Is Main Street Stock a Good Investment?
Main Street Investment Advice | MAIN |
- Examine Main Street's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Main Street's leadership team and their track record. Good management can help Main Street navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Asset Management & Custody Banks space and any emerging trends that could impact Main Street's business and its evolving consumer preferences.
- Compare Main Street's performance and market position to its competitors. Analyze how Main Street is positioned in terms of product offerings, innovation, and market share.
- Check if Main Street pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Main Street's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Main Street Capital stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Main Street Capital is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Main Street Stock
Researching Main Street's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 23.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.71. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Main Street Capital has Price/Earnings To Growth (PEG) ratio of 2.09. The entity recorded earning per share (EPS) of 5.53. The firm last dividend was issued on the 6th of December 2024.
To determine if Main Street is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Main Street's research are outlined below:
| Main Street Capital currently holds 1.81 B in liabilities with Debt to Equity (D/E) ratio of 1.0, which is about average as compared to similar companies. Main Street Capital has a current ratio of 0.41, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Main Street's use of debt, we should always consider it together with its cash and equity. | |
| Main Street Capital has a poor financial position based on the latest SEC disclosures | |
| On 15th of November 2024 Main Street paid $ 0.25 per share dividend to its current shareholders | |
| Latest headline from businesswire.com: Coregistics, a Red Arts Capital Portfolio Company, Announces Acquisition of Belvika Trade Packaging |
Main Street Quarterly Long Term Debt |
|
Main Street uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Main Street Capital. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Main Street's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 22nd of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 22nd of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Main Street's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Main Street's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2009-11-05 | 2009-09-30 | 0.22 | 0.25 | 0.03 | 13 | ||
2021-02-25 | 2020-12-31 | 0.52 | 0.59 | 0.07 | 13 | ||
2013-03-07 | 2012-12-31 | 0.49 | 0.56 | 0.07 | 14 | ||
2011-08-04 | 2011-06-30 | 0.34 | 0.41 | 0.07 | 20 | ||
2011-03-10 | 2010-12-31 | 0.27 | 0.34 | 0.07 | 25 | ||
2022-02-24 | 2021-12-31 | 0.65 | 0.73 | 0.08 | 12 | ||
2008-03-10 | 2007-12-31 | 0.22 | 0.3 | 0.08 | 36 | ||
2021-11-04 | 2021-09-30 | 0.62 | 0.71 | 0.09 | 14 |
Know Main Street's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Main Street is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Main Street Capital backward and forwards among themselves. Main Street's institutional investor refers to the entity that pools money to purchase Main Street's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Sumitomo Mitsui Trust Group Inc | 2024-09-30 | 209.9 K | Smh Capital Inc. | 2024-09-30 | 208.1 K | Trinity Legacy Partners Llc | 2024-09-30 | 204.9 K | Royal Bank Of Canada | 2024-06-30 | 190.3 K | Advisor Group Holdings, Inc. | 2024-06-30 | 184.3 K | Franklin Resources Inc | 2024-06-30 | 182.2 K | Mckinley Capital Management Llc | 2024-06-30 | 173.6 K | Tectonic Advisors Llc | 2024-06-30 | 143.6 K | Hrt Financial Llc | 2024-06-30 | 141.3 K | T. Rowe Price Associates, Inc. | 2024-06-30 | 3.4 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 1.9 M |
Main Street's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 4.6 B.Market Cap |
|
Main Street's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.10 | 0.09 | |
| Return On Capital Employed | 0.10 | 0.11 | |
| Return On Assets | 0.10 | 0.08 | |
| Return On Equity | 0.17 | 0.14 |
Determining Main Street's profitability involves analyzing its financial statements and using various financial metrics to determine if Main Street is a good buy. For example, gross profit margin measures Main Street's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Main Street's profitability and make more informed investment decisions.
Evaluate Main Street's management efficiency
Main Street Capital has return on total asset (ROA) of 0.0613 % which means that it generated a profit of $0.0613 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1868 %, meaning that it created $0.1868 on every $100 dollars invested by stockholders. Main Street's management efficiency ratios could be used to measure how well Main Street manages its routine affairs as well as how well it operates its assets and liabilities. As of the 18th of November 2024, Return On Capital Employed is likely to grow to 0.11, while Return On Tangible Assets are likely to drop 0.09. At this time, Main Street's Total Assets are very stable compared to the past year. As of the 18th of November 2024, Non Current Assets Total is likely to grow to about 4.6 B, while Non Currrent Assets Other are likely to drop (4.6 B).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 30.24 | 16.35 | |
| Tangible Book Value Per Share | 29.47 | 30.94 | |
| Enterprise Value Over EBITDA | 15.15 | 15.91 | |
| Price Book Value Ratio | 1.43 | 1.61 | |
| Enterprise Value Multiple | 15.15 | 15.91 | |
| Price Fair Value | 1.43 | 1.61 | |
| Enterprise Value | 5.3 B | 5.6 B |
The operational strategies employed by Main Street management play a crucial role in its market positioning. Assessing these strategies alongside financial data helps us evaluate the stock's investment potential.
Dividend Yield 0.0794 | Forward Dividend Yield 0.0794 | Forward Dividend Rate 4.14 | Beta 1.292 |
Basic technical analysis of Main Stock
As of the 18th of November 2024, Main Street secures the Downside Deviation of 0.638, risk adjusted performance of 0.1341, and Mean Deviation of 0.5207. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Main Street Capital, as well as the relationship between them.Main Street's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Main Street insiders, such as employees or executives, is commonly permitted as long as it does not rely on Main Street's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Main Street insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Main Street's Outstanding Corporate Bonds
Main Street issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Main Street Capital uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Main bonds can be classified according to their maturity, which is the date when Main Street Capital has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Volcan Compania Minera Corp BondUSP98047AC08 | View | |
| MAIN 3 14 JUL 26 Corp BondUS56035LAE48 | View | |
| Main Street Capital Corp BondUS56035LAH78 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View |
Understand Main Street's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Main Street's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1341 | |||
| Market Risk Adjusted Performance | 0.2446 | |||
| Mean Deviation | 0.5207 | |||
| Semi Deviation | 0.4725 | |||
| Downside Deviation | 0.638 | |||
| Coefficient Of Variation | 557.45 | |||
| Standard Deviation | 0.6727 | |||
| Variance | 0.4525 | |||
| Information Ratio | 0.0206 | |||
| Jensen Alpha | 0.065 | |||
| Total Risk Alpha | 0.0243 | |||
| Sortino Ratio | 0.0217 | |||
| Treynor Ratio | 0.2346 | |||
| Maximum Drawdown | 3.02 | |||
| Value At Risk | (1.28) | |||
| Potential Upside | 1.12 | |||
| Downside Variance | 0.407 | |||
| Semi Variance | 0.2233 | |||
| Expected Short fall | (0.62) | |||
| Skewness | (0.20) | |||
| Kurtosis | 0.3269 |
| Risk Adjusted Performance | 0.1341 | |||
| Market Risk Adjusted Performance | 0.2446 | |||
| Mean Deviation | 0.5207 | |||
| Semi Deviation | 0.4725 | |||
| Downside Deviation | 0.638 | |||
| Coefficient Of Variation | 557.45 | |||
| Standard Deviation | 0.6727 | |||
| Variance | 0.4525 | |||
| Information Ratio | 0.0206 | |||
| Jensen Alpha | 0.065 | |||
| Total Risk Alpha | 0.0243 | |||
| Sortino Ratio | 0.0217 | |||
| Treynor Ratio | 0.2346 | |||
| Maximum Drawdown | 3.02 | |||
| Value At Risk | (1.28) | |||
| Potential Upside | 1.12 | |||
| Downside Variance | 0.407 | |||
| Semi Variance | 0.2233 | |||
| Expected Short fall | (0.62) | |||
| Skewness | (0.20) | |||
| Kurtosis | 0.3269 |
Consider Main Street's intraday indicators
Main Street intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Main Street stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Main Street Corporate Filings
F4 | 12th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 8th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 7th of October 2024 Other Reports | ViewVerify |
Main Stock media impact
Far too much social signal, news, headlines, and media speculation about Main Street that are available to investors today. That information is available publicly through Main media outlets and privately through word of mouth or via Main internal channels. However, regardless of the origin, that massive amount of Main data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Main Street news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Main Street relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Main Street's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Main Street alpha.
Main Street Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Main Street can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Main Street Capital Historical Investor Sentiment
Investor biases related to Main Street's public news can be used to forecast risks associated with an investment in Main. The trend in average sentiment can be used to explain how an investor holding Main can time the market purely based on public headlines and social activities around Main Street Capital. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Main Street's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Main Street and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Main Street news discussions. The higher the estimate score, the more favorable the investor's outlook on Main Street.
Main Street Corporate Directors
| Valerie Banner | Independent Director | Profile | |
| Jonathan Montgomery | Director | Profile | |
| Patrick CPA | Director | Profile | |
| II CFA | Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Main Street Capital. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Main Street. If investors know Main will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Main Street listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.139 | Dividend Share 2.88 | Earnings Share 5.53 | Revenue Per Share 6.175 | Quarterly Revenue Growth 0.11 |
The market value of Main Street Capital is measured differently than its book value, which is the value of Main that is recorded on the company's balance sheet. Investors also form their own opinion of Main Street's value that differs from its market value or its book value, called intrinsic value, which is Main Street's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Main Street's market value can be influenced by many factors that don't directly affect Main Street's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Main Street's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Main Street is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Main Street's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.