NasdaqGS:NMFC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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

NMFCIndustryMarket
7 Day1.1%1.5%-0.4%
30 Day5.7%3.3%-2.3%
90 Day3.9%14.5%5.0%
1 Year9.6%-2.5%49.0%45.4%39.1%36.2%
3 Year29.4%-5.8%35.9%25.9%48.4%39.0%
5 Year64.8%-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

NamePositionTenureCompensationOwnership
Robert Hamwee
CEO & Member of Board of Director10.67yrsno data0.48%
$ 5.9m
John Kline
President1.33yrsno data0.18%
$ 2.1m
Lindsey Wittmann
Accounting Managerno datano datano data
Adam Weinstein
Chief Administrative Officer8.67yrsno data0.30%
$ 3.6m
Karrie Jerry
Chief Compliance Officer & Corporate Secretary5.75yrsno data0.0066%
$ 80.0k
James Stone
Managing Directorno datano data0.14%
$ 1.7m
Laura Holson
MD & Head of Capital Marketsno datano datano data
Joshua Porter
Managing Director0.83yrno datano data
Andre Moura
Managing Director2.5yrsno datano data
Holly Lau
Treasurer & VPno datano datano data
Jessica Hanna
Controller & VP3.17yrsno datano data
Joy Xu
Vice Presidentno datano datano data

4.7yrs

Average Tenure

45yo

Average Age

Experienced Management: NMFC's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Hamwee
CEO & Member of Board of Director10.67yrsno data0.48%
$ 5.9m
John Kline
President1.33yrsno data0.18%
$ 2.1m
Adam Weinstein
Chief Administrative Officer8.67yrsno data0.30%
$ 3.6m
Steven Klinsky
Chairman of the Board10.67yrsno data8.97%
$ 108.8m
Alfred Hurley
Independent Director10.33yrsUS$121.50k0.042%
$ 511.7k
Rome Arnold
Independent Director4yrsUS$124.50k0.041%
$ 498.2k
Alice Handy
Independent Director1.33yrsUS$45.19k0.0010%
$ 12.5k
David Ogens
Independent Director10.33yrsUS$128.36k0.10%
$ 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NMFCNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDMay 2011
1N4DB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2011
NMFC.LNasdaqGS (Nasdaq Global Select)5.75% NT SR 23USUSDSep 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 00:48
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.