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Upturn AI SWOT - About
NMFC 
New Mountain Finance Corporation (NMFC)
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Upturn Advisory Summary
03/27/2025: NMFC (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -2.99% | Avg. Invested days 49 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.08B USD | Price to earnings Ratio 9.71 | 1Y Target Price 12.25 |
Price to earnings Ratio 9.71 | 1Y Target Price 12.25 | ||
Volume (30-day avg) 528564 | Beta 0.89 | 52 Weeks Range 9.28 - 12.06 | Updated Date 04/6/2025 |
52 Weeks Range 9.28 - 12.06 | Updated Date 04/6/2025 | ||
Dividends yield (FY) 12.80% | Basic EPS (TTM) 1.03 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 30.52% | Operating Margin (TTM) 76.03% |
Management Effectiveness
Return on Assets (TTM) 5.52% | Return on Equity (TTM) 8.51% |
Valuation
Trailing PE 9.71 | Forward PE 7.75 | Enterprise Value 2848279040 | Price to Sales(TTM) 2.71 |
Enterprise Value 2848279040 | Price to Sales(TTM) 2.71 | ||
Enterprise Value to Revenue 23.55 | Enterprise Value to EBITDA 16.16 | Shares Outstanding 107851000 | Shares Floating - |
Shares Outstanding 107851000 | Shares Floating - | ||
Percent Insiders 11.71 | Percent Institutions 36.28 |
Analyst Ratings
Rating 3.86 | Target Price 12.58 | Buy - | Strong Buy 3 |
Buy - | Strong Buy 3 | ||
Hold 4 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
New Mountain Finance Corporation
Company Overview
History and Background
New Mountain Finance Corporation (NMFC) was founded in 2008 and is a publicly traded business development company (BDC). It focuses on providing debt and equity capital to middle-market companies, seeking to generate current income and capital appreciation.
Core Business Areas
- Direct Lending: Provides senior secured loans, mezzanine debt, and equity investments to middle-market companies.
- Opportunistic Investments: Invests in securities of public and private companies, including stressed and distressed debt.
Leadership and Structure
Robert Hamwee serves as the CEO. The company operates as an externally managed BDC with New Mountain Capital, L.L.C. as its investment adviser.
Top Products and Market Share
Key Offerings
- Senior Secured Loans: NMFC's primary offering is senior secured loans to middle-market companies. Market share data specific to NMFC is not readily available, but the middle market lending space is highly competitive. Competitors include Ares Capital Corporation (ARCC), Golub Capital BDC (GBDC), and Owl Rock Capital Corporation (ORCC).
- Mezzanine Debt: Provides mezzanine debt financing, which is typically subordinated to senior debt. Competitors include Ares Capital Corporation (ARCC), Golub Capital BDC (GBDC), and Owl Rock Capital Corporation (ORCC). Market share data is not readily available and this investment type generates revenue as part of the whole loan portfolio and is not broken out independently.
Market Dynamics
Industry Overview
The BDC industry is competitive and influenced by factors such as interest rates, economic growth, and regulatory changes. Demand for capital from middle-market companies drives the industry.
Positioning
NMFC focuses on defensive growth industries and aims to provide consistent returns to shareholders through its investment strategy. Its relationship with New Mountain Capital provides access to deal flow and expertise.
Total Addressable Market (TAM)
The middle-market lending TAM is estimated to be in the hundreds of billions of dollars. NMFC is positioned to capture a portion of this market through its established relationships and investment expertise.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Strong relationship with New Mountain Capital
- Focus on defensive growth industries
- Diversified investment portfolio
Weaknesses
- External management structure
- Dependence on leverage
- Potential for credit losses
- Sensitivity to interest rate changes
Opportunities
- Expansion into new markets and industries
- Increased demand for capital from middle-market companies
- Strategic acquisitions
- Favorable regulatory changes
Threats
- Economic downturn
- Increased competition
- Rising interest rates
- Regulatory uncertainty
Competitors and Market Share
Key Competitors
- ARCC
- GBDC
- ORCC
- TPVG
- BXSL
Competitive Landscape
NMFC differentiates itself through its focus on defensive growth industries and its relationship with New Mountain Capital. However, it faces intense competition from larger BDCs with greater scale and resources.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: NMFC has grown its investment portfolio over the past several years.
Future Projections: Analyst estimates suggest continued growth in revenue and earnings, driven by increased lending activity.
Recent Initiatives: Recent initiatives include strategic investments in specific sectors and partnerships.
Summary
New Mountain Finance Corporation is a BDC that focuses on lending to middle-market companies. Its strengths lie in its experienced management team and focus on defensive growth industries. However, the company faces challenges related to its external management structure and sensitivity to interest rate changes. Management needs to be aware of economic changes.
Similar Companies
ARCC
Ares Capital Corporation
ARCC
Ares Capital Corporation
FSK
FS KKR Capital Corp
FSK
FS KKR Capital Corp
GBDC
Golub Capital BDC Inc
GBDC
Golub Capital BDC Inc
TPVG
Triplepoint Venture Growth BDC Corp
TPVG
Triplepoint Venture Growth BDC Corp
Sources and Disclaimers
Data Sources:
- Company SEC filings
- Analyst reports
- Industry publications
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About New Mountain Finance Corporation
Exchange NASDAQ | Headquaters New York, NY, United States | ||
IPO Launch date 2011-05-20 | President, CEO & Director Mr. John R. Kline | ||
Sector Financial Services | Industry Asset Management | Full time employees - | |
Full time employees - | |||
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, engineering and consulting services, 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 $125 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. The fund seeks a majority stake in its portfolio companies.
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