NMFC Stock Analysis: New Mountain Finance | NASDAQ
Asset Management | NASDAQ, USA | Market Cap: 637m USD | 12M Return: -16.4% | US6475511001 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 3.70M
EPS Trend: -79.6%
Qual. Beats: 0
Rev. Trend: -75.4%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
New Mountain Finance Corporation (NASDAQ: NMFC) is a Business Development Company (BDC) that invests in and lends to U.S. middle-market companies operating in defensive growth industries. The firm pursues both private equity/buyout transactions and direct lending, deploying capital across the capital structure through first and second lien debt, unsecured notes, mezzanine securities, and equity interests. It invests via primary originations and open-market secondary purchases, targeting companies with EBITDA between $10 million and $200 million, with individual transaction sizes typically ranging from $10 million to $125 million.
As a BDC, NMFC operates under a regulated structure that requires it to distribute the majority of its taxable income to shareholders, making it a common choice for income-oriented investors. The companys investment focus spans a wide range of sectors, including healthcare, business services, software, specialty chemicals, financial services, federal services, distribution and logistics, and energy-related industries. NMFC generally seeks majority stakes in its portfolio companies and concentrates exclusively on U.S.-based investments.
- Net interest margin expands as floating rate yields rise
- Private credit competition compresses new deal spreads
- Non-accruals rise pressuring NAV and dividend coverage
| Net Income: -48.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.27 > 0.02 and ΔFCF/TA 23.08 > 1.0 |
| NWC/Revenue: -5.08% < 20% (prev 23.86%; Δ -28.94% < -1%) |
| CFO/TA 0.27 > 3% & CFO 660.6m > Net Income -48.4m |
| Net Debt (1.28b) to EBITDA (194.7m): 6.58 < 3 |
| Current Ratio: 0.92 > 1.5 & < 3 |
| Outstanding Shares: last quarter (94.6m) vs 12m ago -25.39% < -2% |
| Gross Margin: 71.78% > 18% (prev 59.07%; Δ 12.71% > 0.5%) |
| Asset Turnover: 6.15% > 50% (prev 7.99%; Δ -1.84% > 0%) |
| Interest Coverage Ratio: 0.00 > 6 (EBIT TTM 32.2m / Interest Expense TTM 188b) |
| A: -0.00 (Total Current Assets 98.4m - Total Current Liabilities 107.1m) / Total Assets 2.42b |
| B: 0.08 (Retained Earnings 192.8m / Total Assets 2.42b) |
| C: 0.01 (EBIT TTM 32.2m / Avg Total Assets 2.79b) |
| D: 0.74 (Book Value of Equity 1.03b / Total Liabilities 1.38b) |
| Altman-Z'' = 1.10 = BB |
As of October 12, 2026, the stock is trading at USD 6.73 with a total of 409,834 shares traded. Over the past week, the price has changed by -3.03%, over one month by -3.71%, over three months by -0.27% and over the past year by -16.35%.
Current recommended Stop Loss: 6.50 (which is 3.4% or 1.5 ATR below the current price).
New Mountain Finance has received a consensus analysts rating of 2.86. Therefore, it is recommended to hold NMFC.
- StrongBuy: 0
- Buy: 0
- Hold: 6
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 8.3 | 23.2% |
P/E Forward = 6.7843
P/S = 2.2089
P/B = 0.6545
P/EG = 1.3404
Revenue TTM = 171.3m USD
EBIT TTM = 32.2m USD
EBITDA TTM = 194.7m USD
Long Term Debt = 1.24b USD (estimated: total debt 1.35b - short term 107.1m)
Short Term Debt = 107.1m USD (from shortTermDebt, last quarter)
Debt = 1.35b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.28b USD (calculated: Debt 1.35b - CCE 64.8m)
Enterprise Value = 1.92b USD (636.6m + Debt 1.35b - CCE 64.8m)
Interest Coverage Ratio = 0.00 (Ebit TTM 32.2m / Interest Expense TTM 188b)
EV/FCF = 2.90x (Enterprise Value 1.92b / FCF TTM 660.6m)
FCF Yield = 34.44% (FCF TTM 660.6m / Enterprise Value 1.92b)
FCF Margin = 385.6% (FCF TTM 660.6m / Revenue TTM 171.3m)
Net Margin = -28.24% (Net Income TTM -48.4m / Revenue TTM 171.3m)
Gross Margin = 71.78% ((Revenue TTM 171.3m - Cost of Revenue TTM 48.3m) / Revenue TTM)
Gross Margin QoQ = 22.94% (prev 75.13%)
Tobins Q-Ratio = 0.79 (Enterprise Value 1.92b / Total Assets 2.42b)
Interest Expense / Debt = 14.0k% (Interest Expense 188b / Debt 1.35b)
Taxrate = 2.47% (430k / 17.4m)
NOPAT = 31.4m (EBIT 32.2m * (1 - 2.47%))
Current Ratio = 0.92 (Total Current Assets 98.4m / Total Current Liabilities 107.1m)
Debt / Equity = 1.31 (Debt 1.35b / totalStockholderEquity, last quarter 1.03b)
Debt / EBITDA = 6.58 (Net Debt 1.28b / EBITDA 194.7m)
Debt / FCF = 1.94 (Net Debt 1.28b / FCF TTM 660.6m)
Total Stockholder Equity = 1.13b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.74% (Net Income -48.4m / Total Assets 2.42b)
RoE = -4.28% (Net Income TTM -48.4m / Total Stockholder Equity 1.13b)
RoCE = 1.36% (EBIT 32.2m / Capital Employed (Equity 1.13b + L.T.Debt 1.24b))
RoIC = 1.30% (NOPAT 31.4m / Invested Capital 2.41b)
WACC = 2.71% (E(636.6m)/V(1.98b) * Re(8.43%) + (debt cost/tax rate unavailable))
Discount Rate = 8.43% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 75.39 | Cagr: 148.1%
[DCF] Terminal Value 77.97% ; FCFF base≈450.2m ; Y1≈516.1m ; Y5≈759.5m
[DCF] Fair Price = 107.4 (EV 11.4b - Net Debt 1.28b = Equity 10.1b / Shares 94.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -79.64 | EPS CAGR: -35.36% | SUE: 0.0 | # QB: 0
Revenue Correlation: -75.35 | Revenue CAGR: -11.78% | SUE: -0.83 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.26 | Chg30d=-1.18% | Revisions=-40% | Analysts=7
EPS current Year (2026-12-31): EPS=1.09 | Chg30d=-0.77% | Revisions=-40% | GrowthEPS=-3.3% | GrowthRev=-22.8%
EPS next Year (2027-12-31): EPS=1.05 | Chg30d=-0.28% | Revisions=-29% | GrowthEPS=-3.5% | GrowthRev=-2.9%
[Analyst] Revisions Ratio: -55% (up=1, down=7)