Monroe Capital (MRCC) AI Stock Analysis

• Market Cap: $138.23M
• Dividend Yield: 15.67%
• Average Volume (3M): 91.72K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.53
• Revenue Growth: 127.09%
• EPS Growth: 2519.30%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 75
• Industry: Asset Management
• EPS (TTM): 0.19
• Shares Outstanding: 21,666,340
• 10 Day Avg. Volume: 75,885
• 30 Day Avg. Volume: 91,723
• PEG Ratio: 1.53
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.39
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 4.88
• Enterprise Value/Ebitda: 377.92
• 1Y Price Target: $8.00
• Price Target Upside: 25.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ―

Monroe Capital's overall stock score reflects a balanced view of its financial performance and valuation. Strong revenue growth and efficient cost management are offset by technical analysis indicators suggesting bearish trends. Although the company's strategic partnership with Wendel SE is a positive development, it is weighed against current challenges in NAV and yield declines. The high dividend yield adds appeal, yet it may also highlight underlying risks.

Monroe Capital Business Overview & Revenue Model

Company Description

Monroe Capital Corporation is a business development company specializing in customized financing solutions in senior, unitranche and junior secured debt, subordinated debt financing and to a lesser extent, unsecured debt and equity, including equity co-investments in preferred and common stock and warrants. It also provides financing primarily to leveraged buyouts in lower middle-market companies. It focuses to invest in the United States and Canada. The fund prefers to invest in companies with EBITDA between $3 and $35 million. Its makes minority equity investments.

How the Company Makes Money

Monroe Capital Corporation generates revenue primarily through interest income from its debt investments and capital gains from its equity investments. The company makes money by charging interest on the loans it provides to its portfolio companies, which can include short-term and long-term loans. Additionally, MRCC may earn fee income from origination, structuring, and commitment fees associated with its financing activities. The company also benefits from capital appreciation and dividends from its equity investments. Significant partnerships with institutional investors and banks may also play a role in MRCC's investment activities and funding capabilities, although specific partnerships are not disclosed.

Monroe Capital Financial Statement Overview

Summary

Monroe Capital exhibits strong revenue growth and efficient cost management, resulting in robust profitability metrics. The recent elimination of debt improves financial stability, although past leverage levels were concerning. The company's cash flow generation is consistent, supporting ongoing operations. Overall, Monroe Capital presents a stable financial outlook with opportunities for continued growth, but past volatility in net income and leverage warrants attention.

Income Statement

Monroe Capital's revenue exhibited strong growth with a significant increase from the previous year, indicating robust top-line performance. The gross profit margin is favorable, reflecting efficient cost management. However, net income shows volatility, impacting net profit margins. The EBIT margin remains stable, but EBITDA data is missing, limiting full profitability analysis.

Balance Sheet

The balance sheet reveals a stable equity position with a healthy equity ratio, suggesting strong asset backing. The elimination of total debt in the latest report significantly reduces leverage risk, enhancing financial stability. However, the company previously carried high debt levels, indicating past leverage concerns.

Cash Flow

Operating cash flow is positive and stable, supporting Monroe Capital's liquidity position. Although the free cash flow growth rate is not available, the consistent positive free cash flow indicates effective cash management. The operating cash flow to net income ratio is favorable, suggesting efficient conversion of profits into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
37.27M	14.59M	27.28M	4.49M	40.16M	6.51M
	Gross Profit
28.10M	14.59M	11.93M	-9.27M	27.08M	-4.17M
	EBIT
17.56M	10.16M	24.16M	13.57M	32.74M	2.02M
	EBITDA
8.88M	10.16M	0.00	88.16M	0.00	0.00
	Net Income Common Stockholders
10.60M	9.70M	371.00K	-2.79M	32.46M	1.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.46M	9.04M	4.96M	5.45M	2.62M	6.77M
	Total Assets
461.52M	490.67M	513.19M	565.00M	590.46M	585.12M
	Total Debt
0.00	291.98M	300.87M	330.11M	332.15M	343.51M
	Net Debt
-6.46M	282.93M	295.91M	324.66M	329.53M	336.74M
	Total Liabilities
274.64M	298.91M	309.46M	339.98M	340.99M	350.69M
	Stockholders Equity
186.88M	191.76M	203.72M	225.02M	249.47M	234.43M
Cash Flow		Free Cash Flow
60.10M	35.96M	51.73M	14.11M	20.01M	74.93M
	Operating Cash Flow
60.10M	35.96M	51.73M	14.11M	20.01M	74.93M
	Investing Cash Flow
39.78M	0.00	0.00	3.63M	7.54M	51.20M
	Financing Cash Flow
-72.70M	-31.87M	-52.22M	-26.72M	-34.30M	-72.15M

Monroe Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRCC, the sentiment is Negative. The current price of 6.38 is above the 20-day moving average (MA) of 6.25, below the 50-day MA of 6.46, and below the 200-day MA of 7.28, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.35 is Neutral, neither overbought nor oversold. The STOCH value of 23.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MRCC.

Monroe Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OFS	70 Outperform	$120.18M	3.98	19.56%	15.04%	-49.04%	―
MRCC	69 Neutral	$138.23M	19.63	3.63%	15.67%	127.09%	2519.30%
Sector *	64 Neutral	$12.73B	9.77	7.84%	78.17%	12.05%	-7.99%
OXSQ	51 Neutral	$158.45M	569.23	-0.32%	18.92%	-338.17%	-97.99%
PTMN	48 Neutral	$106.02M	41.01	-5.47%	16.15%	-37.27%	-153.39%
GECC	48 Neutral	$119.02M	24.98	3.56%	14.35%	32.38%	-90.38%
SSSS	45 Neutral	$173.11M	―	-9.96%	―	90.08%	-893.47%

Monroe Capital Corporate Events

Monroe Capital to Announce Q1 2025 Financial Results

On April 18, 2025, Monroe Capital Corporation announced it will release its financial results for the first quarter ended March 31, 2025, on May 7, 2025, after the market closes. The company will hold a webcast and conference call on May 8, 2025, to discuss these results, indicating a proactive approach to engaging with stakeholders and potentially impacting investor sentiment and market positioning.

Spark’s Take on MRCC Stock

According to Spark, TipRanks’ AI Analyst, MRCC is a Neutral.

Monroe Capital’s overall stock score reflects a stable financial performance with strong revenue growth and efficient cost management. The recent strategic partnership with Wendel Group offers growth potential. However, technical analysis indicates potential downward trends, and the earnings call revealed some challenges such as declining NAV and increased non-accrual loans. Despite these issues, the high dividend yield and fair valuation offer attractive opportunities for investors.

To see Spark’s full report on MRCC stock, click here.

Monroe Capital Forms Strategic Partnership with Wendel SE

On March 31, 2025, Monroe Capital Corporation entered into a new investment advisory agreement with Monroe Capital BDC Advisors, LLC, following the termination of the previous agreement due to a change of control. This change was part of a strategic partnership where Momentum US Bidco LLC, an affiliate of Wendel SE, acquired a 75% stake in Monroe’s affiliates. The partnership aims to support Monroe’s growth initiatives and expand its U.S. private credit platform, with Wendel committing $1 billion for seed capital and GP commitments. Monroe will continue to operate independently with no changes to its investment process or operations.

Monroe Capital to Announce 2024 Financial Results

On February 21, 2025, Monroe Capital Corporation announced that it will release its fourth quarter and full year 2024 financial results on February 28, 2025, after market close. The company will also host a webcast and conference call on March 3, 2025, to discuss these results, highlighting its continued focus on engaging with stakeholders and providing transparency in its financial performance.