MSC Income Fund, Inc. (MSIF) AI Stock Analysis

• Market Cap: $638.92M
• Dividend Yield: 8.18%
• Average Volume (3M): 182.67K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.40
• Revenue Growth: -31.40%
• EPS Growth: 23.71%
• Country: US
• Employees: 100
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.35
• Shares Outstanding: 46,910,725
• 10 Day Avg. Volume: 165,317
• 30 Day Avg. Volume: 182,668
• PEG Ratio: -0.77
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 6.25
• P/FCF Ratio: -22.64
• Enterprise Value/Market Cap: 1.77
• Enterprise Value/Revenue: 9.96
• Enterprise Value/Gross Profit: 12.99
• Enterprise Value/Ebitda: 23.52
• 1Y Price Target: $15.67
• Price Target Upside: 15.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 1.48
• Revenue Forecast (FY): $155.14M

• Rating: 64 Neutral
• Price Target: $14.50 ▲(6.46% Upside)

The score is driven by solid reported profitability and a constructive earnings call, but materially tempered by inconsistent/weak cash flow performance. Valuation is a clear positive (low P/E and high yield), while technical signals are broadly neutral with the stock still below its 200-day average.

Positive Factors

Strong Profitability

High net margins (~60%) and solid operating profitability indicate a strong business model, supporting long-term financial stability.

Dividend Strategy

Consistent dividend payments reflect strong cash generation and a shareholder-friendly approach, enhancing investor confidence.

Return on Equity

Strong ROE demonstrates efficient use of equity capital, indicating effective management and potential for sustained growth.

Negative Factors

Volatile Cash Flow

Inconsistent cash flow can hinder the company's ability to fund operations and investments, posing a risk to financial stability.

Slow Investment Activity

Reduced investment activity may limit future revenue growth and impact the company's ability to capitalize on market opportunities.

Decreased Portfolio Yield

A declining yield can reduce income from investments, affecting profitability and the ability to maintain dividend levels.

MSC Income Fund, Inc. Business Overview & Revenue Model

Company Description

MSC Income Fund, Inc. is a Business Development Company specializing in middle market debt and debt and equity investments in lower middle market companies. The fund seeks to invest in management buyouts, recapitalizations, growth financings, refinancing and acquisitions of companies. It invests in companies with revenue between $10 million and $150 million.

How the Company Makes Money

MSC Income Fund, Inc. generates revenue primarily through interest income and dividends from its investments in debt and equity securities. The company invests in senior secured debt, subordinated debt, and to a lesser extent, equity securities of privately held middle-market companies. These investments are structured to provide a steady stream of income through interest payments and potential capital appreciation. Additionally, the company benefits from management and incentive fees associated with its investment advisory agreement with Main Street Capital Corporation. These fees are based on the performance and assets under management, providing an incentive for the company to maximize returns on its investment portfolio. Significant partnerships with middle-market businesses and strategic investment decisions contribute to MSC Income Fund, Inc.'s earnings.

MSC Income Fund, Inc. Financial Statement Overview

Summary

MSIF shows financial resilience with a strong profitability and a debt-free balance sheet. However, revenue decline and negative cash flow generation present challenges. The company's strong equity position and cost management are positive, but focus on improving revenue and cash flow is needed.

Income Statement

The income statement shows a mixed performance. The company achieved a high gross profit margin and strong net profit margin for the last reported year, indicating effective cost management. However, there is a notable decrease in revenue over the past year, which is concerning for future growth. The EBIT margin remains strong, showcasing efficient operations, but the absence of EBITDA figures limits a complete profitability analysis.

Balance Sheet

The balance sheet reflects a solid financial position with zero debt, contributing to financial stability. The equity ratio is strong, indicating a healthy reliance on equity financing. Return on equity remained robust, reflecting efficient use of shareholders' funds to generate earnings. As the company has no debt, the debt-to-equity ratio does not apply, highlighting a conservative approach to financing.

Cash Flow

The cash flow statement reveals some challenges, primarily due to negative operating cash flow in the latest year, which raises concerns about cash generation from core operations. Free cash flow also declined significantly, indicating potential liquidity issues. However, previous years showed better performance, suggesting these issues may be temporary. The company’s ability to manage financing activities partially offsets these concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	113.64M	101.75M	74.84M	51.74M	82.38M	-4.35M
Gross Profit	87.15M	62.71M	74.84M	51.74M	82.38M	-4.35M
EBITDA	48.11M	57.66M	0.00	0.00	0.00	0.00
Net Income	79.16M	56.55M	66.21M	45.59M	73.64M	-9.76M
Balance Sheet
Total Assets	1.30B	1.22B	1.14B	1.11B	1.14B	888.02M
Cash, Cash Equivalents and Short-Term Investments	18.08M	28.38M	30.79M	21.31M	25.81M	8.59M
Total Debt	528.68M	565.14M	484.84M	470.54M	502.87M	301.82M
Total Liabilities	563.75M	599.77M	517.59M	497.50M	530.61M	308.40M
Stockholders Equity	734.36M	624.90M	622.31M	609.66M	613.17M	579.62M
Cash Flow
Free Cash Flow	18.66M	-28.08M	50.23M	76.68M	-191.15M	195.82M
Operating Cash Flow	18.66M	-28.08M	50.23M	76.68M	-191.15M	195.82M
Investing Cash Flow	-58.23M	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	8.73M	25.66M	-40.76M	-81.18M	167.90M	-168.60M

MSC Income Fund, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSIF, the sentiment is Positive. The current price of 13.62 is above the 20-day moving average (MA) of 13.59, above the 50-day MA of 13.32, and below the 200-day MA of 14.35, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 52.46 is Neutral, neither overbought nor oversold. The STOCH value of 50.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSIF.

MSC Income Fund, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARCC	80 Outperform	$14.84B	10.41	10.06%	9.64%	10.34%	-24.16%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NMFC	66 Neutral	$962.44M	14.30	5.43%	14.17%	36.15%	-38.59%
GSBD	65 Neutral	$1.06B	8.16	8.75%	17.34%	-16.58%	65.24%
MSIF	64 Neutral	$638.92M	7.69	11.70%	8.18%	-31.40%	23.71%
MRCC	64 Neutral	$140.83M	-33.61	-2.25%	14.03%	-34.92%	-132.22%
TCPC	50 Neutral	$473.41M	-52.30	-1.15%	21.13%	-91.81%	78.46%

MSC Income Fund, Inc. Corporate Events

MSC Income Fund Announces Quarterly Cash Dividends

On November 12, 2025, MSC Income Fund, Inc. announced a regular quarterly cash dividend of $0.35 per share and a supplemental quarterly cash dividend of $0.01 per share, both payable on January 30, 2026. These dividends will be paid from the Fund’s undistributed taxable income as of September 30, 2025. The announcement reflects the company’s strategy to distribute excess taxable income to shareholders, potentially impacting its financial positioning and shareholder value.

The most recent analyst rating on (MSIF) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on MSC Income Fund, Inc. stock, see the MSIF Stock Forecast page.