Monroe Capital (MRCC) AI Stock Analysis

• Market Cap: $149.71M
• Dividend Yield: 15.15%
• Average Volume (3M): 68.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: -34.92%
• EPS Growth: -132.22%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.08
• Shares Outstanding: 21,666,340
• 10 Day Avg. Volume: 63,718
• 30 Day Avg. Volume: 68,794
• PEG Ratio: <0.01
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 2.97
• P/FCF Ratio: 5.12
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $7.50 ▲(9.49% Upside)

Monroe Capital's overall stock score is driven by its strong financial performance, characterized by robust revenue growth and improved financial stability due to debt elimination. However, technical indicators suggest limited momentum, and the high P/E ratio raises valuation concerns. The attractive dividend yield provides a positive offset, making the stock appealing for income-focused investors.

Monroe Capital Business Overview & Revenue Model

Company Description

Monroe 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 Money

Monroe 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 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	25.82M	61.96M	27.28M	55.55M	40.16M	6.51M
Gross Profit	10.31M	14.59M	11.93M	41.79M	27.08M	-4.17M
EBITDA	14.48M	10.16M	1.18M	88.16M	32.74M	20.67M
Net Income	2.31M	9.70M	371.00K	-2.79M	32.46M	1.65M
Balance Sheet
Total Assets	388.95M	490.67M	513.19M	565.00M	590.46M	585.12M
Cash, Cash Equivalents and Short-Term Investments	3.53M	9.04M	4.96M	5.45M	2.62M	6.77M
Total Debt	0.00	291.98M	300.87M	330.11M	332.15M	343.51M
Total Liabilities	215.91M	298.91M	309.46M	339.98M	340.99M	350.69M
Stockholders Equity	173.04M	191.76M	203.72M	225.02M	249.47M	234.43M
Cash Flow
Free Cash Flow	108.16M	35.96M	51.73M	14.11M	20.01M	74.93M
Operating Cash Flow	108.16M	35.96M	51.73M	14.11M	20.01M	74.93M
Investing Cash Flow	31.82M	27.82M	41.77M	3.63M	7.54M	51.20M
Financing Cash Flow	-108.71M	-31.87M	-52.22M	-26.72M	-34.30M	-72.15M

Monroe Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 6.85 is below the 20-day moving average (MA) of 6.91, below the 50-day MA of 7.06, and above the 200-day MA of 6.79, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 33.82 is Neutral, neither overbought nor oversold. The STOCH value of 22.24 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	$68.46M	21.19	2.25%	22.78%	-14.76%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WHF	67 Neutral	$165.96M	46.67	1.21%	21.43%	-49.76%	-84.43%
MRCC	61 Neutral	$149.71M	―	-2.25%	15.15%	-34.92%	-132.22%
BCIC	60 Neutral	$159.36M	―	-4.79%	17.35%	-62.82%	-170.97%
OXSQ	51 Neutral	$149.83M	―	-1.61%	21.99%	-177.91%	55.08%
GECC	48 Neutral	$108.07M	―	-5.98%	19.56%	47.01%	-179.46%

Monroe Capital Corporate Events

Monroe Capital to Announce Q3 2025 Financial Results

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.

The most recent analyst rating on (MRCC) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Monroe Capital stock, see the MRCC Stock Forecast page.

Monroe Capital Announces Q3 Distribution to Shareholders

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.

The most recent analyst rating on (MRCC) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Monroe Capital stock, see the MRCC Stock Forecast page.

Monroe Capital Announces Merger with Horizon Finance

On August 7, 2025, Monroe Capital Corporation (MRCC) announced a merger agreement with Horizon Finance Technology (HRZN), where MRCC will merge into HRZN, creating a larger entity in the financial services sector. This strategic move, anticipated to close in the fourth quarter of 2025, aims to enhance operational efficiencies and market positioning, subject to regulatory and shareholder approvals. The merger agreement includes an asset sale to Monroe Capital Income Plus Corporation (MCIP) and a waiver of $4 million in advisory fees by HRZN Advisor, reflecting a commitment to streamline operations and improve financial outcomes.

The most recent analyst rating on (MRCC) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Monroe Capital stock, see the MRCC Stock Forecast page.

Monroe Capital to Release Q2 2025 Financial Results

On August 8, 2025, Monroe Capital Corporation announced that it will release its financial results for the second quarter ended June 30, 2025, on August 11, 2025, after market close. This announcement is part of the company’s ongoing financial reporting and may impact stakeholders by providing insights into its financial performance and future prospects.

The most recent analyst rating on (MRCC) stock is a Sell with a $7.25 price target. To see the full list of analyst forecasts on Monroe Capital stock, see the MRCC Stock Forecast page.

Monroe Capital Announces Merger with Horizon Technology

On August 7, 2025, Monroe Capital announced a merger agreement between Monroe Capital Corporation (MRCC) and Horizon Technology Finance Corporation (HRZN), with HRZN continuing as the surviving entity. The merger is structured as a NAV-for-NAV share exchange, and MRCC will sell its assets to Monroe Capital Income Plus Corporation prior to the merger. This transaction is expected to enhance shareholder value, provide HRZN with significant capital for growth, and improve operational efficiencies, ultimately benefiting both MRCC and HRZN shareholders. The merger, subject to shareholder approvals and regulatory conditions, is anticipated to close in the fourth quarter of 2025.

The most recent analyst rating on (MRCC) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Monroe Capital stock, see the MRCC Stock Forecast page.