New Mountain Finance Corp. (NMFC)
NASDAQ:NMFC
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New Mountain Finance
(NASDAQ:NMFC)
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Rating:54Neutral
Price Target:
$8.00
â–¼(-5.88% Downside)
Action:Reiterated
Date:06/06/26
NMFC scores in the mid-range primarily due to weakened profitability and a net loss alongside elevated leverage, partially offset by unusually strong recent cash flow and a constructive earnings-call narrative around liquidity, buybacks, and expected dividend coverage. Technical signals are neutral-to-soft and valuation is mixed, with an attractive yield tempered by loss-driven negative earnings.
Positive Factors
Strong operating cash flow and cash conversion
TTM operating and free cash flow jumped to roughly $676M with operating cash covering net income ~15.9x. This durable cash generation supports dividend coverage, buybacks, debt service and liquidity buffers, reducing short-term funding reliance and improving financial flexibility over coming quarters.
Negative Factors
Elevated leverage limiting balance-sheet flexibility
Leverage running in the ~1.27–1.51x range and declining equity reduce the cushion for credit losses or further mark-to-market hits. Elevated debt levels constrain capital allocation choices, increase interest expense sensitivity and limit ability to absorb shocks if earnings or NAV remain under pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating cash flow and cash conversion
TTM operating and free cash flow jumped to roughly $676M with operating cash covering net income ~15.9x. This durable cash generation supports dividend coverage, buybacks, debt service and liquidity buffers, reducing short-term funding reliance and improving financial flexibility over coming quarters.
Read all positive factors
New Mountain Finance (NMFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$750.90M
Dividend Yield14.17%
Average Volume (3M)512.36K
Price to Earnings (P/E)―
Beta (1Y)0.51
Revenue Growth-24.31%
EPS Growth-157.16%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-0.59
Shares Outstanding94,452,390
10 Day Avg. Volume456,537
30 Day Avg. Volume512,360
Financial Highlights & Ratios
PEG Ratio-0.70
Price to Book (P/B)0.83
Price to Sales (P/S)2.64
P/FCF Ratio2.58
Enterprise Value/Market Cap2.70
Enterprise Value/Revenue9.00
Enterprise Value/Gross Profit12.78
Enterprise Value/Ebitda24.41
Forecast
1Y Price Target
$8.75Price Target Upside2.94% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)1.1
Revenue Forecast (FY)$256.28M
New Mountain Finance Business Overview & Revenue Model
Company Description
New Mountain Finance Corporation (NMFC), a Nasdaq-listed business development company (BDC), operates as both a private equity and lending vehicle. It specializes in providing capital through direct investments and loans to middle-market companies...
How the Company Makes Money
NMFC primarily makes money from investment income generated on its portfolio of loans and other investments. The core revenue stream is interest income earned on senior secured and subordinated debt investments, which may be structured with floati...
New Mountain Finance Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call highlighted strong strategic actions (a $470M secondary sale, meaningful buybacks, deleveraging, increased portfolio yields, high recurring income, favorable liability repricing and insider buying) that materially improve liquidity flexibility and future earnings power. Near-term challenges include an 11% QoQ decline in investment income driven by the sale and market marks, a modest rise in nonaccruals, a $0.23 / 2.06% NAV decline largely tied to market mark-to-market movement, and a reduced quarterly dividend to $0.25. Management emphasized confidence in turnaround catalysts for specific stressed names and expects dividend coverage and accretion from redeployment or buybacks. Overall, positive strategic progress appears to outweigh current mark-to-market and idiosyncratic credit headwinds.Positive Updates
Dividend Coverage and Payout
Adjusted net investment income (NII) of $0.32 per share in Q1 2026 covered the $0.32 per share dividend paid on March 31. The Board declared a Q2 dividend of $0.25 per share (a 21.9% decrease vs. $0.32). Management states the $0.25 payout is expected to be more than covered by core earnings.
Negative Updates
Quarterly Investment Income Decline
Total investment income for Q1 was $69 million, an 11% decrease compared with the prior quarter, reflecting repayments and the portfolio sale (Q1 originations were $117M vs. $492M of sales/repayments).
Read all updates
Q1-2026 Updates
Positive
Negative
Dividend Coverage and Payout
Adjusted net investment income (NII) of $0.32 per share in Q1 2026 covered the $0.32 per share dividend paid on March 31. The Board declared a Q2 dividend of $0.25 per share (a 21.9% decrease vs. $0.32). Management states the $0.25 payout is expected to be more than covered by core earnings.
Read all positive updates
Company Guidance
The company guided that Q2 will pay a $0.25 quarterly dividend (record June 16, payable June 30) that management expects will be more than covered by core earnings (Q1 adjusted NII was $0.32/sh and covered the $0.32 Q1 cash dividend), while reiterating plans to monetize equity winners in the near-to-medium term and to work to bring Affordable Care and Convey off non‑accrual (NorthStar cash recoveries expected beginning next year). Key metrics cited to support that guidance include: March 31 book value $10.92/sh ($10.95 pro forma for post‑March buybacks), ~$470M of secondary sales at 94% of Dec‑31 book value, ~57M of buybacks completed by 3/31 (+~$9M since) with an incremental $50M authorized (total remaining capacity ~ $80M; every $10M at $8/sh ≈ +$0.04 BV), portfolio FV $2.3B (total assets $2.4B), NAV ~$1.0B ($10.92/sh), net debt/equity 1.08:1 (target 1.0–1.25x), loan‑to‑value 47%, 91% of portfolio green (avg mark ~ $0.96), nonaccruals 2.6% FV, avg portfolio yield 11.1% (Q1 originations $117M; reported originations yield ~15.5%), 89% floating rate assets vs. 73% floating liabilities, >$2B total borrowing capacity (≈$690M revolver available) with $190M unfunded commitments, and a leverage maturity profile with <1% maturing in 2026 and ~60% maturing in/after 2029; management also expects wider lending spreads (generally ~25–50 bps wider, 50+ bps in software) to underpin future redeployments.New Mountain Finance Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
46
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 225.73M | 370.24M | 329.83M | 341.98M | 347.33M | 267.10M |
| Gross Profit | 158.96M | 309.67M | 247.44M | 258.08M | 271.32M | 193.31M |
| EBITDA | 83.22M | 303.66M | 116.88M | 137.85M | 83.83M | 207.41M |
| Net Income | -57.85M | 16.49M | 113.44M | 135.34M | 74.73M | 201.40M |
Balance Sheet | ||||||
| Total Assets | 2.43B | 2.90B | 3.25B | 3.16B | 3.35B | 3.30B |
| Cash, Cash Equivalents and Short-Term Investments | 51.13M | 80.72M | 80.32M | 70.09M | 71.19M | 58.08M |
| Total Debt | 1.33B | 1.67B | 1.84B | 1.79B | 1.98B | 1.91B |
| Total Liabilities | 1.38B | 1.71B | 1.89B | 1.83B | 2.03B | 1.95B |
| Stockholders Equity | 1.04B | 1.18B | 1.35B | 1.32B | 1.31B | 1.32B |
Cash Flow | ||||||
| Free Cash Flow | 676.48M | 378.98M | 42.00M | 76.00M | 70.12M | 51.69M |
| Operating Cash Flow | 676.48M | 378.98M | 42.00M | 76.00M | 70.12M | 51.69M |
| Investing Cash Flow | 0.00 | 0.00 | -26.23M | 256.80M | -36.92M | -68.01M |
| Financing Cash Flow | -711.10M | -378.74M | -31.36M | -333.96M | -19.69M | -4.53M |
New Mountain Finance Technical Analysis
Neutral
8.50
Price Trends
8.13
Negative
8.01
Negative
8.45
Negative
Market Momentum
-0.06
Positive
47.44
Neutral
45.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NMFC, the sentiment is Neutral. The current price of 8.5 is above the 20-day moving average (MA) of 7.97, above the 50-day MA of 8.13, and above the 200-day MA of 8.45, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 47.44 is Neutral, neither overbought nor oversold. The STOCH value of 45.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NMFC.
New Mountain Finance Risk Analysis
New Mountain Finance disclosed 26 risk factors in its most recent earnings report. New Mountain Finance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
New Mountain Finance Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.52B | 9.17 | 14.73% | 13.53% | 4.03% | -16.92% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $791.76M | 12.78 | 5.84% | 13.64% | -8.63% | -30.41% | |
60 Neutral | $836.80M | 11.37 | 6.57% | 13.18% | 2.31% | -35.07% | |
59 Neutral | $763.08M | 15.06 | 4.42% | 13.63% | 15.30% | -48.57% | |
56 Neutral | $693.39M | 7.73 | 9.04% | 10.80% | -3.59% | 2.19% | |
54 Neutral | $750.90M | -13.81 | -4.83% | 14.17% | -24.31% | -157.16% |
* Financial Sector Average
NMFC
New Mountain Finance
7.95
-1.15
-12.67%
PFLT
Pennantpark
7.98
-1.02
-11.30%
SLRC
SLR Investment Corp.
12.71
-1.87
-12.81%
CGBD
Carlyle Secured Lending Inc
10.98
-1.16
-9.58%
BCSF
Bain Capital Specialty Finance
12.90
-0.38
-2.88%
TRIN
Trinity Capital
16.89
4.73
38.89%
New Mountain Finance Corporate Events
Business Operations and StrategyPrivate Placements and Financing
New Mountain Finance Prices $150 Million Senior Notes
Positive
Jun 5, 2026
New Mountain Finance Corporation has priced a private offering of three tranches of Series 2026A senior notes totaling $150 million, comprising $40 million of 7.28% fixed-rate notes due 2028, $35 million of 7.76% fixed-rate notes due 2031 and $75 ...
Executive/Board ChangesShareholder Meetings
New Mountain Finance Shareholders Affirm Board and Auditor
Positive
May 15, 2026
New Mountain Finance Corporation reported on the results of its 2026 Annual Meeting of Stockholders, held on May 12, 2026, where shareholders voted on board composition and the company’s external auditor. Investors elected three directors...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial Disclosures
New Mountain Finance Names Interim CFO, Updates Portfolio Strategy
Neutral
May 4, 2026
New Mountain Finance said that on May 4, 2026 its board appointed Chief Operating Officer Laura C. Holson as interim chief financial officer and treasurer, effective May 29, 2026, while it searches for a permanent successor. Holson, a New Mountain...
Executive/Board Changes
New Mountain Finance Announces Planned CFO Leadership Transition
Neutral
Mar 24, 2026
On March 19, 2026, New Mountain Finance Corporation announced that its Board of Directors had received and accepted the resignation of Kris Corbett from his roles as Chief Financial Officer and Treasurer. Corbett will remain in his positions throu...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
New Mountain Finance Extends Credit Facility, Lowers Borrowing Costs
Neutral
Mar 13, 2026
On March 12, 2026, New Mountain Finance Corporation amended its loan and security agreement for its Holdings credit facility, extending the revolving period to March 2029 and the facility’s maturity to March 2031 while trimming the applicabl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.