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1. Company Snapshot

1.a. Company Description

Medallion Financial Corp., together with its subsidiaries, operates as a finance company in the United States.The company operates through four segments: Recreation Lending, Home Improvement Lending, Commercial Lending, and Medallion Lending.It provides loans that finance consumer purchases of recreational vehicles, boats, and trailers; consumer home improvements; commercial businesses; and taxi medallions to individuals, and small to mid-size businesses.


The company also offers commercial loans for purchase of equipment and related assets necessary to open a new business, or purchase or improvement of an existing business; and medallion loans.In addition, it provides debt, mezzanine, and equity investment capital to companies in various industries; and raises deposits and conducts other banking activities.Medallion Financial Corp.


was incorporated in 1995 and is headquartered in New York City, New York.

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1.b. Last Insights on MFIN

Medallion Financial Corp.'s recent performance was negatively impacted by its recent debt maturity, which forced the company to deplete its holding company cash balances to repay $31.25 million in debt. The company's inability to raise debt before the February 26th, 2026 maturity raises concerns about its liquidity. Additionally, the company's tangible book value remains below its 4Q2013 peak, and its price-to-tangible book value is substantially below its peers. Poor management and lack of board oversight have contributed to the company's struggles, according to ZimCal.

1.c. Company Highlights

2. Medallion Financial Corp. Posts Record 2025 with Strong Loan Growth

Medallion Financial Corp. reported a robust fourth quarter in 2025, with net interest income growing 8% to $56.4 million, driven by a 16 basis point increase in total interest yield to 11.70%. The company's total loan portfolio reached $2.567 billion at December 31, up 3% from a year ago. Net income attributable to shareholders was $12.2 million or $0.50 per diluted share, beating analyst estimates of $0.41. Revenue growth is expected to decline by 4.0% next year according to analyst estimates.

Publication Date: Mar -06

📋 Highlights
  • Net Interest Income Growth:: Increased 8% to $56.4M in Q4, driven by a 16 bps yield rise to 11.70%.
  • Loan Portfolio Expansion:: Total loans reached $2.567B (+3 YoY), with $97.2M recreation loans (15.16% coupon) and $61.7M home improvement loans (9.87% coupon).
  • Provision for Credit Loss:: Rose to $27.7M in Q4 (vs. $18.6M Q3 and $20.6M prior-year Q4) due to portfolio growth and risk factors.
  • Net Income & Earnings Per Share:: Net income was $12.2M ($0.50/share), up $2.1M ($0.07/share) from prior-year Q4.

Loan Origination and Portfolio Performance

The company originated $97.2 million of recreation loans and $61.7 million of home improvement loans, with weighted average coupons of 15.16% and 9.87%, respectively. Consumer loans more than 90 days past due were $14.2 million or 0.6% of total consumer loans, compared to $11.4 million or 0.5% a year ago. The provision for credit loss was $27.7 million, an increase from $18.6 million in the third quarter and $20.6 million in the prior year quarter.

Outlook and Growth Prospects

Andrew Murstein highlighted the company's focus on building upon its strong foundation established over the past 30-plus years, with a focus on sustained growth in its Recreation segment and significant growth potential within its home improvement line. He mentioned adding a group of talent from EnerBank, which he believes will drive mid-teens growth in the home improvement portfolio. The company's home improvement portfolio has 780 FICO scores, making it AA+ quality.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value not directly available, we can still assess the company's valuation using other relevant metrics. The current Price-to-Book Ratio is 0.56, indicating the stock might be undervalued. The Dividend Yield is 4.72%, which is attractive for income-seeking investors. ROE stands at 11.82%, showing a decent return on equity.

Management's Strategy and Capital Allocation

Andrew Murstein stated that the company is not looking to acquire other businesses in the near term, focusing on the growth potential of their existing assets. He also mentioned that a sale of the company is not currently being considered, but a sale at 2-3x book value and 20-25x earnings would be a significant premium. The company's focus on disciplined growth, operational excellence, and prudent capital allocation is expected to drive future growth.

3. NewsRoom

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Medallion Financial's recent debt maturity is evidence of significant issues

Mar -06

Source: globenewswire.com

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Medallion Financial Corp. (MFIN) Q4 2025 Earnings Call Transcript

Feb -19

Source: seekingalpha.com

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Medallion Financial (MFIN) Tops Q4 Earnings and Revenue Estimates

Feb -18

Source: zacks.com

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Medallion Financial (NASDAQ:MFIN) versus New Mountain Finance (NASDAQ:NMFC) Head to Head Analysis

Feb -14

Source: defenseworld.net

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Comparing Gladstone Investment (NASDAQ:GAIN) & Medallion Financial (NASDAQ:MFIN)

Feb -12

Source: defenseworld.net

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Medallion Financial Corp. to Report 2025 Fourth Quarter and Full Year Results on Wednesday, February 18, 2026

Feb -11

Source: globenewswire.com

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Medallion Bank Expands Leadership Team to Spearhead Growth

Feb -04

Source: globenewswire.com

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ZimCal releases presentation on Medallion Financial that shows risks but also huge potential

Feb -03

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.03%)

6. Segments

Consumer Lending - Recreation

Expected Growth: 7.88%

Strong demand for recreational vehicles, increasing consumer confidence, and low interest rates drive growth in Medallion Financial Corp.'s Consumer Lending - Recreation segment, with a 7.88% growth rate. Additionally, the rise of outdoor activities and experiential spending contribute to the segment's expansion.

Consumer Lending - Home Improvement

Expected Growth: 8.23%

Strong demand for home improvement projects, driven by increasing homeownership rates and aging housing stock, fuels growth in Medallion Financial Corp.'s Consumer Lending - Home Improvement segment. Additionally, rising consumer confidence, low unemployment, and favorable interest rates contribute to the 8.23% growth rate.

Commercial Lending

Expected Growth: 9.27%

Medallion Financial Corp.'s 9.27% commercial lending growth is driven by increasing demand for taxi medallion financing, expansion into new markets, and a strong reputation for providing specialized lending solutions. Additionally, the company's ability to offer competitive interest rates and flexible repayment terms has contributed to its growth.

Corporate and Other Investments

Expected Growth: 8.5%

Medallion Financial Corp's 8.5% growth in Corporate and Other Investments is driven by increasing demand for mezzanine financing, expansion into new markets, and strategic partnerships. Additionally, the company's diversified investment portfolio and effective risk management strategies have contributed to this growth.

Taxi Medallion Lending

Expected Growth: 5.4%

Medallion Financial Corp.'s 5.4% growth in Taxi Medallion Lending is driven by increasing demand for medallions, limited supply, and rising prices. Additionally, the company's diversified lending portfolio, strong credit quality, and favorable regulatory environment contribute to its growth. Furthermore, the growing need for financing options among taxi operators and the company's expertise in the industry also support its expansion.

7. Detailed Products

Medallion Bank

A Utah-chartered industrial bank that originates consumer loans for the purchase of recreational vehicles, boats, and motorcycles, as well as for the financing of small businesses.

Medallion Signature Loans

Unsecured personal loans for individuals, often used for debt consolidation, home improvements, or unexpected expenses.

Medallion Home Equity Loans

Home equity loans and lines of credit for homeowners, providing access to funds for various purposes.

Medallion Business Loans

Term loans and lines of credit for small businesses, providing financing for various business needs.

Medallion Taxicab Medallion Loans

Financing for the purchase of taxicab medallions, which grant licenses to operate taxis in certain cities.

8. Medallion Financial Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Medallion Financial Corp. operates in a niche market, providing financing for taxi medallions, which limits the availability of substitutes. However, the rise of ride-hailing services has increased competition, making it a medium threat.

Bargaining Power Of Customers

Medallion Financial Corp.'s customers, mainly taxi medallion owners, have limited bargaining power due to the specialized nature of the financing services provided.

Bargaining Power Of Suppliers

Medallion Financial Corp. has a diversified supplier base, and the company's specialized financing services reduce the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the financing industry, and the potential for new players to disrupt the market.

Intensity Of Rivalry

The intensity of rivalry in the taxi medallion financing market is moderate, with a few established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.52%
Debt Cost 14.28%
Equity Weight 58.48%
Equity Cost 14.28%
WACC 14.28%
Leverage 71.01%

11. Quality Control: Medallion Financial Corp. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Runway Growth Finance

A-Score: 7.6/10

Value: 8.5

Growth: 8.3

Quality: 7.6

Yield: 10.0

Momentum: 2.0

Volatility: 9.3

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Medallion Financial

A-Score: 7.1/10

Value: 9.1

Growth: 7.7

Quality: 6.7

Yield: 7.0

Momentum: 6.0

Volatility: 6.0

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Regional Management

A-Score: 6.5/10

Value: 7.9

Growth: 6.8

Quality: 5.2

Yield: 6.0

Momentum: 8.0

Volatility: 5.0

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Navient

A-Score: 6.3/10

Value: 9.8

Growth: 5.0

Quality: 5.4

Yield: 8.0

Momentum: 3.5

Volatility: 6.3

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Oaktree Specialty Lending

A-Score: 6.3/10

Value: 4.0

Growth: 6.2

Quality: 5.5

Yield: 10.0

Momentum: 2.5

Volatility: 9.3

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Farmer Mac

A-Score: 6.1/10

Value: 6.4

Growth: 8.3

Quality: 5.0

Yield: 6.0

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.37$

Current Price

8.37$

Potential

-0.00%

Expected Cash-Flows