New Mountain Finance (NMFC) AI Stock Analysis

• Market Cap: $899.52M
• Dividend Yield: 14.17%
• Average Volume (3M): 722.35K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.44
• Revenue Growth: 36.15%
• EPS Growth: -38.59%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.32
• Shares Outstanding: 103,155,815
• 10 Day Avg. Volume: 567,010
• 30 Day Avg. Volume: 722,353
• PEG Ratio: -0.51
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 3.68
• P/FCF Ratio: 28.92
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 3.26
• Enterprise Value/Gross Profit: 17.68
• Enterprise Value/Ebitda: 17.87
• 1Y Price Target: $9.50
• Price Target Upside: 10.47% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $10.00 ▲(16.28% Upside)

The score is driven primarily by solid financial quality (high margins and strong free-cash-flow improvement) and supportive income/valuation characteristics (high dividend yield with a moderate P/E). These are tempered by neutral technical momentum and earnings-call risks around NAV decline, nonaccruals, and portfolio concentration.

Positive Factors

Strong Cash Flow

Significant improvement in free cash flow indicates robust cash generation, enhancing financial flexibility and supporting dividend sustainability.

Dividend Coverage

Consistent dividend coverage underscores the company's ability to generate stable income, appealing to income-focused investors.

Defensive Sector Focus

Strategic focus on defensive growth sectors reduces exposure to cyclical risks, supporting long-term stability and resilience.

Negative Factors

Net Asset Value Decline

A decline in net asset value reflects potential challenges in asset performance, impacting investor confidence and long-term valuation.

Nonaccrual Challenges

Nonaccrual status indicates credit quality issues, potentially affecting income generation and necessitating increased risk management.

Portfolio Concentration

High portfolio concentration can increase risk exposure, requiring strategic adjustments to achieve better diversification and stability.

New Mountain Finance Business Overview & Revenue Model

Company Description

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, 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 $50 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 and target investments up to a $125 million hold size. The fund seeks a majority stake in its portfolio companies.

How the Company Makes Money

New Mountain Finance generates revenue primarily through interest income from the loans and debt securities it holds in its investment portfolio. The company typically invests in senior secured loans, which offer higher yields compared to traditional fixed-income investments. Additionally, NMFC may earn management fees for managing its investment portfolio, as well as potential performance fees based on the returns generated for its investors. The company also benefits from strategic partnerships with private equity firms and financial institutions, which can enhance deal flow and provide access to quality investment opportunities. The overall revenue model is designed to capitalize on the interest earned from investments, providing a steady stream of income while also focusing on capital appreciation.

New Mountain Finance Financial Statement Overview

Summary

Strong profitability and efficiency (net margin 30.55%, EBIT margin 71.24%, gross margin 87.99%) and improving cash generation (free cash flow growth 87.11% TTM; operating cash flow to net income 1.07). Main risk is weakening top-line momentum (revenue growth rate down 10.02% TTM). Balance sheet appears stable with moderate leverage (debt-to-equity 0.40) and a solid equity ratio (40.87%).

Income Statement

New Mountain Finance's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 10.02%, which is concerning. However, the company maintains a strong net profit margin of 30.55% and an EBIT margin of 71.24%, indicating efficient cost management and profitability. The gross profit margin is also robust at 87.99%. Despite the revenue decline, the company demonstrates strong profitability metrics.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.40, indicating moderate leverage. The return on equity (ROE) is 6.99%, which is reasonable but shows room for improvement. The equity ratio stands at 40.87%, suggesting a solid equity base relative to total assets. Overall, the balance sheet indicates a balanced approach to leveraging and equity management.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow growth at 87.11% TTM, which is a positive indicator of cash generation capability. The operating cash flow to net income ratio is 1.07, showing that operating cash flows are well-aligned with net income. The free cash flow to net income ratio is 1.0, indicating that the company effectively converts its net income into free cash flow. Overall, the cash flow position is strong and improving.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	393.79M	329.83M	341.98M	347.33M	267.10M	270.91M
Gross Profit	72.53M	123.78M	374.84M	89.09M	203.65M	56.90M
EBITDA	71.78M	116.88M	0.00	83.83M	207.41M	60.85M
Net Income	71.05M	113.44M	135.34M	74.73M	201.40M	58.47M
Balance Sheet
Total Assets	3.09B	3.25B	3.16B	3.35B	3.30B	3.10B
Cash, Cash Equivalents and Short-Term Investments	63.68M	80.32M	70.09M	71.19M	58.08M	78.97M
Total Debt	454.99M	1.84B	1.79B	1.98B	1.91B	1.80B
Total Liabilities	1.83B	1.89B	1.83B	2.03B	1.95B	1.86B
Stockholders Equity	1.26B	1.35B	1.32B	1.31B	1.32B	1.22B
Cash Flow
Free Cash Flow	85.92M	42.00M	76.00M	70.12M	51.69M	102.99M
Operating Cash Flow	85.92M	42.00M	76.00M	70.12M	51.69M	102.99M
Investing Cash Flow	337.36M	0.00	256.80M	-36.92M	-68.01M	197.65M
Financing Cash Flow	-421.22M	-31.36M	-333.96M	-19.69M	-4.53M	-270.25M

New Mountain Finance Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NMFC, the sentiment is Negative. The current price of 8.6 is below the 20-day moving average (MA) of 9.11, below the 50-day MA of 9.15, and below the 200-day MA of 9.42, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 31.75 is Neutral, neither overbought nor oversold. The STOCH value of 17.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NMFC.

New Mountain Finance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRIN	77 Outperform	$1.27B	7.67	16.18%	13.53%	33.44%	25.22%
SLRC	70 Outperform	$821.59M	9.12	9.07%	10.80%	-6.30%	-6.92%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NMFC	67 Neutral	$899.52M	13.36	5.43%	14.17%	36.15%	-38.59%
BCSF	62 Neutral	$870.54M	9.33	8.18%	13.18%	-26.08%	-27.65%
PFLT	61 Neutral	$944.55M	13.28	6.80%	13.64%	36.91%	-48.79%
CGBD	60 Neutral	$908.37M	10.83	7.03%	13.63%	-8.23%	-35.72%

New Mountain Finance Corporate Events

New Mountain Finance refreshes board with director transition

On January 15, 2026, New Mountain Finance Corporation announced the retirement of long-serving independent director Alfred F. Hurley Jr., who had sat on the board since 2010 and was credited by the chairman with providing high-quality strategic, market and financial guidance to the firm’s debt-focused investment business. To fill the vacancy, the board appointed veteran private equity and corporate finance executive John P. Malfettone as a director effective the same day, adding him to all key board committees and drawing on his extensive experience at firms including Clayton, Dubilier & Rice, Oak Hill Capital Partners and GE, as well as his existing roles within New Mountain affiliates, signaling continuity and depth in the company’s governance and oversight of its credit investing activities.

The most recent analyst rating on (NMFC) stock is a Sell with a $9.00 price target. To see the full list of analyst forecasts on New Mountain Finance stock, see the NMFC Stock Forecast page.

New Mountain Finance Q3 2025 Financial Results Announced

On November 3, 2025, New Mountain Finance Corporation announced its financial results for the third quarter ending September 30, 2025, reporting a net investment income of $0.32 per share and a net asset value of $12.06 per share. The company declared a fourth-quarter distribution of $0.32 per share, payable on December 31, 2025, and highlighted strategic initiatives including a new $100 million stock repurchase plan and exploring a secondary portfolio sale to enhance financial flexibility.

The most recent analyst rating on (NMFC) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on New Mountain Finance stock, see the NMFC Stock Forecast page.

New Mountain Finance Amends Revolving Loan Agreement

On October 27, 2025, New Mountain Finance Corporation amended its existing revolving loan agreement, extending the maturity date of its credit facility from December 2027 to December 2030, which could impact the company’s financial flexibility and operational strategy. Additionally, the company launched a new stock repurchase program on October 23, 2025, authorizing up to $100 million in stock buybacks, following the termination of its previous program, potentially affecting shareholder value and market perception.

The most recent analyst rating on (NMFC) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on New Mountain Finance stock, see the NMFC Stock Forecast page.