MidCap Financial Investment Corporation (MFIC) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 13.35%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.60
• Revenue Growth: -12.06%
• EPS Growth: -31.14%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.39
• Shares Outstanding: 92,211,870
• 10 Day Avg. Volume: 1,475,610
• 30 Day Avg. Volume: 1,132,300
• PEG Ratio: -0.36
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 3.89
• P/FCF Ratio: 10.52
• Enterprise Value/Market Cap: 10.00T>
• Enterprise Value/Revenue: 11.90
• Enterprise Value/Gross Profit: 12.68
• Enterprise Value/Ebitda: 15.25
• 1Y Price Target: $10.88
• Price Target Upside: 1.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 1.37
• Revenue Forecast (FY): $284.48M

• Rating: 51 Neutral
• Price Target: $10.50 ▼(-2.33% Downside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held back primarily by below-average and volatile financial performance (including inconsistent cash flow and elevated leverage) and bearish technical trend signals. These negatives are partially offset by attractive valuation (low P/E and high yield) and a mixed-but-constructive earnings call emphasizing buybacks and some improving credit metrics despite NAV pressure and recent losses.

Positive Factors

Senior‑secured, sponsor‑backed portfolio

A portfolio concentrated in first‑lien, sponsor‑backed loans across 247 companies and 46 industries provides durable downside protection and diversified cash income. Strong covenant coverage and moderate average position sizes support loss mitigation and steadier interest receipts over economic cycles.

Large, opportunistic share repurchase program

A sizable, disciplined buyback program executed at meaningful discounts is a durable capital allocation lever. Ongoing repurchases can be NAV‑accretive, concentrate ownership, and enhance per‑share income generation over months if management sustains opportunistic repurchases when market discounts persist.

Lower funding costs and expense reductions

A durable decline in funding costs and lower recurring expenses improves net interest margin resilience. Reduced financing expense and operating cost discipline support NII and the ability to withstand spread compression across a multi‑month horizon, aiding dividend sustainability and credit buffers.

Negative Factors

Elevated, structural leverage

Consistently elevated leverage for a BDC meaningfully amplifies downside risk: higher debt levels increase sensitivity to credit losses and interest rate moves, constrain flexibility for opportunistic investing or capital returns, and reduce shock absorptive capacity during multi‑quarter credit stress.

Erratic and recently negative cash generation

Unstable cash conversion undermines distribution and reinvestment durability: recurring negative operating/free cash flow in recent years creates reliance on financing or asset sales to fund dividends and buybacks, raising structural risk if credit seasoning or markets tighten over the next several months.

Volatile earnings and NAV pressure from legacy markdowns

Material portfolio markdowns and concentrated non‑accruals indicate legacy credit deterioration that can persist. Such realized losses compress NAV, reduce distributable earnings, and demand sustained credit remediation, making earnings and NAV recovery uncertain over a multi‑month horizon.

MidCap Financial Investment Corporation Business Overview & Revenue Model

Company Description

Apollo Investment Corporation is business development company and a closed-end, externally managed, non-diversified management investment company. It is elected to be treated as a business development company (BDC) under the Investment Company Act of 1940 (the 1940 Act) specializing in private equity investments in leveraged buyouts, acquisitions, recapitalizations, growth capital, refinancing and private middle market companies. It provides direct equity capital, mezzanine, first lien secured loans, stretch senior loans, unitranche loans, second lien secured loans and senior secured loans, unsecured debt, and subordinated debt and loans. It also seeks to invest in PIPES transactions. The fund may also invest in securities of public companies that are thinly traded and may acquire investments in the secondary market and structured products. It prefers to invest in preferred equity, common equity / interests and warrants and makes equity co-investments. It may invest in cash equivalents, U.S. government securities, high-quality debt investments that mature in one year or less, high-yield bonds, distressed debt, non-U.S. investments, or securities of public companies that are not thinly traded. It also focuses on other investments such as collateralized loan obligations (CLOs) and credit-linked notes (CLNs). The fund typically invests in construction and building materials, business services, plastics & rubber, advertising, capital equipment, education, cable television, chemicals, consumer products/goods durable and non-durable and customer services, direct marketing, energy – oil & gas, electricity and utilities. The fund also invest in aerospace & defense, wholesale, telecommunications, financial services, hotel, gaming, leisure, restaurants; environmental industries, healthcare and pharmaceuticals, high tech industries, beverages, food and tobacco, manufacturing, media – diversified & production, printing and publishing, retail, automation, aviation and consumer transport, transportation, cargo and distribution. It primarily invests in United States. It primarily invests between $20 million and $250 million in its portfolio companies. The fund seeks to make investments with stated maturities of five to 10 years.

How the Company Makes Money

MFIC makes money primarily by earning investment income from its portfolio of loans and other credit investments. The largest revenue stream is interest income paid by portfolio companies on secured and subordinated debt (often structured with floating rates), which can include contractual cash interest and, where applicable, payment-in-kind (PIK) interest that accrues to principal. In addition to interest, MFIC can earn fee income associated with originating and holding loans, such as upfront origination/arrangement fees, structuring fees, amendment/consent fees, and prepayment or exit fees when borrowers refinance or repay early. MFIC may also generate gains (or losses) from changes in the fair value of its investments and from realized gains when loans are repaid above carrying value or when equity-related positions (e.g., warrants or equity co-investments received alongside loans) are sold or marked up. As a BDC, MFIC generally aims to distribute most of its taxable income to shareholders as dividends; while dividends are not a revenue source, this structure influences how earnings are returned to investors. Information on specific named partnerships contributing to earnings is null.

MidCap Financial Investment Corporation Financial Statement Overview

Summary

Financial quality screens below average: profitability was strong in 2023–2024, but revenue and results appear highly volatile with a very weak/possibly anomalous 2025 snapshot, leverage is structurally elevated, and cash flow has been erratic with recent negative periods.

Income Statement

Results were solid in 2023–2024 with strong profitability (net margins ~50% in 2023 and ~44% in 2024) and meaningful earnings levels, but revenue growth turned negative in 2024 and the latest 2025 annual snapshot shows an extreme revenue collapse and zeroed-out profit metrics. Overall, the income profile looks highly volatile and the most recent period materially weak versus the prior two years.

Balance Sheet

Leverage is consistently elevated, with debt running around ~1.25–1.55x equity in 2021–2024, which is meaningful financial risk if earnings or credit performance deteriorate. Offsetting that, equity remains sizable and return on equity was respectable in 2023 (~11.8%) and moderate in 2024 (~7.0%), indicating the balance sheet has been productive despite the leverage. The 2025 figures (showing no debt) appear inconsistent versus the established capital structure, adding uncertainty to the latest data point.

Cash Flow

Cash generation is erratic: operating and free cash flow were very strong in 2021 and 2023, but turned negative in 2022 (early period), 2024, and sharply negative in 2025. The repeated negative cash flow in the most recent years raises questions around consistency of cash conversion and the sustainability of distributions/capital needs through cycles.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	274.39M	226.31M	237.35M	141.46M	151.74M
Gross Profit	228.85M	110.35M	133.15M	94.06M	96.72M
EBITDA	190.25M	98.82M	118.76M	103.69M	82.36M
Net Income	63.17M	98.82M	118.76M	30.59M	82.36M
Balance Sheet
Total Assets	3.32B	3.19B	2.50B	2.53B	2.60B
Cash, Cash Equivalents and Short-Term Investments	99.45M	75.79M	122.13M	87.09M	30.60M
Total Debt	2.00B	1.75B	1.46B	1.48B	1.55B
Total Liabilities	2.02B	1.79B	1.50B	1.54B	1.60B
Stockholders Equity	1.31B	1.40B	1.01B	988.11M	1.00B
Cash Flow
Free Cash Flow	101.37M	-9.53M	196.38M	76.07M	-2.68M
Operating Cash Flow	101.37M	-9.53M	196.38M	76.07M	-2.68M
Investing Cash Flow	-151.11M	0.00	0.00	82.32M	0.00
Financing Cash Flow	73.37M	-36.76M	-161.36M	-101.91M	-21.33M

MidCap Financial Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MFIC, the sentiment is Positive. The current price of 10.75 is above the 20-day moving average (MA) of 10.32, above the 50-day MA of 10.73, and below the 200-day MA of 11.28, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 56.26 is Neutral, neither overbought nor oversold. The STOCH value of 63.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MFIC.

MidCap Financial Investment Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GSBD	66 Neutral	$1.05B	8.99	8.03%	17.34%	-16.58%	65.24%
PNNT	59 Neutral	$312.12M	10.64	5.42%	16.61%	-3.09%	200.66%
SLRC	58 Neutral	$780.13M	9.11	9.32%	10.80%	-6.30%	-6.92%
SCM	55 Neutral	$264.58M	17.24	0.03%	12.83%	90.34%	-44.25%
TCPC	53 Neutral	$297.69M	-5.23	-12.44%	21.13%	-91.81%	78.46%
MFIC	51 Neutral	―	16.89	4.64%	13.35%	-12.06%	-31.14%