Monroe Capital Corp. (MRCC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

BlackRock Capital Investment Corp

Saratoga Investment Corp.

Stellus Capital Investment Corp.

First Western Financial, Inc.

GCM Grosvenor, Inc.

WhiteHorse Finance, Inc.

Bridge Investment Group Holdings, Inc.

Monroe Capital Corp.

Oxford Square Capital Corp.

Portman Ridge Finance Corp.

Sculptor Capital Management, Inc.

Why is Monroe Capital Corp. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.60%

Poor long term growth as Net Sales has grown by an annual rate of -6.53%

With a fall in Net Sales of -11.16%, the company declared Very Negative results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 7.86 MM
INTEREST COVERAGE RATIO(Q) Lowest at 51.39
RAW MATERIAL COST(Y) Grown by 5.95% (YoY)

Risky - Market Cap of less than 100 cr

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -25.80%, its profits have risen by 683% ; the PEG ratio of the company is 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -25.80% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Monroe Capital Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Monroe Capital Corp.

-23.34%

-0.68

27.98%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.53%

EBIT Growth (5y)

31.38%

EBIT to Interest (avg)

1.58

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

7.29%

Dividend Payout Ratio

223.26%

Pledged Shares

Institutional Holding

26.73%

ROCE (avg)

14.13%

ROE (avg)

4.60%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.75

EV to EBIT

4.68

EV to EBITDA

4.68

EV to Capital Employed

0.74

EV to Sales

2.31

PEG Ratio

0.01

Dividend Yield

15.41%

ROCE (Latest)

15.90%

ROE (Latest)

3.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 96.79 %

-34What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 7.86 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 51.39

RAW MATERIAL COST(Y)

Grown by 5.95% (YoY

NET SALES(Q)

Lowest at USD 9.95 MM

PRE-TAX PROFIT(Q)

Lowest at USD -1.91 MM

NET PROFIT(Q)

Lowest at USD -1.87 MM

EPS(Q)

Lowest at USD -0.09

Here's what is working for Monroe Capital Corp.

Debt-Equity Ratio

Lowest at 96.79 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Monroe Capital Corp.

Net Sales

At USD 9.95 MM has Fallen at -31.35%

over average net sales of the previous four periods of USD 14.49 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Pre-Tax Profit

At USD -1.91 MM has Fallen at -200.7%

over average net sales of the previous four periods of USD 1.9 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -1.87 MM has Fallen at -206.18%

over average net sales of the previous four periods of USD 1.76 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 7.86 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Lowest at 51.39

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at USD 9.95 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Pre-Tax Profit

Lowest at USD -1.91 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -1.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 5.95% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales