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

• Market Cap: N/A
• Dividend Yield: 9.41%
• Average Volume (3M): 40.23K
• Price to Earnings (P/E): 10.2
• Beta (1Y): -47.20
• Revenue Growth: 54.66%
• EPS Growth: -14.82%
• Country: US
• Employees: 100
• Sector: Financial
• Sector Strength: 83
• Industry: Asset Management Services
• EPS (TTM): 0.38
• Shares Outstanding: 47,148,888
• 10 Day Avg. Volume: 38,814
• 30 Day Avg. Volume: 40,234
• PEG Ratio: -7.72
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -25.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: 2.46
• Enterprise Value/Gross Profit: 10.88
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $18.83
• Price Target Upside: 10.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• 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

Consumer Market

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

Industry Risk

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

MSC Income Fund, Inc. Business Overview & Revenue Model

Company Description

MSC Income Fund Inc is a non-diversified closed-end management investment company. The investment objective is to generate current income through debt and equity investments and the secondary objective is to generate long-term capital appreciation through such investments. The company invests in senior secured term loans, second lien loans and mezzanine debt and selected equity investments issued by lower middle-market and middle-market companies.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
62.71M	74.84M	51.74M	82.38M	-4.35M
	Gross Profit
62.71M	74.84M	51.74M	82.38M	-4.35M
	EBIT
57.66M	69.98M	47.23M	75.53M	-8.52M
	EBITDA
0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
56.55M	66.21M	45.59M	73.64M	-9.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.38M	30.79M	21.31M	25.81M	8.59M
	Total Assets
1.22B	1.14B	1.11B	1.14B	888.02M
	Total Debt
0.00	0.00	0.00	0.00	0.00
	Net Debt
-28.38M	-30.79M	-21.31M	-25.81M	-8.59M
	Total Liabilities
599.77M	517.59M	497.50M	530.61M	308.40M
	Stockholders Equity
624.90M	622.31M	609.66M	613.17M	579.62M
Cash Flow		Free Cash Flow
-28.08M	50.23M	76.68M	-191.15M	195.82M
	Operating Cash Flow
-28.08M	50.23M	76.68M	-191.15M	195.82M
	Investing Cash Flow
0.00	0.00	0.00	0.00	0.00
	Financing Cash Flow
25.66M	-40.76M	-81.18M	167.90M	-168.60M

MSC Income Fund, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.01
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 17.01 is above the 20-day moving average (MA) of 15.44, above the 50-day MA of 15.69, and above the 200-day MA of 13.16, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.43 is Neutral, neither overbought nor oversold. The STOCH value of 31.71 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
MGYR	75 Outperform	$98.56M	10.70	8.11%	1.38%	20.91%	20.30%
MSIF	72 Outperform		10.21	9.25%	9.41%	54.66%	-14.82%
FUSB	70 Outperform	$74.94M	10.16	8.10%	1.84%	5.04%	-6.92%
Sector *	64 Neutral	$12.64B	9.78	7.67%	17015.08%	12.23%	-6.02%
PBHC	54 Neutral	$93.93M	31.55	2.30%	2.62%	11.12%	―
FNWB	53 Neutral	$87.42M	―	-10.46%	3.02%	10.31%	-557.61%
LRFC	52 Neutral	$47.06M	―	-8.58%	7.79%	678.57%	98.81%

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.