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MCAP

MCAP
42
Software - Application · Technology
Price
$8.00
+0.00 (+0.00%)
Market Cap
$197.3M
Winston Score
42
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+89372.7% over 15y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 27K (2010) → 24.4M (2025)

MCAP Inc. is a small software company operating in the application software industry. It builds and sells software tools, likely targeting business customers who need specialized applications to manage workflows or data. With a market cap of around $200 million, it sits firmly in small-cap territory within the broader technology sector.

The company generates revenue through software sales or subscription-based licensing, which helps explain its solid gross margin of roughly 45%. A return on invested capital above 30% suggests the business uses its resources efficiently, which can be a sign of a durable competitive position. However, as a small player in a crowded software market, the main risk is competition from larger vendors with bigger sales teams and deeper product ecosystems that could make it harder to win and keep customers over time.

Winston Score History

Score breakdown

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Quality

Gross Margin
2.7%
Thin — 2.7% gross margin
Operating Margin
-1.5%
Losing money on operations — -1.5%
ROCE
-0.8%
Weak — -0.8% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
-5.3%
Shrinking sales (-5.3% YoY)
EPS YoY
+269.8%
Earnings growing fast (269.8% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
136%
Turns 136% of profit into real cash
FCF Margin
13.3%
Converts sales into free cash efficiently (13.3%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
37.25x
Comfortably covers interest (37.2x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
0.5x
Attractive valuation — P/E 0.5

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
N/A
not available
Data not available

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Dividends

Dividend Yield
5.00%
Healthy income — 5.00% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth
-13.1%
Dividend cut (-13.1% YoY) — warning sign

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