MidCap Financial Investment Corporation (MFIC) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 13.35%
• Average Volume (3M): 593.53K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.62
• Revenue Growth: -12.06%
• EPS Growth: -31.14%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.38
• Shares Outstanding: 93,303,620
• 10 Day Avg. Volume: 552,591
• 30 Day Avg. Volume: 593,528
• PEG Ratio: -0.35
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 4.65
• P/FCF Ratio: -110.33
• Enterprise Value/Market Cap: 10.00T>
• Enterprise Value/Revenue: 4.19
• Enterprise Value/Gross Profit: 9.11
• Enterprise Value/Ebitda: 7.48
• 1Y Price Target: $12.13
• Price Target Upside: 11.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 1.42
• Revenue Forecast (FY): $301.73M

• Rating: 58 Neutral
• Price Target: $12.00 ▲(9.89% Upside)

The score is held back primarily by weak cash-flow quality and leverage in the financial profile, along with negative/soft technical momentum. These are partly offset by attractive valuation (low P/E and high dividend yield) and an earnings update showing solid NII and improved funding costs, though tempered by higher non-accruals and rate-driven income pressure.

Positive Factors

Senior‑secured middle‑market lending focus

MFIC’s business model centers on senior‑secured, predominantly floating‑rate loans to middle‑market firms, offering structural downside protection and natural rate sensitivity. This loan-first approach and industry diversification support durable interest income and loss mitigation over multiple credit cycles.

Strong net investment income and active deployment

Reported NII and a double‑digit annualized ROE indicate the portfolio is generating recurring cash yields. Simultaneous active deal flow and $138M of new commitments show sustained origination capability, helping revenue durability by replenishing yielding assets and diversifying sources of interest income.

Improved funding and CLO repricing

Repricing and upsizing of securitization plus a longer, cheaper revolver materially lowers funding costs and extends maturities. Structural improvement in liability economics enhances margin sustainability and gives MFIC greater flexibility to deploy capital and absorb rate or portfolio shocks over the medium term.

Negative Factors

Weak cash‑flow quality

Recent transitions from positive to negative operating and free cash flow signal earnings are not translating to cash. That weakens the company's ability to self‑fund dividends, cover reserves or absorb write‑downs, increasing long‑term reliance on capital markets and asset realizations to meet obligations.

Elevated leverage

Material leverage constrains financial flexibility and magnifies mark‑to‑market and default risks in downturns. With debt levels near 1.25–1.54x equity and ROE having fallen (TTM ~5.2% vs 2023 ~11.8%), capital structure strain could pressure margins and limit opportunistic deployments during stress.

Rising credit stress and NAV pressure

An increase in non‑accruals, a quarter‑over‑quarter NAV decline and explicit bankruptcy exposure indicate growing credit deterioration and mark risk. Persistent asset‑level issues can erode capital, force additional reserves or principal losses, and strain dividend sustainability absent stronger recoveries or realized gains.

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

Mixed fundamentals: strong TTM revenue rebound (+80.1%) and solid net margins (~41.9% TTM), but elevated leverage (debt-to-equity ~1.25–1.54) and, most importantly, a recent breakdown in cash generation (negative operating and free cash flow in TTM and 2024) reduce quality and durability.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded strongly (+80.1% growth) after two years of modest declines in 2023–2024. Profitability is solid in recent periods, with TTM net margins around 41.9% and 2024 net margins around 43.7%. A key weakness is volatility and inconsistencies across years (e.g., unusually low gross margin in 2023 and large swings in growth), which reduces confidence in earnings durability.

Balance Sheet

The balance sheet shows meaningful leverage, with debt-to-equity consistently around ~1.25–1.54 across the periods provided, which limits flexibility in weaker markets. Equity and assets have grown versus 2022–2023 levels (supportive for scale), and returns on equity are positive but have trended lower recently (TTM ~5.2% vs. 2023 ~11.8%), suggesting reduced profitability on the capital base.

Cash Flow

Cash flow quality has weakened materially: operating and free cash flow are negative in both TTM (Trailing-Twelve-Months) (-$1.3M) and 2024 (-$9.5M) after being strongly positive in 2021–2023. The sharp drop in free cash flow growth (TTM -99.3%) and negative operating cash generation versus net income in the last two periods are notable risks, indicating earnings are not currently translating into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	236.41M	226.31M	237.35M	141.46M	151.74M	182.15M
Gross Profit	108.66M	110.35M	133.15M	94.06M	96.72M	126.73M
EBITDA	132.30M	98.82M	118.76M	103.69M	82.36M	111.86M
Net Income	99.96M	98.82M	118.76M	30.59M	82.36M	111.86M
Balance Sheet
Total Assets	3.31B	3.19B	2.50B	2.53B	2.60B	2.54B
Cash, Cash Equivalents and Short-Term Investments	62.50M	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	1.94B	1.79B	1.50B	1.54B	1.60B	1.51B
Stockholders Equity	1.37B	1.40B	1.01B	988.11M	1.00B	1.04B
Cash Flow
Free Cash Flow	-1.31M	-9.53M	196.38M	76.07M	-2.68M	470.67M
Operating Cash Flow	-1.31M	-9.53M	196.38M	76.07M	-2.68M	470.67M
Investing Cash Flow	0.00	0.00	0.00	82.32M	0.00	0.00
Financing Cash Flow	-17.05M	-36.76M	-161.36M	-101.91M	-21.33M	-459.70M

MidCap Financial Investment Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 10.92 is below the 20-day moving average (MA) of 11.33, below the 50-day MA of 11.53, and below the 200-day MA of 11.69, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 47.82 is Neutral, neither overbought nor oversold. The STOCH value of 30.93 is Neutral, 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
SLRC	70 Outperform	$826.50M	8.92	9.07%	10.80%	-6.30%	-6.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GSBD	66 Neutral	$1.07B	8.07	8.75%	17.34%	-16.58%	65.24%
SCM	60 Neutral	$353.74M	11.25	8.20%	12.83%	90.34%	-44.25%
MFIC	58 Neutral	―	10.22	7.18%	13.35%	-12.06%	-31.14%
PNNT	55 Neutral	$377.41M	11.29	6.83%	16.61%	-3.09%	200.66%
TCPC	50 Neutral	$431.84M	-47.70	-1.15%	21.13%	-91.81%	78.46%

MidCap Financial Investment Corporation Corporate Events

MidCap Financial Completes $492 Million Debt Securitization

On October 23, 2025, MidCap Financial Investment Corporation completed a $492 million term debt securitization to redeem existing secured notes issued by its subsidiary, MFIC Bethesda CLO 1 LLC. This transaction, known as the 2025 Debt Securitization, involved the issuance of various classes of secured and subordinated notes, backed by a diversified portfolio of commercial loans, and is set to mature in 2037. The company retained a significant portion of the subordinated notes to comply with U.S. regulations, maintaining its role as collateral manager. This move is expected to impact the company’s financial operations by restructuring its debt obligations and enhancing its market positioning in the CLO space.

The most recent analyst rating on (MFIC) stock is a Buy with a $13.50 price target. To see the full list of analyst forecasts on MidCap Financial Investment Corporation stock, see the MFIC Stock Forecast page.