MidCap Financial Investment Corporation Common Stock (MFIC)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at MidCap Financial as an externally managed, non-diversified private-debt BDC. That structure rarely creates a wide moat; returns depend on credit selection, leverage, and the kindness of markets. The filed numbers are deteriorating. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was -$17.5 million and diluted EPS was -$0.21. In fiscal Q1 2026, the quarter ended 2026-03-31, net income was -$26.9 million and diluted EPS was -$0.30. Compare that with fiscal Q2 2025, when net income was $18.1 million and diluted EPS was $0.19. The annual trend is also down: net income was $118.8 million in fiscal 2023, $98.8 million in fiscal 2024, and $63.2 million in fiscal 2025; diluted EPS fell from $1.82 to $1.27 to $0.68 over those years. On the positive side, at the 2026-10-13 close of $8.42, FairStock calculates a P/B of 0.63, a P/E of -24.06, ROE of -2.39%, ROCE of 5.10%, D/E of 1.58, a Piotroski F-Score of 6/9, and an Altman Z-Score of -0.48. The 13.72% dividend yield and 76.6% FCF yield are alluring, and the Lynch category is ASSET PLAY because it trades at 0.63× book. But Graham would ask whether the assets are worth book and whether the dividend is covered by earnings. With recent losses and leverage, the discount may be deserved. I would want evidence of stabilized net income and real asset values before calling this a bargain.

In plain English: MidCap Financial Investment Corporation is a business development company that lends to and invests in middle-market private companies. The business has looked weak lately: it reported net losses in the first two quarters of fiscal 2026, and annual profit has fallen since fiscal 2023. The stock price is low compared with the company’s accounting book value, but the losses mean that apparent cheapness may reflect real risks.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer