(NMFC) New Mountain Finance - Ratings and Ratios

New Mountain Finance Corporation (NMFC) is a business development company that specializes in private equity and loan investments, focusing on middle-market companies in defensive growth industries. The company targets sectors such as energy, healthcare, technology, and services, seeking to invest between $10 million and $125 million per transaction in companies with EBITDA between $10 million and $200 million.

The investment strategy involves a mix of debt and equity investments, including first and second lien debt, unsecured notes, mezzanine securities, and equity interests. NMFC invests through primary originations and open-market secondary purchases, aiming to take a majority stake in its portfolio companies. The companys investment scope is focused on the United States, and it has a diversified portfolio across various industries.

From a technical analysis perspective, NMFCs stock price is currently at $10.15, below its 20-day and 200-day simple moving averages (SMA20: $10.70, SMA200: $10.88). The Average True Range (ATR) is 0.19, indicating a relatively low volatility of 1.87%. The stock has traded between $9.11 and $11.79 over the past 52 weeks. Considering the current price and the SMA20 and SMA200, a potential short-term trading opportunity may arise if the stock price converges towards its moving averages.

Fundamentally, NMFC has a market capitalization of $1.165 billion and a price-to-earnings ratio of 10.92, with a forward P/E of 9.17. The Return on Equity (RoE) is 0.04, indicating a relatively low return. However, the companys dividend yield and payout history may provide a stable income stream for investors. By analyzing the fundamental data, we can infer that NMFCs stock may be undervalued, given its relatively low P/E ratio compared to its peers.

Forecasting NMFCs stock price using a combination of technical and fundamental data, we can expect a potential price increase if the stock converges towards its 20-day and 200-day moving averages. Additionally, the companys diversified investment portfolio and stable income stream from dividends may contribute to a relatively stable stock price. Assuming a moderate market environment and no significant changes in the companys fundamentals, a potential price target for NMFC could be around $11.50 in the next 6-12 months, representing a 13% increase from the current price.