New Mountain Finance Corp. (NMFC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Victory Capital Holdings, Inc.

TPG, Inc.

Oaktree Specialty Lending Corp.

Virtus Investment Partners, Inc.

Golub Capital BDC, Inc.

Goldman Sachs BDC, Inc.

Sixth Street Specialty Lending, Inc.

New Mountain Finance Corp.

Prospect Capital Corp.

StepStone Group, Inc.

Compass Diversified Holdings

Why is New Mountain Finance Corp. ?

OPERATING CASH FLOW(Y) Lowest at USD 45.91 MM
ROCE(HY) Lowest at 6.18%
INTEREST COVERAGE RATIO(Q) Lowest at 123.93

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.16% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is New Mountain Finance Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

New Mountain Finance Corp.

-27.62%

-1.18

23.95%

S&P 500

15.4%

0.81

19.85%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.59%

EBIT Growth (5y)

44.90%

EBIT to Interest (avg)

2.83

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

1.56%

Dividend Payout Ratio

124.45%

Pledged Shares

Institutional Holding

32.09%

ROCE (avg)

21.04%

ROE (avg)

11.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.87

EV to EBIT

4.33

EV to EBITDA

4.33

EV to Capital Employed

0.86

EV to Sales

2.87

PEG Ratio

Dividend Yield

1155.74%

ROCE (Latest)

19.79%

ROE (Latest)

8.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

NET SALES(HY)

At USD 220.37 MM has Grown at 55.02%

DIVIDEND PAYOUT RATIO(Y)

Highest at 443.21%

RAW MATERIAL COST(Y)

Fallen by -25.11% (YoY

-22What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 45.91 MM

ROCE(HY)

Lowest at 6.18%

INTEREST COVERAGE RATIO(Q)

Lowest at 123.93

PRE-TAX PROFIT(Q)

Lowest at USD 7.9 MM

NET PROFIT(Q)

Lowest at USD 7.77 MM

EPS(Q)

Lowest at USD 0.07

Here's what is working for New Mountain Finance Corp.

Net Sales

At USD 220.37 MM has Grown at 55.02%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Dividend Payout Ratio

Highest at 443.21%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -25.11% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for New Mountain Finance Corp.

Pre-Tax Profit

At USD 7.9 MM has Fallen at -71.69%

over average net sales of the previous four periods of USD 27.92 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 7.77 MM has Fallen at -71.59%

over average net sales of the previous four periods of USD 27.36 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 123.93

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at USD 45.91 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Pre-Tax Profit

Lowest at USD 7.9 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 7.77 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)