NEW MOUNTAIN FINANCE CORP (NMFC) Stock Fundamental Analysis
NASDAQ:NMFC - Nasdaq - US6475511001 - Common Stock - Currency: USD
NMFC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 229 industry peers in the Capital Markets industry. While NMFC is still in line with the averages on profitability rating, there are concerns on its financial health. NMFC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year NMFC was profitable.
NMFC had a positive operating cash flow in the past year.
NMFC had positive earnings in each of the past 5 years.
Of the past 5 years NMFC 4 years had a positive operating cash flow.
1.2 Ratios
NMFC has a Return On Assets (3.49%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 8.38%, NMFC is in line with its industry, outperforming 44.54% of the companies in the same industry.
NMFC has a Return On Invested Capital (3.72%) which is comparable to the rest of the industry.
NMFC had an Average Return On Invested Capital over the past 3 years of 3.55%. This is below the industry average of 7.23%.
The 3 year average ROIC (3.55%) for NMFC is below the current ROIC(3.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.49% | ||
| ROE | 8.38% | ||
| ROIC | 3.72% |
ROA(3y)3.33%
ROA(5y)3.6%
ROE(3y)8.11%
ROE(5y)8.87%
ROIC(3y)3.55%
ROIC(5y)3.32%
1.3 Margins
NMFC has a better Profit Margin (30.52%) than 70.74% of its industry peers.
NMFC's Profit Margin has declined in the last couple of years.
NMFC has a Operating Margin of 39.34%. This is in the better half of the industry: NMFC outperforms 69.00% of its industry peers.
NMFC's Operating Margin has been stable in the last couple of years.
The Gross Margin of NMFC (40.02%) is worse than 63.76% of its industry peers.
In the last couple of years the Gross Margin of NMFC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.34% | ||
| PM (TTM) | 30.52% | ||
| GM | 40.02% |
OM growth 3Y-3.6%
OM growth 5Y-1.48%
PM growth 3Y-25.67%
PM growth 5Y-5.6%
GM growth 3Y-1.07%
GM growth 5Y-0.01%
2. Health
2.1 Basic Checks
The number of shares outstanding for NMFC has been increased compared to 1 year ago.
Compared to 5 years ago, NMFC has more shares outstanding
NMFC has about the same debt/assets ratio as last year.
2.2 Solvency
NMFC has an Altman-Z score of 0.62. This is a bad value and indicates that NMFC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.62, NMFC is doing worse than 61.14% of the companies in the same industry.
NMFC has a debt to FCF ratio of 44.31. This is a negative value and a sign of low solvency as NMFC would need 44.31 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 44.31, NMFC is in line with its industry, outperforming 44.10% of the companies in the same industry.
NMFC has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
NMFC has a worse Debt to Equity ratio (1.30) than 62.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 44.31 | ||
| Altman-Z | 0.62 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.86 indicates that NMFC may have some problems paying its short term obligations.
The Current ratio of NMFC (0.86) is worse than 62.45% of its industry peers.
A Quick Ratio of 0.86 indicates that NMFC may have some problems paying its short term obligations.
NMFC has a Quick ratio of 0.86. This is in the lower half of the industry: NMFC underperforms 62.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The earnings per share for NMFC have decreased strongly by -15.03% in the last year.
The Earnings Per Share has been decreasing by -1.15% on average over the past years.
The Revenue has decreased by -0.85% in the past year.
The Revenue has been growing slightly by 6.09% on average over the past years.
EPS 1Y (TTM)-15.03%
EPS 3Y9.17%
EPS 5Y-1.15%
EPS Q2Q%-11.11%
Revenue 1Y (TTM)-0.85%
Revenue growth 3Y11.1%
Revenue growth 5Y6.09%
Sales Q2Q%8.19%
3.2 Future
The Earnings Per Share is expected to decrease by -2.70% on average over the next years.
The Revenue is expected to decrease by -7.31% on average over the next years.
EPS Next Y-2.31%
EPS Next 2Y-1.29%
EPS Next 3Y-2.7%
EPS Next 5YN/A
Revenue Next Year-8.55%
Revenue Next 2Y-5.85%
Revenue Next 3Y-7.31%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.24 indicates a reasonable valuation of NMFC.
NMFC's Price/Earnings ratio is rather cheap when compared to the industry. NMFC is cheaper than 81.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.95. NMFC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.20, which indicates a very decent valuation of NMFC.
NMFC's Price/Forward Earnings ratio is rather cheap when compared to the industry. NMFC is cheaper than 82.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.99. NMFC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 8.2 |
4.2 Price Multiples
NMFC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.5 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as NMFC's earnings are expected to decrease with -2.70% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.29%
EPS Next 3Y-2.7%
5. Dividend
5.1 Amount
NMFC has a Yearly Dividend Yield of 11.99%, which is a nice return.
NMFC's Dividend Yield is a higher than the industry average which is at 8.40.
NMFC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.99% |
5.2 History
The dividend of NMFC has a limited annual growth rate of 1.35%.
NMFC has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of NMFC decreased in the last 3 years.
Dividend Growth(5Y)1.35%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
NMFC pays out 129.75% of its income as dividend. This is not a sustainable payout ratio.
NMFC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP129.75%
EPS Next 2Y-1.29%
EPS Next 3Y-2.7%
10.71
-0.05 (-0.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners35.68%
Inst Owner Change-5.78%
Ins Owners11.32%
Ins Owner Change0.67%
Market Cap1.16B
Analysts80
Price Target11.93 (11.39%)
Short Float %1.53%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.99% |
Yearly Dividend1.4
Dividend Growth(5Y)1.35%
DP129.75%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.32%
Min EPS beat(2)-17.88%
Max EPS beat(2)-4.76%
EPS beat(4)0
Avg EPS beat(4)-7.67%
Min EPS beat(4)-17.88%
Max EPS beat(4)-1.96%
EPS beat(8)0
Avg EPS beat(8)-6.85%
EPS beat(12)1
Avg EPS beat(12)-6.01%
EPS beat(16)2
Avg EPS beat(16)-8.38%
Revenue beat(2)0
Avg Revenue beat(2)-2.51%
Min Revenue beat(2)-4.33%
Max Revenue beat(2)-0.69%
Revenue beat(4)1
Avg Revenue beat(4)-3.84%
Min Revenue beat(4)-13.84%
Max Revenue beat(4)3.49%
Revenue beat(8)3
Avg Revenue beat(8)-4.64%
Revenue beat(12)5
Avg Revenue beat(12)-3.76%
Revenue beat(16)7
Avg Revenue beat(16)-2.96%
PT rev (1m)-4.49%
PT rev (3m)-4.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.31%
Revenue NY rev (1m)-0.85%
Revenue NY rev (3m)-4.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 8.2 | ||
| P/S | 3.11 | ||
| P/FCF | 27.5 | ||
| P/OCF | 27.5 | ||
| P/B | 0.85 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.3
EY12.14%
EPS(NY)1.31
Fwd EY12.19%
FCF(TTM)0.39
FCFY3.64%
OCF(TTM)0.39
OCFY3.64%
SpS3.45
BVpS12.55
TBVpS12.55
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.49% | ||
| ROE | 8.38% | ||
| ROCE | 4.71% | ||
| ROIC | 3.72% | ||
| ROICexc | 3.82% | ||
| ROICexgc | 3.85% | ||
| OM | 39.34% | ||
| PM (TTM) | 30.52% | ||
| GM | 40.02% | ||
| FCFM | 11.3% |
ROA(3y)3.33%
ROA(5y)3.6%
ROE(3y)8.11%
ROE(5y)8.87%
ROIC(3y)3.55%
ROIC(5y)3.32%
ROICexc(3y)3.63%
ROICexc(5y)3.4%
ROICexgc(3y)3.66%
ROICexgc(5y)3.42%
ROCE(3y)4.49%
ROCE(5y)4.2%
ROICexcg growth 3Y8.95%
ROICexcg growth 5Y5.56%
ROICexc growth 3Y9.09%
ROICexc growth 5Y5.59%
OM growth 3Y-3.6%
OM growth 5Y-1.48%
PM growth 3Y-25.67%
PM growth 5Y-5.6%
GM growth 3Y-1.07%
GM growth 5Y-0.01%
F-Score3
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 44.31 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.15 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 37.02% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 0.62 |
F-Score3
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)109.91%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.03%
EPS 3Y9.17%
EPS 5Y-1.15%
EPS Q2Q%-11.11%
EPS Next Y-2.31%
EPS Next 2Y-1.29%
EPS Next 3Y-2.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.85%
Revenue growth 3Y11.1%
Revenue growth 5Y6.09%
Sales Q2Q%8.19%
Revenue Next Year-8.55%
Revenue Next 2Y-5.85%
Revenue Next 3Y-7.31%
Revenue Next 5YN/A
EBIT growth 1Y-8.79%
EBIT growth 3Y7.11%
EBIT growth 5Y4.52%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-87.38%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-87.38%
OCF growth 3YN/A
OCF growth 5YN/A