13M Intrinsic Value Calculation – MAIN STREET CAPITAL Reports Record Fourth Quarter Earnings for FY2022
March 5, 2023
Earnings report
13M Intrinsic Value Calculation – On February 23, 2023, Main Street Capital ($BER:13M) reported their fourth quarter earnings results for the fiscal year 2022 ending December 31, 2022. The results for this period are impressive, with total revenues of USD 106.3 million, and a 12.7% increase from the same period a year prior. This rise in revenue was further complemented by an increase in net income from USD 123.0 million to USD 130.4 million, which is a 6.7% increase year over year. Further evidence of their success is their recently released financial projections, which predict a steady rise in revenues and profits throughout the upcoming year.
This outlook is certainly promising and offers Main Street Capital shareholders the prospect of long-term growth and impressive returns on investment. Overall, Main Street Capital’s impressive performance during the fourth quarter of FY2022 is a testament to the quality of their management and their commitment to creating value for their shareholders. They have demonstrated that they are capable of delivering growth and returns in both good and challenging economic times, which is invaluable for investors who are looking for stability and sustainable returns. It will be interesting to see what the future holds for Main Street Capital and their shareholders.
Market Price
At the open of the day, MAIN STREET CAPITAL stock was priced at €37.7, representing an increase of 2.9% from its closing price of €36.6 the prior day. This resulted in an all-time high for the company’s share price. The impressive quarter end report came as a surprise to many analysts and investors, who expected a more subdued performance given the challenging economic conditions over the past year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for 13M. More…
| Total Revenues | Net Income | Net Margin |
| 331.15 | 241.61 | 73.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for 13M. More…
| Operations | Investing | Financing |
| -246.94 | – | 263.43 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for 13M. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.24k | 2.13k | 26.87 |
Key Ratios Snapshot
Some of the financial key ratios for 13M are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.8% | – | – |
| FCF Margin | ROE | ROA |
| -74.6% | 8.1% | 3.9% |
Analysis – 13M Intrinsic Value Calculation
At GoodWhale, we have been analyzing MAIN STREET CAPITAL’s financials and have come to a conclusion about the intrinsic value of its shares. Our proprietary Valuation Line provides an estimate of €34.5 for the intrinsic value of a MAIN STREET CAPITAL share. Currently, MAIN STREET CAPITAL is trading around €37.7 per share. This is fairly close to our intrinsic value estimate, however, it is overvalued by around 9.4%. More…
Summary
Main Street Capital is a publicly traded business development company that provides customized financing solutions to lower middle market companies. Net income increased year over year by 6.7%, going from USD 123.0 million to USD 130.4 million. The company’s strategic focus on providing capital to its portfolio companies, coupled with prudent expense management, drove strong results for the quarter. Main Street’s long-term outlook for continued growth and value creation for shareholders is promising.
