MAIN Intrinsic Value Calculation – Main Street Capital Invests $24.7 Million in Compass Systems & Sales
November 29, 2023
🌥️Trending News
Main Street Capital ($NYSE:MAIN) recently invested $24.7 million into Compass Systems & Sales, a leading provider of retail point-of-sale and back-office systems. This strategic investment is intended to help Compass Systems & Sales expand its portfolio and market reach. Main Street Capital Corporation is a publicly traded Business Development Corporation (BDC) that provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies.
The company’s investment portfolio is diversified across a wide array of industries, including manufacturing, energy, healthcare, technology, consumer products, and business services. Main Street Capital is committed to helping its portfolio companies grow through innovative financing solutions and strategic advice.
Stock Price
On Tuesday, Main Street Capital Corporation (MAIN STREET CAPITAL) announced that it had invested $24.7 million in Compass Systems & Sales, Inc. This news sent MAIN STREET CAPITAL stock up, with the stock opening at $41.4 and closing at the same price. The investment is part of a larger effort by Main Street Capital to finance and assist small- and lower-middle-market companies. This is the latest in a series of investments made by MAIN STREET CAPITAL as they look to expand their portfolio and grow their business. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for MAIN. More…
| Total Revenues | Net Income | Net Margin |
| 483.8 | 395.69 | 81.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for MAIN. More…
| Operations | Investing | Financing |
| 142.04 | – | -126.15 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for MAIN. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.47k | 2.1k | 28.33 |
Key Ratios Snapshot
Some of the financial key ratios for MAIN are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.8% | – | – |
| FCF Margin | ROE | ROA |
| 29.4% | 11.5% | 5.9% |
Analysis – MAIN Intrinsic Value Calculation
At GoodWhale, we conducted an in-depth analysis of MAIN STREET CAPITAL’s financials. Our proprietary Valuation Line gave an intrinsic value of the stock at around $45.3. For comparison, the current stock price of MAIN STREET CAPITAL is at $41.4, making the stock a fair buy undervalued by 8.6%. With this information, investors can make informed decisions to maximize their returns. More…
Peers
The competition between Main Street Capital Corp and its competitors is fierce. Carlyle Secured Lending Inc, Sierra Income Corp, and BlackRock TCP Capital Corp are all vying for a piece of the pie, and each company has its own unique strengths and weaknesses. Main Street Capital Corp has a strong reputation and a long history of success, but its competitors are not far behind. Carlyle Secured Lending Inc has a more diversified portfolio and a higher risk tolerance, while Sierra Income Corp has a more conservative approach and a focus on income-producing investments. BlackRock TCP Capital Corp is the newest player on the scene, but it has already made a name for itself with its innovative investment strategies.
– Carlyle Secured Lending Inc ($NASDAQ:CGBD)
Carlyle Secured Lending Inc is a US based company that focuses on providing secured loans to borrowers. The company operates in two segments, Carlyle Lending and Carlyle Asset Management. Carlyle Lending offers loans to borrowers using real estate as collateral while Carlyle Asset Management provides loans against other types of collateral. As of 2022, Carlyle Secured Lending Inc had a market cap of 658.55M and a ROE of 7.86%.
– Sierra Income Corp ($NASDAQ:TCPC)
BlackRock TCP Capital Corp is a publicly traded business development company that focuses on providing financing solutions to middle market companies in the United States. The company has a market cap of 687.43 million as of 2022 and a return on equity of 4.28 percent. BlackRock TCP Capital Corp was founded in 1997 and is headquartered in Santa Monica, California.
Summary
Main Street Capital is a private equity and debt capital provider that has recently invested $24.7M in Compass Systems & Sales. This investment comes as part of a larger strategy to help fund smaller, growing companies, and further demonstrates Main Street Capital’s commitment to providing capital to small business owners. The terms of the deal are not disclosed, but the investment is expected to help Compass Systems & Sales expand its operations and take advantage of opportunities in the current market.
The funding will also add value to Main Street Capital’s portfolio by providing a share of future profits. This move is indicative of Main Street Capital’s focus on helping small businesses get access to the capital they need to grow, expand, and compete in their respective industries.
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