Last Updated: 16 Sep 2024
Executive Summary
Medallion Financial Corp. (MFIN) is a financial services company headquartered in New York City. The company's stock is currently trading at $7.68, within its 52-week range of $5.97 to $9.76. MFIN has a market capitalization of $177.9 million and a trailing price-to-earnings ratio of 4.243.
Company Overview
Medallion Financial provides financing to taxicab medallion owners and operators in New York City. The company's business model is based on the premise that medallion owners have a high degree of loyalty to their medallions and are willing to pay a premium to finance them.
Fundamental Analysis
MFIN's financial performance has been mixed in recent years. The company's revenue has grown at a modest pace, but its earnings have been volatile. In the most recent quarter, MFIN reported a 0.516% decline in earnings per share and a 0.127% increase in revenue.
MFIN's balance sheet is relatively strong. The company has a low level of debt and a high level of cash and equivalents. However, MFIN's profitability metrics are below average. The company's profit margin is 14.9%, and its return on equity is 12%.
Technical Analysis
MFIN's stock price has been in a downtrend in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
The technical analysis suggests that MFIN's stock price is likely to continue to decline in the short term. The stock is currently trading below its support level of $8.00, and the RSI is below 50. However, the stock's fundamentals are relatively strong, and the company's business model is sound.
Long Term Outlook
The long-term outlook for MFIN is more positive. The company's business model is based on the premise that medallion owners have a high degree of loyalty to their medallions and are willing to pay a premium to finance them. This premise is likely to remain true in the long term, as medallions are a valuable asset for taxi drivers in New York City.
Analyst Recommendations
The majority of analysts have a hold rating on MFIN. The average analyst target price is $11.00.
