MSC Income Fund, Inc. (MSIF) Fundamental Analysis: Bull vs. Bear Case

MSIF

MSC Income Fund, Inc.

Fundamental data last updated:September 27, 2026

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company profile

SECTOR

Financial Services

industry

Asset Management

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

MSC Income Fund, Inc. is a Business Development Company specializing in middle market debt and debt and equity investments in lower middle market companies. The fund seeks to invest in management buyouts, recapitalizations, growth financings, refinancing and acquisitions of companies. It invests in companies with revenue between $10 million and $150 million.

VALUATION

P/E

6.53 Market Cap ($M USD)

$552.76M

Forward P/E

7.82 PEG

-0.48

PRICE TO SALES

4.30 PRICE TO BOOK

0.78 EV / EBITDA

11.00 5-Year Average P/E

Free Cash Flow Yield

-2.94%

DCF Value

$21.22

Graham Number

$25.60

Price to FCF

-34.03

EV to FCF

-73.03

Earnings Yield

15.31%

FCF Yield

-2.94%

DIVIDEND

Yield

8.86%

Annual Payout

$1.08

Payout Ratio

67.79%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.87

Next Year EPS Growth Estimate

$1.56

Next Year Revenue Growth Estimate

$166.19M

Return on Equity (ROE)

11.81%

FREE CASH FLOW

Operating Margin

83.98%

Debt-to-Equity

0.82 Piotroski F-Score

4 Altman Z-Score

0.77 Return on Invested Capital (ROIC)

7.83%

Current Ratio

0.88 Quick Ratio

0.88 Net Debt to EBITDA

5.87 Interest Coverage

3.12 Gross Profit margin

73.35%

FCF PER SHARE

$-0.35

REVENUE PER SHARE

$2.79

Gainseekers Quantitative Analysis

Summary

The market seems to be significantly undervaluing MSIF MSC Income Fund, Inc. relative to its intrinsic worth. With a DCF value of $21.51 and a Graham Number of $26.21, the stock’s recent pricing was well below these benchmarks, suggesting a deep value opportunity. The Forward P/E of 8.16 and an Earnings Yield of 15.22% indicate a potentially lucrative investment, yet the Altman Z-score of 0.88 raises red flags about financial distress. Despite these concerns, the stock’s valuation metrics suggest a mispricing that could attract savvy investors looking for bargains.

AI Exposure / Tech Reliance

In the asset management industry, MSIF MSC Income Fund, Inc. is positioned to leverage AI and modern tech shifts by optimizing portfolio management and enhancing client services. The sector's inherent adaptability to technological advancements provides a buffer against disruption. However, the company's ability to integrate these technologies effectively will be crucial for sustained growth.

The Bull Case

For value or GARP investors, MSIF MSC Income Fund, Inc. presents a compelling case. The robust ROIC of 7.36% and an impressive operating margin of 80.66% highlight strong capital efficiency and pricing power. Although the Piotroski F-Score is moderate at 4, the company's ability to generate substantial returns on equity at 12.38% underscores management's adeptness in capital allocation. These metrics collectively paint a picture of a company with solid fundamentals and potential for growth.

The Bear Case

Despite its attractive valuation, MSIF MSC Income Fund, Inc. faces significant structural risks. The Altman Z-score of 0.88 signals potential financial distress, and the negative FCF Yield of -16.23% raises concerns about cash flow sustainability. Additionally, the stock's proximity to its 52-week low suggests potential technical weakness. These factors, combined with a low Piotroski F-Score, indicate vulnerabilities that could deter risk-averse investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$13.75

Institutional Ownership %

1-Year Beta

0.73 Insider Buying % (6 Mo)

Distance to 52-Week High

48.44%

Distance to 52-Week Low

3.36%

EARNINGS SURPRISE %

-2.70%

50-DAY SMA

$12.57

200-DAY SMA

$13.14

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.