Medallion Financial Corp (MFIN) stock analysis

P/E above its 5-year median

Medallion Financial's P/E of 8.3 is above its own 5-year median of 4.4.

P/E below the industry

Medallion Financial's P/E of 8.3 is below the Finance services median of 11.8.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

Medallion Financial's price-to-book of 0.53 is below the Finance services median of 0.83.

Trading below fair value

The share price of $9.19 is below our fair value estimate of $9.64.

Margin of safety under 20%

The price is 4.7% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 14.5% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -0.9% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 4.1% over the last twelve months; the Finance services median is 9.8%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 6.8% over the last twelve months and averaged 14.8% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Medallion Financial's return on equity of 6.8% is above the Finance services median of -33.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 10.8% over the last twelve months, against a 5-year average of 24.2%.

Net margin above the industry

Medallion Financial's net margin of 10.8% is above the Finance services median of -64.5%.

Low debt

Debt is 19.3% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 37.7% five years ago to 19.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 180% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 0.19; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Medallion Financial paid dividends worth 7.2% of the share price over the last twelve months.

Yield above Treasuries

The 7.2% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Medallion Financial yields 7.2%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 45.0% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.