Monroe Capital Corporation (MRCC)
Valuation Overview•Is Monroe Capital Corporation Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Fragile underlying quality score of 43/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
MRCC demonstrates adequate business quality with stable profitability. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company maintains stable top-line performance paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-22.1%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | -$5.8M | -39.7% | — | — | -0.2% | |
| EBITDA | $13.3M | — | — | — | — | |
| Net Income | -$2.6M | +17.5% | — | — | -4.4% | |
| EPS (Diluted) | $-0.12 | +17.8% | — | +46.4% | -10.1% | |
| Free Cash Flow | $23.2M | +1254.4% | +122.8% | +37.3% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 183.6% | 40.8% | 44.0% | 44.8% |
| Operating Margin | -22.1% | 28.3% | 27.7% | 69.3% |
| Net Margin | -72.9% | 27.6% | 25.7% | 36.2% |
| FCF Margin | 348.6% | 202.5% | 136.9% | -15.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q1'26Latest | $0.09 | $0.11 | +22.2% | ||
| Q4'25 | $0.15 | $0.09 | -40.0% | ||
| Q3'25 | $0.21 | $0.15 | -28.6% | ||
| Q2'25 | $0.27 | $0.19 | -29.6% | ||
| Q1'25 | $0.28 | $0.29 | +3.6% | ||
| Q4'24 | $0.29 | $0.31 | +6.9% | ||
| Q3'24 | $0.26 | $0.31 | +19.2% | ||
| Q2'24 | $0.26 | $0.25 | -3.8% |
Total return is -2.8% (1Y), lagging the benchmark by -27.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -11.4% | -20.7% | — |
| 1Y | -2.8% | -27.8% | +17.6% |
| 3YCAGR | +0.5% | -19.0% | +38.7% |
| 5YCAGR | -1.2% | -13.9% | +47.3% |
| 10YCAGR | +1.5% | -12.1% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Monroe Capital Corporation (MRCC) valuation, health, and returns.
Based on peer relative multiples, Monroe Capital Corporation appears Expensive versus peers compared to industry peers.
Monroe Capital Corporation has multiple valuation anchors: Peer Relative Fair Value: $3.19 | Wall Street Analyst Target: $8.00 (implying +57.5% upside). A convergence of these signals offers higher conviction.
Monroe Capital Corporation displays fair financial health with a composite quality score of 43/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 2.0%.
Monroe Capital Corporation pays a 0.2% dividend yield, covered by a 177% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
Monroe Capital Corporation's current growth trajectory is Stable. The company achieved -39.7% 1Y revenue growth and +17.8% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 11 analysts, beating EPS expectations in 42% of recent quarters with a 1-quarter streak. The consensus price target represents a +57.5% change from current levels.
Investment risks for Monroe Capital Corporation include: -45.5% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.99x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.