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Main Street Capital Corp. (MAIN)
NYSE: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
$5.96B
Dividend Yield6.29%
Average Volume (3M)504.29K
Price to Earnings (P/E)10.8
Beta (1Y)0.64
Revenue Growth28.32%
EPS Growth13.63%
CountryUS
Employees104
SectorFinancial
Sector Strength77
IndustryAsset Management
Share Statistics
EPS (TTM)0.99
Shares Outstanding89,430,380
10 Day Avg. Volume477,970
30 Day Avg. Volume504,294
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue11.01
Enterprise Value/Gross Profit10.56
Enterprise Value/Ebitda12.14
Forecast
1Y Price Target
$62.60Price Target Upside-5.99% Downside
Rating ConsensusHold
Number of Analyst Covering5
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:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong overall performance with record-setting achievements in NAV per share and realized gains. The company continues to excel in its lower middle market strategy and asset management business, leading to consistent dividend payouts. However, challenges persist in the private loan portfolio, particularly with consumer-facing companies and slower investment activity.Q2-2025 Updates
Positive Updates
Record NAV per Share
The company achieved a new record for NAV per share for the 12th consecutive quarter, demonstrating sustainable strength in its platform.
Largest Realized Gain in History
Main Street Capital recorded the largest realized gain in its history due to a partial exit of investments in Heritage Vet Partners.
Annualized Return on Equity
Reported an annualized return on equity of 17.1%, showcasing strong operational performance.
Strong Dividend Performance
Supplemental dividend of $0.30 per share payable in September, representing the 16th consecutive quarterly supplemental dividend.
Increased Investment in Lower Middle Market
Net increase in lower middle market investments of $108 million, reflecting strong investment activity.
Positive Results in Asset Management Business
Significant incentive fee income for the asset management business for the 11th consecutive quarter.
Negative Updates
Underperformance in Private Loan Portfolio
Certain private loan portfolio companies with exposure to consumer discretionary spending have underperformed, impacting contributions negatively.
Decrease in Private Loan Investments
Private loan investment activity was slower than expected, resulting in a net decrease of $35 million due to lower private equity investment activity.
Investments on Nonaccrual Status
Investments on nonaccrual status were approximately 2.1% of the total investment portfolio at fair value and about 5% at cost.
Company Guidance
During Main Street Capital's Second Quarter 2025 Earnings Conference Call, management highlighted several key metrics demonstrating strong performance. The company achieved an annualized return on equity (ROE) of 17.1% and reported distributable net investment income (DNII) per share that exceeded the dividends paid to shareholders. This quarter marked the 12th consecutive record for net asset value (NAV) per share. Main Street also realized its largest gain in history, attributed to the partial exit of investments in Heritage Vet Partners. The lower middle market investment portfolio saw a net increase of $108 million, while the private loan portfolio experienced a net decrease of $35 million due to slower private equity industry activity. Management declared a supplemental dividend of $0.30 per share, payable in September, and regular monthly dividends for the fourth quarter of 2025 amounting to $0.255 per share, representing a 4% increase from the previous year. The company remains confident in its investment strategies and anticipates further significant supplemental dividends if favorable conditions persist.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 | 650.24M | 541.03M | 401.93M | 384.61M | 344.66M | 222.61M |
| Gross Profit | 678.02M | 601.25M | 509.88M | 318.19M | 411.17M | 51.00M |
| EBITDA | 589.64M | 538.71M | 451.09M | 343.21M | 363.63M | 65.96M |
| Net Income | 506.77M | 508.08M | 428.45M | 241.61M | 330.76M | 29.38M |
Balance Sheet | ||||||
| Total Assets | 5.29B | 5.12B | 4.44B | 4.24B | 3.69B | 2.77B |
| Cash, Cash Equivalents and Short-Term Investments | 86.98M | 78.25M | 60.08M | 49.12M | 32.63M | 31.92M |
| Total Debt | 2.22B | 2.12B | 1.80B | 2.00B | 1.80B | 1.21B |
| Total Liabilities | 2.40B | 2.32B | 1.97B | 2.13B | 1.90B | 1.25B |
| Stockholders Equity | 2.88B | 2.80B | 2.48B | 2.11B | 1.79B | 1.51B |
Cash Flow | ||||||
| Free Cash Flow | 377.74M | -87.12M | 285.32M | -246.94M | -515.37M | -54.08M |
| Operating Cash Flow | 377.74M | -87.12M | 285.32M | -246.94M | -515.37M | -54.08M |
| Investing Cash Flow | -72.71M | 0.00 | -84.56M | 680.02M | 1.05B | 478.01M |
| Financing Cash Flow | -243.05M | 105.29M | -274.36M | 263.43M | 516.08M | 30.76M |
Main Street Capital Technical Analysis
Positive
66.59
Price Trends
63.78
Positive
59.05
Positive
57.18
Positive
Market Momentum
0.59
Positive
60.73
Neutral
81.28
Negative
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 66.59 is above the 20-day moving average (MA) of 65.64, above the 50-day MA of 63.78, and above the 200-day MA of 57.18, indicating a bullish trend. The MACD of 0.59 indicates Positive momentum. The RSI at 60.73 is Neutral, neither overbought nor oversold. The STOCH value of 81.28 is Negative, 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.35B | 11.72 | 18.55% | 8.57% | ― | 16.78% | |
75 Outperform | $782.79M | 8.67 | 10.37% | 12.49% | 13.19% | -18.24% | |
74 Outperform | $5.96B | 10.81 | 19.65% | 6.29% | 28.32% | 13.63% | |
71 Outperform | $3.94B | 10.36 | 9.33% | 11.32% | 32.19% | -13.72% | |
68 Neutral | $18.05B | 11.73 | 10.24% | 3.73% | 9.66% | 1.70% | |
64 Neutral | $3.52B | 12.80 | 12.81% | 9.76% | -15.88% | -13.91% | |
58 Neutral | $5.05B | 23.20 | 3.39% | 15.53% | -8.32% | -65.56% |
* Financial Sector Average
Performance Comparison
MAIN
Main Street Capital
66.59
21.28
46.97%
AB
AllianceBernstein
38.82
8.52
28.12%
GBDC
Golub Capital Bdc
14.79
1.20
8.83%
HTGC
Hercules Capital
19.37
2.55
15.16%
FSK
FS KKR Capital
18.13
0.66
3.78%
NCDL
Nuveen Churchill Direct Lending Corp.
16.01
0.61
3.96%
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.