New Mountain Finance (NasdaqGS:NMFC) - Share price, News & Analysis

NMFC fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	1/6
Financial Health	1/6
Dividends	4/6

NMFC Stock Overview

New Mountain Finance Competitors

Carlyle Group

NasdaqGS:CG

US$13.0b

FS KKR Capital

NYSE:FSK

US$5.8b

Prospect Capital

NasdaqGS:PSEC

US$2.9b

Main Street Capital

NYSE:MAIN

US$2.6b

Price History & Performance

Summary of all time highs, changes and price drops for New Mountain Finance
Historical stock prices
Current Share Price	US$12.52
52 Week High	US$14.11
52 Week Low	US$12.26
Beta	1.27
1 Month Change	-7.94%
3 Month Change	-6.29%
1 Year Change	-3.69%
3 Year Change	-11.71%
5 Year Change	-14.25%
Change since IPO	-3.69%

Recent News & Updates

Mar 14

New Mountain Finance: A 9% Yielder To Help You Stay Ahead

NMFC is a high-yielding BDC that's seen a decent NAV/share rebound with record deal originations. It maintains a sound leverage profile and pays a covered dividend. Management recently made a shareholder-friendly move of reducing its base management fee.

Shareholder Returns

	NMFC	US Capital Markets	US Market
7D	-3.5%	-0.9%	-4.0%
1Y	-3.7%	-14.0%	-13.2%

Return vs Industry: NMFC exceeded the US Capital Markets industry which returned -13.5% over the past year.

Return vs Market: NMFC exceeded the US Market which returned -12.3% over the past year.

Price Volatility

Is NMFC's price volatile compared to industry and market?
NMFC volatility
NMFC Average Weekly Movement	2.7%
Capital Markets Industry Average Movement	0.5%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: NMFC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: NMFC's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2010	n/a	Rob Hamwee	https://www.newmountainfinance.com

New Mountain Finance Corporation (Nasdaq: NMFC), a business development company is a private equity / buyouts and loan fund specializes in directly investing and lending to middle market companies in “defensive growth” industries. The fund prefers investing in buyout and middle market companies. It also makes investments in debt securities at all levels of the capital structure including first and second lien debt, unsecured notes and mezzanine securities.

New Mountain Finance Fundamentals Summary

How do New Mountain Finance's earnings and revenue compare to its market cap?
NMFC fundamental statistics
Market Cap	US$1.26b
Earnings (TTM)	US$186.10m
Revenue (TTM)	US$272.21m

6.8x

P/E Ratio

4.6x

P/S Ratio

Is NMFC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NMFC income statement (TTM)
Revenue	US$272.21m
Cost of Revenue	US$0
Gross Profit	US$272.21m
Other Expenses	US$86.11m
Earnings	US$186.10m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.85
Gross Margin	100.00%
Net Profit Margin	68.37%
Debt/Equity Ratio	142.0%

How did NMFC perform over the long term?

See historical performance and comparison

Dividends

9.6%

Current Dividend Yield

63%

Payout Ratio

Does NMFC pay a reliable dividends?

See NMFC dividend history and benchmarks

When do you need to buy NMFC by to receive an upcoming dividend?
New Mountain Finance dividend dates
Ex Dividend Date	Jun 15 2022
Dividend Pay Date	Jun 30 2022
Days until Ex dividend	20 days
Days until Dividend pay date	35 days

Does NMFC pay a reliable dividends?

See NMFC dividend history and benchmarks

Valuation

Is New Mountain Finance undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

34.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NMFC ($12.52) is trading below our estimate of fair value ($18.96)

Significantly Below Fair Value: NMFC is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: NMFC is good value based on its Price-To-Earnings Ratio (6.8x) compared to the US Capital Markets industry average (30.5x).

PE vs Market: NMFC is good value based on its Price-To-Earnings Ratio (6.8x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: NMFC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: NMFC is overvalued based on its Price-To-Book Ratio (0.9x) compared to the US Capital Markets industry average (-17.7x).

Future Growth

How is New Mountain Finance forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-13.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NMFC's earnings are forecast to decline over the next 3 years (-13.2% per year).

Earnings vs Market: NMFC's earnings are forecast to decline over the next 3 years (-13.2% per year).

High Growth Earnings: NMFC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NMFC's revenue (3.2% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: NMFC's revenue (3.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if NMFC's Return on Equity is forecast to be high in 3 years time

Past Performance

How has New Mountain Finance performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

12.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NMFC has a large one-off gain of $72.8M impacting its March 31 2022 financial results.

Growing Profit Margin: NMFC's current net profit margins (68.4%) are lower than last year .

Past Earnings Growth Analysis

Earnings Trend: NMFC's earnings have grown by 12.7% 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 (-34.1%) over the past year, making it difficult to compare to the Capital Markets industry average (98.3%).

Return on Equity

High ROE: NMFC's Return on Equity (14.1%) is considered low.

Financial Health

How is New Mountain Finance's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NMFC's short term assets ($89.5M) exceed its short term liabilities ($47.8M).

Long Term Liabilities: NMFC's short term assets ($89.5M) do not cover its long term liabilities ($1.9B).

Debt to Equity History and Analysis

Debt Level: NMFC's net debt to equity ratio (139.4%) is considered high.

Reducing Debt: NMFC's debt to equity ratio has increased from 90.1% to 142% over the past 5 years.

Debt Coverage: NMFC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: NMFC's interest payments on its debt are not well covered by EBIT (2.7x coverage).

Balance Sheet

Dividend

What is New Mountain Finance current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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 (1.57%).

High Dividend: NMFC's dividend (9.58%) is in the top 25% of dividend payers in the US market (4.05%)

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (62.8%), NMFC's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: NMFC is paying a dividend but the company has no free cash flows.

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure

CEO

Rob Hamwee (51 yo)

11.83yrs

Tenure

Mr. Robert A. Hamwee, also known as Rob, has been the Chief Executive Officer of New Mountain Finance Corporation since July 2010 and served as its President from 2011 to 2016. He has been the Chief Execut...

Leadership Team

Experienced Management: NMFC's management team is considered experienced (2.8 years average tenure).

Board Members

Experienced Board: NMFC's board of directors are considered experienced (9.8 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 been diluted in the past year, with total shares outstanding growing by 4%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31