NasdaqGS:MFIN

Stock Analysis Report

Executive Summary

Medallion Financial Corp., through with its subsidiaries, operates as a finance company in the United States.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Medallion Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MFIN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

MFIN

1.5%

US Consumer Finance

0.9%

US Market


1 Year Return

18.4%

MFIN

14.5%

US Consumer Finance

20.0%

US Market

Return vs Industry: MFIN exceeded the US Consumer Finance industry which returned 14.8% over the past year.

Return vs Market: MFIN underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

MFINIndustryMarket
7 Day0%1.5%0.9%
30 Day-3.0%0.9%1.4%
90 Day5.2%5.9%8.8%
1 Year18.4%18.4%16.4%14.5%22.5%20.0%
3 Year187.9%187.9%41.5%34.8%49.9%40.3%
5 Year-23.5%-36.6%46.3%36.0%73.2%54.1%

Price Volatility Vs. Market

How volatile is Medallion Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Medallion Financial undervalued compared to its fair value and its price relative to the market?

20.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MFIN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MFIN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MFIN is poor value based on its PE Ratio (20.6x) compared to the Consumer Finance industry average (8.8x).

PE vs Market: MFIN is poor value based on its PE Ratio (20.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: MFIN is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: MFIN is good value based on its PB Ratio (0.6x) compared to the US Consumer Finance industry average (1.2x).


Next Steps

Future Growth

How is Medallion Financial forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

96.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFIN's forecast earnings growth (96% per year) is above the savings rate (1.7%).

Earnings vs Market: MFIN's earnings (96% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MFIN's revenue (7.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: MFIN's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MFIN's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has Medallion Financial performed over the past 5 years?

-54.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFIN has a large one-off gain of $23.9M impacting its September 30 2019 financial results.

Growing Profit Margin: MFIN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MFIN's earnings have declined by -54.4% per year over the past 5 years.

Accelerating Growth: MFIN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MFIN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Finance industry (11.4%).


Return on Equity

High ROE: MFIN's Return on Equity (4.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Medallion Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MFIN has a low level of unsold assets or inventory.

Debt Coverage by Assets: MFIN's debt is not covered by short term assets (assets are 1x debt).


Financial Institutions Analysis

Asset Level: MFIN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MFIN has a sufficient allowance for bad loans.

Low Risk Liabilities: MFIN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MFIN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MFIN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MFIN has an appropriate level of bad loans.


Next Steps

Dividend

What is Medallion Financial's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MFIN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MFIN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MFIN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MFIN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MFIN is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MFIN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.5yrs

Average management tenure


CEO

Alvin Murstein (84yo)

24yrs

Tenure

US$1,329,620

Compensation

Mr. Alvin Murstein has been the Chairman of Medallion Financial Corp. since 1995 and has been its Chief Executive Officer since February 1996. Mr. Murstein has also been the Chairman, President and Chief E ...


CEO Compensation Analysis

Compensation vs Market: Alvin's total compensation ($USD1.33M) is about average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Alvin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Alvin Murstein
Chairman & CEO24yrsUS$1.33m6.72% $10.9m
Andrew Murstein
President22.3yrsUS$2.54m7.64% $12.4m
Larry Hall
Senior VP & CFO15.9yrsUS$605.43k0.35% $573.6k
Donald Poulton
CEO & President of Medallion Bank4.8yrsUS$666.96k0.31% $511.2k
Stephen Lewis
Senior Vice President of Medallion Capital22.1yrsUS$494.52k0.14% $235.4k
Marisa Silverman
Chief Compliance Officer4.9yrsno data0.059% $96.2k
William Osborn
Senior Vice President0yrsno datano data
Thomas Munson
Executive VP & Chief Credit Officer2.8yrsno data0.072% $116.7k
Dean Pickerell
Acting President & Executive VP of Medallion Capital7.1yrsUS$500.20k0.20% $318.6k
Anthony Cutrone
Assistant Controller0yrsno datano data

11.5yrs

Average Tenure

65.5yo

Average Age

Experienced Management: MFIN's management team is seasoned and experienced (11.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alvin Murstein
Chairman & CEO24yrsUS$1.33m6.72% $10.9m
Andrew Murstein
President22.3yrsUS$2.54m7.64% $12.4m
John Everets
Independent Director2.6yrsUS$110.99k0.29% $467.6k
Henry Aaron
Independent Director15.3yrsUS$85.42k0.041% $66.8k
David Rudnick
Non-Independent Director24yrsUS$117.74k0.91% $1.5m
Allan Tanenbaum
Independent Director2.3yrsUS$91.75k0.18% $297.7k
Frederick Menowitz
Independent Director16.8yrsUS$98.37k0.064% $103.5k

16.8yrs

Average Tenure

78yo

Average Age

Experienced Board: MFIN's board of directors are seasoned and experienced ( 16.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Medallion Financial Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Medallion Financial Corp.
  • Ticker: MFIN
  • Exchange: NasdaqGS
  • Founded: 1995
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$162.735m
  • Shares outstanding: 24.36m
  • Website: https://www.medallion.com

Number of Employees


Location

  • Medallion Financial Corp.
  • 437 Madison Avenue
  • 38th Floor
  • New York City
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MFINNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDMay 1996
MD5DB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1996
MFIN.LNasdaqGS (Nasdaq Global Select)NTUSUSDApr 2016

Biography

Medallion Financial Corp., through with its subsidiaries, operates as a finance company in the United States. It originates, acquires, and services loans that finance taxicab medallions and various types of commercial businesses. The company offers consumer loans for the purchase of recreational vehicles, boats, motorcycles, and trailers, as well as to finance small scale home improvements; and commercial loans for the purchase of equipment and related assets necessary to open a new business, or purchase or improvement of an existing business. It also provides secured mezzanine loans to businesses in various industries; other secured commercial loans; and other debt, mezzanine, and equity investment capital to companies in various industries. In addition, the company raises deposits and conducts other banking activities. Medallion Financial Corp. was founded in 1995 and is headquartered in New York City, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:43
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.