Medallion Financial (MFIN) AI Stock Analysis

• Market Cap: $245.13M
• Dividend Yield: 4.44%
• Average Volume (3M): 43.20K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.48
• Revenue Growth: 15.52%
• EPS Growth: 2.05%
• Country: US
• Employees: 174
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.32
• Shares Outstanding: 23,279,434
• 10 Day Avg. Volume: 47,971
• 30 Day Avg. Volume: 43,203
• PEG Ratio: -0.17
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 1.83
• Enterprise Value/Market Cap: 10.40
• Enterprise Value/Revenue: 7.79
• Enterprise Value/Gross Profit: 17.37
• Enterprise Value/Ebitda: 29.73
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.64
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $12.00 ▲(20.36% Upside)

Medallion Financial's overall stock score of 79 reflects a strong valuation and positive technical indicators, supported by solid financial performance and a favorable earnings call. The leadership transition is an additional positive factor, expected to drive strategic growth. However, attention to improving profit margins and managing rising delinquencies will be crucial for future performance.

Positive Factors

Strategic Partnership Program Growth

The consistent growth in strategic partnerships indicates a strong network effect and enhances Medallion Financial's ability to expand its market reach and diversify its revenue streams, contributing to long-term business stability and growth.

Leadership Transition

The leadership transition is poised to drive strategic growth and innovation, leveraging technology and data insights to expand the lending platform, which could strengthen the company's competitive position and market presence.

Strong Cash Flow Generation

Robust cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities, debt reduction, or shareholder returns, thus supporting long-term financial health and stability.

Negative Factors

Rising Delinquencies

Increasing delinquencies and higher credit loss allowances indicate potential credit risk, which could impact profitability and necessitate more conservative lending practices, affecting future growth.

Decline in Home Improvement Loans

A decline in home improvement loans suggests potential challenges in this segment, which could limit revenue growth and diversification if not addressed, impacting the company's overall loan portfolio balance.

Increased Operating Costs

Rising operating costs, driven by technological initiatives and higher employee expenses, could pressure profit margins if revenue growth does not keep pace, impacting long-term profitability.

Medallion Financial Business Overview & Revenue Model

Company Description

Medallion Financial Corp. (MFIN) is a financial services company primarily operating in the niche sector of providing loans to taxi and other transportation-related businesses. The company is involved in the origination, acquisition, and service of loans, particularly focusing on medallion loans, which are secured by taxi medallions—licenses that permit the operation of taxis in specific markets. Medallion Financial also offers financing solutions for commercial and consumer purposes, catering to a diverse clientele within the transportation industry.

How the Company Makes Money

Medallion Financial generates revenue primarily through interest income from its loan portfolio, which includes medallion loans, commercial loans, and consumer loans. The company earns interest on the principal amount of loans it disburses, and its revenue is significantly affected by the volume of loans it originates and the prevailing interest rates. Additionally, Medallion Financial may earn fees related to loan origination, servicing, and other transactional activities. The company's revenue can also be bolstered by partnerships with various financial institutions and organizations that facilitate access to capital or enhance its service offerings, although specific partnerships and their financial impact are not detailed.

Medallion Financial Financial Statement Overview

Summary

Medallion Financial exhibits a solid financial position with consistent revenue growth and strong cash flow generation. While profitability margins have slightly declined, the company remains profitable with effective leverage management. The financial statements suggest a stable company with potential for growth, though attention to improving profit margins could enhance financial performance further.

Income Statement

Medallion Financial has shown consistent revenue growth over the years, with a TTM revenue growth rate of 3.52%. The company maintains a healthy net profit margin of 12.47% in the TTM, indicating profitability. However, there has been a decline in gross profit margin from previous years, which could be a concern if it continues. Overall, the income statement reflects a stable financial performance with room for improvement in cost management.

Balance Sheet

The company's debt-to-equity ratio has remained relatively stable, currently at 0.75, which is manageable. Return on equity is at 10.66% for the TTM, showing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing. The balance sheet indicates a balanced approach to leveraging and equity utilization.

Cash Flow

Medallion Financial has demonstrated strong free cash flow growth of 48.96% in the TTM, indicating robust cash generation capabilities. The operating cash flow to net income ratio is close to 1, suggesting efficient conversion of income to cash. The company maintains a consistent free cash flow to net income ratio of 1.0, reflecting solid cash flow management. Overall, the cash flow statement is a strong point for the company.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	327.23M	291.79M	254.51M	198.43M	179.21M	151.36M
Gross Profit	146.85M	127.12M	153.76M	132.19M	143.44M	47.39M
EBITDA	85.77M	69.15M	91.28M	73.08M	88.39M	-29.27M
Net Income	44.50M	35.88M	55.08M	43.84M	54.11M	-34.78M
Balance Sheet
Total Assets	2.90B	2.87B	2.59B	2.26B	1.87B	1.64B
Cash, Cash Equivalents and Short-Term Investments	74.87M	101.17M	106.87M	81.66M	106.25M	98.53M
Total Debt	301.71M	288.59M	253.06M	229.93M	231.23M	254.07M
Total Liabilities	2.40B	2.43B	2.18B	1.89B	1.52B	1.34B
Stockholders Equity	397.45M	370.17M	342.99M	301.74M	287.04M	231.41M
Cash Flow
Free Cash Flow	120.88M	115.51M	113.76M	108.74M	78.73M	78.71M
Operating Cash Flow	120.88M	115.51M	113.76M	108.74M	78.73M	78.71M
Investing Cash Flow	-173.84M	-335.78M	-340.70M	-449.00M	-238.32M	-170.96M
Financing Cash Flow	16.01M	239.99M	271.18M	321.38M	172.04M	136.47M

Medallion Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 9.97 is below the 20-day moving average (MA) of 10.33, below the 50-day MA of 9.98, and above the 200-day MA of 9.49, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 57.16 is Neutral, neither overbought nor oversold. The STOCH value of 59.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MFIN.

Medallion Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFIN	79 Outperform	$245.13M	6.19	10.79%	4.44%	15.52%	2.05%
CPSS	71 Outperform	$205.48M	11.46	6.58%	―	16.94%	-10.46%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RM	64 Neutral	$389.97M	9.74	11.43%	2.99%	9.63%	77.14%
OPRT	64 Neutral	$240.94M	8.31	8.59%	―	-5.29%	―
SUIG	62 Neutral	$151.19M	-3.24	-20.35%	―	-19.68%	-1055.59%
LPRO	43 Neutral	$189.10M	-1.29	-102.53%	―	-82.33%	-3365.80%

Medallion Financial Corporate Events

Medallion Financial Announces Leadership Transition

On October 28, 2025, Medallion Financial Corp. announced a leadership transition effective January 31, 2026, with Andrew Murstein appointed as Chief Executive Officer while continuing his roles as President and Chief Operating Officer. Alvin Murstein will transition to Executive Chairman, a move designed to ensure continuity and strategic growth. This transition is expected to enhance shareholder value and leverage technology and data-driven insights to expand the company’s lending platform and market presence.