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1. Company Snapshot

1.a. Company Description

Medallion Financial Corp., together with its subsidiaries, operates as a finance company in the United States.The company operates through four segments: Recreation Lending, Home Improvement Lending, Commercial Lending, and Medallion Lending.It provides loans that finance consumer purchases of recreational vehicles, boats, and trailers; consumer home improvements; commercial businesses; and taxi medallions to individuals, and small to mid-size businesses.


The company also offers commercial loans for purchase of equipment and related assets necessary to open a new business, or purchase or improvement of an existing business; and medallion loans.In addition, it provides debt, mezzanine, and equity investment capital to companies in various industries; and raises deposits and conducts other banking activities.Medallion Financial Corp.


was incorporated in 1995 and is headquartered in New York City, New York.

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1.b. Last Insights on MFIN

Medallion Financial Corp.'s recent performance was positively driven by its strong Q2 earnings report, which beat estimates with quarterly earnings of $0.46 per share, a 53% increase from the prior year. The company's net income surged 56% year-over-year, driven by growth in its consumer and commercial loan portfolios. Additionally, the company's fintech partnerships and loan origination services continue to expand, contributing to its revenue growth. A quarterly dividend of $0.12 per share was also announced.

1.c. Company Highlights

2. Medallion Financial Corp's Q3 2025 Earnings: A Strong Performance

Medallion Financial Corp reported a net income of $7.8 million, excluding a nonrecurring $3.5 million charge related to the redemption of preferred stock at Medallion Bank. The company's net interest income grew 6% to $55.7 million, with a net interest margin of 8.21%. Earnings per share (EPS) came in at $0.46, significantly beating estimates of $0.29. The company's total loans reached $2.559 billion, with loan originations of $427 million for the period, an increase from both the previous quarter and year-over-year.

Publication Date: Nov -29

📋 Highlights
  • Net Income Excluding Charge:: $7.8M after a $3.5M nonrecurring charge from preferred stock redemption.
  • Net Interest Income Growth:: Increased 6% YoY to $55.7M, with a net interest margin of 8.21%.
  • Total Loan Portfolio:: Reached $2.559B, driven by $427M in originations (up QoQ and YoY).
  • Commercial Lending Expansion:: Portfolio grew to $135.1M with an average rate of 13.71%, and strategic partnerships reached $208.4M in originations.
  • Recreational Loan Performance:: 3% growth to $1.603B with low delinquencies (0.57% of gross loans) and 4% interest income rise to $53.6M.

Loan Portfolio Performance

The recreational loan book grew 3% to $1.603 billion, and interest income rose 4% to $53.6 million. Delinquencies of 90-plus days were 0.57% of gross recreational loans, indicating a healthy portfolio. The home improvement loan book decreased modestly to $804 million, with originations of $59.7 million versus $96.5 million last year. The commercial segment continues to deliver meaningful equity gains, with new originations of $17.5 million during the quarter and the portfolio growing to $135.1 million.

Growth Prospects and Strategic Initiatives

Andrew Murstein stated that the company is positive about overall loan growth going forward, which should grow closer to what it was several years ago when it had excess capital. The company is also excited about the acquisition of a significant group that was doing home improvement lending. The strategic partnership program reached a record level of $208.4 million in originations, and the company plans to bring on 1 or 2 new partners in the next 1 to 2 quarters.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of 0.57, the stock appears to be reasonably valued. The Dividend Yield is 4.73%, providing a relatively attractive return for investors. The Net Interest Margin (NIM) of 8.21% is also a positive indicator of the company's financial health. Analysts estimate next year's revenue growth at -4.6%, but the company's consistent earnings and strategic buyback demonstrate its strong financial position.

3. NewsRoom

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Medallion Financial Corp. to Participate at Two Upcoming Investor Conferences

Nov -25

Source: globenewswire.com

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Medallion Financial: 9% Preferred Share Ideal For Income Investors

Nov -17

Source: seekingalpha.com

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Medallion Financial Corp. (MFIN) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Home Improvement Stocks To Follow Now – October 28th

Oct -30

Source: defenseworld.net

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Medallion Financial (MFIN) Tops Q3 Earnings and Revenue Estimates

Oct -29

Source: zacks.com

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Medallion Financial Corp. Reports 2025 Third Quarter Results

Oct -29

Source: globenewswire.com

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Medallion Bank Reports 2025 Third Quarter Results and Declares Series G Preferred Stock Dividend

Oct -29

Source: globenewswire.com

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Medallion Financial Corp. Announces Leadership Transition: Andrew Murstein Appointed Chief Executive Officer as of January 31, 2026

Oct -28

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.03%)

6. Segments

Consumer Lending - Recreation

Expected Growth: 7.88%

Strong demand for recreational vehicles, increasing consumer confidence, and low interest rates drive growth in Medallion Financial Corp.'s Consumer Lending - Recreation segment, with a 7.88% growth rate. Additionally, the rise of outdoor activities and experiential spending contribute to the segment's expansion.

Consumer Lending - Home Improvement

Expected Growth: 8.23%

Strong demand for home improvement projects, driven by increasing homeownership rates and aging housing stock, fuels growth in Medallion Financial Corp.'s Consumer Lending - Home Improvement segment. Additionally, rising consumer confidence, low unemployment, and favorable interest rates contribute to the 8.23% growth rate.

Commercial Lending

Expected Growth: 9.27%

Medallion Financial Corp.'s 9.27% commercial lending growth is driven by increasing demand for taxi medallion financing, expansion into new markets, and a strong reputation for providing specialized lending solutions. Additionally, the company's ability to offer competitive interest rates and flexible repayment terms has contributed to its growth.

Corporate and Other Investments

Expected Growth: 8.5%

Medallion Financial Corp's 8.5% growth in Corporate and Other Investments is driven by increasing demand for mezzanine financing, expansion into new markets, and strategic partnerships. Additionally, the company's diversified investment portfolio and effective risk management strategies have contributed to this growth.

Taxi Medallion Lending

Expected Growth: 5.4%

Medallion Financial Corp.'s 5.4% growth in Taxi Medallion Lending is driven by increasing demand for medallions, limited supply, and rising prices. Additionally, the company's diversified lending portfolio, strong credit quality, and favorable regulatory environment contribute to its growth. Furthermore, the growing need for financing options among taxi operators and the company's expertise in the industry also support its expansion.

7. Detailed Products

Medallion Bank

A Utah-chartered industrial bank that originates consumer loans for the purchase of recreational vehicles, boats, and motorcycles, as well as for the financing of small businesses.

Medallion Signature Loans

Unsecured personal loans for individuals, often used for debt consolidation, home improvements, or unexpected expenses.

Medallion Home Equity Loans

Home equity loans and lines of credit for homeowners, providing access to funds for various purposes.

Medallion Business Loans

Term loans and lines of credit for small businesses, providing financing for various business needs.

Medallion Taxicab Medallion Loans

Financing for the purchase of taxicab medallions, which grant licenses to operate taxis in certain cities.

8. Medallion Financial Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Medallion Financial Corp. operates in a niche market, providing financing for taxi medallions, which limits the availability of substitutes. However, the rise of ride-hailing services has increased competition, making it a medium threat.

Bargaining Power Of Customers

Medallion Financial Corp.'s customers, mainly taxi medallion owners, have limited bargaining power due to the specialized nature of the financing services provided.

Bargaining Power Of Suppliers

Medallion Financial Corp. has a diversified supplier base, and the company's specialized financing services reduce the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the financing industry, and the potential for new players to disrupt the market.

Intensity Of Rivalry

The intensity of rivalry in the taxi medallion financing market is moderate, with a few established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.52%
Debt Cost 14.28%
Equity Weight 58.48%
Equity Cost 14.28%
WACC 14.28%
Leverage 71.01%

11. Quality Control: Medallion Financial Corp. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Runway Growth Finance

A-Score: 7.7/10

Value: 7.5

Growth: 8.3

Quality: 7.0

Yield: 10.0

Momentum: 4.0

Volatility: 9.3

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Medallion Financial

A-Score: 7.0/10

Value: 8.9

Growth: 7.7

Quality: 5.6

Yield: 7.0

Momentum: 7.0

Volatility: 6.0

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Regional Management

A-Score: 6.5/10

Value: 7.7

Growth: 6.8

Quality: 5.4

Yield: 6.0

Momentum: 7.5

Volatility: 5.3

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Navient

A-Score: 6.3/10

Value: 9.6

Growth: 5.0

Quality: 5.6

Yield: 8.0

Momentum: 3.0

Volatility: 6.3

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Farmer Mac

A-Score: 6.1/10

Value: 6.2

Growth: 8.3

Quality: 4.6

Yield: 7.0

Momentum: 3.0

Volatility: 7.7

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Oaktree Specialty Lending

A-Score: 5.8/10

Value: 5.6

Growth: 2.7

Quality: 5.5

Yield: 10.0

Momentum: 1.5

Volatility: 9.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.02$

Current Price

10.02$

Potential

-0.00%

Expected Cash-Flows