NEW MOUNTAIN FINANCE CORP (NMFC)
US6475511001 - Common Stock
Taking everything into account, NMFC scores 5 out of 10 in our fundamental rating. NMFC was compared to 212 industry peers in the Capital Markets industry. NMFC has only an average score on both its financial health and profitability. NMFC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year NMFC was profitable.
NMFC had a positive operating cash flow in the past year.
In the past 5 years NMFC has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: NMFC reported negative operating cash flow in multiple years.
1.2 Ratios
NMFC has a Return On Assets of 4.28%. This is comparable to the rest of the industry: NMFC outperforms 55.02% of its industry peers.
With a Return On Equity value of 10.25%, NMFC perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
The Return On Invested Capital of NMFC (4.06%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for NMFC is significantly below the industry average of 10.87%.
The last Return On Invested Capital (4.06%) for NMFC is above the 3 year average (3.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.28% | ||
| ROE | 10.25% | ||
| ROIC | 4.06% |
ROA(3y)4.21%
ROA(5y)3.59%
ROE(3y)10.39%
ROE(5y)8.95%
ROIC(3y)3.27%
ROIC(5y)3.15%
1.3 Margins
The Profit Margin of NMFC (36.11%) is better than 74.64% of its industry peers.
In the last couple of years the Profit Margin of NMFC has grown nicely.
NMFC has a better Operating Margin (42.77%) than 69.38% of its industry peers.
NMFC's Operating Margin has been stable in the last couple of years.
The Gross Margin of NMFC (43.32%) is worse than 65.07% of its industry peers.
NMFC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.77% | ||
| PM (TTM) | 36.11% | ||
| GM | 43.32% |
OM growth 3Y-0.1%
OM growth 5Y-1.41%
PM growth 3Y19.1%
PM growth 5Y2.92%
GM growth 3Y2.56%
GM growth 5Y-0.9%
2. Health
2.1 Basic Checks
The number of shares outstanding for NMFC has been increased compared to 1 year ago.
NMFC has more shares outstanding than it did 5 years ago.
NMFC has a better debt/assets ratio than last year.
2.2 Solvency
NMFC has an Altman-Z score of 0.75. This is a bad value and indicates that NMFC is not financially healthy and even has some risk of bankruptcy.
NMFC has a Altman-Z score of 0.75. This is comparable to the rest of the industry: NMFC outperforms 43.06% of its industry peers.
NMFC has a debt to FCF ratio of 5.43. This is a neutral value as NMFC would need 5.43 years to pay back of all of its debts.
NMFC has a Debt to FCF ratio of 5.43. This is in the better half of the industry: NMFC outperforms 63.16% of its industry peers.
A Debt/Equity ratio of 1.37 is on the high side and indicates that NMFC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.37, NMFC is doing worse than 66.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 5.43 | ||
| Altman-Z | 0.75 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
NMFC has a Current Ratio of 2.92. This indicates that NMFC is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.92, NMFC is doing good in the industry, outperforming 77.99% of the companies in the same industry.
A Quick Ratio of 2.92 indicates that NMFC has no problem at all paying its short term obligations.
NMFC has a better Quick ratio (2.92) than 77.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 2.92 |
3. Growth
3.1 Past
NMFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.33%, which is quite impressive.
NMFC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.28% yearly.
The Revenue has grown by 27.22% in the past year. This is a very strong growth!
Measured over the past years, NMFC shows a quite strong growth in Revenue. The Revenue has been growing by 10.12% on average per year.
EPS 1Y (TTM)20.33%
EPS 3Y10.73%
EPS 5Y4.28%
EPS growth Q2Q14.29%
Revenue 1Y (TTM)27.22%
Revenue growth 3Y11.05%
Revenue growth 5Y10.12%
Revenue growth Q2Q25.55%
3.2 Future
NMFC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.16% yearly.
NMFC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.82% yearly.
EPS Next Y1.67%
EPS Next 2Y0.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.04%
Revenue Next 2Y-3.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.57, the valuation of NMFC can be described as very reasonable.
Based on the Price/Earnings ratio, NMFC is valued a bit cheaper than the industry average as 76.56% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NMFC to the average of the S&P500 Index (28.02), we can say NMFC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.43, the valuation of NMFC can be described as reasonable.
NMFC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NMFC is cheaper than 76.56% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NMFC to the average of the S&P500 Index (20.58), we can say NMFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 8.43 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, NMFC is valued cheaper than 91.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.05 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NMFC does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)5.14
PEG (5Y)2
EPS Next 2Y0.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 10.08%, NMFC is a good candidate for dividend investing.
NMFC's Dividend Yield is a higher than the industry average which is at 7.31.
Compared to an average S&P500 Dividend Yield of 2.40, NMFC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.08% |
5.2 History
The dividend of NMFC has a limited annual growth rate of 2.18%.
NMFC has paid a dividend for at least 10 years, which is a reliable track record.
NMFC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.18%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
NMFC pays out 111.37% of its income as dividend. This is not a sustainable payout ratio.
NMFC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP111.37%
EPS Next 2Y0.16%
EPS Next 3YN/A
NEW MOUNTAIN FINANCE CORP
NASDAQ:NMFC (5/6/2024, 7:17:34 PM)
After market: 12.69 0 (0%)12.69
-0.01 (-0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.08% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.57 | ||
| Fwd PE | 8.43 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.14
PEG (5Y)2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.28% | ||
| ROE | 10.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.77% | ||
| PM (TTM) | 36.11% | ||
| GM | 43.32% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.92 | ||
| Quick Ratio | 2.92 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)20.33%
EPS 3Y10.73%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)27.22%
Revenue growth 3Y11.05%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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EBIT Next 5Y
FCF growth 1Y
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