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NMFC logo NMFC
Upturn stock ratingUpturn stock rating
NMFC logo

New Mountain Finance Corporation (NMFC)

Upturn stock ratingUpturn stock rating
$10.55
Last Close (24-hour delay)
Profit since last BUY0.38%
upturn advisory
Consider higher Upturn Star rating
BUY since 29 days
  • BUY Advisory
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  • SELL Advisory (Loss)​
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Upturn Advisory Summary

06/30/2025: NMFC (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

rating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

rating

7 Analysts rated it

Moderately tracked stock, growing coverage, gaining market and investor attention.

1 Year Target Price $11.46

1 Year Target Price $11.46

Analysts Price Target For last 52 week
$11.46Target price
Low$8.58
Current$10.55
high$11.35

Analysis of Past Performance

Type Stock
Historic Profit -0.31%
Avg. Invested days 43
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 3.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 06/30/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.14B USD
Price to earnings Ratio 10.65
1Y Target Price 11.46
Price to earnings Ratio 10.65
1Y Target Price 11.46
Volume (30-day avg) 7
Beta 0.86
52 Weeks Range 8.58 - 11.35
Updated Date 06/29/2025
52 Weeks Range 8.58 - 11.35
Updated Date 06/29/2025
Dividends yield (FY) 12.14%
Basic EPS (TTM) 0.99

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 29.84%
Operating Margin (TTM) 77.04%

Management Effectiveness

Return on Assets (TTM) 5.43%
Return on Equity (TTM) 8.09%

Valuation

Trailing PE 10.65
Forward PE 8.93
Enterprise Value 2843443968
Price to Sales(TTM) 3.1
Enterprise Value 2843443968
Price to Sales(TTM) 3.1
Enterprise Value to Revenue 24.71
Enterprise Value to EBITDA 16.16
Shares Outstanding 107851000
Shares Floating -
Shares Outstanding 107851000
Shares Floating -
Percent Insiders 11.71
Percent Institutions 34.86

Analyst Ratings

Rating 3
Target Price 11.46
Buy -
Strong Buy 3
Buy -
Strong Buy 3
Hold 4
Sell -
Strong Sell -
Strong Sell -

ai summary icon Upturn AI SWOT

New Mountain Finance Corporation

stock logo

Company Overview

overview logo History and Background

New Mountain Finance Corporation was founded in 2008 and is a closed-end, non-diversified management investment company that focuses on direct lending to middle market companies.

business area logo Core Business Areas

  • Direct Lending: Provides direct lending solutions, including first lien, second lien, and unitranche loans, to middle-market companies.
  • Investment Portfolio: Manages a diverse portfolio of investments in various industries, aiming to generate current income and capital appreciation.

leadership logo Leadership and Structure

Robert A. Hamwee serves as the CEO. The company operates under a board of directors and an investment team that focuses on credit analysis and portfolio management.

Top Products and Market Share

overview logo Key Offerings

  • First Lien Loans: Senior secured loans representing the highest priority in the borrower's capital structure. NMFC competes with other BDCs and private credit funds. Market share data is difficult to obtain precisely for this specific segment, but the private credit market is highly competitive.
  • Second Lien Loans: Loans secured by a second priority claim on the borrower's assets. Higher risk and higher yield. NMFC competes with other BDCs and private credit funds. Market share data is difficult to obtain precisely for this specific segment, but the private credit market is highly competitive.
  • Unitranche Loans: A hybrid loan structure combining characteristics of both first and second lien debt. NMFC competes with other BDCs and private credit funds. Market share data is difficult to obtain precisely for this specific segment, but the private credit market is highly competitive.

Market Dynamics

industry overview logo Industry Overview

The industry consists of Business Development Companies (BDCs) that provide capital to middle-market companies. The sector is sensitive to interest rate changes and economic conditions.

Positioning

New Mountain Finance Corporation positions itself as a provider of flexible capital solutions to companies with defensible market positions and strong management teams.

Total Addressable Market (TAM)

The total addressable market for middle market lending is substantial, estimated to be in the hundreds of billions of dollars. New Mountain Finance Corporation aims to capture a portion of this market through its lending activities.

Upturn SWOT Analysis

Strengths

  • Experienced management team
  • Disciplined investment approach
  • Diversified investment portfolio
  • Strong track record of generating income

Weaknesses

  • Exposure to credit risk in middle-market lending
  • Sensitivity to interest rate fluctuations
  • Reliance on external financing
  • Potential for conflicts of interest

Opportunities

  • Expanding middle-market lending opportunities
  • Increasing demand for alternative financing solutions
  • Potential for strategic acquisitions
  • Growing portfolio company valuations

Threats

  • Economic downturns
  • Increased competition from other lenders
  • Rising interest rates
  • Regulatory changes

Competitors and Market Share

competitor logo Key Competitors

  • ARCC
  • TCPC
  • MAIN
  • GSLD

Competitive Landscape

New Mountain Finance competes with other BDCs and private credit funds for lending opportunities. Competitive advantages include its experienced management team and disciplined investment approach. Its disadvantages stem from its relatively smaller size.

Growth Trajectory and Initiatives

Historical Growth: Historical growth has been driven by origination of new loans and effective portfolio management.

Future Projections: Future growth is expected to be influenced by middle-market lending activity and overall economic conditions. Analyst estimates vary based on market forecasts.

Recent Initiatives: Recent initiatives include expanding the investment team and diversifying the investment portfolio across various industries.

Summary

New Mountain Finance Corporation is a BDC focused on middle-market lending. It benefits from an experienced management team and a disciplined approach. However, its smaller size and reliance on external financing can pose challenges. Economic conditions and interest rate changes pose significant risks.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • Company filings, industry reports, market analysis

Disclaimers:

The information provided is for informational purposes only and should not be considered as investment advice. Market share estimates are approximate and may vary based on different sources.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About New Mountain Finance Corporation

Exchange NASDAQ
Headquaters New York, NY, United States
IPO Launch date 2011-05-20
President, CEO & Director Mr. John R. Kline
Sector Financial Services
Industry Asset Management
Full time employees -
Full time employees -

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. In some cases, its investments may also include equity interests. It targets energy, engineering and consulting services, specialty chemicals and materials, trading companies and distributors, commercial printing, diversified support services, education services, environmental and facilities services, office services and supplies, media, distributors, health care services, health care facilities, application software, business services, systems software, federal services, distribution and logistics, interactive home entertainment, telecommunication services, hydroelectric power generation, electric power generation by fossil fuels, electric power generation by nuclear fuels, health care technology, and security and alarm services. The fund seeks to invest in United States of America. It seeks to invest between $10 million and $125 million per transaction. The firm invests through both primary originations and open-market secondary purchases. It invests in companies with EBITDA between $10 million and $200 million. The fund seeks a majority stake in its portfolio companies.