MSC Income Fund, Inc. (MSIF)
Valuation Overview•Is MSC Income Fund, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 56/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is highly bullish, projecting significant upside. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
MSIF demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company maintains stable top-line performance paired with robust earnings compounding (18.8% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 84.0% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $33.8M | +27.4% | — | — | — | |
| EBITDA | $21.3M | — | +38.8% | — | — | |
| Net Income | $13.2M | +56.9% | +24.9% | — | — | |
| EPS (Diluted) | $0.29 | +35.5% | +18.8% | — | — | |
| Free Cash Flow | -$18.4M | -150.6% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 73.3% | 78.1% | 86.9% | 93.4% |
| Operating Margin | 84.0% | 82.5% | 86.1% | 100.3% |
| Net Margin | 67.0% | 70.8% | 78.0% | 98.9% |
| FCF Margin | -12.6% | -4.9% | -19.7% | -450.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.37 | $0.36 | -2.7% | ||
| Q1'26 | $0.37 | $0.37 | +0.0% | ||
| Q4'25 | $0.37 | $0.35 | -5.4% | ||
| Q3'25 | $0.36 | $0.37 | +2.8% | ||
| Q2'25 | $0.37 | $0.38 | +2.7% | ||
| Q1'25 | $0.36 | $0.35 | -2.8% | ||
| Q1'25 | $0.36 | $0.35 | -2.8% | ||
| Q2'24 | — | $0.45 | — |
Total return is -24.5% (1Y), lagging the benchmark by -45.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -14.0% | -21.3% | — |
| 1Y | -24.5% | -45.3% | +8.6% |
| 3YCAGR | -0.6% | -19.6% | +27.2% |
| 5YCAGR | +0.3% | -11.0% | +30.4% |
| 10YCAGR | +0.1% | -13.5% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about MSC Income Fund, Inc. (MSIF) valuation, health, and returns.
Based on peer relative multiples, MSC Income Fund, Inc. appears Cheap versus peers compared to industry peers.
MSC Income Fund, Inc. has multiple valuation anchors: Peer Relative Fair Value: $15.86 | Wall Street Analyst Target: $14.17 (implying +20.8% upside). A convergence of these signals offers higher conviction.
MSC Income Fund, Inc. displays fair financial health with a composite quality score of 56/100, supported by a Altman Z-Score of 0.3 (distress zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 7.5%.
MSC Income Fund, Inc. pays a 9.5% dividend yield, covered by a 58% payout ratio with 3 years of growth, supplemented by a 2.2% buyback yield.
MSC Income Fund, Inc.'s current growth trajectory is Accelerating. The company achieved +27.4% 1Y revenue growth and +35.5% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 6 analysts, beating EPS expectations in 29% of recent quarters with a -3-quarter streak. The consensus price target represents a +20.8% change from current levels.
Investment risks for MSC Income Fund, Inc. include: -32.8% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 0.48x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.