MidCap Financial Investment Corporation (MFIC)
NASDAQ:MFIC
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MidCap Financial Investment Corporation
(NASDAQ:MFIC)
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Rating:51Neutral
Price Target:
$11.50
▼(-1.63% Downside)
Action:ReiteratedDate: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
First‑lien, sponsor‑backed diversified portfolio
A large, broadly diversified first‑lien portfolio structured around sponsor‑backed middle‑market loans provides durable downside protection and recovery priority. High covenant coverage and modest average position sizes reduce idiosyncratic risk and support steadier long‑term credit performance.
Negative Factors
Structurally elevated leverage
Consistently elevated leverage magnifies earnings and NAV volatility and leaves limited capital buffer against credit shocks. While ROE was productive in stronger years, this capital structure raises persistent financial risk if loan performance or interest spreads deteriorate, constraining flexibility.
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Positive Factors
Negative Factors
First‑lien, sponsor‑backed diversified portfolio
A large, broadly diversified first‑lien portfolio structured around sponsor‑backed middle‑market loans provides durable downside protection and recovery priority. High covenant coverage and modest average position sizes reduce idiosyncratic risk and support steadier long‑term credit performance.
Read all positive factors
MidCap Financial Investment Corporation (MFIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend Yield13.35%
Average Volume (3M)1.36M
Price to Earnings (P/E)16.9
Beta (1Y)0.59
Revenue Growth-12.06%
EPS Growth-31.14%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.39
Shares Outstanding92,211,870
10 Day Avg. Volume1,153,466
30 Day Avg. Volume1,356,912
Financial Highlights & Ratios
PEG Ratio-0.36
Price to Book (P/B)0.82
Price to Sales (P/S)3.89
P/FCF Ratio10.52
Enterprise Value/Market Cap10.00T>
Enterprise Value/Revenue12.25
Enterprise Value/Gross Profit13.05
Enterprise Value/Ebitda15.70
Forecast
1Y Price Target
$10.88Price Target Upside-6.93% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)1.37
Revenue Forecast (FY)$284.95M
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...
How the Company Makes Money
MFIC makes money primarily by earning investment income on its portfolio of loans and other credit investments. The core revenue stream is interest income from senior secured loans (typically floating-rate) and other debt instruments issued by mid...
MidCap Financial Investment Corporation Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The call presents a mix of constructive portfolio and capital‑allocation actions (large, opportunistic buyback authorization; disciplined first‑lien, sponsor‑backed portfolio; improving non‑accruals; lower cost of debt) alongside material near‑term headwinds (quarterly GAAP and portfolio losses, NAV down 3.3%, yield compression, several non‑accruals and one‑time financing losses). Management has taken proactive steps to support shareholder value (aggressive repurchases, dividend reset, balance sheet actions) but recent realized losses and legacy credit markdowns temper near‑term results. Overall, the tone is pragmatic and action‑oriented, with both meaningful positives and notable challenges.Positive Updates
New and Expanded Share Repurchase Authorization
Board authorized a new $100.0M stock repurchase plan (in addition to ~$7.9M remaining under prior authorization), bringing total repurchase capacity to $107.9M; repurchased ~1.1M shares in the quarter at an average discount of 18%, generating approximately $0.03 per share of NAV accretion.
Negative Updates
Quarterly GAAP Loss and Portfolio Mark‑to‑Market Pressure
GAAP net loss per share was $0.14 for the quarter (or $0.10 excluding ~$0.04 per share of one‑time financing costs); NAV per share declined 3.3% QoQ to $14.18, driven by a handful of older vintage investments (predominantly 2022 and earlier).
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Q4-2025 Updates
Positive
Negative
New and Expanded Share Repurchase Authorization
Board authorized a new $100.0M stock repurchase plan (in addition to ~$7.9M remaining under prior authorization), bringing total repurchase capacity to $107.9M; repurchased ~1.1M shares in the quarter at an average discount of 18%, generating approximately $0.03 per share of NAV accretion.
Read all positive updates
Company Guidance
Guidance from the call centered on capital allocation and dividend policy: the board authorized a new $100.0 million stock repurchase program (bringing total repurchase capacity to $107.9 million after ~ $7.9 million remaining from the prior plan), management repurchased ~1.1 million shares at an average 18% discount for $12.9 million (≈$0.03 NAV accretion) and expects, if current discounts and volumes persist, to fully utilize the authorization by late May; the board also declared a quarterly dividend of $0.31 per share (record March 10, payable March 26) and said repurchases should not materially increase net leverage given visibility into expected repayments (including a $7.5 million Merx paydown in the quarter and an additional $22 million post-quarter, $29.5 million total). Key portfolio and financial context cited to support this guidance included: portfolio fair value $3.17 billion, NAV $14.18 per share (down 3.3% q/q) and total net assets $1.31 billion, NII per share $0.39, GAAP net loss per share $0.14 ($0.10 ex ~$0.04 of one‑time financing costs), total principal debt $2.0 billion and net leverage 1.45x; quarter activity of $141 million of new commitments across 26 transactions (weighted‑average spread 497 bps, weighted avg net leverage 4.0x), gross fundings $156 million, sales/repayments $119 million, net fundings +$25 million; portfolio credit/yield metrics: weighted avg yield at cost 10.0% (from 10.3%), weighted avg spread on direct origination 546 bps (down 13 bps), cost of debt 5.95% (from 6.37%), non‑accruals 2.6% (from 3.1%), PIK 4.8% of investment income, and software exposure 11.4% of the portfolio (avg position ~$12 million, avg LTV 32%, median EBITDA $52 million, weighted avg net leverage 4.6x, interest coverage 2.3x).MidCap Financial Investment Corporation Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
56
Neutral
Cash Flow
27
Negative
| 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
Positive
11.69
Price Trends
10.77
Positive
10.98
Positive
11.26
Positive
Market Momentum
0.28
Negative
65.86
Neutral
80.67
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 11.69 is above the 20-day moving average (MA) of 11.09, above the 50-day MA of 10.77, and above the 200-day MA of 11.26, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 65.86 is Neutral, neither overbought nor oversold. The STOCH value of 80.67 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $1.01B | 8.99 | 8.03% | 17.34% | -16.58% | 65.24% | |
58 Neutral | $291.22M | 10.64 | 5.42% | 16.61% | -3.09% | 200.66% | |
58 Neutral | $818.87M | 9.11 | 9.32% | 10.80% | -6.30% | -6.92% | |
55 Neutral | $270.66M | 13.30 | 0.03% | 12.83% | 90.34% | -44.25% | |
53 Neutral | $323.83M | -5.23 | -12.44% | 21.13% | -91.81% | 78.46% | |
51 Neutral | ― | 16.89 | 4.64% | 13.35% | -12.06% | -31.14% |
* Financial Sector Average
MFIC
MidCap Financial Investment Corporation
11.69
1.81
18.28%
PNNT
Pennantpark Investment
4.46
-0.91
-16.88%
SLRC
SLR Investment Corp.
15.01
1.63
12.22%
SCM
Stellus Capital
9.35
-1.66
-15.04%
TCPC
BlackRock TCP Capital
3.84
-1.67
-30.36%
GSBD
Goldman Sachs BDC
8.97
0.38
4.45%
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.