Medallion Financial (MFIN) AI Stock Analysis

• Market Cap: $249.67M
• Dividend Yield: 4.24%
• Average Volume (3M): 45.63K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.75
• Revenue Growth: 15.88%
• EPS Growth: -1.83%
• Country: US
• Employees: 174
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.46
• Shares Outstanding: 23,246,593
• 10 Day Avg. Volume: 56,815
• 30 Day Avg. Volume: 45,633
• PEG Ratio: -0.17
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 1.83
• Enterprise Value/Market Cap: 10.10
• Enterprise Value/Revenue: 7.72
• Enterprise Value/Gross Profit: 13.35
• Enterprise Value/Ebitda: 31.49
• 1Y Price Target: $12.00
• Price Target Upside: 14.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 77 Outperform
• Price Target: $12.00 ▲(14.29% Upside)

Medallion Financial's overall stock score is driven by its solid financial performance and attractive valuation. The technical indicators suggest bullish momentum, while the earnings call highlights both strengths and challenges. Corporate events further support the company's strategic initiatives, contributing to a positive outlook.

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 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	326.66M	302.56M	254.51M	198.43M	179.21M	151.36M
Gross Profit	188.83M	127.12M	153.76M	132.19M	143.44M	47.39M
EBITDA	80.08M	69.15M	91.28M	73.08M	88.39M	-29.27M
Net Income	41.84M	35.88M	55.08M	43.84M	54.11M	-34.78M
Balance Sheet
Total Assets	2.88B	2.87B	2.59B	2.26B	1.87B	1.64B
Cash, Cash Equivalents and Short-Term Investments	213.52M	101.17M	106.87M	81.66M	106.25M	98.53M
Total Debt	290.72M	288.59M	253.06M	229.93M	231.23M	254.07M
Total Liabilities	2.35B	2.43B	2.18B	1.89B	1.52B	1.34B
Stockholders Equity	389.90M	370.17M	342.99M	301.74M	287.04M	231.41M
Cash Flow
Free Cash Flow	81.15M	115.51M	113.76M	108.74M	78.73M	78.71M
Operating Cash Flow	81.15M	115.51M	113.76M	108.74M	78.73M	78.71M
Investing Cash Flow	-161.56M	-335.78M	-340.70M	-449.00M	-238.32M	-170.96M
Financing Cash Flow	74.44M	239.99M	271.18M	321.38M	172.04M	136.47M

Medallion Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MFIN, the sentiment is Neutral. The current price of 10.5 is below the 20-day moving average (MA) of 10.59, above the 50-day MA of 10.27, and above the 200-day MA of 9.21, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 50.49 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MFIN.

Medallion Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFIN	77 Outperform	$249.67M	6.11	11.25%	4.24%	15.88%	-1.83%
RM	74 Outperform	417.73M	12.29	11.55%	2.82%	7.32%	38.85%
CPSS	62 Neutral	179.13M	9.61	6.41%	―	16.13%	-28.76%
SUIG	62 Neutral	341.74M	16.15	―	―	-39.95%	440.27%
OPRT	56 Neutral	286.06M	-32.38	-22.24%	―	-5.87%	94.07%
LPRO	45 Neutral	293.07M	-1.97	-179.04%	―	-83.48%	-2400.00%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Medallion Financial Corporate Events

Medallion Financial Increases Equity Incentive Plan Shares

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.