Main Street EBITDA vs. Current Valuation

MAIN Stock  USD 55.29  0.06  0.11%   
Based on Main Street's profitability indicators, Main Street Capital is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess Main Street's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
322.6 M
Current Value
190.2 M
Quarterly Volatility
196 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Main Street's Price To Sales Ratio is very stable compared to the past year. As of the 9th of December 2024, Days Sales Outstanding is likely to grow to 75.57, while Sales General And Administrative To Revenue is likely to drop 0.01. At this time, Main Street's Income Quality is very stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin1.20.89
Significantly Up
Slightly volatile
Net Profit Margin0.910.8562
Notably Up
Slightly volatile
Pretax Profit Margin0.940.9015
Sufficiently Up
Slightly volatile
Return On Assets0.07850.0964
Significantly Down
Slightly volatile
Return On Equity0.140.1729
Significantly Down
Slightly volatile
For Main Street profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Main Street to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Main Street Capital utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Main Street's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Main Street Capital over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
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.
Please note, there is a significant difference between Main Street's value and its price as these two are different measures arrived at by different 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.

Main Street Capital Current Valuation vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Main Street's current stock value. Our valuation model uses many indicators to compare Main Street value to that of its competitors to determine the firm's financial worth.
Main Street Capital is rated below average in ebitda category among its peers. It is regarded third in current valuation category among its peers reporting about  21.70  of Current Valuation per EBITDA. At this time, Main Street's EBITDA is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Main Street's earnings, one of the primary drivers of an investment's value.

Main Current Valuation vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Main Street

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
322.6 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Main Street

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Main Current Valuation vs Competition

Main Street Capital is regarded third in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is now estimated at about 69.54 Billion. Main Street retains roughly 7 Billion in current valuation claiming about 10% of equities under Financials industry.

Main Street Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Main Street, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Main Street will eventually generate negative long term returns. The profitability progress is the general direction of Main Street's change in net profit over the period of time. It can combine multiple indicators of Main Street, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income441.6 M463.7 M
Income Before Tax451.1 M473.6 M
Total Other Income Expense Net9.5 MM
Net Income428.4 M449.9 M
Income Tax Expense22.6 M23.8 M
Net Income Applicable To Common Shares277.8 M291.7 M
Net Income From Continuing Ops395.7 M199.1 M
Interest Income392.8 M240.3 M
Net Interest Income291.6 M206.6 M
Change To Netincome-432.9 M-454.5 M
Net Income Per Share 5.23  5.49 
Income Quality 0.67  0.70 
Net Income Per E B T 0.95  0.82 

Main Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Main Street. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Main Street position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Main Street's important profitability drivers and their relationship over time.

Use Main Street in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Main Street position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Main Street will appreciate offsetting losses from the drop in the long position's value.

Main Street Pair Trading

Main Street Capital Pair Trading Analysis

The ability to find closely correlated positions to Main Street could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Main Street when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Main Street - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Main Street Capital to buy it.
The correlation of Main Street is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Main Street moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Main Street Capital moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Main Street can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Main Street position

In addition to having Main Street in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Aggressive Defence
Aggressive Defence Theme
Macroaxis small cap, aggressive-outlook picks designed for investors that are willing to accept higher levels of risk to hedge exposure to above-average market volatility. The Aggressive Defence theme has 50 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Aggressive Defence Theme or any other thematic opportunities.
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When determining whether Main Street Capital offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Main Street's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Main Street Capital Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Main Street Capital Stock:
Check out Correlation Analysis.
You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
To fully project Main Street's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Main Street Capital at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Main Street's income statement, its balance sheet, and the statement of cash flows.
Potential Main Street investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Main Street investors may work on each financial statement separately, they are all related. The changes in Main Street's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Main Street's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.