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Medallion Financial
(NASDAQ:MFIN)
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Rating:78Outperform
Price Target:
$12.50
▲(27.94% Upside)
Action:Reiterated
Date:08/06/26
Overall score is driven primarily by strong financial performance (notably TTM cash flow strength) and attractive valuation (low P/E and ~5% yield). Technicals are supportive with price above key moving averages, though momentum appears somewhat stretched. Earnings-call takeaways were broadly positive on growth and capital returns, partially offset by higher provisions, expense growth, and NIM/earnings pressure.
Positive Factors
Strong Cash Generation
Very strong trailing‑12‑month operating and free cash flow provides durable internal funding for loan growth, dividends, and buybacks. Robust cash conversion reduces reliance on wholesale funding, supports provisioning during growth, and increases resilience to funding shocks over coming quarters.
Negative Factors
Elevated Day‑1 Credit Provisioning
Material Day‑1 provisioning tied to rapid new originations is a structural headwind to reported earnings as growth scales. Repeated Day‑1 reserves will continue to depress GAAP EPS and can obscure true portfolio performance, forcing management to balance growth with provision volatility over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Very strong trailing‑12‑month operating and free cash flow provides durable internal funding for loan growth, dividends, and buybacks. Robust cash conversion reduces reliance on wholesale funding, supports provisioning during growth, and increases resilience to funding shocks over coming quarters.
Read all positive factors
Medallion Financial (MFIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$229.74M
Dividend Yield5.03%
Average Volume (3M)43.20K
Price to Earnings (P/E)7.1
Beta (1Y)0.71
Revenue Growth5.42%
EPS Growth-24.04%
CountryUS
Employees179
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.40
Shares Outstanding23,112,663
10 Day Avg. Volume47,971
30 Day Avg. Volume43,203
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)0.57
Price to Sales (P/S)0.66
P/FCF Ratio1.86
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$11.25Price Target Upside15.15% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)1.1
Revenue Forecast (FY)$238.58M
Medallion Financial Business Overview & Revenue Model
Company Description
Medallion Financial Corp. (MFIN), encompassing its various subsidiaries, functions as a diversified financial services provider throughout the United States. The company's operations are distinctly segmented into Recreation Lending, Home Improveme...
How the Company Makes Money
Medallion Financial primarily makes money through net interest income and fee-based income generated from lending and banking operations.
1) Net interest income (core earnings driver)
- Loan origination and portfolio interest: The company origina...
Medallion Financial Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
The call emphasized strong origination momentum and record net interest income, material loan and asset growth, successful partnership expansion, and continued shareholder-friendly capital deployment (dividend increase and buybacks). Key near-term negatives included elevated Day 1 provisions tied to rapid portfolio growth, higher operating expenses as the company invests in talent and technology, some NIM compression sequentially, and a decline in GAAP net income/EPS versus the prior year. Management presented the provision and temporary earnings impacts as expected and acceptable trade-offs for scalable growth and long-term shareholder value.Positive Updates
Record Home Improvement Originations
Home improvement originations reached $128.6 million in Q2 — the highest quarter in company history and more than double ("over twofold") the prior-year Q2 level; origination momentum continued into July with stable credit quality.
Negative Updates
Elevated Credit Provisioning (Day 1 Impact)
Provision for credit losses was $22.3 million in Q2 (slight decrease from Q1 $22.5M but up from $21.6M year-ago); included ~$6.5 million of Day 1 provisioning on newly originated loans (vs ~$2.5M prior quarter), which management noted reduced Q2 EPS by roughly $0.18 per share.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Home Improvement Originations
Home improvement originations reached $128.6 million in Q2 — the highest quarter in company history and more than double ("over twofold") the prior-year Q2 level; origination momentum continued into July with stable credit quality.
Read all positive updates
Company Guidance
The company reiterated its forward guidance that it remains on track for mid‑teens loan/asset growth (Q2 loans were $2.79B, +12% Y/Y and +7% Q/Q) with seasonally stronger originations in Q2/Q3 and the robust origination cadence continuing through July (home improvement record originations $128.6M; recreation originations $228.5M, +60% Y/Y; partner-sourced originations $247.1M generating >$1.1M of fee income); it expects to continue originating at similar rates (~14.875% for recreation, ~9.25% for home improvement; weighted average coupons 15.06% Rec, 9.69% HI) while managing capital via periodic loan sales ( ~$50M sold in the quarter, ~$1.3M gain) and share repurchases (≈780k shares bought in Q2, about $6M remaining of a $40M authorization, expected to be completed within ~6 months and likely reloaded), maintain dividends ($0.14/share this quarter, +16.7% q/q), and invest in growth (LOS replacement planned Q1 2027, continued talent and analytics hires) while expecting net interest income growth (Q2 NII $57.2M; NIM ~7.94%) to outpace operating cost growth—noting a near‑term Day‑1 provision headwind tied to growth ($6.5M in Q2, ~ $0.18 EPS impact) and ongoing targets to improve credit performance over time.Medallion Financial Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 345.45M | 353.31M | 291.79M | 254.51M | 198.43M | 179.21M |
| Gross Profit | 286.96M | 341.81M | 127.12M | 153.76M | 132.19M | 143.44M |
| EBITDA | 149.80M | 186.63M | 69.15M | 91.28M | 73.08M | 88.39M |
| Net Income | 35.88M | 43.04M | 35.88M | 55.08M | 43.84M | 54.11M |
Balance Sheet | ||||||
| Total Assets | 3.19B | 2.96B | 2.87B | 2.59B | 2.26B | 1.87B |
| Cash, Cash Equivalents and Short-Term Investments | 275.92M | 261.75M | 101.17M | 106.87M | 81.66M | 106.25M |
| Total Debt | 345.92M | 316.28M | 288.59M | 253.06M | 229.93M | 231.23M |
| Total Liabilities | 2.69B | 2.45B | 2.43B | 2.18B | 1.89B | 1.52B |
| Stockholders Equity | 406.02M | 408.62M | 370.17M | 342.99M | 301.74M | 287.04M |
Cash Flow | ||||||
| Free Cash Flow | 200.86M | 126.28M | 115.51M | 113.76M | 108.74M | 78.73M |
| Operating Cash Flow | 200.86M | 126.28M | 115.51M | 113.76M | 108.74M | 78.73M |
| Investing Cash Flow | -453.50M | -124.49M | -335.78M | -340.70M | -449.00M | -238.32M |
| Financing Cash Flow | 243.72M | 30.20M | 239.99M | 271.18M | 321.38M | 172.04M |
Medallion Financial Technical Analysis
Positive
9.77
Price Trends
9.91
Positive
9.45
Positive
9.62
Positive
Market Momentum
0.18
Negative
67.30
Neutral
92.82
Negative
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 9.77 is below the 20-day moving average (MA) of 10.03, below the 50-day MA of 9.91, and above the 200-day MA of 9.62, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 67.30 is Neutral, neither overbought nor oversold. The STOCH value of 92.82 is Negative, 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 42 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $229.74M | 7.10 | 8.86% | 5.12% | 5.42% | -24.04% | |
74 Outperform | $6.33B | 17.78 | 25.76% | ― | 17.65% | 43.92% | |
71 Outperform | $254.30M | 14.58 | 4.95% | ― | -3.81% | ― | |
70 Outperform | $1.75B | 11.99 | 19.36% | 1.24% | 4.52% | -29.04% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $297.15M | 6.48 | 13.24% | 2.88% | 9.63% | 40.75% | |
60 Neutral | $202.23M | 10.13 | 6.54% | ― | 12.28% | 1.64% |
* Financial Sector Average
MFIN
Medallion Financial
10.84
1.02
10.42%
PRG
PROG Holdings
43.44
12.50
40.41%
CPSS
Consumer Portfolio Services
9.57
1.59
19.92%
RM
Regional Management
33.05
-0.15
-0.44%
ENVA
Enova International
255.96
153.25
149.21%
OPRT
Oportun Financial
8.05
2.17
36.90%
Medallion Financial Corporate Events
Executive/Board Changes
Medallion Financial Details CEO Retirement and Compensation Transition
Neutral
Jun 26, 2026
Medallion Financial Corp., a specialty finance company operating primarily through Medallion Bank, provides consumer and commercial lending in niche markets including recreation and home improvement, positioning itself as a focused player in speci...
Executive/Board ChangesShareholder Meetings
Medallion Financial Shareholders Back Board and Governance Slate
Positive
Jun 12, 2026
Medallion Financial Corp. held its 2026 annual meeting of shareholders on June 9, 2026, with 73% of eligible common stock represented, ensuring a quorum for key governance decisions. Shareholders elected the company’s slate of Class III dire...
Executive/Board Changes
Medallion Financial Announces CEO Retirement and Succession Plan
Neutral
Jun 12, 2026
On June 11, 2026, Medallion Bank announced that Chief Executive Officer Donald Poulton intends to retire from his role effective June 30, 2026. As part of the leadership transition, Poulton was appointed to join the bank’s board of directors...
Business Operations and StrategyRegulatory Filings and Compliance
Medallion Financial Resolved SBA Default, Stabilizing Capital Structure
Positive
Jun 12, 2026
On June 11, 2026, the Small Business Administration informed Medallion Capital, Inc. that background checks for two previously submitted candidates were satisfactorily completed, resolving an earlier disclosed event of default tied to its outstand...
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
Medallion Financial Prevails Again in ZimCal Proxy Battle
Positive
Jun 10, 2026
On June 10, 2026, Medallion Financial Corp. reported preliminary results from its 2026 annual meeting of stockholders, held on June 9, showing shareholders re-elected all three company-nominated directors and rejected the rival slate proposed by a...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Medallion Financial Nears Resolution of SBA Default Issue
Positive
Jun 4, 2026
On June 3, 2026, the Small Business Administration notified Medallion Capital that its submission of two board candidates had cured a previously disclosed event of default on its outstanding SBA debentures, pending satisfactory background checks o...
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.