Medallion Financial (MFIN) AI Stock Analysis

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Medallion Financial

(NASDAQ:MFIN)

Rating:80Outperform

Price Target:

$11.00

▲( 17.27% Upside)

Medallion Financial's stock is well-positioned due to its strong financial performance, attractive valuation, and positive technical indicators. The company's earnings call solidified its strong start to the year, despite the challenges of increased credit loss provisions and higher operating expenses. Overall, the stock represents a solid investment opportunity with good returns.

Medallion Financial (MFIN) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$214.94M

Dividend Yield4.54%

Average Volume (3M)44.06K

Price to Earnings (P/E)5.8

Beta (1Y)0.84

Revenue Growth13.93%

EPS Growth-23.70%

CountryUS

Employees174

SectorFinancial

Sector Strength82

IndustryFinancial - Credit Services

Share Statistics

EPS (TTM)0.50

Shares Outstanding23,236,480

10 Day Avg. Volume44,772

30 Day Avg. Volume44,064

Financial Highlights & Ratios

PEG Ratio0.96

Price to Book (P/B)0.54

Price to Sales (P/S)0.00

P/FCF Ratio1.84

Enterprise Value/Market Cap1.73

Enterprise Value/Revenue0.35

Enterprise Value/Gross Profit1.76

Enterprise Value/Ebitda0.69

Forecast

1Y Price Target

$11.00

Price Target Upside17.27% Upside

Rating ConsensusHold

Number of Analyst Covering1

Medallion Financial Business Overview & Revenue Model

Company DescriptionMedallion Financial Corp., together with its subsidiaries, operates as a finance company in the United States. The company operates through four segments: Recreation Lending, Home Improvement Lending, Commercial Lending, and Medallion Lending. It provides loans that finance consumer purchases of recreational vehicles, boats, and trailers; consumer home improvements; commercial businesses; and taxi medallions to individuals, and small to mid-size businesses. The company also offers commercial loans for purchase of equipment and related assets necessary to open a new business, or purchase or improvement of an existing business; and medallion loans. In addition, it provides debt, mezzanine, and equity investment capital to companies in various industries; and raises deposits and conducts other banking activities. Medallion Financial Corp. was incorporated in 1995 and is headquartered in New York City, New York.

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 showcases strong financial health with impressive revenue and profit growth. The company has improved leverage metrics and effective cash flow management. However, potential risks include limited visibility into EBITDA performance for 2024 and minimal capital expenditure, which may impact long-term growth.

Income Statement

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
290.70M	264.06M	156.93M	148.07M	117.21M
	Gross Profit
203.62M	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
35.88M	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
288.59M	253.06M	232.72M	229.03M	252.07M
	Net Debt
190.35M	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

Technical Analysis Sentiment

Positive

Last Price9.38

Price Trends

50DMA

8.74

Positive

100DMA

8.70

Positive

200DMA

8.56

Positive

Market Momentum

MACD

0.18

Negative

RSI

64.32

Neutral

STOCH

70.37

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 9.38 is above the 20-day moving average (MA) of 9.03, above the 50-day MA of 8.74, and above the 200-day MA of 8.56, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 64.32 is Neutral, neither overbought nor oversold. The STOCH value of 70.37 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 2 New Risks

We are subject to a variety of risks in connection with any sales of loans we may conduct. Q4, 2024

Climate change could disrupt our business and new regulations or guidance relating to climate change may affect whether and on what terms and conditions we engage in certain activities or offer certain products. Q4, 2024

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
MFIN	80 Outperform	$214.94M	5.78	10.39%	4.54%	13.93%	-23.70%
OVLY	72 Outperform	$220.36M	8.86	13.99%	2.00%	0.40%	-10.62%
BPRN	69 Neutral	$222.01M	19.52	4.43%	3.75%	10.64%	-56.22%
Sector *	64 Neutral	$12.78B	9.87	7.67%	17015.06%	12.34%	-5.99%
LCNB	61 Neutral	$217.75M	13.46	6.54%	5.80%	24.45%	25.77%
FFNW	55 Neutral	$208.18M	194.65	0.66%	2.30%	2.28%	-83.17%
BLFY	51 Neutral	$213.95M	―	-3.48%	―	7.45%	-41.97%

* Financial Sector Average

Performance Comparison

MFIN

Medallion Financial

9.38

1.76

23.10%

FFNW

First Financial Northwest

22.56

1.21

5.67%

LCNB

14.81

0.95

6.85%

OVLY

Oak Valley Bancorp [Ca]

25.50

1.70

7.14%

BPRN

Bank of Princeton

31.46

1.85

6.25%

BLFY

Blue Foundry

9.58

-0.05

-0.52%

Medallion Financial Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: 7.94%|

Next Earnings Date:Aug 05, 2025

Earnings Call Sentiment Positive

The earnings call demonstrated a strong start to the year with significant net income and earnings per share, successful loan originations and sales, and increased dividends. However, there were challenges with increased credit loss provisions and higher operating expenses.

Q1-2025 Updates

Positive Updates

Strong Net Income and Earnings Per Share

Medallion Financial Corp reported a net income of $12 million and $0.50 earnings per share for the first quarter.

Consumer Lending Business Performance

The Consumer Lending business showed solid origination activity of $136 million for the quarter, maintaining a healthy $2.4 billion loan book.

Successful Equity Investment Exit

The company exited a loan and related equity investment, receiving over $10 million for the investment, showcasing the success of their mezzanine business.

Dividend Increase

Medallion increased its quarterly dividend by 9% to $0.12 per share, marking the third increase since reinstatement three years ago.

Loan Origination and Sale

A $53 million loan sale was completed, indicating strong interest and showcasing the quality of loans produced.

Share Repurchase and Growth

The company repurchased about 60,000 shares of its stock with nearly $15 million remaining under the share repurchase plan.

Negative Updates

Increased Allowance for Credit Loss

Provision for credit loss was $22 million for the quarter, up from $20.6 million in the previous quarter and $17.2 million a year ago.

Net Charge-offs in Recreation Portfolio

Net charge-offs in the recreation portfolio were $16.4 million, or 4.67% of the average portfolio.

Operating Expenses Increase

Operating expenses rose to $20.8 million during the quarter, up from $18.2 million in the prior year quarter, due to technological initiatives and increased legal costs.

Elevated Professional Fees and Proxy Costs

Professional fees were elevated with about $600,000 related to the annual meeting and proxy season.

Company Guidance

During Medallion Financial Corp's first quarter earnings call, the company reported strong financial results with a net income of $12 million and earnings per share of $0.50. The Consumer Lending segment demonstrated robust origination activity, totaling $136 million, with a stable loan book of $2.4 billion. The average FICO scores for new loans were 685 for recreation and 781 for home improvement, indicating strong credit quality. The Commercial division originated $9.7 million in new loans and reported a significant exit gain, leading to a $10 million return on a previous investment. The company also highlighted its strategic partnership program, which achieved over $125 million in originations for the second consecutive quarter. Additionally, Medallion Financial increased its quarterly dividend by 9% to $0.12 per share and repurchased approximately 60,000 shares, indicating a strong commitment to shareholder returns.

Medallion Financial Corporate Events

Private Placements and Financing

Medallion Financial Announces Series G Preferred Stock Offering

Neutral

May 16, 2025

On May 16, 2025, Medallion Bank announced the pricing of a public offering of 3,000,000 shares of its Series G Preferred Stock, with a liquidation amount of $75 million. The offering is expected to close on May 22, 2025, and the proceeds will be used for general corporate purposes, potentially increasing capital levels, growing consumer loan portfolios, or redeeming Series F Preferred Stock, pending regulatory approval. The stock will trade on the Nasdaq under the symbol ‘MBNKO’, and the underwriters have a 30-day option to purchase additional shares to cover over-allotments.

The most recent analyst rating on (MFIN) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Medallion Financial stock, see the MFIN Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy

Medallion Financial Launches Series G Preferred Stock Offering

Neutral

May 14, 2025

On May 14, 2025, Medallion Bank announced the launch of a public offering of its Series G Preferred Stock, which will trade on the Nasdaq Capital Market under the symbol ‘MBNKO’. The bank plans to use the proceeds for general corporate purposes, including potentially increasing capital levels, expanding consumer loan portfolios, or redeeming its Series F Preferred Stock, pending regulatory approval. The offering, managed by Piper Sandler & Co. and Lucid Capital Markets, LLC, is exempt from registration under the Securities Act of 1933.

The most recent analyst rating on (MFIN) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Medallion Financial stock, see the MFIN Stock Forecast page.

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.