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MidCap Financial Investment Corporation (MFIC)
NASDAQ:MFIC
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MidCap Financial Investment Corporation
(NASDAQ:MFIC)
Rating:69Neutral
Price Target:―
Positive Factors
Financial Performance
MFIC reported NOI of $0.44, above the $0.41 estimate, largely due to lower incentive fees.
Valuation
Merx' valuation improved as it paid down its revolver by $7.5 million.
Negative Factors
Credit Loss
Credit loss appeared to stem from Surf OpCo, which is now marked in the 80s of cost.
Risk Management
Elevated leverage with CLO financing may add risk to the story.
MidCap Financial Investment Corporation (MFIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend Yield13.36%
Average Volume (3M)341.55K
Price to Earnings (P/E)12.1
Beta (1Y)0.61
Revenue Growth0.47%
EPS Growth-36.87%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength72
IndustryAsset Management
Share Statistics
EPS (TTM)0.39
Shares Outstanding93,303,620
10 Day Avg. Volume383,523
30 Day Avg. Volume341,553
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/Revenue14.80
Enterprise Value/Gross Profit22.34
Enterprise Value/Ebitda29.41
Forecast
1Y Price Target
$13.75Price Target Upside6.84% Upside
Rating ConsensusHold
Number of Analyst Covering4
MidCap Financial Investment Corporation Business Overview & Revenue Model
Company DescriptionMidCap Financial Investment Corporation (MFIC) is a specialty finance company that provides customized debt solutions to middle-market companies across various sectors. The company primarily focuses on direct origination of senior secured loans. MFIC operates as a business development company, offering capital solutions to companies that may not have access to traditional bank financing.
How the Company Makes MoneyMidCap 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 Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q1-2025)
| % Change Since: 1.98%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
MFIC reported strong portfolio growth and a high percentage of first lien loans, with significant new commitments and active deal sourcing. However, challenges include a slight decline in NAV, decreased investment income due to lower base rates, and ongoing issues with Merx's aircraft in Russia. The impact of trade tariffs introduces market uncertainty.Q1-2025 Updates
Positive Updates
Strong Portfolio Growth
MFIC reported strong portfolio growth with net investment income (NII) per share of $0.37, resulting in an annualized return on equity (ROE) of 9.8%.
High Percentage of First Lien Loans
At the end of March, 99% of MFIC's direct origination portfolio was first lien, showcasing a strong credit quality.
Significant New Commitments
MFIC made $376 million of new commitments during the March quarter across 33 different companies.
Active Deal Sourcing
MidCap Financial closed approximately $6.5 billion of commitments during the March quarter, despite muted sponsor M&A activity.
Robust Investment Portfolio
MFIC's investment portfolio at the end of March had a fair value of $3.19 billion, invested across 240 companies in 49 different industries.
Negative Updates
NAV Decline
Net asset value (NAV) per share declined by $0.05 or approximately 30 basis points to $14.93.
Impact of Trade Tariffs
Current market uncertainty due to trade tariffs poses potential challenges, although MFIC expects these to be limited.
Decreased Investment Income
Total investment income for the March quarter was approximately $78.7 million, down 4.2% compared to the prior quarter.
Lower Base Rates Impacting Yield
A decline in base rates contributed to a decrease in asset yield, affecting interest income.
Merx Investment Challenges
Merx's aircraft on lease to Russian airlines were not returned, resulting in ongoing legal actions for insurance claims.
Company Guidance
In the recent earnings conference call for MidCap Financial Investment Corporation (MFIC) for the fiscal period ending March 31, 2025, the company provided detailed guidance and metrics reflecting its performance and outlook. MFIC reported a net investment income (NII) per share of $0.37, translating to an annualized return on equity (ROE) of 9.8%, and a GAAP net income per share of $0.32, corresponding to an annualized ROE of 8.7%. The net asset value (NAV) per share slightly decreased by $0.05 to $14.93, with a small positive impact of $0.01 from stock repurchases below NAV. The company highlighted stable credit quality trends and improvements in several credit metrics, such as a decrease in non-accrual investments, a decline in payment-in-kind (PIK) income, and reduced weighted average leverage among borrowers. MFIC's first-quarter new commitments totaled $376 million with a weighted average spread of 513 basis points, although spreads experienced some compression relative to previous quarters. The company declared a quarterly dividend of $0.38 per share, reflecting confidence in its financial health despite a challenging market backdrop characterized by tariff uncertainties and broad economic volatility.MidCap Financial Investment Corporation Financial Statement Overview
Summary
MidCap Financial Investment Corporation presents a mixed financial profile. The income statement reflects robust profitability but declining revenue. The balance sheet is strong with zero debt, yet this could limit expansion. Cash flow challenges are evident with a steep drop in free cash flow. While the company maintains profitability, addressing revenue declines and improving cash flow are crucial for future growth.Income Statement
MidCap Financial Investment Corporation shows a positive net profit margin of 89.07% in the TTM, reflecting strong profitability. However, the revenue growth rate is negative at -8.91% from the previous year, indicating a decline in revenue. The EBIT margin stands at 69.91%, showcasing efficient operations. Overall, the company demonstrates solid profitability but faces challenges with revenue growth.65
Positive
Balance Sheet
The company has a strong equity base with zero total debt in the TTM, resulting in a debt-to-equity ratio of 0. The return on equity is high at 7.63%, indicating effective use of equity to generate profits. The equity ratio is 44.04%, suggesting a balanced asset financing structure. While the lack of debt offers stability, it may limit growth opportunities.70
Positive
Cash Flow
MFIC's free cash flow growth rate is negative at -92.81% in the TTM, indicating a significant decline in free cash flow. The operating cash flow to net income ratio is 0.13, suggesting that cash generation is lagging behind income. These metrics highlight potential liquidity challenges despite positive net income.58
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 213.38M | 226.31M | 133.15M | 141.46M | 96.72M | 126.73M |
| Gross Profit | 141.32M | 110.35M | 276.50K | 94.06M | 96.72M | 85.92M |
| EBITDA | 107.36M | 98.82M | 266.40K | 103.47M | 137.38M | 111.86M |
| Net Income | 99.22M | 98.82M | 118.76M | 30.59M | 82.36M | 111.86M |
Balance Sheet | ||||||
| Total Assets | 3.46B | 3.19B | 2.50B | 2.53B | 2.60B | 2.54B |
| Cash, Cash Equivalents and Short-Term Investments | 68.98M | 75.79M | 122.13M | 87.09M | 30.60M | 54.62M |
| Total Debt | 0.00 | 1.75B | 1.46B | 1.48B | 1.55B | 1.47B |
| Total Liabilities | 2.09B | 1.79B | 1.50B | 1.54B | 1.60B | 1.51B |
| Stockholders Equity | 1.38B | 1.40B | 1.01B | 988.11M | 1.00B | 1.04B |
Cash Flow | ||||||
| Free Cash Flow | -177.71M | -9.53M | 196.38M | 76.07M | -2.68M | 470.67M |
| Operating Cash Flow | -177.71M | -9.53M | 196.38M | 76.07M | -2.68M | 470.67M |
| Investing Cash Flow | -267.33M | 0.00 | 80.19M | 82.32M | 0.00 | 373.36M |
| Financing Cash Flow | 182.52M | -36.76M | -161.36M | -101.91M | -21.33M | -459.70M |
MidCap Financial Investment Corporation Technical Analysis
Positive
12.87
Price Trends
12.73
Positive
12.32
Positive
12.56
Positive
Market Momentum
0.03
Negative
52.18
Neutral
81.75
Negative
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 12.87 is above the 20-day moving average (MA) of 12.81, above the 50-day MA of 12.73, and above the 200-day MA of 12.56, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 52.18 is Neutral, neither overbought nor oversold. The STOCH value of 81.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MFIC.
MidCap Financial Investment Corporation Risk Analysis
MidCap Financial Investment Corporation disclosed 84 risk factors in its most recent earnings report. MidCap Financial Investment Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MidCap Financial Investment Corporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $15.98B | 11.10 | 10.25% | 8.57% | 7.71% | -29.47% | |
74 Outperform | $6.01B | 11.06 | 19.65% | 6.34% | 28.32% | 13.63% | |
71 Outperform | $1.28B | 9.05 | 9.36% | 15.69% | -55.16% | 47.09% | |
69 Neutral | 12.10 | 8.34% | 13.36% | 0.47% | -36.87% | ||
67 Neutral | ¥836.32B | 13.01 | 9.24% | 3.02% | 7.93% | 10.80% | |
58 Neutral | $1.60B | ― | -4.80% | 20.53% | -30.01% | -349.28% | |
58 Neutral | $608.01M | ― | -1.48% | 19.29% | -48.53% | 73.29% |
* Financial Sector Average
Performance Comparison
MFIC
MidCap Financial Investment Corporation
12.87
0.50
4.04%
MAIN
Main Street Capital
66.10
20.41
44.67%
PSEC
Prospect Capital
2.85
-1.50
-34.48%
ARCC
Ares Capital
22.41
3.45
18.20%
TCPC
BlackRock TCP Capital
7.05
-0.64
-8.32%
GSBD
Goldman Sachs BDC
11.13
-0.73
-6.16%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.