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Medallion Financial (MFIN)
NASDAQ:MFIN
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Medallion Financial
(NASDAQ:MFIN)
76Outperform
Medallion Financial (MFIN) vs. S&P 500 (SPY)
Market Cap
$204.71M
Dividend Yield4.66%
Average Volume (3M)45.94K
Price to Earnings (P/E)5.8
Beta (1Y)1.01
Revenue Growth14.58%
EPS Growth-34.99%
CountryUS
Employees174
SectorFinancial
Sector Strength84
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.52
Shares Outstanding23,262,102
10 Day Avg. Volume52,188
30 Day Avg. Volume45,941
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.96
Price to Cash Flow (P/CF)1.80
P/FCF Ratio1.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.00Price Target Upside24.29% Upside
Rating ConsensusHold
Number of Analyst Covering1
Medallion Financial Business Overview & Revenue Model
Company DescriptionMedallion Financial Corp. (MFIN) is a specialty finance company that operates primarily in the United States. The company is best known for its involvement in the origination and servicing of loans that finance taxicab medallions, but it has diversified its services over the years to include consumer lending and commercial lending. Medallion Financial Corp. works within the financial services sector, offering a range of lending solutions, including recreational and home improvement loans, through its subsidiaries.
How the Company Makes MoneyMedallion Financial Corp. generates revenue through interest and fees from its loan portfolio. Its primary revenue streams include interest income from medallion loans, consumer loans, and commercial loans. The company has sought to diversify its revenue sources by expanding into consumer lending markets, particularly focusing on niche sectors such as recreational and home improvement loans. Medallion Financial also earns money from fees associated with loan origination and servicing. Partnerships with other financial institutions and dealers aid in expanding its lending reach and customer base, contributing to its earnings. The company's strategic diversification efforts have been crucial in adapting to changing market conditions and regulatory environments, especially given the challenges faced in the taxicab medallion market.
Medallion Financial Financial Statement Overview
Summary
Medallion Financial demonstrates strong financial health with significant revenue and profit growth, improved leverage metrics, and effective cash flow management. The company's ability to enhance profitability and maintain low debt levels positions it well within the credit finance industry. Potential risks include limited visibility into EBITDA performance for 2024 and minimal capital expenditure, which may impact long-term growth.Income Statement
Medallion Financial has shown impressive revenue growth of 10.09% from 2023 to 2024, with a gross profit margin consistently at 100%, indicating strong revenue management. The net profit margin improved significantly from 20.85% in 2023 to 28.87% in 2024, reflecting enhanced profitability. However, the absence of EBITDA margin data for 2024 might limit further margin analysis.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio has improved, with a reduction in total debt from 2023 to 2024, leading to a low leverage position. The equity ratio stands at a stable 12.9%, indicating a consistent reliance on equity financing. Return on equity increased from 16.06% in 2023 to 22.68% in 2024, showcasing better utilization of shareholders' funds.75
Positive
Cash Flow
Operating cash flow to net income ratio remains strong, reflecting effective cash generation relative to earnings. Free cash flow experienced a slight growth, maintaining robust cash flow management. However, the absence of capital expenditures may indicate underinvestment in growth opportunities.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 290.70M | 264.06M | 156.93M | 148.07M | 117.21M | Gross Profit |
| 290.70M | 226.25M | 124.45M | 122.06M | 86.69M | EBIT |
| 289.33M | 102.90M | 97.99M | 78.33M | -44.86M | EBITDA |
| 0.00 | 104.74M | 87.25M | 102.95M | 0.00 | Net Income Common Stockholders |
| 83.95M | 55.08M | 43.84M | 54.11M | -26.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 153.04M | 149.84M | 154.09M | 124.48M | 112.04M | Total Assets |
| 2.87B | 2.59B | 2.26B | 1.87B | 1.64B | Total Debt |
| 54.13M | 253.06M | 232.72M | 229.03M | 252.07M | Net Debt |
| -44.11M | 200.47M | 127.12M | 104.54M | 140.03M | Total Liabilities |
| 2.43B | 2.18B | 1.89B | 1.52B | 1.34B | Stockholders Equity |
| 370.17M | 342.99M | 301.74M | 287.04M | 231.41M |
| Cash Flow | Free Cash Flow | |||
| 115.51M | 113.76M | 108.74M | -217.62M | 78.71M | Operating Cash Flow |
| 115.51M | 113.76M | 108.74M | 78.73M | 78.71M | Investing Cash Flow |
| -335.78M | -340.70M | -449.00M | -238.32M | -170.96M | Financing Cash Flow |
| 239.99M | 271.18M | 321.38M | 172.04M | 136.47M |
Medallion Financial Technical Analysis
Positive
8.85
Price Trends
8.68
Positive
9.07
Negative
8.43
Positive
Market Momentum
0.08
Negative
56.79
Neutral
71.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MFIN, the sentiment is Positive. The current price of 8.85 is above the 20-day moving average (MA) of 8.52, above the 50-day MA of 8.68, and above the 200-day MA of 8.43, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 56.79 is Neutral, neither overbought nor oversold. The STOCH value of 71.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MFIN.
Medallion Financial Risk Analysis
Medallion Financial disclosed 41 risk factors in its most recent earnings report. Medallion Financial 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
Medallion Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.51B | 13.70 | 17.19% | ― | 25.51% | 36.96% | |
76 Outperform | $204.71M | 5.79 | 10.06% | 4.66% | 14.58% | -34.99% | |
68 Neutral | $11.19B | 20.25 | 6.63% | 3.29% | 3.41% | -12.41% | |
64 Neutral | $14.46B | 10.12 | 8.75% | 4.25% | 17.00% | -11.86% | |
60 Neutral | $692.18M | ― | -35.80% | ― | 33.86% | 66.85% | |
53 Neutral | $1.26B | 24.36 | 3.96% | ― | 3.63% | 27.77% |
* Financial Sector Average
Performance Comparison
MFIN
Medallion Financial
8.85
1.43
19.27%
TREE
Lendingtree
55.58
14.76
36.16%
ALLY
Ally Financial
37.88
-0.36
-0.94%
LC
LendingClub
11.65
3.21
38.03%
ENVA
Enova International
101.94
41.28
68.05%
Medallion Financial Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: 9.67% | Next Earnings Date: May 5, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance for Medallion Financial Corp with record net income and significant achievements in loan origination and partnership growth. However, there were challenges, including a decline in net interest margin, increased provision for credit loss, and issues with consumer loans past due. Despite these challenges, the strategic actions taken, such as the dividend increase and successful portfolio exits, suggest a positive outlook.Highlights
Record Net Income and Earnings Per Share
Fourth quarter net income was the highest of the year at $10.1 million and EPS was $0.43. The full-year net income was $35.9 million with an EPS of $1.52.
Loan Origination Milestone
Achieved over $1 billion in loan originations for the first time in company history, while maintaining high credit standards.
Strategic Partnership Program Growth
Significant increase in loan volumes from $40 million in Q3 to $124 million in Q4 due to a new partnership.
Dividend Increase
Quarterly dividend increased by 10% to $0.11, showing confidence in future growth and commitment to shareholder value.
Successful Portfolio Investment Exit
Exited a portfolio investment in the Medallion Capital segment with net gains of $3.8 million for Q4 and $6.9 million for the year.
Lowlights
Net Interest Margin Decline
Net interest margin decreased by 27 basis points from the prior quarter and 36 basis points from the previous year.
Provision for Credit Loss Increase
Provision for credit loss was $20.6 million for the quarter, up from $20.1 million in Q3 and $10.8 million in the prior year quarter.
Consumer Loans 90 Days Past Due
Consumer loans more than 90 days past due increased to $11.4 million or 4.49% of total consumer loans, compared to $10.6 million or 0.52% a year ago.
SEC Settlement Charge
Booked a $3 million charge related to a settlement agreement with the SEC, pending approval.
Company Guidance
During Medallion Financial Corp's fourth-quarter earnings call, the company reported a strong performance for the fiscal year 2024, achieving a net income of $10.1 million and earnings per share of $0.43 for the fourth quarter, contributing to a full-year net income of $35.9 million and $1.52 earnings per share. Significant achievements included over $1 billion in loan originations, with an average FICO score of 686 for recreational loans and 781 for home improvement loans. The company's rec lending segment saw $72 million in new loan originations, while home improvement lending reached $83 million, with interest rates averaging 15.07% and 9.81%, respectively. The commercial lending segment maintained a strong yield with $111 million in loans and an interest rate of 12.97%. The quarter also saw a strategic partnership program expansion from $40 million to $124 million in loan volumes. The board approved a 10% increase in the quarterly dividend, and the company repurchased 570,000 shares at an average price of $8.07. Net interest income grew to $52 million for the quarter, and the net interest margin on gross loans was 7.84%. Operating expenses were $17.2 million, and the provision for credit loss was $20.6 million, reflecting the release of $3.9 million of allowance for credit loss. The call emphasized the company's focus on maintaining high credit standards and optimizing shareholder returns through dividends and share buybacks.Medallion Financial Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Medallion Financial Reports Decrease in Net Income
Negative
Jan 30, 2025
Medallion Bank reported a net income of $15.6 million for the fourth quarter of 2024, a decrease from $21.9 million in the previous year’s quarter. The Bank saw its net interest income rise to $53.1 million, while its provision for credit losses increased significantly. The annualized net charge-offs also rose, reflecting challenges in the economic environment. For the full year 2024, the Bank’s net income was $60.6 million, down from $79.9 million in 2023, with a substantial increase in credit loss provisions. Despite these challenges, the Bank’s loan portfolio grew by 13% to $2.4 billion, driven by strong recreation loan originations and strategic partnerships. A letter of intent was signed in December 2024 to sell up to $121 million of recreation loans, aligning with the Bank’s strategy to efficiently recycle capital and meet customer demand in 2025. A quarterly dividend on Series F Preferred Stock was also declared, reflecting the Bank’s ongoing commitment to returning value to shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.