MidCap Financial Investment Corporation (MFIC) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 13.35%
• Average Volume (3M): 802.85K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.66
• 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: 1,154,070
• 30 Day Avg. Volume: 802,847
• PEG Ratio: -0.36
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 3.89
• P/FCF Ratio: -21.45
• Enterprise Value/Market Cap: 10.00T>
• Enterprise Value/Revenue: 10.35
• Enterprise Value/Gross Profit: 12.41
• Enterprise Value/Ebitda: 14.93
• 1Y Price Target: $11.25
• Price Target Upside: 16.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.39
• Revenue Forecast (FY): $290.92M

• Rating: 51 Neutral
• Price Target: $9.50 ▼(-1.86% 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

Diversified, first‑lien, sponsor‑backed portfolio

A large, diversified portfolio concentrated in first‑lien, sponsor‑backed credits and widespread covenants reduces loss severity and idiosyncratic exposure. This structural positioning supports steadier interest income, stronger recovery prospects, and more resilient long‑term cash generation versus unsecured strategies.

Aggressive, opportunistic buybacks and capital allocation

Management's sizable, disciplined repurchase program shows active capital allocation to capture persistent NAV discounts. Buying shares at deep discounts can materially boost long‑term per‑share NAV and return on equity when executed without materially increasing structural leverage, aligning management action with shareholder value.

Improving credit metrics and underwriting discipline

A decline in non‑accruals and better coverage metrics indicate recovery and effective workout/underwriting processes. Sustained improvement in credit performance and coverage ratios supports lower expected losses and steadier net investment income over the medium term, aiding dividend durability and NAV stabilization.

Negative Factors

Elevated and persistent leverage

Meaningful structural leverage increases sensitivity to credit losses and interest costs, reducing financial flexibility. In stressed cycles, elevated debt amplifies NAV volatility and limits the firm's ability to absorb shocks or opportunistically lend, making long‑term earnings and dividend stability more conditional on credit outcomes.

Volatile revenue and earnings history

High volatility in revenue and episodic collapses in reported income undermine predictability of distributable earnings. For a dividend‑focused BDC, inconsistent revenue and profits complicate capital planning, raise the risk of future payout adjustments, and make multi‑quarter coverage of dividends less reliable.

Mark‑to‑market losses tied to legacy vintages

Concentrated markdowns and realized portfolio losses from older vintages drag NAV and can persist across quarters. Legacy credit problems reduce investor confidence and make buybacks/ dividends riskier if unresolved, creating ongoing pressure on long‑term capital returns and NAV recovery timelines.

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

MidCap Financial Investment Corporation makes money by providing loans and other credit solutions to middle-market companies. The primary revenue stream comes from the interest income generated on these loans. Additionally, MFIC may earn fees associated with the origination, structuring, and management of these loans. The company's earnings are influenced by factors such as interest rate fluctuations, credit risk management, and strategic partnerships with other financial institutions that may co-invest in loan opportunities.

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	158.05M	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	102.43M	1.79B	1.50B	1.54B	1.60B
Stockholders Equity	55.62M	1.40B	1.01B	988.11M	1.00B
Cash Flow
Free Cash Flow	-49.75M	-9.53M	196.38M	76.07M	-2.68M
Operating Cash Flow	-49.75M	-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: Negative
• Last Price: 9.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MFIC, the sentiment is Negative. The current price of 9.68 is below the 20-day moving average (MA) of 11.06, below the 50-day MA of 11.30, and below the 200-day MA of 11.70, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 24.16 is Positive, neither overbought nor oversold. The STOCH value of 13.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$1.02B	8.78	7.96%	17.34%	-16.58%	65.24%
SCM	60 Neutral	$290.05M	9.20	8.20%	12.83%	90.34%	-44.25%
PNNT	59 Neutral	$325.17M	12.70	5.38%	16.61%	-3.09%	200.66%
SLRC	58 Neutral	$786.68M	8.50	9.31%	10.80%	-6.30%	-6.92%
TCPC	53 Neutral	$347.00M	―	-1.15%	21.13%	-91.81%	78.46%
MFIC	51 Neutral	―	14.29	4.66%	13.35%	-12.06%	-31.14%