New Mountain Finance Corporation Common Stock (NMFC)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

New Mountain Finance is a business development company lending to middle-market firms in defensive growth industries. As a lender, its edge comes from credit selection and access to capital, not a wide moat; in stressed markets, leverage can work against it. The filed record is uneven. In fiscal Q1 2026 (quarter ended 2026-03-31) it reported a net loss of $50.9 million, or $0.51 per diluted share. In fiscal Q2 2026 (quarter ended 2026-06-30) it earned $17.3 million, or $0.18 per diluted share. For FY2025 (period ended 2025-12-31), net income was $16.5 million, or $0.16 per diluted share - down sharply from $113.4 million, or $1.03, in FY2024 and $135.3 million, or $1.24, in FY2023. That volatility is concerning. At the $6.71 close on 2026-10-13, FairStock calculates P/B of 0.62 and a negative P/E of -13.98, with ROE -4.06%. The Lynch category is ASSET PLAY: it trades at 0.62x book. A 16.26% dividend yield and 104.2% FCF yield look alluring, but Altman Z-Score of 0.16 and D/E of 1.30 warn that leverage and distress risk are material. Piotroski is a moderate 6/9, and ROCE is positive at 5.24%. The balance sheet may offer asset protection if asset values hold, but the earnings trend does not. I would demand evidence that quarterly profits are durable and the dividend is covered before trusting the discount.

In plain English: New Mountain Finance is a business development company that lends to and invests in medium-sized companies. Its recent profits have been shaky, with a big quarterly loss and much lower yearly profit than in earlier years. The stock price is well below the value of its net assets, so it looks cheap, but the high dividend and low price may be pointing to real risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer