MidCap Financial Investment Corporation (MFIC) AI Stock Analysis

MidCap Financial Investment Corporation, formerly known as Apollo Investment Corporation, is an externally managed, non-diversified closed-end business development company. It specializes in private equity investments and provides direct capital to private middle-market companies through strategies such as leveraged buyouts, acquisitions, recapitalizations, growth capital, and refinancing. Its financing solutions include first lien secured loans, stretch senior loans, unitranche loans, second lien secured loans, mezzanine financing, senior secured loans, and subordinated debt. The firm also invests in preferred and common equity, warrants, PIPE transactions, collateralized loan obligations (CLOs), and credit-linked notes (CLNs).

Between FY2020 and FY2025, revenue achieved a five-year compound annual growth rate of 16.7%. In FY2025, annual revenue increased 21.2% to $274.4M, up from $226.3M in FY2024, while net income totaled $63.2M compared to $98.8M in FY2024. FY2025 operating margin was 71.6% and gross margin stood at 83.4%. Over the trailing twelve months ended June 30, 2026, revenue totaled $301.0M, but profit margin was -9.8% with an EPS of -$0.35. In the latest quarter ended June 30, 2026, quarterly revenue fell 16.0% year-over-year and quarterly earnings declined 3.9%.

As of June 30, 2026, MidCap Financial held $43.3M in cash and short-term investments against total debt of $1.74B, resulting in net debt of $1.70B. Shareholders' equity stood at $1.10B against total assets of $2.86B, producing a debt-to-equity ratio of 1.58 and a current ratio of 0.52. During FY2025, operating cash flow and free cash flow were both $101.4M. Capital deployment in FY2025 included $141.6M in dividends paid and $19.0M used for share buybacks, while the five-year share count increased 29.6%.

At a share price of $8.34, MidCap Financial holds a market capitalization of $687.0M and an enterprise value of $2.38B. The stock trades at a forward P/E of 7.2x and a price-to-sales ratio of 2.3x, compared to medians of 10.8x and 3.2x, respectively, for US-listed Financial Services peers. Its price-to-book ratio is 0.7x. Over the past year, the stock declined 17.9%, trailing the S&P 500 benchmark return of 16.8%. Over five years, the stock gained 13.8% versus an 83.0% return for the S&P 500.

MidCap Financial pays a quarterly dividend with an annualized forward payout of $1.24 per share, translating to a dividend yield of 14.87%. The company has paid dividends for 23 consecutive years, with a payout ratio of 84.5%. However, its five-year annualized dividend growth rate was -1.3%. The most recent ex-dividend date was September 8, 2026.

Wall Street coverage includes 8 analysts with 2 Strong Buy, 1 Buy, 4 Hold, and 1 Sell ratings. The mean price target is $10.41, representing a 24.8% premium over the last close of $8.34. For the fiscal year ending December 31, 2026, analysts estimate revenue of $266.8M and an EPS of $1.49, which reflects an expected EPS drop of 1.7%. For the following year, consensus projects revenue to decline 10.8% to $238.1M with EPS of $1.25. The company beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for November 5, 2026.

This page is an AI-written research summary of MidCap Financial Investment Corporation (MFIC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: MFIC income statement, MFIC balance sheet, MFIC key metrics, MFIC analyst forecast, MFIC chart. See the MFIC stock overview for the latest quote and news.