New Mountain Finance Corporation (NMFC) AI Stock Analysis

New Mountain Finance Corporation operates as a business development company specializing in private equity buyouts and lending to middle-market firms across defensive growth industries. Founded on direct investment principles, the fund invests in debt securities across the capital structure, including first and second lien debt, unsecured notes, mezzanine securities, and select equity stakes. It targets sectors such as energy, specialty chemicals, commercial printing, healthcare services, and telecommunications within the United States. NMFC typically invests between $10 million and $50 million per transaction, with capacity up to $125 million, using primary originations and open-market secondary purchases.

NMFC generated revenue of $138.6M in FY2025, down 58.0% from $329.8M in FY2024 and $342.0M in FY2023. Net income declined from $113.4M in FY2024 to $16.5M in FY2025, with net margin narrowing from 34.4% to 11.9%. Operating margin also contracted to 12.6% in FY2025 compared to 76.9% in FY2024. For the trailing twelve months ended June 30, 2026, revenue stood at $288.2M with a profit margin of -16.8% and diluted EPS of -$0.48. In the latest quarter, quarterly revenue fell 26.4% year-over-year, while quarterly earnings growth increased by 157.1%.

As of June 30, 2026, New Mountain Finance Corporation held $64.8M in cash and short-term investments against total debt of $1.35B, resulting in net debt of $1.28B. Total assets stood at $2.42B and shareholders' equity was $1.03B, yielding a debt-to-equity ratio of 1.31 and a current ratio of 0.92. During FY2025, operating cash flow and free cash flow were both $379.0M. The company allocated capital by paying $135.7M in dividends and executing $52.0M in share buybacks.

At a share price of $6.74, NMFC carries a market capitalization of $636.6M and an enterprise value of $1.93B. Its forward P/E ratio of 6.8x trades below the median of its US-listed Financial Services peers of 10.8x. The company's price-to-sales ratio is 2.2x compared to the peer median of 3.2x, while price-to-book stands at 0.7x. Over the past year, NMFC returned -15.0%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, the stock dropped 13.7% against an 83.0% gain for the benchmark.

NMFC pays an annual forward dividend of $1.14 per share, resulting in a dividend yield of 16.91%. The company has paid consecutive dividends for 16 years, recording a 5-year annualized dividend growth rate of 0.6%. Its payout ratio stands at 3.1%, and its last ex-dividend date occurred on September 16, 2026.

Wall Street coverage includes 6 Hold ratings and 1 Sell rating, with zero Buy or Strong Buy recommendations. The mean price target is $8.29, representing 23.0% upside versus the last close of $6.74. For the fiscal year ending December 31, 2026, analysts estimate EPS of $1.09 on revenue of $252.6M. For the next fiscal year, consensus models EPS of $1.05 and revenue of $245.3M across 7 analysts. NMFC posted 0 EPS beats over the last 4 quarters, with its next earnings date scheduled for November 2, 2026.

This page is an AI-written research summary of New Mountain Finance Corporation (NMFC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: NMFC income statement, NMFC balance sheet, NMFC key metrics, NMFC analyst forecast, NMFC chart. See the NMFC stock overview for the latest quote and news.