Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 17 May 2026
MAIN· Financial Services
Main Street Capital
Main Street Capital's high dividend yield and stable ROE contrast with its modest ROIC and valuation challenges.
Buffett fit
Partial fit
Owner
58
Durability
62
Management
71
Price
38
Score updated 23 Oct 2026 · analysis from 17 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Financial Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of Main Street Capital, we'd focus on its ability to generate consistent income through its high dividend yield of 8.09% and stable of 16.38%.
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The company's durability is supported by its consistent profitability over the past five years, despite a maximum EPS decline of 32.5%.
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Main Street Capital's share count has increased at a CAGR of 6.69% over the past five years, indicating potential dilution.
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The current of 11.3 and earnings yield of 8.89% suggest a reasonable valuation.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1High dividend yield of 8.09% provides attractive income.
- 2Stable of 16.38% indicates efficient use of equity.
- 3 of 66.79% reflects strong profitability.
- 4Net margin of 58.59% suggests effective cost management.
Concerns
6- 1 of 7.87% is below the desired 15% threshold.
- 2Net debt/EBITDA of 5.18 indicates high .
- 3Interest coverage of 4.9 suggests vulnerability to interest rate increases.
- 4Share count CAGR of 6.69% implies potential dilution.
Price history
$54.10+23.5%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Main Street Capital Corporation provides equity and debt capital to lower middle market companies, focusing on recapitalizations, buyouts, and growth financings. It generates revenue through interest income and capital gains from its investments. With an of 66.79% and a net margin of 58.59%, the business model is profitable. However, the of 7.87% indicates moderate efficiency in .
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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