New Mountain Finance Corporation 8.250% Notes due 2028
New Mountain Finance Corporation 8.250% Notes due 2028 Fundamental Analysis
New Mountain Finance Corporation 8.250% Notes due 2028 (NMFCZ) shows strong financial fundamentals with a PE ratio of 0.03, profit margin of 97.05%, and ROE of 25.52%. The company generates $0.3B in annual revenue with strong year-over-year growth of 12.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NMFCZ's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNMFCZ demonstrates superior asset utilization.
Valuation Score
ExcellentNMFCZ trades at attractive valuation levels.
Growth Score
ModerateNMFCZ shows steady but slowing expansion.
Financial Health Score
ModerateNMFCZ shows balanced financial health with some risks.
Profitability Score
ExcellentNMFCZ achieves industry-leading margins.
Key Financial Metrics
Is NMFCZ Expensive or Cheap?
P/E Ratio
NMFCZ trades at 0.03 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NMFCZ's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values New Mountain Finance Corporation 8.250% Notes due 2028 at 0.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.61 times EBITDA. This is generally considered low.
How Well Does NMFCZ Make Money?
Net Profit Margin
For every $100 in sales, New Mountain Finance Corporation 8.250% Notes due 2028 keeps $97.05 as profit after all expenses.
Operating Margin
Core operations generate 27.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.52 in profit for every $100 of shareholder equity.
ROA
New Mountain Finance Corporation 8.250% Notes due 2028 generates $12.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
New Mountain Finance Corporation 8.250% Notes due 2028 generates strong operating cash flow of $530.17M, reflecting robust business health.
Free Cash Flow
New Mountain Finance Corporation 8.250% Notes due 2028 generates strong free cash flow of $530.17M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.38 in free cash annually.
FCF Yield
NMFCZ converts 69.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
25.52
vs 25 benchmark
ROA
Return on assets percentage
12.62
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How NMFCZ Stacks Against Its Sector Peers
| Metric | NMFCZ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.03 | 18.90 | Better (Cheaper) |
| ROE | 2551.65% | 815.00% | Excellent |
| Net Margin | 9705.04% | 889.00% | Excellent |
| Debt/Equity | 0.16 | 0.98 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 619.22 | Weak Liquidity |
| ROA | 1261.69% | -20934.00% (disorted) | Strong |
NMFCZ outperforms its industry in 5 out of 6 key metrics, particularly excelling in ROE, but lagging in Current Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews New Mountain Finance Corporation 8.250% Notes due 2028's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.66%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-74.28%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
235.66%
Industry Style: Value, Dividend, Cyclical
High Growth