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Medallion Financial (MFIN)
NASDAQ:MFIN
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Medallion Financial (MFIN) AI Stock Analysis

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MFIN

Medallion Financial

(NASDAQ:MFIN)

Rating:81Outperform
Price Target:
$11.50
▲(7.38% Upside)
The overall stock score of 81 reflects Medallion Financial's solid financial performance and attractive valuation, which are the most significant strengths. Positive technical indicators further support this score. However, the stock is slightly tempered by recent corporate events, including an SEC settlement, and mixed results from the earnings call, such as increased delinquencies and operating costs.

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

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 generates revenue primarily through interest income from its loan portfolio, which includes medallion loans for taxi operators and financing for other vehicles. The company earns interest on the loans it issues, which can vary based on the terms and risk profile of each loan. In addition to interest income, Medallion Financial may also collect fees associated with loan origination and servicing. The company's revenue model is further supported by its ability to leverage partnerships with taxi associations, transportation companies, and industry stakeholders that can provide access to potential borrowers. The overall earnings of Medallion Financial can be influenced by market conditions in the taxi industry, regulatory changes affecting medallion values, and economic factors impacting the transportation sector.

Medallion Financial Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 03, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong performance with significant increases in net income and strategic successes, particularly in the commercial and strategic partnership segments. However, these positive aspects are balanced by challenges such as decreased originations, increased credit loss provisions, and higher operating costs.
Q2-2025 Updates
Positive Updates
Significant Increase in Net Income
Net income increased by 56% to $11.1 million compared to the same quarter last year, with earnings per share rising to $0.46.
Growth in Net Interest Income
Net interest income increased by 7% to $53.4 million, and the net interest margin remained steady at 8.09%.
Expansion in Commercial Segment
The commercial segment generated $3.3 million in income and has generated a total of $27.6 million over the past 8 quarters.
Strategic Partnership Program Success
The strategic partnership program reached a record level of $168.6 million in originations this quarter.
Capital Allocation and Shareholder Returns
The company repurchased over 48,000 shares and increased the quarterly dividend by 20% year-over-year.
Negative Updates
Decrease in Total Originations
Total originations for recreational and home improvement segments were lower at $197 million compared to $277.6 million a year ago.
Rising Delinquencies and Credit Loss Provisions
Allowance for credit losses increased to 5.05% for recreational loans and 2.54% for home improvement loans, reflecting expected seasonal and economic dynamics.
Operating Costs Increase
Operating costs totaled $21.5 million during the quarter, up from $20 million a year ago, due to technological initiatives and employee costs.
Company Guidance
During the second quarter earnings call for Medallion Financial Corp., the company reported a net income increase of 56% to $11.1 million, with earnings per share rising to $0.46. Net interest income grew by 7% to $53.4 million, and the net interest margin remained steady at 8.09%. Despite a decrease in total loan originations from $277.6 million to $197 million year-over-year, interest income rose by 9% to $71.2 million. The recreation loan book grew to $1.55 billion, representing 62% of total loans, while the home improvement loan book increased to $803.5 million, comprising 32% of total loans. Delinquencies over 90 days were 0.49% for recreational loans and 0.16% for home improvement loans. The commercial segment generated $3.3 million in income, with an average interest rate of 13.43%. Additionally, the strategic partnership program achieved a record level of $168.6 million in originations. The company also emphasized its commitment to shareholder value, repurchasing over 48,000 shares and increasing its quarterly dividend by 20% year-over-year.

Medallion Financial Financial Statement Overview

Summary
Medallion Financial demonstrates strong financial health with consistent revenue and profit growth, backed by solid operating performance. The company maintains a stable balance sheet with manageable leverage, although there is a moderate reliance on debt. Cash flow generation remains strong, supporting future expansions and investments. Despite some fluctuations in net profit margins, the overall financial trajectory is positive.
Income Statement
78
Positive
The company shows a strong revenue growth with a consistent increase in total revenue from previous years, including a notable increase in the TTM period. The gross profit margin is solid, but the net profit margin has seen some fluctuations, reflecting potential cost management issues. EBIT and EBITDA margins are healthy and indicate efficient operating performance.
Balance Sheet
74
Positive
The balance sheet reflects a stable financial position with a reasonable debt-to-equity ratio, indicating manageable leverage. The return on equity is commendable, showing effective utilization of equity. However, the equity ratio suggests a moderate reliance on debt, which could pose a risk if not managed carefully.
Cash Flow
81
Very Positive
Cash flow statements show robust operating cash flows, which exceed net income, indicating strong cash generation capabilities. Free cash flow growth is positive, supporting future growth and investment opportunities. The company maintains a healthy free cash flow to net income ratio, reflecting efficient cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue307.46M290.70M254.51M198.43M179.21M151.36M
Gross Profit133.12M127.12M153.76M132.19M143.44M47.39M
EBITDA72.22M69.15M91.28M73.08M88.39M-29.27M
Net Income37.87M35.88M55.08M43.84M54.11M-34.78M
Balance Sheet
Total Assets2.85B2.87B2.59B2.26B1.87B1.64B
Cash, Cash Equivalents and Short-Term Investments132.85M101.17M106.87M81.66M106.25M98.53M
Total Debt318.24M288.59M253.06M229.93M231.23M254.07M
Total Liabilities2.40B2.43B2.18B1.89B1.52B1.34B
Stockholders Equity380.22M370.17M342.99M301.74M287.04M231.41M
Cash Flow
Free Cash Flow119.52M115.51M113.76M108.74M78.73M78.71M
Operating Cash Flow119.52M115.51M113.76M108.74M78.73M78.71M
Investing Cash Flow-307.57M-335.78M-340.70M-449.00M-238.32M-170.96M
Financing Cash Flow176.92M239.99M271.18M321.38M172.04M136.47M

Medallion Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.71
Price Trends
50DMA
9.96
Positive
100DMA
9.48
Positive
200DMA
9.11
Positive
Market Momentum
MACD
0.20
Negative
RSI
61.93
Neutral
STOCH
76.70
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 10.71 is above the 20-day moving average (MA) of 10.39, above the 50-day MA of 9.96, and above the 200-day MA of 9.11, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 61.93 is Neutral, neither overbought nor oversold. The STOCH value of 76.70 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$250.83M5.9411.25%4.20%15.88%-1.83%
74
Outperform
$429.20M12.359.81%2.74%7.32%38.85%
68
Neutral
$18.06B11.9710.24%3.74%9.75%1.30%
62
Neutral
$164.46M9.236.66%16.13%-28.76%
62
Neutral
$504.98M25.677.58%-39.95%440.27%
56
Neutral
$297.06M-1.26%-5.87%94.07%
46
Neutral
$267.07M72.92-95.59%-83.48%-2400.00%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MFIN
Medallion Financial
10.71
3.63
51.27%
CPSS
Consumer Portfolio Services
7.74
-1.26
-14.00%
RM
Regional Management
43.09
13.53
45.77%
LPRO
Open Lending
2.26
-3.16
-58.30%
SUIG
Sui Group Holdings
6.23
3.52
129.89%
OPRT
Oportun Financial
6.57
3.79
136.33%

Medallion Financial Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Medallion Financial Increases Equity Incentive Plan Shares
Positive
Jun 12, 2025

On June 12, 2025, Medallion Financial Corp. held its annual meeting where stockholders approved an amendment to the 2018 Equity Incentive Plan, increasing the shares reserved for issuance by 2,000,000. This decision, previously approved by the Board of Directors, reflects the company’s commitment to enhancing its equity offerings and aligns with its strategic goals. Additionally, stockholders elected Class II Directors for terms expiring in 2028, ratified the appointment of Plante & Moran, PLLC as the independent accounting firm for 2025, and approved executive compensation for 2024. These outcomes indicate strong shareholder support for the company’s governance and financial strategies.

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.

Legal Proceedings
Medallion Financial Settles SEC Litigation with $3M Penalty
Negative
Jun 2, 2025

On May 30, 2025, the U.S. District Court for the Southern District of New York entered a Final Judgment regarding Medallion Financial Corp. and its President and COO, resolving an SEC litigation. The company agreed to a settlement without admitting or denying the allegations, which includes a $3 million civil penalty and compliance-related undertakings.

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.

Delistings and Listing ChangesDividends
Medallion Financial to Redeem Series F Preferred Stock
Neutral
May 29, 2025

On May 29, 2025, Medallion Bank announced it will redeem all 1,840,000 outstanding shares of its Series F Preferred Stock at $25.00 per share on July 1, 2025. This action means that after the redemption date, the Series F Preferred Stock will no longer be outstanding, and dividends on these shares will cease to accrue, impacting stakeholders holding these shares.

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 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
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.Date of analysis: Aug 02, 2025