MSC Income Fund Inc. Common Stock (MSIF)

FairStock Score: 95/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

I am a value investor first, and MSC Income Fund presents the classic tension: a cheap price against a leveraged lending book. At $11.83 on 2026-10-13, the FairStock calculations put it at 5.53 times earnings, 0.72 times book, and a Graham Number of $28.19, implying a 58.03% margin of safety. The Lynch screen calls it an asset play because it trades at 0.72x book. The reported numbers are real: in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $29.3M, up from $16.3M in fiscal Q2 2025. For FY2025, net income was $88.7M, or $1.33 per diluted share, after FY2024 net income of $56.6M and EPS of $1.34. So profits improved, but per-share earnings did not grow much. Business quality is mixed. ROE of 13.46% is respectable, but ROCE of 4.47% is thin, and D/E of 0.88 means the returns are levered. A BDC in middle-market debt has no wide moat; it competes for deals, depends on credit markets, and must manage credit risk. The Altman Z-Score of 0.47 and trailing free cash flow of -$32.3M, a -6.0% FCF yield, are warnings. The 2.89% dividend yield and beta of 0.73 are modest positives. Piotroski 6/9 suggests okay but not pristine fundamentals. The stock is statistically cheap, but I would demand a margin of safety because the asset value is only as good as the loans behind it.

In plain English: MSC Income Fund lends money to and invests in small and middle-sized companies. The business has been profitable, and profit rose in the latest reported quarter, but it carries debt and used more cash than it brought in over the past year. The stock looks cheap compared with its reported earnings and the value of its net assets, though the low price may reflect real lending and debt risks.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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