(NMFC) New Mountain Finance - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NASDAQ (USA) | Market Cap: 751m USD | Total Return: -15.4% in 12m
Avg Turnover: 4.30M
EPS Trend: -76.8%
Qual. Beats: 0
Rev. Trend: -91.7%
Qual. Beats: -1
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
New Mountain Finance Corporation (NMFC) is a Business Development Company (BDC) that provides financing solutions to middle-market firms primarily located in the United States. The fund focuses on defensive growth industries, emphasizing sectors such as healthcare services, enterprise software, and specialized distribution. NMFC operates as a diversified lender, investing across the capital structure through first and second lien debt, mezzanine securities, and occasional equity positions.
The BDC business model typically involves lending to private companies that lack access to traditional public debt markets, often resulting in higher yields for the lender in exchange for increased risk. NMFC targets companies with EBITDA between $10 million and $200 million, utilizing both primary originations and secondary market purchases to build its portfolio. By focusing on defensive industries, the fund aims to mitigate cyclical economic risks while maintaining steady interest income.
Reviewing NMFCs historical dividend stability on ValueRay can provide further insight into its long-term performance.
- Net interest margin expansion driven by sustained high benchmark interest rates
- Credit performance across defensive growth sectors impacts net asset value stability
- High concentration in enterprise software and healthcare increases sector-specific risk exposure
- Dividend coverage sustainability depends on consistent middle market loan origination volume
- Regulatory leverage limits and cost of capital influence portfolio expansion capacity
| Net Income: -57.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.28 > 0.02 and ΔFCF/TA 25.87 > 1.0 |
| NWC/Revenue: -73.88% < 20% (prev 31.42%; Δ -105.3% < -1%) |
| CFO/TA 0.28 > 3% & CFO 676.5m > Net Income -57.9m |
| Net Debt (1.28b) to EBITDA (194.5m): 6.56 < 3 |
| Current Ratio: 0.23 > 1.5 & < 3 |
| Outstanding Shares: last quarter (100.5m) vs 12m ago -20.79% < -2% |
| Gross Margin: 70.42% > 18% (prev 0.70%; Δ 6.97k% > 0.5%) |
| Asset Turnover: 8.03% > 50% (prev 9.61%; Δ -1.58% > 0%) |
| Interest Coverage Ratio: 0.00 > 6 (EBITDA TTM 194.5m / Interest Expense TTM 188b) |
| A: -0.07 (Total Current Assets 51.1m - Total Current Liabilities 217.9m) / Total Assets 2.43b |
| B: -0.08 (Retained Earnings -203.8m / Total Assets 2.43b) |
| C: 0.01 (EBIT TTM 32.0m / Avg Total Assets 2.81b) |
| D: -0.15 (Book Value of Equity -202.7m / Total Liabilities 1.38b) |
| Altman-Z'' = -0.80 = CCC |
As of May 25, 2026, the stock is trading at USD 7.94 with a total of 508,003 shares traded.
Over the past week, the price has changed by -1.85%,
over one month by -1.85%,
over three months by +1.48% and
over the past year by -15.40%.
New Mountain Finance has received a consensus analysts rating of 3.86. Therefore, it is recommended to buy NMFC.
- StrongBuy: 3
- Buy: 0
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 8.5 | 7.6% |
P/E Forward = 7.3964
P/S = 2.4206
P/B = 0.7499
P/EG = 1.3404
Revenue TTM = 225.7m USD
EBIT TTM = 32.0m USD
EBITDA TTM = 194.5m USD
Long Term Debt = unknown (none)
Short Term Debt = 217.9m USD (from shortTermDebt, last fiscal year)
Debt = 1.33b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.28b USD (calculated: Debt 1.33b - CCE 51.1m)
Enterprise Value = 2.03b USD (750.9m + Debt 1.33b - CCE 51.1m)
Interest Coverage Ratio = 0.00 (Ebit TTM 32.0m / Interest Expense TTM 188b)
EV/FCF = 3.00x (Enterprise Value 2.03b / FCF TTM 676.5m)
FCF Yield = 33.38% (FCF TTM 676.5m / Enterprise Value 2.03b)
FCF Margin = 299.7% (FCF TTM 676.5m / Revenue TTM 225.7m)
Net Margin = -25.63% (Net Income TTM -57.9m / Revenue TTM 225.7m)
Gross Margin = 70.42% ((Revenue TTM 225.7m - Cost of Revenue TTM 66.8m) / Revenue TTM)
Gross Margin QoQ = 75.13% (prev 81.04%)
Tobins Q-Ratio = 0.83 (Enterprise Value 2.03b / Total Assets 2.43b)
Interest Expense / Debt = 14.2k% (Interest Expense 188b / Debt 1.33b)
Taxrate = 2.47% (430k / 17.4m)
NOPAT = 31.2m (EBIT 32.0m * (1 - 2.47%))
Current Ratio = 0.23 (Total Current Assets 51.1m / Total Current Liabilities 217.9m)
Debt / Equity = 1.27 (Debt 1.33b / totalStockholderEquity, last quarter 1.04b)
Debt / EBITDA = 6.56 (Net Debt 1.28b / EBITDA 194.5m)
Debt / FCF = 1.89 (Net Debt 1.28b / FCF TTM 676.5m)
Total Stockholder Equity = 1.20b (last 4 quarters mean from totalStockholderEquity)
RoA = -2.06% (Net Income -57.9m / Total Assets 2.43b)
RoE = -4.13% (Net Income TTM -57.9m / Total Stockholder Equity 1.40b)
RoCE = 1.45% (EBIT 32.0m / Capital Employed (Total Assets 2.43b - Current Liab 217.9m))
RoIC = 1.22% (NOPAT 31.2m / Invested Capital 2.55b)
WACC = 3.01% (E(750.9m)/V(2.08b) * Re(8.33%) + (debt cost/tax rate unavailable))
Discount Rate = 8.33% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 46.67 | Cagr: 157.8%
[DCF] Terminal Value 77.97% ; FCFF base≈431.4m ; Y1≈494.6m ; Y5≈727.9m
[DCF] Fair Price = 102.5 (EV 11.0b - Net Debt 1.28b = Equity 9.68b / Shares 94.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -76.77 | EPS CAGR: -6.50% | SUE: -0.63 | # QB: 0
Revenue Correlation: -91.69 | Revenue CAGR: -14.60% | SUE: -1.08 | # QB: -1
EPS current Quarter (2026-06-30): EPS=0.26 | Chg30d=+2.35% | Revisions=+20% | Analysts=6
EPS next Quarter (2026-09-30): EPS=0.26 | Chg30d=-0.98% | Revisions=-33% | Analysts=6
EPS current Year (2026-12-31): EPS=1.10 | Chg30d=-1.15% | Revisions=+20% | GrowthEPS=-2.4% | GrowthRev=-20.8%
EPS next Year (2027-12-31): EPS=1.05 | Chg30d=-1.47% | Revisions=+0% | GrowthEPS=-4.0% | GrowthRev=-2.0%
[Analyst] Revisions Ratio: -33%