Medallion Financial Corp.
Medallion Financial Corp. Fundamental Analysis
Medallion Financial Corp. (MFIN) shows moderate financial fundamentals with a PE ratio of 5.51, profit margin of 11.67%, and ROE of 9.85%. The company generates $0.4B in annual revenue with strong year-over-year growth of 21.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MFIN's fundamental strength across five key dimensions:
Efficiency Score
WeakMFIN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMFIN trades at attractive valuation levels.
Growth Score
ExcellentMFIN delivers strong and consistent growth momentum.
Financial Health Score
ModerateMFIN shows balanced financial health with some risks.
Profitability Score
WeakMFIN struggles to sustain strong margins.
Key Financial Metrics
Is MFIN Expensive or Cheap?
P/E Ratio
MFIN trades at 5.51 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MFIN's PEG of -0.92 indicates potential undervaluation.
Price to Book
The market values Medallion Financial Corp. at 0.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.42 times EBITDA. This is generally considered low.
How Well Does MFIN Make Money?
Net Profit Margin
For every $100 in sales, Medallion Financial Corp. keeps $11.67 as profit after all expenses.
Operating Margin
Core operations generate 35.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.85 in profit for every $100 of shareholder equity.
ROA
Medallion Financial Corp. generates $1.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Medallion Financial Corp. generates strong operating cash flow of $135.84M, reflecting robust business health.
Free Cash Flow
Medallion Financial Corp. generates strong free cash flow of $135.84M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.70 in free cash annually.
FCF Yield
MFIN converts 58.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.92
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How MFIN Stacks Against Its Sector Peers
| Metric | MFIN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.51 | 18.88 | Better (Cheaper) |
| ROE | 9.85% | 801.00% | Weak |
| Net Margin | 11.67% | 2213.00% | Weak |
| Debt/Equity | 0.65 | 1.03 | Strong (Low Leverage) |
| Current Ratio | 0.05 | 615.97 | Weak Liquidity |
| ROA | 1.34% | -19854.00% (disorted) | Weak |
MFIN outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Medallion Financial Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
150.55%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
232.83%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
72.22%
Industry Style: Value, Dividend, Cyclical
High Growth