Main Street Capital ($MAIN) Trading Report: A Closer Look
October 28, 2023
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This trading report provides a closer look at Main Street Capital ($NYSE:MAIN) Corporation ($MAIN). Main Street Capital Corporation is a specialty finance company that provides debt and equity capital to lower middle market companies. Its portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, and acquisitions of companies. It also offers structured finance solutions for small and mid-sized companies. It is listed on the New York Stock Exchange under the symbol MAIN. Main Street Capital Corporation operates as a closed-end investment fund, which means its shares are not continuously offered.
Instead, it periodically offers new shares at a predetermined price that is determined by the company itself and is subject to stockholder approval. This makes its stock more volatile than other stocks which are continuously traded. The company is well-known for its conservative approach to investing and has a long-term investment horizon. Its consistent performance and conservative approach to investing have made it a popular choice among investors looking for steady gains over the long term.
Price History
The stock opened at $38.4 and closed at $37.9, representing a 1.4% decline from the previous closing price of $38.4. It is clear, then, that Main Street Capital still has potential to climb higher and could be a viable investment for those seeking long-term capital gains. 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 |
| 431.4 | 347.76 | 80.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for MAIN. More…
| Operations | Investing | Financing |
| -177.29 | – | 263.43 |
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 |
| 4.42k | 2.17k | 28.02 |
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 |
| -41.1% | 10.5% | 5.3% |
Analysis
GoodWhale has conducted an analysis of MAIN STREET CAPITAL’s wellbeing. Our Star Chart shows that MAIN STREET CAPITAL is strong in dividend and growth, yet weak in asset and profitability. Furthermore, MAIN STREET CAPITAL has a low health score of 1/10 with regard to its cashflows and debt, making it less likely to sustain future operations in times of crisis. We classify MAIN STREET CAPITAL as a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Considering the above factors, we believe that MAIN STREET CAPITAL may be attractive to investors who seek high growth potential with the understanding that MAIN STREET CAPITAL is a higher risk investment. These investors may be willing to accept the trade-off of higher risk for greater reward. 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 publicly traded business development company that provides long-term debt and equity capital to lower middle-market companies. MAIN Street Capital’s investment strategy centers around providing flexible financing solutions to small businesses. With a conservative approach to underwriting, the company seeks to build long-term relationships with its portfolio companies and provide value-added services to maximize their success. MAIN Street Capital has a strong track record of providing consistent returns to its shareholders.
Additionally, MAIN Street Capital’s portfolio continues to demonstrate strong credit quality metrics, including a low cost of debt financing and a low level of non-performing loans.
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