MSC Income Fund, Inc. (MSIF)
NYSE:MSIF
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MSC Income Fund, Inc.
(NYSE:MSIF)
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Rating:69Neutral
Price Target:
$14.00
â–²(6.63% Upside)
Action:Reiterated
Date:05/09/26
The score is held back primarily by weak recent cash flow (negative operating and free cash flow in TTM and 2024–2025) despite very strong reported profitability and improved leverage optics. Offsetting this, valuation is compelling (low P/E and high dividend yield), technicals show mild positive momentum, and the latest earnings call was generally constructive with NAV/ROE strength and low nonaccruals, tempered by rate/yield compression and leverage execution risks.
Positive Factors
Strong Profitability & ROE
Very high net margins and consistent low‑teens ROE signal durable earning power and efficient portfolio income generation. Over a multi‑month horizon this supports distributable cash potential, sustained dividend policy and the ability to absorb cyclical credit shocks without permanent capital impairment.
Negative Factors
Weak Cash Conversion
Recurring negative operating and free cash flow despite strong accounting profits undermines confidence that earnings translate into spendable cash. Over months this raises sustainability risk for distributions, constrains reinvestment capacity, and increases reliance on external financing to fund growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability & ROE
Very high net margins and consistent low‑teens ROE signal durable earning power and efficient portfolio income generation. Over a multi‑month horizon this supports distributable cash potential, sustained dividend policy and the ability to absorb cyclical credit shocks without permanent capital impairment.
Read all positive factors
MSC Income Fund, Inc. (MSIF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$540.52M
Dividend Yield8.18%
Average Volume (3M)275.26K
Price to Earnings (P/E)10.6
Beta (1Y)0.26
Revenue Growth15.79%
EPS Growth22.37%
CountryUS
Employees100
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)1.84
Shares Outstanding45,345,230
10 Day Avg. Volume333,788
30 Day Avg. Volume275,263
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)0.83
Price to Sales (P/S)4.71
P/FCF Ratio-8.68
Enterprise Value/Market Cap2.19
Enterprise Value/Revenue9.23
Enterprise Value/Gross Profit12.58
Enterprise Value/Ebitda10.99
Forecast
1Y Price Target
$14.80Price Target Upside12.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)1.45
Revenue Forecast (FY)$150.36M
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, refi...
How the Company Makes Money
MSIF makes money primarily from investment income generated by its portfolio. The core revenue stream is interest income earned on debt investments (such as first-lien and other secured loans), including cash interest paid periodically by borrower...
MSC Income Fund, Inc. Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial update: strong Q4 and full-year ROE, NAV appreciation, meaningful realized gains, portfolio growth (notably in private loans), an attractive dividend yield, improved expense ratio, low nonaccruals and an above-average private loan pipeline. Offsetting risks include lower interest income driven by falling benchmark rates, yield/spread compression on new loans, temporary expense pressure from a capital gains incentive-fee accrual, the multi-quarter/long-term nature of reducing the legacy lower middle market weight, and remaining work to secure new leverage facilities. On balance, the positives (solid earnings, NAV growth, realized gains, strong pipeline and shareholder return actions) outweigh the headwinds tied largely to market rates, pricing competition and timing of liquidity execution.Positive Updates
Strong Quarterly and Full-Year ROE
Q4 return on equity (ROE) of 16.3% and full-year ROE of 12.5%, reflecting strong operating performance across the portfolio.
Negative Updates
Decline in Interest Income Quarter-over-Quarter
Interest income decreased by $1.3 million QoQ and $0.8 million YoY, driven principally by lower benchmark rates on floating rate assets and a modest increase in negative impact from nonaccrual investments.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly and Full-Year ROE
Q4 return on equity (ROE) of 16.3% and full-year ROE of 12.5%, reflecting strong operating performance across the portfolio.
Read all positive updates
Company Guidance
The guidance emphasized continued focus on growing the private loan portfolio using the fund’s expanded regulatory leverage capacity (effective Jan 29, 2026) and maintaining a dividend policy tied generally to pretax ANII; key metrics cited include Q4 ROE of 16.3% (12.5% for FY2025), NAV per share of $15.85 (+$0.31 QoQ), ANII of roughly $0.34 per share (≈$0.37 pretax/$17.2M in Q4), a declared regular dividend of $0.35 + supplemental $0.01 (payable May 1; implied 11.5% yield), Q4 total investment income of $34.9M (+4.4% YoY), net fair value increase of $17.2M (≈$16.6M realized gains), net increase in net assets of $30M, private loan Q4 net investment growth of $57M (invested $101M) to $809M FV representing 61% of the portfolio (92% secured, >99% first‑lien, 96% floating rate, WA yield 10.7%, down 130 bps YoY), lower middle market FV $488M (36% of portfolio; 53% debt / 47% equity; >12% debt yield; avg 8% equity ownership) with $23M follow‑ons (net +$15M), investments on nonaccrual 1% of FV, expense ratio 1.8% (annualized), capital gains incentive fee accrual $2.8M, regulatory asset coverage 2.22, net debt/NAV 0.79, and a target leverage range of 1.15–1.25 debt-to-equity as the fund scales.MSC Income Fund, Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 128.48M | 129.65M | 101.75M | 74.84M | 51.74M | 82.38M |
| Gross Profit | 94.24M | 94.28M | 62.71M | 74.84M | 51.74M | 82.38M |
| EBITDA | 107.86M | 126.38M | 57.66M | 0.00 | 0.00 | 0.00 |
| Net Income | 86.08M | 88.73M | 56.55M | 66.21M | 45.59M | 73.64M |
Balance Sheet | ||||||
| Total Assets | 1.41B | 1.38B | 1.22B | 1.14B | 1.11B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 15.56M | 20.64M | 28.38M | 30.79M | 21.31M | 25.81M |
| Total Debt | 649.10M | 602.75M | 565.14M | 484.84M | 470.54M | 502.87M |
| Total Liabilities | 690.40M | 642.37M | 599.77M | 517.59M | 497.50M | 530.61M |
| Stockholders Equity | 719.53M | 738.66M | 624.90M | 622.31M | 609.66M | 613.17M |
Cash Flow | ||||||
| Free Cash Flow | -16.24M | -70.35M | -28.08M | 50.23M | 76.68M | -191.15M |
| Operating Cash Flow | -16.24M | -70.35M | -28.08M | 50.23M | 76.68M | -191.15M |
| Investing Cash Flow | -32.11M | -112.19M | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | -7.66M | 62.61M | 25.66M | -40.76M | -81.18M | 167.90M |
MSC Income Fund, Inc. Technical Analysis
Negative
13.13
Price Trends
12.52
Negative
12.56
Negative
12.62
Negative
Market Momentum
-0.16
Positive
43.90
Neutral
12.66
Positive
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 13.13 is above the 20-day moving average (MA) of 12.53, above the 50-day MA of 12.52, and above the 200-day MA of 12.62, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 43.90 is Neutral, neither overbought nor oversold. The STOCH value of 12.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MSIF.
MSC Income Fund, Inc. Risk Analysis
MSC Income Fund, Inc. disclosed 1 risk factors in its most recent earnings report. MSC Income Fund, Inc. reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MSC Income Fund, Inc. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $540.52M | 10.62 | 11.81% | 8.18% | 15.79% | 22.37% | |
69 Neutral | $13.43B | 35.16 | 8.11% | 9.64% | 14.51% | -20.45% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | $766.95M | -3.83 | -4.83% | 14.17% | -24.31% | -157.16% | |
54 Neutral | $325.54M | -4.67 | -19.08% | 21.13% | -153.69% | -168.78% | |
52 Neutral | $1.00B | -18.33 | 5.14% | 17.34% | 14.92% | 48.21% |
* Financial Sector Average
MSIF
MSC Income Fund, Inc.
12.18
-1.58
-11.48%
NMFC
New Mountain Finance
8.02
-1.16
-12.60%
ARCC
Ares Capital
18.74
-0.85
-4.36%
TCPC
BlackRock TCP Capital
3.72
-2.64
-41.47%
GSBD
Goldman Sachs BDC
8.92
-0.33
-3.60%
MSC Income Fund, Inc. Corporate Events
Business Operations and StrategyDividends
MSC Income Fund Shifts to Monthly Dividend Payments
Positive
May 7, 2026
On May 7, 2026, MSC Income Fund, Inc. announced it will shift its regular dividend payments from a quarterly to a monthly schedule beginning in July 2026, a move that aligns its payout pattern more closely with investor income needs. The change al...
Dividends
MSC Income Fund Declares Quarterly and Supplemental Dividends
Positive
Feb 26, 2026
MSC Income Fund, Inc., a NYSE‑listed investment firm focused on providing secured debt capital and tailored debt‑and‑equity financing to private equity‑backed and lower middle market companies, invests across diversified in...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.