New Mountain Finance Corporation
- Open
- 7.25
- Day high
- 7.31
- Day low
- 7.16
- Prev close
- 7.17
- Volume
- 353K
- Mkt cap
- $681M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.7
- P/S
- 3.0
- Yield
- 16.78%
- Per share
- $1.21
- ▼Insiders net selling -$612K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions mixed (13F)
New Mountain Finance Corporation (NMFC) is a Financial Services company listed on NASDAQ. The stock is down 32% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4).
New Mountain Finance Corporation (NMFC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
NMFC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $0.32 | $0.32 | +0.0% | $69M | +1.5% |
| Feb 25, 2026 | $0.32 | $0.32 | +0.0% | $26M | -66.1% |
| Feb 26, 2025 | $0.33 | $0.32 | -3.0% | $93M | -0.4% |
| Oct 30, 2024 | $0.35 | $0.34 | -2.9% | $95M | +1.7% |
| Jul 31, 2024 | $0.36 | $0.36 | +0.0% | $63M | -29.2% |
| May 1, 2024 | $0.39 | $0.36 | -7.7% | $79M | -12.6% |
| Feb 26, 2024 | $0.39 | $0.40 | +2.6% | $52M | -36.7% |
| Nov 2, 2023 | $0.40 | $0.38 | -5.0% | $99M | +6.2% |
| Aug 2, 2023 | $0.38 | $0.39 | +2.6% | $98M | +5.7% |
| Feb 27, 2023 | $0.35 | $0.35 | +0.0% | $91M | +12.0% |
| Feb 28, 2022 | $0.31 | $0.31 | +0.0% | $52M | -22.7% |
| Nov 3, 2021 | $0.30 | $0.27 | -10.0% | $91M | +37.1% |
NMFC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 16, 2026 | Malfettone John Pdirector | Sell | 77,500 | $7.89 |
| Mar 12, 2026 | KLINSKY STEVEN Bdirector, 10 percent owner: | Buy | 92,080 | $8.05 |
| Mar 12, 2026 | KLINSKY STEVEN Bdirector, 10 percent owner: | Buy | 149,172 | $8.05 |
| Mar 12, 2026 | KLINSKY STEVEN Bdirector, 10 percent owner: | Buy | 74,586 | $8.05 |
| Mar 12, 2026 | KLINSKY STEVEN Bdirector, 10 percent owner: | Buy | 184,162 | $8.05 |
| Mar 6, 2026 | KLINSKY STEVEN Bdirector, 10 percent owner: | Buy | 158,582 | $8.10 |
| Mar 6, 2026 | KLINSKY STEVEN Bdirector, 10 percent owner: | Buy | 79,291 | $8.10 |
| Mar 5, 2026 | KLINSKY STEVEN Bdirector, 10 percent owner: | Buy | 124,604 | $8.17 |
| Mar 5, 2026 | KLINSKY STEVEN Bdirector, 10 percent owner: | Buy | 83,498 | $7.94 |
| Mar 5, 2026 | KLINSKY STEVEN Bdirector, 10 percent owner: | Buy | 166,997 | $7.94 |
| Mar 5, 2026 | KLINSKY STEVEN Bdirector, 10 percent owner: | Buy | 62,301 | $8.17 |
| Mar 4, 2026 | Ogens Daviddirector | Buy | 10,100 | $7.87 |
| Mar 4, 2026 | Ogens Daviddirector | Buy | 2,400 | $7.86 |
| Mar 2, 2026 | Boswerger Laura C. Holsonofficer: COO | Buy | 12,500 | $7.74 |
| Sep 18, 2025 | KLINSKY STEVEN Bdirector | Buy | 21,339 | $9.78 |
Source: NMFC SEC Form 4 filings, latest Jun 16, 2026. For informational purposes only — not investment advice.
See the full NMFC insider & 13F page →New Mountain Finance Corporation company profile
Overview
New Mountain Finance Corporation (NASDAQ:NMFC) is a business development company founded in 2011 that specializes in providing debt and equity financing to middle-market companies. The company went public on May 20, 2011, and operates as an externally managed investment fund focused on defensive growth industries. NMFC is managed by New Mountain Finance Advisers BDC, L.L.C., an affiliate of New Mountain Capital, a private equity firm with over $40 billion in assets under management. The company has built a portfolio of over $3 billion in investments across more than 100 portfolio companies, maintaining a focus on senior-oriented debt investments in non-cyclical sectors.
Business
New Mountain Finance Corporation operates as a business development company (BDC), which is a specialized type of investment vehicle that provides financing to small and medium-sized businesses. BDCs are regulated investment companies that must distribute at least 90% of their taxable income to shareholders as dividends, making them popular income-generating investments. NMFC's core business involves direct lending to middle-market companies, which are typically businesses with annual earnings before interest, taxes, depreciation, and amortization (EBITDA) between $10 million and $200 million. The company focuses on what it calls "defensive growth industries" - sectors that tend to be less cyclical and more resilient during economic downturns. The company's investment portfolio consists of several types of financial instruments: 1. Senior debt investments (approximately 75-77% of portfolio): These are first-lien loans that have priority in repayment over other debt obligations. They typically offer lower risk but also lower returns compared to subordinated debt. 2. Second lien debt (approximately 7% of portfolio): These loans rank below senior debt in the capital structure but above equity, offering higher yields in exchange for increased risk. 3. Equity investments (approximately 8% of portfolio): Direct ownership stakes in portfolio companies, which can provide upside participation if companies perform well. 4. Mezzanine securities and unsecured notes: Hybrid debt-equity instruments that typically carry higher interest rates and may include equity participation features. NMFC targets specific industry verticals including enterprise software, healthcare services and technology, business services, specialty chemicals, education services, telecommunications, and energy services. The company's investment strategy focuses on sponsor-backed transactions, meaning they typically work with private equity firms that are acquiring or investing in the target companies. The average borrower in NMFC's portfolio has EBITDA of approximately $184-189 million, indicating they work with substantial, established businesses rather than early-stage companies.
Revenue model
New Mountain Finance Corporation generates revenue primarily through interest income from its debt investments and dividend income from its equity holdings. The company's business model is built around earning a spread between its cost of capital and the yields it receives on its investments. The company's revenue streams include: 1. Interest income from loans: NMFC earns interest on its debt investments, with approximately 86% of its portfolio consisting of floating-rate loans that adjust with market interest rates. The average portfolio yield is approximately 10.5-11%, providing substantial income generation. 2. Payment-in-kind (PIK) income: Some investments allow borrowers to pay interest in additional securities rather than cash, though NMFC has been working to reduce this exposure from 19% to a target of 10-12% of the portfolio. 3. Dividend and distribution income: Equity investments and preferred securities generate dividend income and potential capital appreciation. 4. Fee income: The company earns origination fees, amendment fees, and other transaction-related fees from its lending activities. NMFC's primary customers are middle-market companies backed by private equity sponsors. These borrowers typically cannot access public debt markets due to their size and instead rely on direct lenders like NMFC for financing needs including acquisitions, refinancings, and growth capital. Several factors influence NMFC's profitability margins: Positive margin drivers include rising interest rates (benefiting the 86% floating-rate portfolio), strong credit performance with minimal defaults, the company's focus on defensive industries that maintain stable cash flows, and its senior position in the capital structure providing downside protection. Negative margin pressures include spread compression in the direct lending market due to increased competition, potential credit losses during economic downturns, the company's financing costs including interest on its own debt and preferred securities, and management fees paid to its external adviser. The company maintains leverage of approximately 1.15-1.25x to amplify returns, but this also increases risk during market stress periods.
Competitive moat
New Mountain Finance Corporation operates in the competitive direct lending market and faces several structural challenges that limit the strength of its economic moat. The company's primary competitive advantages are relatively modest and center around its relationship with New Mountain Capital, its focus on defensive industry verticals, and its established track record. NMFC benefits from its affiliation with New Mountain Capital, a well-established private equity firm that provides deal flow and industry expertise. This relationship gives NMFC access to proprietary investment opportunities and due diligence capabilities that smaller, independent BDCs might lack. The company's focus on defensive growth industries and its emphasis on senior-oriented investments provide some differentiation, as evidenced by its strong credit performance with only 3-6 basis points of average annual net realized losses. However, the direct lending industry has relatively low barriers to entry and faces intense competition from multiple sources. Large banks, insurance companies, credit funds, and other BDCs all compete for the same middle-market lending opportunities. The proliferation of direct lending funds has led to spread compression, with spreads tightening from historical levels as more capital chases similar deals. The company's investment strategy is largely replicable by competitors, and its portfolio companies are not unique assets that cannot be financed elsewhere. While NMFC has built relationships with private equity sponsors over time, these relationships are not exclusive and sponsors typically work with multiple lenders to ensure competitive terms. Regulatory constraints as a BDC also limit NMFC's flexibility compared to private credit funds. The company must maintain certain diversification requirements, cannot invest more than 25% of assets in any single issuer, and must distribute most of its income as dividends rather than reinvesting for growth. The most significant competitive threat comes from the continued growth of private credit funds and business development companies with larger scale and lower cost of capital. Insurance companies and pension funds have increasingly allocated capital to direct lending, creating pricing pressure. Additionally, improvements in the broadly syndicated loan market and high-yield bond markets could provide alternative financing sources for NMFC's target borrowers during favorable credit cycles.
Risks & safety
NMFC presents a moderate margin of safety profile with manageable debt levels but some liquidity considerations typical of BDCs. Overall Assessment: The company maintains reasonable financial stability with strong dividend coverage and conservative leverage, though it faces typical BDC liquidity constraints. • Debt and Leverage: Net leverage of approximately 1.15-1.25x is conservative for a BDC. Total liabilities of $1.85 billion against $3.25 billion in total assets. Over 75% of debt matures in or after 2027, providing adequate refinancing runway. • Liquidity Position: Cash and short-term investments of $80-85 million with access to $896 million available on revolving credit facilities. Current ratio of 0.49 reflects typical BDC structure where current liabilities include short-term borrowings that are regularly refinanced. • Credit Quality: 97% of portfolio rated "green" (performing), with only 1.2% non-accrual positions ($38 million). Historical net realized losses of only 3-6 basis points annually demonstrate strong underwriting. • Valuation Metrics: Trading at 0.88x book value (NAV of $12.45 vs. stock price around $9.76-$11.75), providing some discount to net asset value. Price-to-earnings ratio of 8.6-11.0x appears reasonable for a dividend-focused BDC. • Dividend Coverage: Adjusted net investment income of $0.32-$0.36 per share covers the $0.32 regular quarterly dividend. Dividend Protection Program in place for 2025-2026 provides additional security. • Other Considerations: Interest rate sensitivity provides potential upside if rates remain elevated, but also creates risk if rates decline significantly. Portfolio concentration with top 10 positions representing 26-27% of fair value creates some concentration risk.
Recent development
Over the past few years, New Mountain Finance Corporation has executed several strategic initiatives focused on optimizing its capital structure, improving portfolio quality, and enhancing shareholder returns. Capital Structure Optimization: NMFC has significantly upgraded its financing profile by issuing its first investment-grade bonds, including two $300 million offerings that reduced its overall cost of capital. The company enhanced its corporate revolver to $639 million and streamlined its asset-based credit facilities, providing greater financial flexibility and lower financing costs. Portfolio Quality Enhancement: The company has systematically improved its portfolio composition by increasing senior-oriented assets from 75% to 77% and reducing payment-in-kind (PIK) income exposure from 19% to 17%, with a target of reaching 10-12%. This shift toward more senior, cash-paying investments reduces risk and improves cash flow predictability. The portfolio's credit quality has reached its highest level since 2020, with 97% of investments rated "green." Shareholder Return Programs: NMFC implemented a comprehensive dividend strategy including a Dividend Protection Program for 2025-2026 and introduced supplemental dividends when earnings exceed the base $0.32 quarterly dividend. The company has maintained its regular dividend while opportunistically paying supplemental dividends totaling $0.07 per share across recent quarters. Strategic Asset Management: The company has been actively managing its portfolio through strategic exits, including the sale of its stake in UniTek Global Services for $90 million (approximately 2x original cost basis) while retaining a 31% ownership interest. NMFC has also reduced concentration risk by decreasing its top position concentrations. Operational Expansion: New Mountain Capital has grown its team to 245 members, expanding the platform's origination and portfolio management capabilities. Management's shareholding has increased to 14% of the company, aligning interests with external shareholders.
NMFC company profile · for informational purposes only — not investment advice.
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