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Medallion Financial
(NASDAQ:MFIN)
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Rating:71Outperform
Price Target:
$12.50
▲(6.66% Upside)
Action:Reiterated
Date:10/21/26
MFIN’s score is driven primarily by solid financial performance (especially strong recent cash generation) and attractive valuation (low P/E with a high dividend yield). These positives are partially offset by weak near-term technical momentum and earnings-call risks tied to elevated provisioning, higher costs, and some margin compression.
Positive Factors
Loan and origination growth
Strong loan and origination growth demonstrates continued demand across Medallion’s specialty lending niches. Expanding balances can support recurring interest income and operating scale, while sustained partner and channel activity may broaden the company’s future earnings base.
Negative Factors
Elevated recreation credit losses
Elevated recreation charge-offs remain a structural pressure on specialty-lending profitability because realized losses directly reduce portfolio returns and can require additional provisioning. Persistent losses could offset benefits from strong recreation origination growth and constrain earnings quality.
Read all positive and negative factors
Positive Factors
Negative Factors
Loan and origination growth
Strong loan and origination growth demonstrates continued demand across Medallion’s specialty lending niches. Expanding balances can support recurring interest income and operating scale, while sustained partner and channel activity may broaden the company’s future earnings base.
Read all positive factors
Medallion Financial (MFIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$262.21M
Dividend Yield4.55%
Average Volume (3M)64.01K
Price to Earnings (P/E)8.2
Beta (1Y)0.70
Revenue Growth5.42%
EPS Growth-24.04%
CountryUS
Employees179
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.40
Shares Outstanding22,960,249
10 Day Avg. Volume40,151
30 Day Avg. Volume64,012
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)0.57
Price to Sales (P/S)0.66
P/FCF Ratio1.86
Enterprise Value/Market Cap10.59
Enterprise Value/Revenue8.04
Enterprise Value/Gross Profit9.68
Enterprise Value/Ebitda18.26
Forecast
1Y Price Target
$12.63Price Target Upside7.72% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)1.15
Revenue Forecast (FY)$246.38M
Medallion Financial Business Overview & Revenue Model
Company Description
Medallion Financial Corp. (MFIN), encompassing its various subsidiaries, functions as a diversified financial services provider throughout the United States. The company's operations are distinctly segmented into Recreation Lending, Home Improveme...
How the Company Makes Money
Medallion Financial primarily makes money by earning interest income and fees from loans it originates and holds, along with servicing-related income tied to managing those loans over their life cycle. Key revenue and earnings drivers typically in...
Medallion Financial Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call emphasized strong origination momentum and record net interest income, material loan and asset growth, successful partnership expansion, and continued shareholder-friendly capital deployment (dividend increase and buybacks). Key near-term negatives included elevated Day 1 provisions tied to rapid portfolio growth, higher operating expenses as the company invests in talent and technology, some NIM compression sequentially, and a decline in GAAP net income/EPS versus the prior year. Management presented the provision and temporary earnings impacts as expected and acceptable trade-offs for scalable growth and long-term shareholder value.Positive Updates
Record Home Improvement Originations
Home improvement originations reached $128.6 million in Q2 — the highest quarter in company history and more than double ("over twofold") the prior-year Q2 level; origination momentum continued into July with stable credit quality.
Negative Updates
Elevated Credit Provisioning (Day 1 Impact)
Provision for credit losses was $22.3 million in Q2 (slight decrease from Q1 $22.5M but up from $21.6M year-ago); included ~$6.5 million of Day 1 provisioning on newly originated loans (vs ~$2.5M prior quarter), which management noted reduced Q2 EPS by roughly $0.18 per share.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Home Improvement Originations
Home improvement originations reached $128.6 million in Q2 — the highest quarter in company history and more than double ("over twofold") the prior-year Q2 level; origination momentum continued into July with stable credit quality.
Read all positive updates
Company Guidance
The company reiterated its forward guidance that it remains on track for mid‑teens loan/asset growth (Q2 loans were $2.79B, +12% Y/Y and +7% Q/Q) with seasonally stronger originations in Q2/Q3 and the robust origination cadence continuing through July (home improvement record originations $128.6M; recreation originations $228.5M, +60% Y/Y; partner-sourced originations $247.1M generating >$1.1M of fee income); it expects to continue originating at similar rates (~14.875% for recreation, ~9.25% for home improvement; weighted average coupons 15.06% Rec, 9.69% HI) while managing capital via periodic loan sales ( ~$50M sold in the quarter, ~$1.3M gain) and share repurchases (≈780k shares bought in Q2, about $6M remaining of a $40M authorization, expected to be completed within ~6 months and likely reloaded), maintain dividends ($0.14/share this quarter, +16.7% q/q), and invest in growth (LOS replacement planned Q1 2027, continued talent and analytics hires) while expecting net interest income growth (Q2 NII $57.2M; NIM ~7.94%) to outpace operating cost growth—noting a near‑term Day‑1 provision headwind tied to growth ($6.5M in Q2, ~ $0.18 EPS impact) and ongoing targets to improve credit performance over time.Medallion Financial Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 345.45M | 353.31M | 291.79M | 254.51M | 198.43M | 179.21M |
| Gross Profit | 286.96M | 341.81M | 127.12M | 153.76M | 132.19M | 143.44M |
| EBITDA | 152.02M | 186.63M | 69.15M | 87.88M | 73.08M | 83.62M |
| Net Income | 35.88M | 43.04M | 35.88M | 55.08M | 43.84M | 54.11M |
Balance Sheet | ||||||
| Total Assets | 3.19B | 2.96B | 2.87B | 2.59B | 2.26B | 1.87B |
| Cash, Cash Equivalents and Short-Term Investments | 275.92M | 261.75M | 101.17M | 106.87M | 81.66M | 106.25M |
| Total Debt | 345.92M | 316.28M | 288.59M | 253.06M | 229.93M | 231.23M |
| Total Liabilities | 2.69B | 2.45B | 2.43B | 2.18B | 1.89B | 1.52B |
| Stockholders Equity | 406.02M | 408.62M | 370.17M | 342.99M | 301.74M | 287.04M |
Cash Flow | ||||||
| Free Cash Flow | 159.54M | 126.28M | 115.51M | 113.76M | 108.74M | 78.73M |
| Operating Cash Flow | 159.54M | 126.28M | 115.51M | 113.76M | 108.74M | 78.73M |
| Investing Cash Flow | -367.47M | -124.49M | -335.78M | -340.70M | -449.00M | -238.32M |
| Financing Cash Flow | 261.92M | 30.20M | 239.99M | 271.18M | 321.38M | 172.04M |
Medallion Financial Technical Analysis
Positive
11.72
Price Trends
11.74
Negative
10.84
Positive
10.07
Positive
Market Momentum
-0.14
Positive
45.85
Neutral
41.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MFIN, the sentiment is Positive. The current price of 11.72 is above the 20-day moving average (MA) of 11.61, below the 50-day MA of 11.74, and above the 200-day MA of 10.07, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 45.85 is Neutral, neither overbought nor oversold. The STOCH value of 41.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MFIN.
Medallion Financial Risk Analysis
Medallion Financial disclosed 42 risk factors in its most recent earnings report. Medallion Financial 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 0 New Risks
Medallion Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $262.21M | 8.16 | 8.86% | 4.55% | 5.42% | -24.04% | |
71 Outperform | $422.62M | 22.98 | 4.95% | ― | -2.34% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $216.86M | 9.08 | 7.48% | ― | 13.41% | 21.23% | |
65 Neutral | $4.04B | 10.73 | 26.36% | ― | 20.08% | 33.74% | |
63 Neutral | $302.05M | 6.57 | 12.49% | 3.67% | 9.63% | 40.75% | |
60 Neutral | $1.21B | 8.25 | 19.36% | 1.82% | 4.52% | -29.04% |
* Financial Sector Average
MFIN
Medallion Financial
11.42
2.05
21.83%
PRG
PROG Holdings
30.27
-0.77
-2.46%
CPSS
Consumer Portfolio Services
9.90
2.09
26.76%
RM
Regional Management
32.74
-5.74
-14.91%
ENVA
Enova International
165.07
43.87
36.20%
OPRT
Oportun Financial
9.19
3.63
65.29%
Medallion Financial Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Medallion Financial Buys Trust Preferreds at Discount
Positive
Oct 21, 2026
On October 21, 2026, Medallion Financial Corp. completed the purchase of trust preferred securities issued by Medallion Financing Trust I from BIMIZCI Fund LLC. The securities have a liquidation amount of $15,000,000 and were acquired for an aggre...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Medallion Financial Announces Trust Securities Repurchase Agreement
Positive
Oct 19, 2026
On October 16, 2026, Medallion Financial Corp. agreed to repurchase $15 million in trust preferred securities from BIMIZCI Fund at about 73.7% of face value, for $11.049 million plus accrued distributions, with closing expected within 30 days. The...
Business Operations and StrategyPrivate Placements and Financing
Medallion Financial’s Bank Reopens Series G Preferred Offering
Positive
Sep 24, 2026
On September 23, 2026, Medallion Bank announced it had priced a reopening of its Series G Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, offering 2,200,000 additional shares at a $25 liquidation amount per share, for an aggregate $55 m...
Business Operations and StrategyPrivate Placements and Financing
Medallion Bank Reopens Series G Preferred Stock Offering
Positive
Sep 22, 2026
On September 22, 2026, Medallion Bank, a Utah-chartered, FDIC-insured industrial bank focused on consumer loans for recreational vehicles, boats and home improvements, launched a public reopening of its Fixed-Rate Reset Non-Cumulative Perpetual Pr...
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.