Main Street Capital Corporation
🇺🇸 MAIN · NYSE/NASDAQ · US56035L1044
Bank
USD 49.63 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
10.4
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 49.63 ÷ 4.76 = 10.4
TTM period through: 2026-03-31
Forward P/E (estimated): 13.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 10.7
Yield (Fwd)
8.83%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 5.97%
Div. Growth (5Y CAGR)
11.5%
Growth Streak
5 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
5.2x
Latest quarter: 28.2x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 28.2x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
92.0%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 80.5%
Cash Flow Payout (TTM): 100.3%
FCF Coverage (TTM): 1.00x
ROE
14.4%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
15.5x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Main Street Capital is a premier, internally managed Business Development Company renowned for its reliable monthly dividends and disciplined underwriting. Trading at $49.63, the stock sits below our blended fair value estimate of $55-65, representing roughly 10-30% upside alongside an attractive ~6% yield. With Net Asset Value at record highs and base dividends increasing, this remains an exceptional opportunity for new positions seeking high-quality monthly income.
Sector Context
Main Street Capital is a premium Business Development Company (BDC) that operates similarly to a specialty bank, providing customized debt and equity financing to lower middle-market companies. Like REITs, BDCs are legally required as Regulated Investment Companies (RICs) to distribute at least 90% of their taxable income to shareholders, making cash flow payout ratios near 100% normal and expected rather than a sign of distress.
Temporary Opportunity Identified
A slight Q1 2026 earnings miss ($0.93 vs expected $1.04) created a minor stock pullback, overshadowing the company's record Net Asset Value and increased dividend distributions.
📊 Strategy Analysis
- • Trading at an attractive P/E of 10.4, squarely within the optimal 8-15x valuation range, offering a compelling entry point following recent price compression from the mid-$50s.
- • Management continues to demonstrate strong shareholder alignment, recently raising the regular monthly dividend by 3.9% and declaring a $0.30 supplemental dividend.
- • The underlying portfolio is performing exceptionally well, with Net Asset Value (NAV) hitting a record high of $33.46 per share in the most recent quarter.
- • Maintains highly conservative leverage for its sector with a Debt/Equity ratio of 0.82x, providing substantial financial flexibility and balance sheet safety.
⚠ What to Watch
- • Trades at a 45% premium to its Net Asset Value (P/B of 1.45x), which is customary for premium-tier BDCs but technically limits deep value asset-based upside.
- • Free cash flow dividend coverage is extremely tight at 1.00x, which is standard for the regulated payout structure but requires flawless portfolio execution.
- • Lower middle-market portfolio companies could face debt-servicing pressures if macroeconomic headwinds or elevated interest rates persist longer than expected.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-05-23
Disclaimer: This information is for educational purposes only. Not financial advice.