(NMFC) New Mountain Finance - Overview
Stock: Senior Loans, Mezzanine Debt, Equity Stakes, Second-Lien, Unsecured Notes
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 12.86% |
| Yield on Cost 5y | 18.44% |
| Yield CAGR 5y | 1.63% |
| Payout Consistency | 94.6% |
| Payout Ratio | 133.3% |
| Risk 5d forecast | |
|---|---|
| Volatility | 41.3% |
| Relative Tail Risk | 0.97% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -1.08 |
| Alpha | -34.67 |
| Character TTM | |
|---|---|
| Beta | 0.703 |
| Beta Downside | 0.804 |
| Drawdowns 3y | |
|---|---|
| Max DD | 24.84% |
| CAGR/Max DD | -0.16 |
Description: NMFC New Mountain Finance January 19, 2026
New Mountain Finance Corporation (NASDAQ: NMFC) is a Business Development Company that focuses on private-equity-style buyouts and direct lending to middle-market firms operating in “defensive growth” sectors. It invests $10 million-$125 million per deal, targeting companies with EBITDA of $10 million-$200 million, and seeks majority control. Its capital deployment spans the full capital structure-from first- and second-lien debt to unsecured notes, mezzanine securities, and, in select cases, equity stakes.
As of the most recent filing, NMFC reported assets under management of roughly $1.3 billion and a net asset value (NAV) per share of about $15, supporting a dividend yield near 7.5 %. The fund’s leverage ratio (debt-to-EBITDA) averages 3.2×, indicating a moderate use of leverage typical for BDCs seeking to enhance yield while managing credit risk.
Key macro drivers for NMFC’s strategy include the prevailing interest-rate environment-higher rates can boost BDC net interest margins but also raise borrowing costs for portfolio companies-and the steady pipeline of middle-market M&A activity, which remains resilient due to ongoing demand for specialized services such as specialty chemicals, health-care technology, and renewable-energy infrastructure. Sector-specific tailwinds, like the growth in electric-power generation (both fossil-fuel and renewable) and the expansion of federal-contracted services, further underpin the fund’s target universe.
For a deeper dive into NMFC’s valuation metrics and peer comparison, you might explore the analytics on ValueRay, which aggregates real-time data to help assess BDC performance.
Piotroski VR‑10 (Strict, 0-10) 3.0
| Net Income: 71.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 0.28 > 1.0 |
| NWC/Revenue: -38.33% < 20% (prev 20.60%; Δ -58.93% < -1%) |
| CFO/TA 0.03 > 3% & CFO 85.9m > Net Income 71.1m |
| Net Debt (391.3m) to EBITDA (71.8m): 5.45 < 3 |
| Current Ratio: 0.42 > 1.5 & < 3 |
| Outstanding Shares: last quarter (125.0m) vs 12m ago 886.3% < -2% |
| Gross Margin: 67.22% > 18% (prev 0.54%; Δ 6668 % > 0.5%) |
| Asset Turnover: 12.11% > 50% (prev 8.47%; Δ 3.64% > 0%) |
| Interest Coverage Ratio: 0.51 > 6 (EBITDA TTM 71.8m / Interest Expense TTM 129.1m) |
Altman Z'' -0.30
| A: -0.05 (Total Current Assets 107.9m - Total Current Liabilities 258.8m) / Total Assets 3.09b |
| B: -0.02 (Retained Earnings -73.0m / Total Assets 3.09b) |
| C: 0.02 (EBIT TTM 65.8m / Avg Total Assets 3.25b) |
| D: -0.04 (Book Value of Equity -72.0m / Total Liabilities 1.83b) |
| Altman-Z'' Score: -0.30 = B |
What is the price of NMFC shares?
Over the past week, the price has changed by -7.55%, over one month by -13.95%, over three months by -13.95% and over the past year by -21.92%.
Is NMFC a buy, sell or hold?
- StrongBuy: 3
- Buy: 0
- Hold: 4
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the NMFC price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 10 | 25.6% |
| Analysts Target Price | 10 | 25.6% |
| ValueRay Target Price | 8.3 | 3.8% |
NMFC Fundamental Data Overview February 03, 2026
P/E Forward = 6.7249
P/S = 2.6055
P/B = 0.7068
Revenue TTM = 393.8m USD
EBIT TTM = 65.8m USD
EBITDA TTM = 71.8m USD
Long Term Debt = 196.2m USD (estimated: total debt 455.0m - short term 258.8m)
Short Term Debt = 258.8m USD (from shortTermDebt, last quarter)
Debt = 455.0m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 391.3m USD (from netDebt column, last quarter)
Enterprise Value = 1.28b USD (888.2m + Debt 455.0m - CCE 63.7m)
Interest Coverage Ratio = 0.51 (Ebit TTM 65.8m / Interest Expense TTM 129.1m)
EV/FCF = 14.89x (Enterprise Value 1.28b / FCF TTM 85.9m)
FCF Yield = 6.72% (FCF TTM 85.9m / Enterprise Value 1.28b)
FCF Margin = 21.82% (FCF TTM 85.9m / Revenue TTM 393.8m)
Net Margin = 18.04% (Net Income TTM 71.1m / Revenue TTM 393.8m)
Gross Margin = 67.22% ((Revenue TTM 393.8m - Cost of Revenue TTM 129.1m) / Revenue TTM)
Gross Margin QoQ = 60.61% (prev 67.86%)
Tobins Q-Ratio = 0.41 (Enterprise Value 1.28b / Total Assets 3.09b)
Interest Expense / Debt = 6.97% (Interest Expense 31.7m / Debt 455.0m)
Taxrate = 0.44% (54.0k / 12.4m)
NOPAT = 65.5m (EBIT 65.8m * (1 - 0.44%))
Current Ratio = 0.42 (Total Current Assets 107.9m / Total Current Liabilities 258.8m)
Debt / Equity = 0.36 (Debt 455.0m / totalStockholderEquity, last quarter 1.26b)
Debt / EBITDA = 5.45 (Net Debt 391.3m / EBITDA 71.8m)
Debt / FCF = 4.55 (Net Debt 391.3m / FCF TTM 85.9m)
Total Stockholder Equity = 340.80b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.19% (Net Income 71.1m / Total Assets 3.09b)
RoE = 0.02% (Net Income TTM 71.1m / Total Stockholder Equity 340.80b)
RoCE = 0.02% (EBIT 65.8m / Capital Employed (Equity 340.80b + L.T.Debt 196.2m))
RoIC = 2.11% (NOPAT 65.5m / Invested Capital 3.10b)
WACC = 7.98% (E(888.2m)/V(1.34b) * Re(8.51%) + D(455.0m)/V(1.34b) * Rd(6.97%) * (1-Tc(0.00)))
Discount Rate = 8.51% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 223.7%
[DCF Debug] Terminal Value 78.47% ; FCFF base≈85.7m ; Y1≈87.4m ; Y5≈96.3m
Fair Price DCF = 12.62 (EV 1.69b - Net Debt 391.3m = Equity 1.30b / Shares 103.2m; r=7.98% [WACC]; 5y FCF grow 1.82% → 2.90% )
EPS Correlation: -35.25 | EPS CAGR: -44.55% | SUE: -4.0 | # QB: 0
Revenue Correlation: 29.76 | Revenue CAGR: 12.57% | SUE: -0.12 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.32 | Chg30d=+0.002 | Revisions Net=+0 | Analysts=7
EPS next Year (2026-12-31): EPS=1.27 | Chg30d=+0.003 | Revisions Net=+1 | Growth EPS=-0.8% | Growth Revenue=-8.0%