New Mountain Finance
Market Cap
US$1.2b
Last Updated
2021/03/07 00:48 UTC
Data Sources
Company Financials +
Executive Summary
New Mountain Finance Corporation is a Business Development Company specializing in investments in middle market companies and debt securities at various levels of the capital structure, including first and second lien debt, unsecured notes, bonds, and mezzanine securities. More Details
Rewards
Snowflake Analysis
Similar Companies
Share Price & News
How has New Mountain Finance's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NMFC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: NMFC's weekly volatility has decreased from 9% to 2% over the past year.
Market Performance
7 Day Return
1.1%
NMFC
1.5%
US Capital Markets
-0.4%
US Market
1 Year Return
-2.5%
NMFC
45.4%
US Capital Markets
36.2%
US Market
Return vs Industry: NMFC underperformed the US Capital Markets industry which returned 45.4% over the past year.
Return vs Market: NMFC underperformed the US Market which returned 36.2% over the past year.
Shareholder returns
| NMFC | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.1% | 1.5% | -0.4% |
| 30 Day | 5.7% | 3.3% | -2.3% |
| 90 Day | 3.9% | 14.5% | 5.0% |
| 1 Year | 9.6%-2.5% | 49.0%45.4% | 39.1%36.2% |
| 3 Year | 29.4%-5.8% | 35.9%25.9% | 48.4%39.0% |
| 5 Year | 64.8%-1.7% | 145.9%115.5% | 116.6%92.4% |
Long-Term Price Volatility Vs. Market
How volatile is New Mountain Finance's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is New Mountain Finance undervalued compared to its fair value and its price relative to the market?
20.74x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NMFC ($12.53) is trading above our estimate of fair value ($11.03)
Significantly Below Fair Value: NMFC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NMFC is good value based on its PE Ratio (20.7x) compared to the US Capital Markets industry average (23.4x).
PE vs Market: NMFC is good value based on its PE Ratio (20.7x) compared to the US market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: NMFC is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: NMFC is good value based on its PB Ratio (1x) compared to the US Capital Markets industry average (19.8x).
Future Growth
How is New Mountain Finance forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
31.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NMFC's forecast earnings growth (31.6% per year) is above the savings rate (2%).
Earnings vs Market: NMFC's earnings (31.6% per year) are forecast to grow faster than the US market (19.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NMFC's revenue (0.3% per year) is forecast to grow slower than the US market (10% per year).
High Growth Revenue: NMFC's revenue (0.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NMFC's Return on Equity is forecast to be low in 3 years time (9.5%).
Past Performance
How has New Mountain Finance performed over the past 5 years?
-13.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NMFC has a large one-off loss of $55.5M impacting its December 31 2020 financial results.
Growing Profit Margin: NMFC's current net profit margins (21.4%) are lower than last year (39.8%).
Past Earnings Growth Analysis
Earnings Trend: NMFC's earnings have declined by 13.4% per year over the past 5 years.
Accelerating Growth: NMFC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NMFC had negative earnings growth (-46.9%) over the past year, making it difficult to compare to the Capital Markets industry average (10.4%).
Return on Equity
High ROE: NMFC's Return on Equity (5%) is considered low.
Financial Health
How is New Mountain Finance's financial position?
Financial Position Analysis
Short Term Liabilities: NMFC's short term assets ($137.9M) exceed its short term liabilities ($60.2M).
Long Term Liabilities: NMFC's short term assets ($137.9M) do not cover its long term liabilities ($1.8B).
Debt to Equity History and Analysis
Debt Level: NMFC's debt to equity ratio (145.3%) is considered high.
Reducing Debt: NMFC's debt to equity ratio has increased from 87% to 145.3% over the past 5 years.
Debt Coverage: NMFC's debt is not well covered by operating cash flow (16.7%).
Interest Coverage: NMFC's interest payments on its debt are not well covered by EBIT (2.5x coverage).
Balance Sheet
Dividend
What is New Mountain Finance current dividend yield, its reliability and sustainability?
9.58%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: NMFC's dividend (9.58%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: NMFC's dividend (9.58%) is in the top 25% of dividend payers in the US market (3.64%)
Stability and Growth of Payments
Stable Dividend: NMFC's dividend payments have been volatile in the past 10 years.
Growing Dividend: NMFC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (205.3%), NMFC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NMFC's dividends in 3 years are not forecast to be well covered by earnings (97.8% payout ratio).
Management
How experienced are the management team and are they aligned to shareholders interests?
4.7yrs
Average management tenure
CEO
Rob Hamwee (50 yo)
10.67yrs
Tenure
Mr. Robert A. Hamwee, also known as Rob, serves as Director of Edmentum, Inc. He serves as a Managing Director of New Mountain Capital, LLC since 2008. He had been Chief Executive Officer and President of ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Member of Board of Director | 10.67yrs | no data | 0.48% $ 5.9m | |
| President | 1.33yrs | no data | 0.18% $ 2.1m | |
| Accounting Manager | no data | no data | no data | |
| Chief Administrative Officer | 8.67yrs | no data | 0.30% $ 3.6m | |
| Chief Compliance Officer & Corporate Secretary | 5.75yrs | no data | 0.0066% $ 80.0k | |
| Managing Director | no data | no data | 0.14% $ 1.7m | |
| MD & Head of Capital Markets | no data | no data | no data | |
| Managing Director | 0.83yr | no data | no data | |
| Managing Director | 2.5yrs | no data | no data | |
| Treasurer & VP | no data | no data | no data | |
| Controller & VP | 3.17yrs | no data | no data | |
| Vice President | no data | no data | no data |
4.7yrs
Average Tenure
45yo
Average Age
Experienced Management: NMFC's management team is considered experienced (4.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Member of Board of Director | 10.67yrs | no data | 0.48% $ 5.9m | |
| President | 1.33yrs | no data | 0.18% $ 2.1m | |
| Chief Administrative Officer | 8.67yrs | no data | 0.30% $ 3.6m | |
| Chairman of the Board | 10.67yrs | no data | 8.97% $ 108.8m | |
| Independent Director | 10.33yrs | US$121.50k | 0.042% $ 511.7k | |
| Independent Director | 4yrs | US$124.50k | 0.041% $ 498.2k | |
| Independent Director | 1.33yrs | US$45.19k | 0.0010% $ 12.5k | |
| Independent Director | 10.33yrs | US$128.36k | 0.10% $ 1.2m |
9.5yrs
Average Tenure
64yo
Average Age
Experienced Board: NMFC's board of directors are considered experienced (9.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NMFC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
New Mountain Finance Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: New Mountain Finance Corporation
- Ticker: NMFC
- Exchange: NasdaqGS
- Founded: 2010
- Industry: Asset Management and Custody Banks
- Sector: Diversified Financials
- Market Cap: US$1.213b
- Shares outstanding: 96.83m
- Website: https://www.newmountainfinance.com
Location
- New Mountain Finance Corporation
- 787 Seventh Avenue
- 49th Floor
- New York
- New York
- 10019
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NMFC | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | May 2011 |
| 1N4 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | May 2011 |
| NMFC.L | NasdaqGS (Nasdaq Global Select) | 5.75% NT SR 23 | US | USD | Sep 2018 |
Biography
New Mountain Finance Corporation is a Business Development Company specializing in investments in middle market companies and debt securities at various levels of the capital structure, including first and...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/07 00:48 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.