MidCap Financial Investment Corporation (MFIC) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 13.35%
• Average Volume (3M): 722.18K
• Price to Earnings (P/E): 10.7
• 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: 684,662
• 30 Day Avg. Volume: 722,185
• 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: N/A
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $12.13
• Price Target Upside: 6.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $12.00 ▲(4.99% Upside)

The score is held back primarily by financial volatility—especially the sharp deterioration to negative operating cash flow—along with weak technical momentum. These are partially offset by attractive valuation (low P/E and high dividend yield) and a generally constructive earnings update on NII and funding costs, though tempered by rising non-accruals and rate-cut pressure on income.

Positive Factors

Strong Profitability

The high net profit margin reflects efficient operations and strong profitability, which can support sustained earnings and shareholder returns over time.

Successful Mergers

The mergers significantly increased MFIC's asset base, enhancing its investment capacity and strategic positioning in the market.

Extended Credit Facility

The extended credit facility provides MFIC with long-term financial flexibility and stability, supporting future growth and investment opportunities.

Negative Factors

Declining Revenue

Declining revenue growth can hinder the company's ability to expand and invest in new opportunities, potentially impacting long-term competitiveness.

Cash Flow Challenges

Significant declines in free cash flow indicate potential liquidity issues, which could limit the company's ability to fund operations and growth initiatives.

Spread Compression

Spread compression reduces profitability on new loans, challenging MFIC's ability to maintain margins and competitive advantage in a borrower-friendly market.

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

Strong reported profitability (net and operating margins ~44%) and improving leverage (debt/equity down to ~1.25x) are positives, but they are outweighed by negative 2024 operating cash flow (about -$9.5M after ~$196M in 2023) and slightly declining revenue, indicating higher earnings/cash-flow volatility.

Income Statement

Profitability is strong in the most recent year, with a high net profit margin (~44%) and solid operating profitability (~44%). However, growth has turned negative, with revenue down about 3% in 2024 and essentially flat-to-down in 2023, following a strong rebound in 2022. The revenue and margin pattern also appears volatile across years, which lowers confidence in the durability of earnings.

Balance Sheet

The balance sheet is moderately leveraged: debt is about 1.25x equity in 2024 (improved from ~1.45–1.50x in 2022–2023), which is a positive trend. Equity increased materially versus 2023, supporting the capital base. That said, leverage remains meaningful and return on equity eased to ~7% in 2024 from ~12% in 2023, indicating weaker efficiency/returns in the latest period.

Cash Flow

Cash generation deteriorated sharply in 2024, with operating cash flow turning negative (about -$9.5M) after a strong positive year in 2023 (~$196M). This swing suggests higher variability in cash collections/distributions and reduces near-term financial flexibility. While cash flow was strong in 2021–2023 overall, the latest negative free cash flow is a clear weakness.

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: 11.43
• 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 11.43 is below the 20-day moving average (MA) of 11.57, below the 50-day MA of 11.62, and below the 200-day MA of 11.65, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 46.64 is Neutral, neither overbought nor oversold. The STOCH value of 38.98 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	72 Outperform	$845.05M	9.38	9.07%	10.80%	-6.30%	-6.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GSBD	65 Neutral	$1.05B	8.03	8.75%	17.34%	-16.58%	65.24%
SCM	60 Neutral	$378.92M	12.05	8.20%	12.83%	90.34%	-44.25%
PNNT	57 Neutral	$393.08M	12.15	6.83%	16.61%	-3.09%	200.66%
MFIC	56 Neutral	―	10.73	7.18%	13.35%	-12.06%	-31.14%
TCPC	50 Neutral	$472.56M	-52.20	-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.