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New Mountain Finance

NYSE:NMFC
Snowflake Description

Good value with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NMFC
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

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. The last earnings update was 22 days ago. More info.


Add to Portfolio Compare Print
  • New Mountain Finance is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.
NMFC Share Price and Events
7 Day Returns
0.1%
NYSE:NMFC
2.4%
US Capital Markets
1.2%
US Market
1 Year Returns
-0.8%
NYSE:NMFC
-11.9%
US Capital Markets
3%
US Market
NMFC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
New Mountain Finance (NMFC) 0.1% -3.8% 8.9% -0.8% 7% -7.8%
US Capital Markets 2.4% 0.6% 12.7% -11.9% 57% 59.3%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • NMFC outperformed the Capital Markets industry which returned -11.9% over the past year.
  • NMFC underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
NMFC
Industry
5yr Volatility vs Market

Value

 Is New Mountain Finance undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of New Mountain Finance to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for New Mountain Finance.

NYSE:NMFC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $13.18 * 10%
$1.32
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. $13.18
Discount Rate (Cost of Equity) See below 10.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:NMFC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.728 (1 + (1- 21%) (129.02%))
1.315
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.31
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.315 * 5.96%)
10.56%

Discounted Cash Flow Calculation for NYSE:NMFC using Excess Returns Model Model

The calculations below outline how an intrinsic value for New Mountain Finance is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:NMFC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10% – 10.56%) * $13.18)
$-0.07
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.07 / (10.56% - 2.73%)
$-0.95
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $13.18 + $-0.95
$12.22
NYSE:NMFC Discount to Share Price
Calculation Result
Value per share (USD) From above. $12.22
Current discount Discount to share price of $13.34
= -1 x ($13.34 - $12.22) / $12.22
-9.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of New Mountain Finance is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for New Mountain Finance's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are New Mountain Finance's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:NMFC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.95
NYSE:NMFC Share Price ** NYSE (2019-03-20) in USD $13.34
United States of America Capital Markets Industry PE Ratio Median Figure of 76 Publicly-Listed Capital Markets Companies 25.13x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of New Mountain Finance.

NYSE:NMFC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:NMFC Share Price ÷ EPS (both in USD)

= 13.34 ÷ 0.95

14.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • New Mountain Finance is good value based on earnings compared to the US Capital Markets industry average.
  • New Mountain Finance is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does New Mountain Finance's expected growth come at a high price?
Raw Data
NYSE:NMFC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.02x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
22.3%per year
United States of America Capital Markets Industry PEG Ratio Median Figure of 33 Publicly-Listed Capital Markets Companies 2.17x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:NMFC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.02x ÷ 22.3%

0.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • New Mountain Finance is good value based on expected growth next year.
Price based on value of assets
What value do investors place on New Mountain Finance's assets?
Raw Data
NYSE:NMFC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $13.22
NYSE:NMFC Share Price * NYSE (2019-03-20) in USD $13.34
United States of America Capital Markets Industry PB Ratio Median Figure of 149 Publicly-Listed Capital Markets Companies 4.83x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NYSE:NMFC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:NMFC Share Price ÷ Book Value per Share (both in USD)

= 13.34 ÷ 13.22

1.01x

* Primary Listing of New Mountain Finance.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • New Mountain Finance is good value based on assets compared to the US Capital Markets industry average.
X
Value checks
We assess New Mountain Finance's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. New Mountain Finance has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is New Mountain Finance expected to grow at an attractive rate?
  • New Mountain Finance's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • New Mountain Finance's earnings growth is expected to exceed the United States of America market average.
  • New Mountain Finance's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:NMFC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:NMFC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 22.3%
NYSE:NMFC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 7.9%
United States of America Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 6.4%
United States of America Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:NMFC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:NMFC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 271 117 3
2019-12-31 258 113 3
NYSE:NMFC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 231 -393 72
2018-09-30 221 -317 101
2018-06-30 212 -113 99
2018-03-31 207 -108 103
2017-12-31 198 -166 109
2017-09-30 188 -197 116
2017-06-30 179 -223 117
2017-03-31 170 -122 134
2016-12-31 168 61 112
2016-09-30 166 70 58
2016-06-30 162 -133 43
2016-03-31 158 -46 18

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • New Mountain Finance's earnings are expected to grow significantly at over 20% yearly.
  • New Mountain Finance's revenue is expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:NMFC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from New Mountain Finance Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NMFC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.37 1.41 1.32 3.00
2019-12-31 1.37 1.41 1.31 3.00
NYSE:NMFC Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.95
2018-09-30 1.32
2018-06-30 1.30
2018-03-31 1.36
2017-12-31 1.47
2017-09-30 1.61
2017-06-30 1.68
2017-03-31 2.02
2016-12-31 1.72
2016-09-30 0.90
2016-06-30 0.68
2016-03-31 0.30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if New Mountain Finance will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess New Mountain Finance's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
New Mountain Finance has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare New Mountain Finance's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • New Mountain Finance's year on year earnings growth rate has been positive over the past 5 years.
  • New Mountain Finance's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • New Mountain Finance's 1-year earnings growth is negative, it can't be compared to the US Capital Markets industry average.
Earnings and Revenue History
New Mountain Finance's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from New Mountain Finance Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NMFC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 231.47 72.35 68.09
2018-09-30 221.20 100.61 66.41
2018-06-30 211.97 98.63 63.37
2018-03-31 207.39 102.83 62.38
2017-12-31 197.81 109.40 57.95
2017-09-30 188.35 116.38 54.63
2017-06-30 178.94 116.68 52.21
2017-03-31 170.42 134.04 50.03
2016-12-31 168.08 111.68 51.37
2016-09-30 166.27 57.80 51.42
2016-06-30 161.88 42.52 49.68
2016-03-31 158.30 18.09 48.74
2015-12-31 153.86 32.96 47.83
2015-09-30 148.64 44.04 40.07
2015-06-30 145.90 41.64 37.34
2015-03-31 141.70 45.04 32.87
2014-12-31 135.60 45.58 21.02
2014-09-30 125.64 72.47 15.87
2014-06-30 112.94 82.52 7.43
2014-03-31 105.63 69.85 -8.46
2013-12-31 90.88 61.92
2013-09-30 78.26 53.78 6.41
2013-06-30 65.99 46.27 11.57
2013-03-31 46.61 39.11 23.03
2012-12-31 37.51 31.78
2012-09-30 39.03 35.54 17.74

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • New Mountain Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • New Mountain Finance used its assets more efficiently than the US Capital Markets industry average last year based on Return on Assets.
  • New Mountain Finance's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess New Mountain Finance's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
New Mountain Finance has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is New Mountain Finance's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up New Mountain Finance's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • New Mountain Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • New Mountain Finance's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of New Mountain Finance's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from New Mountain Finance Company Filings, last reported 2 months ago.

NYSE:NMFC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,006.27 1,384.10 49.66
2018-09-30 1,033.53 1,354.39 146.35
2018-06-30 1,032.65 1,078.71 33.95
2018-03-31 1,033.00 975.04 29.64
2017-12-31 1,034.98 869.50 34.94
2017-09-30 1,032.08 827.10 39.65
2017-06-30 1,031.34 865.34 36.34
2017-03-31 946.74 853.60 37.66
2016-12-31 938.56 696.74 45.93
2016-09-30 848.21 703.67 49.79
2016-06-30 843.33 707.84 34.47
2016-03-31 821.85 713.49 32.68
2015-12-31 836.91 728.07 30.10
2015-09-30 878.70 671.83 24.61
2015-06-30 808.33 567.86 24.23
2015-03-31 806.50 663.91 22.15
2014-12-31 802.17 670.61 23.45
2014-09-30 747.46 600.83 17.86
2014-06-30 762.56 568.10 21.67
2014-03-31 697.15 0.00
2013-12-31 650.11 0.00
2013-09-30 547.72 0.00
2013-06-30 546.20 0.00
2013-03-31 448.41 0.00
2012-12-31 341.93 0.00
2012-09-30 291.67 0.00
  • New Mountain Finance's level of debt (137.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 137.5% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are not well covered by earnings (EBIT is 2.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess New Mountain Finance's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. New Mountain Finance has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
10.19%
Current annual income from New Mountain Finance dividends. Estimated to be 10.19% next year.
If you bought $2,000 of New Mountain Finance shares you are expected to receive $204 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • New Mountain Finance's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • New Mountain Finance's dividend is above the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:NMFC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:NMFC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 1.36 3.00
2019-12-31 1.36 3.00
NYSE:NMFC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-27 1.360 10.023
2018-11-07 1.360 10.146
2018-08-07 1.360 10.012
2018-05-07 1.360 9.867
2017-11-08 1.360 10.086
2017-11-07 1.360 9.734
2017-05-25 1.360 9.536
2017-05-08 1.360 9.323
2017-02-28 1.360 9.243
2016-11-08 1.360 9.555
2016-05-05 1.360 10.256
2016-05-04 1.360 10.995
2016-02-29 1.360 10.873
2015-11-04 1.360 10.720
2015-05-06 1.360 9.370
2015-05-05 1.360 9.243
2014-11-05 1.360 9.227
2014-08-06 1.360 9.148
2014-05-07 1.360 9.386
2014-03-05 1.360 9.375
2013-11-12 1.480 9.960
2013-08-07 1.360 9.392
2013-05-06 1.360 9.223
2013-03-06 1.360 9.284
2012-11-06 1.360 9.166
2012-08-08 1.360 9.236
2012-05-08 1.360 9.688
2012-03-07 1.280 9.462
2011-11-14 1.200 9.088
2011-08-11 1.160 9.209

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • New Mountain Finance has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but New Mountain Finance only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of New Mountain Finance's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1x coverage).
X
Income/ dividend checks
We assess New Mountain Finance's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can New Mountain Finance afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. New Mountain Finance has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of New Mountain Finance's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rob Hamwee
COMPENSATION $0
AGE 48
TENURE AS CEO 8.7 years
CEO Bio

Mr. Robert A. Hamwee, also known as Rob, serves as a Managing Director of New Mountain Capital, LLC since 2008. He had been Chief Executive Officer and President of New Mountain Finance AIV Holdings Corp from May 2011 to 2014. Prior to joining New Mountain Capital in 2008, he served as Senior Managing Director and Head of the Equity at GSC Group. Mr. Hamwee joined GSC Group at its inception on 1999 and served as its Managing Director since 2000. He served as the President at GSC Group, where Mr. Hamwee served day-to-day responsibility for managing the firm's control distressed debt funds. He served as Senior Managing Director Control Distressed Debt of GSC Partners at 2008 Asset Holding Corp. He was employed at Greenwich Street Capital Partners from 1994 to 1999. Mr. Hamwee served as Executive Officer at The Blackstone Group from 1992 to 1994, where he worked on a wide range of assignments in the Restructuring and Merchant Banking Departments. Mr. Hamwee serves as Chairman of the Board of Axiohm Transaction Solutions, Inc. and Envirosource Inc. Mr. Hamwee serves as a Director of BQX Ltd., Precision Partners, Inc. RAM Holdings Ltd., Wright Line, LLC and Scovill Fasteners, Inc. He has been a Director at New Mountain Finance AIV Holdings Corp since 2010 and at Viasystems, Inc. since 2003. Mr. Hamwee has been a Director of Purina Mills Inc., since June 2000. He served as a Director of UniTek Global Services, Inc. from January 13, 2015 to February 13, 2015. He served as a Director of Viasystems Group Inc., since January 2003. He served as Independent Director of International Wire Group Holdings, Inc. from October 20, 2004 to November 2006. He served as Director of American Overseas Group Limited. Mr. Hamwee has chaired numerous Bank Steering Groups. He graduated Phi Beta Kappa from the University of Michigan with a B.B.A. degree in Finance and Accounting in 1992.

CEO Compensation
  • Insufficient data for Rob to compare compensation growth.
  • Rob's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the New Mountain Finance management team in years:

3.3
Average Tenure
39
Average Age
  • The tenure for the New Mountain Finance management team is about average.
Management Team

Rob Hamwee

TITLE
CEO & Member of Board of Director
AGE
48
TENURE
8.7 yrs

Adam Weinstein

TITLE
Chief Administrative Officer & Executive VP
AGE
39
TENURE
6.2 yrs

John Kline

TITLE
President & COO
AGE
43
TENURE
2.7 yrs

Shiraz Kajee

TITLE
Treasurer & CFO
AGE
38
TENURE
3.3 yrs

Karrie Jerry

TITLE
Chief Compliance Officer
TENURE
3.8 yrs

James Stone

TITLE
Managing Director

Andre Moura

TITLE
Managing Director
AGE
36
TENURE
0.5 yrs

Jessica Hanna

TITLE
Controller
TENURE
1.2 yrs

Laura Holson

TITLE
Director & Head of Capital Markets

Joy Xu

TITLE
Vice President
Board of Directors Tenure

Average tenure and age of the New Mountain Finance board of directors in years:

8.3
Average Tenure
62
Average Age
  • The tenure for the New Mountain Finance board of directors is about average.
Board of Directors

Steve Klinsky

TITLE
Chairman of the Board
AGE
62
TENURE
8.7 yrs

Rob Hamwee

TITLE
CEO & Member of Board of Director
AGE
48
TENURE
9.2 yrs

Adam Weinstein

TITLE
Chief Administrative Officer & Executive VP
AGE
39
TENURE
6.7 yrs

Al Hurley

TITLE
Director
COMPENSATION
$121K
AGE
63
TENURE
8.3 yrs

Kurt Wolfgruber

TITLE
Director
COMPENSATION
$127K
AGE
67
TENURE
8.3 yrs

David Ogens

TITLE
Director
COMPENSATION
$132K
AGE
64
TENURE
8.3 yrs

Rome Arnold

TITLE
Director
COMPENSATION
$119K
AGE
62
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by New Mountain Finance insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Mar 19 Buy James Stone Individual 08. Mar 19 08. Mar 19 1,600 $13.41 $21,456
20. Dec 18 Buy Steven Klinsky Individual 17. Dec 18 17. Dec 18 181,805 $12.52 $2,276,926
20. Dec 18 Buy John Kline Individual 17. Dec 18 17. Dec 18 17,000 $12.71 $215,665
20. Dec 18 Buy Kurt Wolfgruber Individual 17. Dec 18 17. Dec 18 2,000 $12.54 $25,080
14. Dec 18 Buy Robert Hamwee Individual 13. Dec 18 13. Dec 18 15,000 $12.88 $193,200
13. Dec 18 Buy Karrie Jerry Individual 13. Dec 18 13. Dec 18 1,000 $12.90 $12,900
11. Dec 18 Buy Adam Weinstein Individual 10. Dec 18 10. Dec 18 16,700 $13.24 $220,793
14. Nov 18 Buy David Ogens Individual 13. Nov 18 13. Nov 18 1,799 $13.53 $24,340
13. Sep 18 Buy John Kline Individual 11. Sep 18 12. Sep 18 17,250 $13.80 $237,550
10. Sep 18 Buy Robert Hamwee Individual 06. Sep 18 06. Sep 18 15,000 $13.75 $205,563
07. Sep 18 Buy Adam Weinstein Individual 06. Sep 18 06. Sep 18 12,000 $13.74 $164,838
07. Sep 18 Buy James Stone Individual 06. Sep 18 06. Sep 18 4,000 $13.75 $54,928
X
Management checks
We assess New Mountain Finance's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. New Mountain Finance has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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. It invests in various industries that include software, education, business services, distribution and logistics, federal services, healthcare services and products, healthcare facilities, energy, media, consumer and industrial services, healthcare Information Technology, Information Technology and services, specialty chemicals and materials, telecommunication, retail, and power generation. It seeks to invest in United States. It typically invests between $10 million and $50 million. Within middle market it seeks to invest in companies having EBITDA between $20 million and $200 million. It prefers to invest in equity interests, such as preferred stock, common stock, warrants, or options received in connection with its debt investments and directly in the equity of private companies. The fund makes investments through both primary originations and open-market secondary purchases. It invests primarily in debt securities that are rated below investment grade and have contractual unlevered returns of 10% to 15%. The firm may also invest in distressed debt and related opportunities and prefers to invest in targets having private equity sponsorship. It seeks to hold its investments between five years and ten years. The fund prefer to have majority stake in companies.

Details
Name: New Mountain Finance Corporation
NMFC
Exchange: NYSE
Founded: 2010
$1,072,787,752
80,418,872
Website: http://www.newmountainfinance.com
Address: New Mountain Finance Corporation
787 Seventh Avenue,
49th Floor,
New York,
New York, 10019,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE NMFC Common Shares New York Stock Exchange US USD 20. May 2011
DB 1N4 Common Shares Deutsche Boerse AG DE EUR 20. May 2011
NYSE NMFX 5.75% NT SR 23 New York Stock Exchange US USD 28. Sep 2018
Number of employees
Current staff
Staff numbers
0
New Mountain Finance employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 00:30
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/04
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.