the company has a strong investing cash flow, likely from asset sales or investments. The free cash flow turned negative in 2024 compared to previous positive figures, suggesting potential operational cash strains.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 689.58M | 724.68M | 500.38M | 396.46M | 344.66M | 51.00M | Gross Profit |
| 546.24M | 601.25M | 401.93M | 318.19M | 289.05M | 51.00M | EBIT |
| 541.60M | 478.49M | 441.59M | 323.60M | 241.50M | 15.84M | EBITDA |
| 544.08M | 538.71M | 451.09M | 264.93M | 363.63M | 15.84M | Net Income Common Stockholders |
| 517.01M | 508.08M | 428.45M | 241.61M | 330.76M | 29.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 109.18M | 78.25M | 60.08M | 49.12M | 32.63M | 31.92M | Total Assets |
| 5.27B | 5.12B | 4.44B | 4.24B | 3.69B | 2.77B | Total Debt |
| 2.25B | 2.12B | 1.81B | 2.00B | 1.80B | 1.21B | Net Debt |
| 2.14B | 2.04B | 1.75B | 1.95B | 1.76B | 1.18B | Total Liabilities |
| 2.43B | 2.32B | 1.97B | 2.13B | 1.90B | 1.25B | Stockholders Equity |
| 2.84B | 2.80B | 2.48B | 2.11B | 1.79B | 1.51B |
| Cash Flow | Free Cash Flow | ||||
| 10.56M | -87.12M | 285.32M | -246.94M | -515.37M | -54.08M | Operating Cash Flow |
| 10.56M | -87.12M | 285.32M | -246.94M | -515.37M | -54.08M | Investing Cash Flow |
| 164.52M | 0.00 | 0.00 | 680.02M | 1.05B | 478.01M | Financing Cash Flow |
| -16.36M | 105.29M | -274.36M | 263.43M | 516.08M | 30.76M |
Main Street Capital Technical Analysis
Positive
57.76
Price Trends
54.22
Positive
56.19
Positive
53.51
Positive
Market Momentum
1.00
Negative
61.00
Neutral
68.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAIN, the sentiment is Positive. The current price of 57.76 is above the 20-day moving average (MA) of 56.59, above the 50-day MA of 54.22, and above the 200-day MA of 53.51, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 61.00 is Neutral, neither overbought nor oversold. The STOCH value of 68.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MAIN.
Main Street Capital Risk Analysis
Main Street Capital disclosed 60 risk factors in its most recent earnings report. Main Street Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Main Street Capital Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.36B | 10.63 | 20.69% | 8.12% | ― | 53.17% | |
75 Outperform | $815.06M | 8.63 | 10.56% | 11.10% | 37.08% | -2.29% | |
74 Outperform | $5.14B | 9.81 | 19.31% | 5.19% | 51.80% | 12.05% | |
71 Outperform | $3.91B | 13.07 | 8.88% | 10.62% | 16.10% | -24.30% | |
70 Outperform | $3.15B | 13.51 | 11.30% | 10.46% | -7.29% | -38.60% | |
64 Neutral | $12.77B | 9.71 | 7.85% | 78.05% | 12.07% | -7.97% | |
58 Neutral | $5.93B | 11.14 | 7.97% | 13.23% | -16.13% | -15.88% |
* Financial Sector Average
Performance Comparison
MAIN
Main Street Capital
57.76
11.92
26.00%
AB
AllianceBernstein
39.41
9.17
30.32%
GBDC
Golub Capital Bdc
14.69
0.67
4.78%
HTGC
Hercules Capital
17.98
0.26
1.47%
FSK
FS KKR Capital
21.17
3.55
20.15%
NCDL
Nuveen Churchill Direct Lending Corp.
16.21
0.78
5.06%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.