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MidCap Financial Investment Corporation
(NASDAQ:MFIC)
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Rating:57Neutral
Price Target:
$10.00
â–²(3.31% Upside)
Action:Reiterated
Date:08/19/26
Overall score reflects a mixed setup: financial performance is pressured by a sharp TTM revenue decline and net losses, partially offset by strong recent cash flow and a still-capitalized (but levered) balance sheet. Technicals are soft with the stock below key moving averages and a slightly negative MACD. Valuation is supported by a very high dividend yield, but negative earnings and the earnings-call credit/NAV pressures constrain the score.
Positive Factors
Diversified, senior-secured portfolio
Broad exposure across borrowers and industries reduces dependence on any single credit. The high first-lien allocation provides stronger structural protection and recovery prospects than subordinated lending if portfolio companies face distress.
Negative Factors
Credit losses and NAV erosion
Material realized and unrealized credit losses reduce asset coverage and weaken book value. Concentration of losses in a few investments shows that isolated borrower problems can materially affect results despite portfolio diversification.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified, senior-secured portfolio
Broad exposure across borrowers and industries reduces dependence on any single credit. The high first-lien allocation provides stronger structural protection and recovery prospects than subordinated lending if portfolio companies face distress.
Read all positive factors
MidCap Financial Investment Corporation (MFIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$796.96M
Dividend Yield14.32%
Average Volume (3M)504.94K
Price to Earnings (P/E)―
Beta (1Y)0.57
Revenue Growth1.24%
EPS Growth-132.48%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-0.36
Shares Outstanding82,372,630
10 Day Avg. Volume402,656
30 Day Avg. Volume504,937
Financial Highlights & Ratios
PEG Ratio-0.36
Price to Book (P/B)0.82
Price to Sales (P/S)3.89
P/FCF Ratio10.52
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$10.20Price Target Upside5.37% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)1.49
Revenue Forecast (FY)$266.83M
MidCap Financial Investment Corporation Business Overview & Revenue Model
Company Description
MidCap Financial Investment Corporation (MFIC) operates as an externally managed, non-diversified, closed-end investment fund, registered as a business development company (BDC) under the Investment Company Act of 1940. The firm specializes in pro...
How the Company Makes Money
MFIC makes money primarily by earning investment income from its portfolio of private loans and other credit investments. The largest revenue stream is interest income collected on debt investments (typically floating-rate or fixed-rate loans), wh...
MidCap Financial Investment Corporation Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Negative
The call presented a mixed picture: management highlighted adequate liquidity, disciplined capital actions (including accretive buybacks), solid portfolio diversification and positive net investment income coverage of the dividend. However, these positives were overshadowed by a material $50.3 million portfolio net loss, a 3.2% NAV decline, and concentrated credit deterioration across a small number of names. Management is prioritizing deleveraging and monitoring stressed credits closely, but limited new commitments and rising borrower leverage create near-term downside risk.Positive Updates
Net Investment Income and Dividend Coverage
Net investment income (NII) per share was $0.40 for the quarter, exceeding the declared quarterly dividend of $0.31 by $0.09, supporting near-term dividend coverage.
Negative Updates
Material Net Loss and GAAP Loss Per Share
The portfolio generated a net loss of $50.3 million (a $0.61 net loss per share), resulting in GAAP net loss per share of $0.21 for the quarter and eliminating the incentive fee.
Read all updates
Q2-2026 Updates
Positive
Negative
Net Investment Income and Dividend Coverage
Net investment income (NII) per share was $0.40 for the quarter, exceeding the declared quarterly dividend of $0.31 by $0.09, supporting near-term dividend coverage.
Read all positive updates
Company Guidance
Management's guidance was clear: they will prioritize deleveraging over additional buybacks and make capital-allocation decisions based on leverage and market conditions, targeting the bottom of their range — the low ~1.4x net leverage goal (vs. 1.54x at 6/30); they paused further repurchases after spending $31.9M to buy ~2.76M shares at an $11.58 average, and the Board declared a $0.31 quarterly dividend (record Sept 8, payable Sept 24). They expect additional paydowns from Merx (Merx FV ~$68.6M, ~2.5% of the $2.77B portfolio) in the September quarter, noted new commitments were modest ($5.8M) with net repayments of $160M this quarter, and emphasized liquidity (undrawn revolver capacity ~$925M, ~$800M after the 2026 note maturity) while warning cost of debt has ticked up to 5.66% (from 5.61%) and a $125M 4.5% note was refinanced into the revolver, which may modestly raise funding costs.MidCap Financial Investment Corporation Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 260.02M | 274.39M | 226.31M | 237.35M | 141.46M | 151.74M |
| Gross Profit | 294.79M | 228.85M | 110.35M | 133.15M | 94.06M | 96.72M |
| EBITDA | 152.98M | 190.25M | 98.82M | 118.76M | 103.69M | 82.36M |
| Net Income | -29.65M | 63.17M | 98.82M | 118.76M | 30.59M | 82.36M |
Balance Sheet | ||||||
| Total Assets | 2.86B | 3.32B | 3.19B | 2.50B | 2.53B | 2.60B |
| Cash, Cash Equivalents and Short-Term Investments | 43.28M | 99.45M | 75.79M | 122.13M | 87.09M | 30.60M |
| Total Debt | 1.74B | 2.00B | 1.75B | 1.46B | 1.48B | 1.55B |
| Total Liabilities | 1.76B | 2.02B | 1.79B | 1.50B | 1.54B | 1.60B |
| Stockholders Equity | 1.10B | 1.31B | 1.40B | 1.01B | 988.11M | 1.00B |
Cash Flow | ||||||
| Free Cash Flow | 552.18M | 101.37M | -9.53M | 196.38M | 76.07M | -2.68M |
| Operating Cash Flow | 552.18M | 101.37M | -9.53M | 196.38M | 76.07M | -2.68M |
| Investing Cash Flow | -20.84M | -151.11M | 0.00 | 0.00 | 82.32M | 0.00 |
| Financing Cash Flow | -559.84M | 73.37M | -36.76M | -161.36M | -101.91M | -21.33M |
MidCap Financial Investment Corporation Technical Analysis
Negative
9.68
Price Trends
9.78
Negative
10.33
Negative
10.49
Negative
Market Momentum
-0.02
Negative
45.62
Neutral
25.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MFIC, the sentiment is Negative. The current price of 9.68 is below the 20-day moving average (MA) of 9.70, below the 50-day MA of 9.78, and below the 200-day MA of 10.49, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 45.62 is Neutral, neither overbought nor oversold. The STOCH value of 25.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MFIC.
MidCap Financial Investment Corporation Risk Analysis
MidCap Financial Investment Corporation disclosed 6 risk factors in its most recent earnings report. MidCap Financial Investment Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
MidCap Financial Investment Corporation Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $687.39M | 9.27 | 7.45% | 11.90% | -3.92% | -16.93% | |
64 Neutral | $246.64M | 8.41 | 8.05% | 21.11% | 0.37% | -28.29% | |
63 Neutral | $1.14B | 19.65 | 4.17% | 17.78% | 117.29% | -58.47% | |
60 Neutral | $248.78M | 23.81 | <0.01% | 29.18% | 138.32% | -27.91% | |
60 Neutral | $350.71M | -3.25 | -17.68% | 27.85% | -141.00% | -809.18% | |
57 Neutral | $796.96M | -26.78 | -2.39% | 14.50% | 1.24% | -132.48% |
* Financial Sector Average
MFIC
MidCap Financial Investment Corporation
9.64
-2.05
-17.56%
PNNT
Pennantpark Investment
3.76
-2.14
-36.30%
SLRC
SLR Investment Corp.
12.51
-2.38
-16.00%
SCM
Stellus Capital
8.64
-4.12
-32.29%
TCPC
BlackRock TCP Capital
4.13
-1.81
-30.47%
GSBD
Goldman Sachs BDC
10.02
0.28
2.85%
MidCap Financial Investment Corporation Corporate Events
Executive/Board ChangesShareholder Meetings
MidCap Shareholders Reelect Directors and Ratify Auditor
Positive
Jun 23, 2026
On June 18, 2026, MidCap Financial Investment Corporation held its Annual Meeting of Stockholders, where shareholders elected two Class I directors, Emanuel Pearlman and Tanner Powell, to three-year terms on the board. The voting results indicate ...
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.