Monroe Capital (MRCC)
NASDAQ:MRCC
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Monroe Capital
(NASDAQ:MRCC)
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Rating:59Neutral
Price Target:
$5.50
▼(-19.71% Downside)
Action:ReiteratedDate:04/02/26
The score is driven primarily by improving financial performance and strong recent cash generation, supported by positive merger-related corporate events (including a planned final cash distribution and redemption of 2026 notes). These positives are tempered by weak technical trends (below key moving averages with negative MACD) and valuation uncertainty signaled by a negative P/E despite the very high dividend yield.
Positive Factors
Cash generation ability
Consistently positive operating cash flow with a material step-up in the latest year provides durable internal funding for distributions, debt servicing and opportunistic investments. Strong cash generation improves resilience through credit cycles and supports long-term dividend coverage and capital allocation flexibility.
Negative Factors
Historically elevated leverage
A multiyear pattern of elevated leverage (mid-1x debt-to-equity) amplifies downside in credit stress and earnings weakness. For a BDC whose returns depend on credit performance, this historical leverage profile increases vulnerability to defaults, covenant strain and tighter liquidity during tougher market cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation ability
Consistently positive operating cash flow with a material step-up in the latest year provides durable internal funding for distributions, debt servicing and opportunistic investments. Strong cash generation improves resilience through credit cycles and supports long-term dividend coverage and capital allocation flexibility.
Read all positive factors
Monroe Capital (MRCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$113.96M
Dividend Yield14.03%
Average Volume (3M)150.23K
Price to Earnings (P/E)―
Beta (1Y)0.70
Revenue Growth-34.92%
EPS Growth-132.22%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.10
Shares Outstanding21,666,340
10 Day Avg. Volume117,595
30 Day Avg. Volume150,234
Financial Highlights & Ratios
PEG Ratio0.68
Price to Book (P/B)0.83
Price to Sales (P/S)6.51
P/FCF Ratio1.19
Enterprise Value/Market Cap2.66
Enterprise Value/Revenue43.08
Enterprise Value/Gross Profit23.47
Enterprise Value/Ebitda27.61
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.13
Revenue Forecast (FY)$31.39M
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 equ...
How the Company Makes Money
MRCC makes money primarily from investment income generated by its portfolio of middle-market credit investments. The core revenue stream is interest income earned on loans it extends (most commonly senior secured loans), which may include cash in...
Monroe Capital Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with positive elements such as a strong dividend declaration and successful exits of underperforming investments, but challenges included a decrease in investment income and portfolio size. The partnership with Wendel Group adds optimism for future growth. However, the current financial metrics reflect some negative trends including net losses and lower adjusted net investment income.Positive Updates
Strong Dividend Declaration
Monroe Capital declared and paid a $0.25 per share dividend in the first quarter of 2025, representing an annualized dividend yield of 14.3%.
Negative Updates
Decreased Investment Portfolio
The investment portfolio decreased by $26.4 million from the end of the fourth quarter 2024 to the end of the first quarter 2025.
Read all updates
Q1-2025 Updates
Positive
Negative
Strong Dividend Declaration
Monroe Capital declared and paid a $0.25 per share dividend in the first quarter of 2025, representing an annualized dividend yield of 14.3%.
Read all positive updates
Company Guidance
In the first quarter of 2025, Monroe Capital Corporation (MRCC) declared a $0.25 per share dividend, representing an annualized yield of 14.3% based on its May 6, 2025, closing share price. This dividend was partially supported by $0.53 per share of undistributed spillover income. As of March 31, 2025, MRCC's net asset value (NAV) was reported at $186.9 million, or $8.63 per share, with leverage of 1.45 times debt to equity. The investment portfolio totaled $430.6 million, a decrease from the previous quarter, with 85 portfolio companies compared to 91 at the prior quarter's end. Despite market volatility, MRCC's adjusted net investment income was $4.2 million, or $0.19 per share, with a weighted average effective yield of 9.2%. The company focused on maintaining asset quality and selectively redeploying capital into existing and new investments, while managing its portfolio to mitigate macroeconomic risks, including potential tariff impacts.Monroe Capital Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
48
Neutral
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 21.21M | 35.19M | 27.00M | 19.45M | 54.03M |
| Gross Profit | 12.90M | 14.59M | 5.46M | 4.49M | 40.16M |
| EBITDA | 10.97M | 10.16M | 1.18M | -1.38M | 32.74M |
| Net Income | 11.41M | 9.70M | 371.00K | -2.79M | 32.46M |
Balance Sheet | |||||
| Total Assets | 372.96M | 490.67M | 513.19M | 565.00M | 590.46M |
| Cash, Cash Equivalents and Short-Term Investments | 1.93M | 9.04M | 4.96M | 5.45M | 2.62M |
| Total Debt | 190.76M | 291.98M | 300.87M | 330.11M | 332.15M |
| Total Liabilities | 206.47M | 298.91M | 309.46M | 339.98M | 340.99M |
| Stockholders Equity | 166.49M | 191.76M | 203.72M | 225.02M | 249.47M |
Cash Flow | |||||
| Free Cash Flow | 115.87M | 8.55M | 9.96M | 10.48M | 12.47M |
| Operating Cash Flow | 115.87M | 8.55M | 9.96M | 10.48M | 12.47M |
| Investing Cash Flow | 114.68M | 27.40M | 41.77M | 3.63M | 7.54M |
| Financing Cash Flow | -122.99M | -31.87M | -52.22M | -26.72M | -34.30M |
Monroe Capital Technical Analysis
Neutral
6.85
Price Trends
5.37
Negative
5.79
Negative
6.09
Negative
Market Momentum
-0.11
Negative
58.22
Neutral
87.30
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRCC, the sentiment is Neutral. The current price of 6.85 is above the 20-day moving average (MA) of 4.70, above the 50-day MA of 5.37, and above the 200-day MA of 6.09, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 58.22 is Neutral, neither overbought nor oversold. The STOCH value of 87.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MRCC.
Monroe Capital Risk Analysis
Monroe Capital disclosed 5 risk factors in its most recent earnings report. Monroe 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
Monroe Capital Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $166.76M | 11.23 | 5.30% | 21.24% | -55.82% | -4.97% | |
59 Neutral | $113.96M | -13.03 | -2.90% | 14.03% | -34.92% | -132.22% | |
54 Neutral | $50.51M | -1.93 | -23.38% | 25.87% | -14.76% | ― | |
52 Neutral | $97.85M | 11.33 | 5.90% | 16.60% | -5.23% | 193.87% | |
49 Neutral | $72.51M | ― | -24.20% | 22.43% | 47.01% | -179.46% | |
46 Neutral | $160.14M | -7.18 | -12.27% | 24.14% | -177.91% | 55.08% |
* Financial Sector Average
MRCC
Monroe Capital
5.26
-1.12
-17.49%
BCIC
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7.90
-2.99
-27.48%
OXSQ
Oxford Square Capital
1.83
-0.20
-9.72%
WHF
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7.50
-0.27
-3.52%
OFS
OFS Capital
3.77
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GECC
Great Elm Capital
5.18
-2.85
-35.48%
Monroe Capital Corporate Events
DividendsM&A Transactions
Monroe Capital Announces Final Cash Distribution Before Merger
Positive
Apr 1, 2026
Monroe Capital Corporation, a Nasdaq-listed business development company focused on secured lending to U.S. middle-market borrowers, announced on April 1, 2026, that its board has approved a final cash distribution tied to its pending merger. The ...
Business Operations and StrategyM&A TransactionsShareholder Meetings
Monroe Capital Shareholders Approve Merger with Horizon Technology
Positive
Mar 16, 2026
On March 13, 2026, shareholders of Monroe Capital Corporation and Horizon Technology Finance Corporation approved a series of transactions that will combine Monroe’s business development company with Horizon’s venture lending platform....
M&A TransactionsShareholder Meetings
Monroe Capital Shareholders Approve Asset Sale and Merger
Positive
Mar 13, 2026
On March 13, 2026, Monroe Capital Corporation held a special meeting of stockholders to vote on key strategic transactions. The meeting followed a record date of January 15, 2026, when 21,666,340 common shares were outstanding and eligible to vote...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Monroe Capital Declares Lower Dividend, Advances Horizon Merger
Neutral
Mar 5, 2026
Monroe Capital Corporation reported fourth-quarter 2025 net investment income of $2.2 million, or $0.10 per share, and adjusted net investment income of $2.3 million, or $0.11 per share, with net assets of $166.5 million, or $7.68 per share, as of...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Monroe Capital Completes Redemption of 2026 Senior Notes
Positive
Jan 15, 2026
On January 14, 2026, Monroe Capital Corporation amended its senior secured revolving credit facility through Amendment No. 9, temporarily modifying borrowing base mechanics and concentration limits via a new Borrowing Base Flex Period, increasing ...
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.