Want to see MSIF full AI Analyst Report?
Top Page
MSC Income Fund, Inc.
(NYSE:MSIF)
Select Model
Select Model
Rating:69Neutral
Price Target:
$13.50
â–²(23.74% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by valuation strength (low P/E and high yield) and supportive technical momentum (price above major moving averages with positive MACD). Offsetting these positives, financial performance is constrained by weak and negative recent cash flows and a meaningful TTM revenue decline, while the earnings call was constructive overall but flagged expense pressure, slightly elevated non-accruals, and the upcoming 2026 debt maturity as key risks.
Positive Factors
Strong ROE and NAV growth
A sustained 15.9% annualized ROE and sequential NAV appreciation signal that core investing and underwriting are generating durable economic returns. For a BDC, consistent NAV gains reflect realized exits and mark-to-market strength, supporting dividend capacity and long-term shareholder value.
Negative Factors
Weak cash generation
Recurrent negative operating and free cash flow means accounting profits aren't reliably converting to cash, forcing dependence on financing or asset sales to fund dividends and deployments. Over months this increases liquidity strain and reduces flexibility for opportunistic lending or buybacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong ROE and NAV growth
A sustained 15.9% annualized ROE and sequential NAV appreciation signal that core investing and underwriting are generating durable economic returns. For a BDC, consistent NAV gains reflect realized exits and mark-to-market strength, supporting dividend capacity and long-term shareholder value.
Read all positive factors
MSC Income Fund, Inc. (MSIF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$553.67M
Dividend Yield10.47%
Average Volume (3M)272.26K
Price to Earnings (P/E)5.7
Beta (1Y)0.37
Revenue Growth14.33%
EPS Growth53.07%
CountryUS
Employees110
SectorGeneral
Sector StrengthN/A
IndustryAsset Management
Share Statistics
EPS (TTM)2.14
Shares Outstanding45,345,230
10 Day Avg. Volume261,205
30 Day Avg. Volume272,256
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$14.40Price Target Upside31.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.38
Revenue Forecast (FY)$143.81M
MSC Income Fund, Inc. Business Overview & Revenue Model
Company Description
MSC Income Fund, Inc. operates as a Business Development Company (BDC), dedicating its capital to middle-market debt opportunities and hybrid debt-and-equity placements within the lower middle-market segment. The fund actively supports various cor...
How the Company Makes Money
MSIF makes money primarily by investing in privately held companies and earning returns from those investments. Its key revenue stream is investment income—most notably interest income from debt investments (such as secured loans) made to portfoli...
MSC Income Fund, Inc. Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call highlighted several strong operating and balance-sheet outcomes — including a 15.9% annualized ROE, NAV growth of 4.0% quarter-over-quarter, $19 million of net fair value appreciation (including an $11.6 million realized gain), a maintained dividend policy with a >12% yield, and a sizable share repurchase capacity (combined $40 million including Main Street). Offsetting items include a modest year-over-year decline in adjusted NII before taxes (~5.8% in dollars), higher quarter expenses driven by increased capital gains incentive fee accruals, slightly elevated non-accruals, and a material $150 million note maturing in October 2026 that requires management action. Overall, the positive portfolio performance, NAV appreciation, maintained dividend and capital-return initiatives materially outweigh the operational and expense headwinds discussed.Positive Updates
Strong Return on Equity
Annualized return on equity of 15.9% for the quarter, reflecting solid operating performance and portfolio appreciation.
Negative Updates
Adjusted NII Before Taxes Decline Year-over-Year
Adjusted NII before taxes was $16.3 million (or $0.36 per share) in Q2, down from $17.3 million (or $0.37 per share) in the prior year — a decline of approximately 5.8% in dollars and a ~2.7% decline on a per-share basis.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Return on Equity
Annualized return on equity of 15.9% for the quarter, reflecting solid operating performance and portfolio appreciation.
Read all positive updates
Company Guidance
The call guided that the Fund delivered strong Q2 results with annualized ROE of 15.9%, ANII of $0.33 per share (ANII before taxes $0.36) and adjusted NII before taxes of $16.3 million ($0.36/share), driving a NAV of $16.51 per share (up 4.0% QoQ, +$0.64; $0.98 above the Jan‑2025 offering price) and a net increase in net assets of $29.3 million ($0.65/share); total investment income was $35.7 million (up 4.7% QoQ), the Fund recorded $19.0 million of net fair value appreciation ( $9.9M realized gains, $9.1M unrealized), and investments on non‑accrual were 1.9% of fair value (5.8% at cost); portfolio metrics include private loans of $848.5M fair value (61% of portfolio) across 81 companies (93% secured, >99% first‑lien, 95% floating, weighted‑avg yield 10.4%; $62.2M invested in the quarter, net increase $10M) and legacy lower‑middle‑market investments of $504M fair value (36% of portfolio) across 55 companies (54% debt/46% equity, debt weighted‑avg yield 12.7%, average equity ownership ~8%; $13M follow‑ons, net decrease $2M); capital structure and liquidity items noted: regulatory asset coverage ratio 2.13, net debt/NAV 0.85, $150M notes maturing Oct 30, 2026 (options being evaluated), and a new open‑market repurchase authorization of up to $20M by the Fund (plus $20M matching by Main Street) from Sept 2026–Feb 2027; expense ratio was 1.9% annualized, and capital gains incentive fee accruals increased ($2.9M year‑over‑year; $3.6M QoQ), with Main Street voluntarily waiving ~$260k of Q2 incentive fees (≈$1.4M waived over the last year).MSC Income Fund, Inc. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 145.86M | 129.65M | 101.75M | 74.84M | 51.74M | 82.38M |
| Gross Profit | 108.96M | 94.28M | 62.71M | 74.84M | 51.74M | 82.38M |
| EBITDA | 131.88M | 126.38M | 57.66M | 0.00 | 0.00 | 0.00 |
| Net Income | 99.06M | 88.73M | 56.55M | 66.21M | 45.59M | 73.64M |
Balance Sheet | ||||||
| Total Assets | 1.44B | 1.38B | 1.22B | 1.14B | 1.11B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 28.05M | 20.64M | 28.38M | 30.79M | 21.31M | 25.81M |
| Total Debt | 661.18M | 602.75M | 565.14M | 484.84M | 470.54M | 502.87M |
| Total Liabilities | 695.03M | 642.37M | 599.77M | 517.59M | 497.50M | 530.61M |
| Stockholders Equity | 748.80M | 738.66M | 624.90M | 622.31M | 609.66M | 613.17M |
Cash Flow | ||||||
| Free Cash Flow | -32.30M | -70.35M | -28.08M | 50.23M | 76.68M | -191.15M |
| Operating Cash Flow | -32.30M | -70.35M | -28.08M | 50.23M | 76.68M | -191.15M |
| Investing Cash Flow | 0.00 | -112.19M | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | 32.01M | 62.61M | 25.66M | -40.76M | -81.18M | 167.90M |
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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $603.51M | 12.83 | 5.40% | 14.73% | -11.34% | -48.35% | |
69 Neutral | $553.67M | 5.71 | 13.47% | 10.91% | 14.33% | 53.07% | |
69 Neutral | $720.32M | 14.23 | 4.09% | 17.37% | 12.58% | -40.06% | |
66 Neutral | $691.21M | 9.39 | 6.61% | 11.90% | -3.92% | -16.93% | |
62 Neutral | $705.56M | -15.56 | -4.28% | 17.69% | -50.21% | -161.42% | |
57 Neutral | $499.75M | -3.06 | -17.51% | 38.10% | -101.87% | -1631.11% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
MSIF
MSC Income Fund, Inc.
12.42
-0.35
-2.76%
NMFC
New Mountain Finance
7.45
-1.58
-17.48%
PFLT
Pennantpark
7.32
-1.60
-17.91%
SLRC
SLR Investment Corp.
12.65
-2.23
-15.00%
ECC
Eagle Point Credit Company
3.78
-1.52
-28.72%
NCDL
Nuveen Churchill Direct Lending Corp.
12.30
-1.85
-13.05%
MSC Income Fund, Inc. Corporate Events
Dividends
MSC Income Fund Announces Fourth-Quarter Dividend Program
Positive
Aug 6, 2026
On August 6, 2026, MSC Income Fund, Inc. reported that its board had declared regular monthly cash dividends of $0.11 per share for each of October, November and December 2026, totaling $0.33 per share for the fourth quarter. These dividends were ...
Executive/Board ChangesPrivate Placements and FinancingShareholder Meetings
MSC Income Fund Shareholders Approve Key Annual Proposals
Neutral
Aug 5, 2026
On August 5, 2026, MSC Income Fund, Inc. held its 2026 annual meeting of stockholders, with 45,345,229 common shares eligible to vote as of the May 18, 2026 record date. Shareholders elected five directors, including Robert L. Kay, Nataly M. Marks...
Business Operations and StrategyExecutive/Board Changes
MSC Income Fund Announces CEO Succession to Meserve
Neutral
Jun 30, 2026
MSC Income Fund, Inc. announced on June 30, 2026, that its board approved a CEO succession plan under which Chairman and CEO Dwayne L. Hyzak will hand over the chief executive role to Nicholas T. Meserve in the fourth quarter of 2026. Hyzak, who h...
Business Operations and StrategyRegulatory Filings and Compliance
MSC Income Fund Shares Updated Investor Presentation Details
Neutral
Jun 11, 2026
On June 11, 2026, Main Street Capital Corporation, the parent of MSC Income Fund, Inc.’s investment adviser and administrator, posted an updated investor presentation on its website in connection with its analysts’ and investors’...
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.