NasdaqGS:MFIN

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.7%

MFIN

0.2%

US Consumer Finance

2.3%

US Market


1 Year Return

-56.3%

MFIN

-30.7%

US Consumer Finance

6.7%

US Market

Return vs Industry: MFIN underperformed the US Consumer Finance industry which returned -30.7% over the past year.

Return vs Market: MFIN underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

MFINIndustryMarket
7 Day0.7%0.2%2.3%
30 Day-2.1%-2.2%7.4%
90 Day7.4%8.1%17.9%
1 Year-56.3%-56.3%-29.2%-30.7%9.0%6.7%
3 Year23.3%23.3%-0.9%-5.9%36.6%27.7%
5 Year-65.2%-69.8%-2.6%-10.3%64.2%46.1%

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?

0.27x

Price to Book (PB) 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 unprofitable, so we can't compare its PE Ratio to the US Consumer Finance industry average.

PE vs Market: MFIN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MFIN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MFIN is good value based on its PB Ratio (0.3x) compared to the US Consumer Finance industry average (1x).


Next Steps

Future Growth

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

167.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MFIN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: MFIN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MFIN's is expected to become profitable in the next 3 years.

Revenue vs Market: MFIN's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: MFIN's revenue is forecast to decline over the next 3 years (-0.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MFIN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Medallion Financial performed over the past 5 years?

-58.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MFIN is currently unprofitable.

Growing Profit Margin: MFIN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MFIN is unprofitable, and losses have increased over the past 5 years at a rate of -58.4% per year.

Accelerating Growth: Unable to compare MFIN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MFIN is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (-23.6%).


Return on Equity

High ROE: MFIN has a negative Return on Equity (-3.87%), as it is currently unprofitable.


Next Steps

Financial Health

How is Medallion Financial's financial position?


Financial Position Analysis

Short Term Liabilities: MFIN's short term assets ($1.2B) exceed its short term liabilities ($383.8M).

Long Term Liabilities: MFIN's short term assets ($1.2B) exceed its long term liabilities ($830.0M).


Debt to Equity History and Analysis

Debt Level: MFIN's debt to equity ratio (365.6%) is considered high.

Reducing Debt: MFIN's debt to equity ratio has increased from 128.1% to 365.6% over the past 5 years.

Debt Coverage: MFIN's debt is not well covered by operating cash flow (6%).

Interest Coverage: MFIN is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

7.5yrs

Average management tenure


CEO

Alvin Murstein (85yo)

24.42yrs

Tenure

US$1,500,111

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 ($USD1.50M) is above average for companies of similar size in the US market ($USD614.21K).

Compensation vs Earnings: Alvin's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Alvin Murstein
Chairman & CEO24.42yrsUS$1.50m6.73% $4.5m
Andrew Murstein
President22.75yrsUS$3.11m7.89% $5.3m
Larry Hall
Senior VP & CFO16.33yrsUS$718.45k0.41% $276.1k
Donald Poulton
CEO & President of Medallion Bank5.17yrsUS$727.74k0.38% $256.8k
Alexander Travis
President of Medallion Capital Inc.no dataUS$454.80k0.043% $29.1k
Alex Arzeno
Director of Investor Relations & Communicationsno datano datano data
Marisa Silverman
Chief Compliance Officer5.33yrsno data0.080% $54.0k
Thomas Munson
Executive VP & Chief Credit Officer3.25yrsno data0.088% $59.0k
Dean Pickerell
Acting President & Executive VP of Medallion Capital7.5yrsUS$500.20k0.20% $136.3k
Anthony Cutrone
Assistant Controllerno datano datano data

7.5yrs

Average Tenure

61yo

Average Age

Experienced Management: MFIN's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alvin Murstein
Chairman & CEO24.42yrsUS$1.50m6.73% $4.5m
Andrew Murstein
President22.75yrsUS$3.11m7.89% $5.3m
John Everets
Independent Director3yrsUS$141.67k0.29% $192.5k
David Rudnick
Non-Independent Director24.42yrsUS$133.13k0.89% $597.5k
Allan Tanenbaum
Independent Director2.75yrsUS$144.53k0.18% $122.6k
Frederick Menowitz
Independent Director17.17yrsUS$115.02k0.063% $42.6k
Cynthia Hallenbeck
Independent Director0.083yrno datano data

17.2yrs

Average Tenure

73yo

Average Age

Experienced Board: MFIN's board of directors are seasoned and experienced ( 17.2 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$67.218m
  • Shares outstanding: 24.44m
  • 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 taxi 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 Analysis2020/07/12 00:12
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.