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Monroe Capital (MRCC)
NASDAQ:MRCC
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Monroe Capital
(NASDAQ:MRCC)
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Rating:64Neutral
Price Target:
$7.00
▲(2.19% Upside)
Monroe Capital's strong financial performance, characterized by robust revenue growth and improved financial stability, is the most significant factor in its overall score. The technical analysis suggests a neutral trend with potential short-term corrections, while the high dividend yield offers an attractive incentive for investors. However, the negative P/E ratio raises concerns about profitability, slightly offsetting the positive aspects.
Monroe Capital (MRCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$137.36M
Dividend Yield15.46%
Average Volume (3M)92.55K
Price to Earnings (P/E)―
Beta (1Y)0.56
Revenue Growth-34.92%
EPS Growth-132.22%
CountryUS
EmployeesN/A
SectorN/A
Sector StrengthN/A
IndustryAsset Management
Share Statistics
EPS (TTM)0.08
Shares Outstanding21,666,340
10 Day Avg. Volume92,894
30 Day Avg. Volume92,551
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.96
Price to Sales (P/S)2.97
P/FCF Ratio5.12
Enterprise Value/Market Cap2.62
Enterprise Value/Revenue21.01
Enterprise Value/Gross Profit367.86
Enterprise Value/Ebitda-92.75
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Monroe Capital Business Overview & Revenue Model
Company DescriptionMonroe Capital Corporation (MRCC) is a business development company that primarily focuses on providing debt and equity financing solutions to middle-market companies across various sectors, including healthcare, technology, and consumer products. The company specializes in offering secured loans, mezzanine debt, and equity co-investments, aiming to support businesses in their growth and operational needs while generating attractive returns for its investors.
How the Company Makes MoneyMonroe Capital generates revenue through interest income from its debt investments, which include senior secured loans and subordinated loans, as well as from fees associated with loan origination and management. Additionally, the company earns income from equity investments in its portfolio companies. Key revenue streams include interest payments on loans and dividends from equity holdings. The company may also benefit from partnerships with financial institutions and private equity firms, which can enhance its deal flow and access to investment opportunities.
Monroe Capital Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 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.Q1-2025 Updates
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%.
Portfolio Stability
The portfolio companies reported solid revenue and EBITDA growth, and there were no new investments placed on non-accrual status, maintaining a non-accrual rate of 3.4%.
Successful Exits of Underperforming Investments
Several investments previously on the credit watch list were successfully exited, contributing to a more conservative balance sheet leverage.
Partnership with Wendel Group
Monroe Capital completed its partnership with Wendel Group, anticipated to drive value for shareholders while allowing Monroe to operate autonomously.
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.
Decline in Investment Income
Investment income totaled $11.6 million during the first quarter of 2025, down from $14 million in the fourth quarter of 2024.
Net Loss on Portfolio
The net loss on the portfolio for the first quarter was $3.6 million, driven primarily by unrealized mark-to-market losses for specific legacy portfolio companies.
Lower Adjusted Net Investment Income
Adjusted net investment income was $4.2 million or $0.19 per share, compared to $6.2 million or $0.29 per share in the prior quarter.
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
75
Positive
Balance Sheet
72
Positive
Cash Flow
68
Positive
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| Gross Profit |
| EBITDA |
| Net Income |
Balance Sheet |
| Total Assets |
| Cash, Cash Equivalents and Short-Term Investments |
| Total Debt |
| Total Liabilities |
| Stockholders Equity |
Cash Flow |
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Monroe Capital Technical Analysis
Negative
6.85
Price Trends
6.65
Negative
6.78
Negative
6.61
Negative
Market Momentum
-0.03
Positive
38.89
Neutral
12.39
Positive
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 6.85 is above the 20-day moving average (MA) of 6.44, above the 50-day MA of 6.65, and above the 200-day MA of 6.61, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.89 is Neutral, neither overbought nor oversold. The STOCH value of 12.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MRCC.
Monroe Capital Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
70 Outperform | $69.67M | 21.57 | 2.25% | 26.15% | -14.76% | ― | |
67 Neutral | $167.58M | 17.00 | 3.51% | 21.84% | -55.82% | -4.97% | |
64 Neutral | $137.36M | -32.68 | -2.25% | 15.46% | -34.92% | -132.22% | |
60 Neutral | $156.71M | 11.08 | 7.87% | 16.44% | -5.23% | 193.87% | |
48 Neutral | $152.72M | -50.00 | -1.61% | 23.36% | -177.91% | 55.08% | |
48 Neutral | $98.97M | -12.43 | -5.98% | 19.43% | 47.01% | -179.46% |
* Sector Average
MRCC
Monroe Capital
6.32
-0.91
-12.59%
BCIC
BCP Investment Corporation
12.26
-2.30
-15.80%
OXSQ
Oxford Square Capital
1.87
-0.22
-10.53%
WHF
WhiteHorse
7.23
-1.63
-18.40%
OFS
OFS Capital
5.18
-2.29
-30.66%
GECC
Great Elm Capital
6.86
-2.18
-24.12%
Monroe Capital Corporate Events
Financial Disclosures
Monroe Capital to Announce Q3 2025 Financial Results
Neutral
Oct 30, 2025
On October 30, 2025, Monroe Capital Corporation announced that it will release its financial results for the third quarter ended September 30, 2025, on November 5, 2025, after the market closes. This announcement is part of the company’s ongoing efforts to keep stakeholders informed about its financial performance, which could impact its market positioning and stakeholder relations.
Dividends
Monroe Capital Announces Q3 Distribution to Shareholders
Positive
Sep 10, 2025
On September 10, 2025, Monroe Capital Corporation announced a third quarter distribution of $0.25 per share, payable on September 30, 2025, to stockholders of record as of September 22, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may impact its market positioning by reinforcing investor confidence in its financial strategies.
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.