MeritValue

MidCap Financial Investment Corp

MFICdata completeness 75%4 fiscal years on file

Data notes: no data for concept 'revenue'; no data for concept 'capex'; no data for concept 'epsDiluted'; no data for concept 'pretaxIncome'

The thesis, from the filings

MidCap Financial Investment Corp earns about 6% on equity, but has diluted owners by 45% over 4 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $10.07 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025
Revenue————
Net income$82.4M1$118.8M2$98.8M2$63.2M2
Operating cash flow−$2.68M3$196.4M4−$9.53M4−$49.7M4
Capital expenditure————
Free cash flow (derived)————
Total debt—$1.46B5$1.75B6$2B6
Cash & equivalents$30.6M7$93.6M8$74.4M9$98.2M9
Diluted shares64.5M65.3M78.0M93.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$140.18
your share of equity
Profit it earned you last year
$6.77
Free cash flow it threw off
—
Debt you’d be carrying
$213.95

10 shares is a claim on $140.18 of net worth that earned you $6.77 last year, against $213.95 of debt.

iii. Is this a good business?
Moat signal · return on equity
6% avg · 4y
FY22 —FY23 —FY24 7%FY25 5%

It earned an average 6% on equity over 4 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+45% shares · 4y

Share count is up 45% over 4 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 36% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$10.07
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$90.6M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-03-31 · accession 0000950170-24-020118 (NetIncomeLoss)
  2. 10-K · period ending 2023-12-31 · accession 0001193125-26-076499 (NetIncomeLoss)
  3. 10-K · period ending 2022-03-31 · accession 0000950170-24-020118 (NetCashProvidedByUsedInOperatingActivities)
  4. 10-K · period ending 2023-12-31 · accession 0001193125-26-076499 (NetCashProvidedByUsedInOperatingActivities)
  5. 10-K · period ending 2023-12-31 · accession 0000950170-25-026688 (LongTermDebt)
  6. 10-K · period ending 2024-12-31 · accession 0001193125-26-076499 (LongTermDebt)
  7. 10-K · period ending 2022-03-31 · accession 0000950170-25-026688 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  8. 10-K · period ending 2023-12-31 · accession 0000950170-25-026688 (CashAndCashEquivalentsAtCarryingValue)
  9. 10-K · period ending 2024-12-31 · accession 0001193125-26-076499 (CashAndCashEquivalentsAtCarryingValue)