Main Street Capital Corporation
🇺🇸 MAIN · NYSE/NASDAQ · US56035L1044
Bank
USD 53.26 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
9.7
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: 53.26 ÷ 5.52 = 9.7
TTM period through: 2025-12-31
Forward P/E (estimated): 16.1
Based on analyst estimates
Reference: Provider P/E (Trailing): 9.6
Yield (Fwd)
5.86%
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): 5.67%
Net Debt/EBITDA (TTM)
4.6x
Latest quarter: 17.7x
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: 2025-12-31
Latest quarter (2025-12-31): 17.7x
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)
56.5%
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): 68.8%
Cash Flow Payout (TTM): 97.7%
FCF Coverage (TTM): 1.02x
ROE
17.0%
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 premium, internally managed Business Development Company with a proven track record of reliable lending and disciplined underwriting. Trading at $53.26, the stock sits below our blended fair value estimate of $58-65, representing a 9-22% upside to fair value. The robust 5.6% yield provides attractive income while waiting for price appreciation, making it worth considering for new positions despite a cyclical slowdown in recent loan originations.
Sector Context
Main Street Capital operates as a Business Development Company (BDC), functioning similarly to a specialized commercial bank by providing debt and equity capital to lower-middle-market companies. For dividend investors, BDCs are structurally similar to REITs in that they are legally required to distribute at least 90% of their taxable income to shareholders, making high payout ratios and tight cash flow coverage completely normal. Furthermore, standard corporate Debt/EBITDA metrics do not cleanly apply to BDCs; instead, their health is measured by Debt/Equity, where MAIN's 0.82x ratio is highly conservative.
Temporary Opportunity Identified
A sharp 48% cyclical deceleration in first-quarter new loan commitments driven by an uncertain, higher-for-longer macroeconomic and interest rate environment.
📊 Strategy Analysis
- • Trading at $53.26, below our blended fair value range of $58-65, offering 9-22% upside potential.
- • TTM P/E of 9.65 sits comfortably in the ideal 8-15x target range, providing an attractive entry multiple.
- • Generates a highly profitable 17% Return on Equity (ROE) with consistently expanding net margins over the past decade.
- • Conservative balance sheet with a 0.82x Debt-to-Equity ratio, which is exceptionally safe for a financial lending institution.
⚠ What to Watch
- • First-quarter new loan commitments dropped 48%, signaling a potential near-term growth slowdown in originations due to macroeconomic uncertainty.
- • Trades at a Price-to-Book (P/B) ratio of 1.60x, representing a significant premium to underlying net asset value.
- • Free cash flow dividend coverage is extremely tight at 1.02x, corresponding to a high 97.6% cash flow payout ratio (though this is standard regulatory behavior for BDCs).
📊 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: 2026-04-11
Disclaimer: This information is for educational purposes only. Not financial advice.