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Main Street Capital Corp. (MAIN)
NYSE:MAIN
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Main Street Capital
(NYSE:MAIN)
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Rating:74Outperform
Price Target:―
Main Street Capital is on a strong growth trajectory with solid financial performance and attractive valuation. Key strengths include robust revenue growth, strong equity position, and high dividend yield. However, technical indicators suggest caution, and cash flow issues need addressing. The company's positive earnings call supports future optimism despite some noted challenges.
Main Street Capital (MAIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.12B
Dividend Yield7.19%
Average Volume (3M)610.50K
Price to Earnings (P/E)9.4
Beta (1Y)0.66
Revenue Growth11.60%
EPS Growth9.38%
CountryUS
Employees104
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.97
Shares Outstanding89,430,380
10 Day Avg. Volume451,904
30 Day Avg. Volume610,501
Financial Highlights & Ratios
PEG Ratio0.86
Price to Book (P/B)1.85
Price to Sales (P/S)9.59
P/FCF Ratio-59.55
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$63.67Price Target Upside8.47% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook for Main Street Capital, with strong return on equity, record NAV per share, and promising dividend declarations. However, challenges such as net decreases in private loan investments and net realized losses indicate some areas of concern.Q3-2025 Updates
Positive Updates
Strong Return on Equity
Main Street Capital reported an annualized return on equity of 17% for the third quarter of 2025, showcasing strong operating results and platform strength.
Record NAV Per Share
The company achieved a new record NAV per share for the 13th consecutive quarter, indicating consistent positive performance and value appreciation.
Supplemental Dividend Announcement
A supplemental dividend of $0.30 per share was declared, representing the 17th consecutive quarterly supplemental dividend, along with a 4% increase in regular monthly dividends for the first quarter of 2026.
Positive Investment Realizations
Main Street Capital realized gains of at least $35 million from exiting private loan portfolio company equity investments, indicating favorable market conditions and strong portfolio quality.
Strong Liquidity Position
The company maintained a very strong liquidity position with over $1.5 billion in cash and unused capacity under credit facilities.
Negative Updates
Decrease in Private Loan Investments
There was a net decrease of $69 million in private loan investments, attributed to slower-than-expected investment activity and elevated repayments.
Higher Operating Expenses
Operating expenses increased by $1.1 million year-over-year, driven by higher cash compensation and share-based compensation expenses.
Net Realized Losses
Main Street Capital recorded net losses of $19.1 million in the quarter, primarily due to restructures and exits of lower middle market and private loan investments.
Investments on Nonaccrual Status
Investments on nonaccrual status comprised approximately 1.2% of the total investment portfolio at fair value, a concern for credit quality.
Company Guidance
In the third quarter of 2025, Main Street Capital reported robust financial performance, underscored by an annualized return on equity (ROE) of 17% and a record net asset value (NAV) per share for the 13th consecutive quarter. The company's distributable net investment income (DNII) remained favorable on a per share basis. The NAV per share increase was primarily attributed to net fair value gains in both their lower middle market and private loan investment portfolios. Additionally, Main Street Capital declared a supplemental dividend of $0.30 per share payable in December, marking the 17th consecutive quarterly supplemental dividend and announced an increase in their regular monthly dividends to $0.26 per share for the first quarter of 2026, a 4% rise from the previous year. The private loan investment pipeline was described as above average, with net decreases in private loan investments of $69 million due to slower investment activity and elevated repayments. The company also reported strong liquidity with over $1.5 billion in cash and unused credit facility capacity.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 | 653.25M | 541.03M | 401.93M | 384.61M | 344.66M | 222.61M |
| Gross Profit | 128.90M | 601.25M | 509.88M | 318.19M | 411.17M | 51.00M |
| EBITDA | 596.22M | 662.14M | 451.09M | 384.61M | 363.63M | 65.96M |
| Net Income | 349.19M | 508.08M | 428.45M | 241.61M | 330.76M | 29.38M |
Balance Sheet | ||||||
| Total Assets | 5.28B | 5.12B | 4.44B | 4.24B | 3.69B | 2.77B |
| Cash, Cash Equivalents and Short-Term Investments | 30.57M | 78.25M | 60.08M | 49.12M | 32.63M | 31.92M |
| Total Debt | 0.00 | 2.12B | 1.80B | 2.00B | 1.80B | 1.21B |
| Total Liabilities | 2.35B | 2.32B | 1.97B | 2.13B | 1.90B | 1.25B |
| Stockholders Equity | 2.93B | 2.80B | 2.48B | 2.11B | 1.79B | 1.51B |
Cash Flow | ||||||
| Free Cash Flow | 317.80M | -87.12M | 285.32M | -246.94M | -515.37M | -54.08M |
| Operating Cash Flow | 317.80M | -87.12M | 285.32M | -246.94M | -515.37M | -54.08M |
| Investing Cash Flow | 797.23M | -418.91M | -84.56M | 680.02M | 1.05B | 478.01M |
| Financing Cash Flow | -371.66M | 105.29M | -274.36M | 263.43M | 516.08M | 30.76M |
Main Street Capital Technical Analysis
Positive
58.70
Price Trends
61.00
Negative
61.52
Negative
58.00
Positive
Market Momentum
-0.92
Negative
51.54
Neutral
53.61
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 58.7 is above the 20-day moving average (MA) of 57.36, below the 50-day MA of 61.00, and above the 200-day MA of 58.00, indicating a neutral trend. The MACD of -0.92 indicates Negative momentum. The RSI at 51.54 is Neutral, neither overbought nor oversold. The STOCH value of 53.61 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $5.98B | 9.16 | 10.60% | 11.63% | 13.67% | -26.56% | |
74 Outperform | $5.12B | 9.42 | 19.07% | 7.19% | 11.60% | 9.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $998.55M | 14.84 | 5.43% | 13.40% | 36.15% | -38.59% | |
58 Neutral | $4.14B | 15.23 | 4.24% | 18.41% | -13.67% | -48.49% | |
54 Neutral | $3.29B | 10.52 | 15.21% | 10.47% | -15.32% | -12.29% | |
48 Neutral | $423.77M | 30.14 | 2.89% | 14.79% | -35.46% | -67.15% |
* Financial Sector Average
MAIN
Main Street Capital
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10.44
21.64%
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FSK
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BXSL
Blackstone Secured Lending Fund
26.49
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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.