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

• Market Cap: N/A
• Dividend Yield: 5.06%
• Average Volume (3M): 122.67K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.21
• Revenue Growth: 9.62%
• EPS Growth: -11.94%
• Country: US
• Employees: 100
• Sector: Financial
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): 0.35
• Shares Outstanding: 47,148,804
• 10 Day Avg. Volume: 240,294
• 30 Day Avg. Volume: 122,675
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: 11.95
• Enterprise Value/Gross Profit: 29.48
• Enterprise Value/Ebitda: 32.30
• 1Y Price Target: $17.75
• Price Target Upside: 23.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: ―

MSIF's overall score reflects its strong financial foundation, attractive valuation, and positive corporate developments. While technical indicators suggest some caution, the company's strategic financial moves and commitment to maintaining dividends position it as a stable investment with growth potential. Continued focus on revenue and cash flow improvements will be critical going forward.

Positive Factors

Earnings

The company reported a strong inaugural quarter as a public entity with no change to the long-term outlook for MSC Income Fund.

Financial Performance

Net asset value increased by a healthy 1% sequentially, indicating solid financial performance.

Growth Potential

The company's IPO was well-received, raising significant capital that positions it well for future growth.

Negative Factors

Industry Risks

Industry-wide credit performance may deteriorate more than expected and thereby pressure NAV and dividends.

Market Conditions

Management highlighted continued softness in consumer discretionary-focused products and services, a trend being actively monitored and addressed.

Valuation Concerns

MSIF trades at a premium to peers, reflecting a constructive outlook for the business and justifying the valuation given the expectations for ROEs and other fundamentals.

MSC Income Fund, Inc. Business Overview & Revenue Model

Company Description

MSC Income Fund, Inc. (MSIF) is a non-diversified closed-end management investment company that primarily invests in the debt and equity securities of middle-market companies. The company operates within the financial services sector, focusing on providing capital solutions to businesses that are typically too small to access traditional public capital markets. MSC Income Fund, Inc. is managed by Main Street Capital Corporation, which brings expertise in the private lending and equity investment space.

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	107.36M	101.75M	74.84M	51.74M	82.38M	-4.35M
Gross Profit	43.53M	62.71M	74.84M	51.74M	82.38M	-4.35M
EBITDA	39.73M	57.66M	0.00	0.00	0.00	0.00
Net Income	61.91M	56.55M	66.21M	45.59M	73.64M	-9.76M
Balance Sheet
Total Assets	1.29B	1.22B	1.14B	1.11B	1.14B	888.02M
Cash, Cash Equivalents and Short-Term Investments	28.34M	28.38M	30.79M	21.31M	25.81M	8.59M
Total Debt	0.00	565.14M	0.00	0.00	0.00	0.00
Total Liabilities	570.28M	599.77M	517.59M	497.50M	530.61M	308.40M
Stockholders Equity	722.79M	624.90M	622.31M	609.66M	613.17M	579.62M
Cash Flow
Free Cash Flow	-27.80M	-28.08M	50.23M	76.68M	-191.15M	195.82M
Operating Cash Flow	-27.80M	-28.08M	50.23M	76.68M	-191.15M	195.82M
Investing Cash Flow	147.05M	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	26.66M	25.66M	-40.76M	-81.18M	167.90M	-168.60M

MSC Income Fund, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Negative. The current price of 14.43 is below the 20-day moving average (MA) of 15.34, below the 50-day MA of 16.09, and above the 200-day MA of 13.93, indicating a neutral trend. The MACD of -0.52 indicates Positive momentum. The RSI at 31.25 is Neutral, neither overbought nor oversold. The STOCH value of 31.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MSIF.

MSC Income Fund, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSIF	72 Outperform		10.35	8.92%	5.06%	9.62%	-11.94%
FUSB	69 Neutral	$67.68M	12.13	5.99%	2.17%	2.84%	-31.20%
MGYR	69 Neutral	$112.76M	11.26	8.68%	1.66%	18.82%	35.00%
Sector *	67 Neutral	¥836.32B	13.01	9.24%	3.02%	7.93%	10.80%
PBHC	62 Neutral	$90.28M	31.55	2.33%	2.66%	8.19%	―
LRFC	52 Neutral	$50.68M	―	-8.58%	7.55%	678.57%	98.81%
FNWB	44 Neutral	$75.53M	―	-6.59%	3.49%	10.23%	-110.17%

MSC Income Fund, Inc. Corporate Events

MSC Income Fund Expands Credit Facility to $245M

On February 27, 2025, MSC Income Fund, Inc. announced an amendment to its senior secured revolving credit facility, increasing total commitments from $165 million to $245 million, and the accordion feature from $200 million to $300 million. This amendment, which was facilitated by adding a new lender, diversifies the company’s lender group to seven participants, potentially enhancing its financial flexibility and capacity to support leveraged buyouts, recapitalizations, and other investments in diverse industry sectors.