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Upturn AI SWOT - About
NMFC 
New Mountain Finance Corporation (NMFC)
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Upturn Advisory Summary
09/15/2025: NMFC (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
7 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $10.95
1 Year Target Price $10.95
| 3 | Strong Buy |
| 0 | Buy |
| 4 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -5.04% | Avg. Invested days 47 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 09/15/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.11B USD | Price to earnings Ratio 13.78 | 1Y Target Price 10.95 |
Price to earnings Ratio 13.78 | 1Y Target Price 10.95 | ||
Volume (30-day avg) 7 | Beta 0.84 | 52 Weeks Range 8.58 - 11.35 | Updated Date 09/14/2025 |
52 Weeks Range 8.58 - 11.35 | Updated Date 09/14/2025 | ||
Dividends yield (FY) 12.18% | Basic EPS (TTM) 0.76 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 23.27% | Operating Margin (TTM) 78.73% |
Management Effectiveness
Return on Assets (TTM) 5.21% | Return on Equity (TTM) 6.15% |
Valuation
Trailing PE 13.78 | Forward PE 7.31 | Enterprise Value 2831240192 | Price to Sales(TTM) 3.13 |
Enterprise Value 2831240192 | Price to Sales(TTM) 3.13 | ||
Enterprise Value to Revenue 32.36 | Enterprise Value to EBITDA 16.16 | Shares Outstanding 106361000 | Shares Floating - |
Shares Outstanding 106361000 | Shares Floating - | ||
Percent Insiders 11.89 | Percent Institutions 33.53 |
Upturn AI SWOT
New Mountain Finance Corporation
Company Overview
History and Background
New Mountain Finance Corporation (NMFC) was founded in 2008. It is an externally managed, closed-end, non-diversified management investment company focused on direct lending to middle-market companies. It provides debt and equity capital to businesses for acquisitions, growth, and recapitalizations.
Core Business Areas
- Direct Lending: NMFC primarily invests in first lien, second lien, and unitranche loans to middle-market companies. These investments typically have floating interest rates.
- Equity Investments: NMFC also makes opportunistic equity investments, often alongside debt investments, to enhance overall returns.
- Net Lease Real Estate: NMFC also has net lease real estate investments that generate steady streams of revenue.
Leadership and Structure
NMFC is externally managed by New Mountain Capital, L.L.C. Robert A. Hamwee serves as the CEO. The company operates as a business development company (BDC).
Top Products and Market Share
Key Offerings
- First Lien Loans: These are senior secured loans that have the first claim on a borrower's assets in the event of default. These represent a core component of NMFC's portfolio. Market share data is not readily available specifically for NMFC's first lien loan market share, but generally first lien loan market has many participants. Competitors include Ares Capital, Owl Rock Capital Corporation.
- Second Lien Loans: These are loans that have a secondary claim on assets behind first lien lenders. These generally command higher interest rates. Market share data is not readily available specifically for NMFC's second lien loan market share, but generally second lien loan market has many participants. Competitors include Ares Capital, Owl Rock Capital Corporation.
- Unitranche Loans: These are a hybrid loan structure combining characteristics of both first and second lien debt. These loans offer flexibility for borrowers. Market share data is not readily available specifically for NMFC's unitranche loan market share, but generally unitranche loan market has many participants. Competitors include Ares Capital, Owl Rock Capital Corporation.
Market Dynamics
Industry Overview
The BDC industry is influenced by interest rates, credit spreads, and economic conditions. Increased regulations impact profitability and compliance costs.
Positioning
NMFC specializes in direct lending to middle-market companies, providing capital solutions to businesses often underserved by traditional lenders. Their expertise in private equity-backed businesses differentiates them. The target companies are typically valued between $10 million and $1 billion.
Total Addressable Market (TAM)
The estimated TAM for private credit in the US is vast, estimated to be above $1 Trillion USD. NMFC is positioned well to continue capturing a portion of this TAM, but faces increased competition.
Upturn SWOT Analysis
Strengths
- Experienced management team (New Mountain Capital)
- Focus on defensive growth industries
- Strong underwriting standards
- Disciplined investment approach
- Diverse investment portfolio
Weaknesses
- External management structure creates potential conflicts of interest
- Reliance on debt financing increases financial risk
- Exposure to credit risk in middle-market lending
- Sensitivity to interest rate fluctuations
- Smaller market capitalization compared to peers
Opportunities
- Increased demand for private credit from middle-market companies
- Expansion into new industry verticals
- Strategic acquisitions to increase scale
- Growing partnerships with private equity sponsors
- Capitalizing on market dislocations and distressed opportunities
Threats
- Economic downturn leading to increased defaults
- Increased competition from other BDCs and private credit funds
- Regulatory changes impacting the BDC industry
- Rising interest rates increasing borrowing costs
- Geopolitical instability impacting portfolio companies
Competitors and Market Share
Key Competitors
- ARCC
- OCSL
- TPVG
Competitive Landscape
NMFC competes with other BDCs and private credit funds. Key competitive factors include investment expertise, access to deal flow, and capital availability. NMFC benefits from its affiliation with New Mountain Capital.
Growth Trajectory and Initiatives
Historical Growth: NMFC's historical growth has been driven by its ability to deploy capital into attractive middle-market lending opportunities.
Future Projections: Future growth is dependent on market conditions and management's ability to source and underwrite quality investments. Analyst projections will vary.
Recent Initiatives: Recent initiatives have focused on expanding into new sectors, optimizing the capital structure, and managing credit risk.
Summary
New Mountain Finance Corporation is a BDC focusing on lending to middle-market companies. It benefits from the expertise of New Mountain Capital, but faces challenges common to BDCs like interest rate sensitivity and credit risk. While it maintains a disciplined investment approach, competition in the space is high. Future success hinges on its ability to source attractive deals and manage its portfolio effectively, generating sufficient income to support distributions.
Peer Comparison
Sources and Disclaimers
Data Sources:
- SEC Filings
- Company Investor Relations
- Analyst Reports
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Market share is approximate and based on available data. Investment decisions should be made based on thorough research and consultation with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
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.
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