Medallion Financial (MFIN) AI Stock Analysis

• Market Cap: $241.41M
• Dividend Yield: 4.44%
• Average Volume (3M): 43.20K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.49
• Revenue Growth: 15.52%
• EPS Growth: 2.05%
• Country: US
• Employees: 174
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): N/A
• 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: 1.94
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 3.18
• Enterprise Value/Ebitda: 5.45
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $11.00 ▲(10.33% Upside)

The score is driven primarily by strong financial performance (especially cash flow strength and manageable leverage) and very favorable valuation (low P/E plus solid dividend). These positives are tempered by weak technical momentum and credit-cost/operating-expense risks highlighted in the latest earnings update, though corporate actions like exiting medallion exposure and strengthening capital are supportive.

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., 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 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

Financial statements are solid overall: stable revenue growth and profitability (TTM net margin 12.47%), strong cash generation (TTM free cash flow growth 48.96% with good cash conversion), and manageable leverage (debt-to-equity 0.75). A key risk is pressure in profit/gross margins, which could weigh on future profitability if it persists.

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: 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 9.97 is below the 20-day moving average (MA) of 10.15, below the 50-day MA of 10.24, and above the 200-day MA of 9.76, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.99 is Neutral, neither overbought nor oversold. The STOCH value of 80.06 is Negative, 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	74 Outperform	$241.41M	6.07	10.79%	4.44%	15.52%	2.05%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OPRT	65 Neutral	$240.94M	8.12	8.59%	―	-5.29%	―
RM	64 Neutral	$391.91M	9.07	11.43%	2.99%	9.63%	77.14%
CPSS	59 Neutral	$192.46M	10.96	6.58%	―	16.94%	-10.46%
LPRO	49 Neutral	$205.65M	-1.33	-102.53%	―	-82.33%	-3365.80%
SUIG	48 Neutral	$109.65M	-2.21	-20.35%	―	-19.68%	-1055.59%

Medallion Financial Corporate Events

Medallion Financial posts strong Q4 results, exits medallions

On January 29, 2026, Medallion Bank reported strong results for the fourth quarter and full year ended December 31, 2025, highlighted by a 24% year-over-year increase in quarterly net income to $19.4 million and a 19% rise in full-year net income to $72.2 million. Net interest income and margins improved modestly, while non-interest income surged on the sale of the bank’s remaining taxi medallion assets, effectively exiting that legacy exposure and boosting profitability. Strategic partnership loan originations more than tripled in 2025 to $771.6 million, underscoring the growing importance of fintech relationships, and the total loan portfolio expanded to $2.4 billion with return on equity rising to 17.05%. Recreation lending remained the largest book at $1.617 billion with higher originations and slightly elevated charge-offs and provisions, reflecting both growth and tighter credit risk management, while the smaller home improvement segment saw reduced originations but improved asset quality, lower delinquencies and lower credit loss provisions. Capital levels were further strengthened as total capital increased to $450.2 million, aided by the net $27.1 million uplift from the issuance of Series G preferred stock and redemption of Series F, and the board declared a quarterly cash dividend on the Series G shares payable on April 1, 2026, signaling confidence in the bank’s capital position and earnings capacity.

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

Medallion Financial Realigns Medallion Bank Executive Leadership Roles

On January 12, 2026, Medallion Financial Corp. and its subsidiary Medallion Bank implemented senior leadership changes through amended employment agreements with two key executives. Donald Poulton relinquished the title of president of Medallion Bank but remained its chief executive officer for the balance of his existing employment term, while David Justin Haley transitioned from executive vice president and chief financial officer to president of Medallion Bank under a new two‑year employment agreement that automatically renews, sets his annual base salary at $430,000 effective January 1, 2026, and provides severance protections and a non‑competition covenant, signaling a planned realignment of the bank’s executive structure without altering Poulton’s broader contractual terms.

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