NEW MOUNTAIN FINANCE CORP (NMFC)
US6475511001 - Common Stock
Taking everything into account, NMFC scores 4 out of 10 in our fundamental rating. NMFC was compared to 212 industry peers in the Capital Markets industry. There are concerns on the financial health of NMFC while its profitability can be described as average. 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.
NMFC had positive earnings in each of the past 5 years.
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 3.63%. This is comparable to the rest of the industry: NMFC outperforms 49.52% of its industry peers.
NMFC has a Return On Equity (8.71%) which is comparable to the rest of the industry.
The Return On Invested Capital of NMFC (4.09%) 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 8.46%.
The last Return On Invested Capital (4.09%) for NMFC is above the 3 year average (3.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 8.71% | ||
| ROIC | 4.09% |
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
NMFC has a better Profit Margin (31.65%) than 67.62% of its industry peers.
NMFC's Profit Margin has improved in the last couple of years.
NMFC's Operating Margin of 42.68% is fine compared to the rest of the industry. NMFC outperforms 72.38% of its industry peers.
NMFC's Operating Margin has been stable in the last couple of years.
NMFC has a Gross Margin of 43.25%. This is in the lower half of the industry: NMFC underperforms 66.19% 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 | 42.68% | ||
| PM (TTM) | 31.65% | ||
| GM | 43.25% |
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.
The number of shares outstanding for NMFC has been increased compared to 5 years ago.
NMFC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.68, we must say that NMFC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NMFC (0.68) is worse than 61.90% of its industry peers.
The Debt to FCF ratio of NMFC is 4.38, which is a neutral value as it means it would take NMFC, 4.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.38, NMFC is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
A Debt/Equity ratio of 1.28 is on the high side and indicates that NMFC has dependencies on debt financing.
NMFC's Debt to Equity ratio of 1.28 is on the low side compared to the rest of the industry. NMFC is outperformed by 66.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 4.38 | ||
| Altman-Z | 0.68 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
NMFC has a Current Ratio of 0.86. This is a bad value and indicates that NMFC is not financially healthy enough and could expect problems in meeting its short term obligations.
NMFC's Current ratio of 0.86 is on the low side compared to the rest of the industry. NMFC is outperformed by 62.38% of its industry peers.
NMFC has a Quick Ratio of 0.86. This is a bad value and indicates that NMFC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.86, NMFC is doing worse than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.53% over the past year.
The Earnings Per Share has been growing slightly by 4.28% on average over the past years.
The Revenue has grown by 17.57% in the past year. This is quite good.
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)19.53%
EPS 3Y10.73%
EPS 5Y4.28%
EPS growth Q2Q16.13%
Revenue 1Y (TTM)17.57%
Revenue growth 3Y11.05%
Revenue growth 5Y10.12%
Revenue growth Q2Q-13.9%
3.2 Future
The Earnings Per Share is expected to grow by 0.16% on average over the next years.
The Revenue is expected to decrease by -3.82% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 8.23 indicates a reasonable valuation of NMFC.
Based on the Price/Earnings ratio, NMFC is valued a bit cheaper than the industry average as 77.62% of the companies are valued more expensively.
NMFC is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.48 indicates a reasonable valuation of NMFC.
76.67% of the companies in the same industry are more expensive than NMFC, based on the Price/Forward Earnings ratio.
NMFC is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 8.48 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, NMFC is valued cheaply inside the industry as 92.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.31 | ||
| 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)4.94
PEG (5Y)1.92
EPS Next 2Y0.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NMFC has a Yearly Dividend Yield of 10.17%, which is a nice return.
Compared to an average industry Dividend Yield of 7.04, NMFC pays a bit more dividend than its industry peers.
NMFC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.17% |
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 132.59% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NMFC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP132.59%
EPS Next 2Y0.16%
EPS Next 3YN/A
NEW MOUNTAIN FINANCE CORP
NASDAQ:NMFC (5/17/2024, 7:16:15 PM)
After market: 12.59 0 (0%)12.59
+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 Cap1.34B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.17% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 8.48 | ||
| 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)4.94
PEG (5Y)1.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 8.71% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.68% | ||
| PM (TTM) | 31.65% | ||
| GM | 43.25% | ||
| 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 Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 | ||
| 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)19.53%
EPS 3Y10.73%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.57%
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
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y