New Mountain Finance Corporation 8.250% Notes due 2028 (NMFCZ)

Key Financials

AI Analysis

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

I look at NMFCZ first as a note, not as common equity: it carries an 8.250% coupon and matures in 2028, and the quote was $25.41 on 2026-10-16 inside a tight $25.00-$25.68 52-week range. That price suggests the market is treating the credit as stable, so the investor is mostly collecting coupon and expecting repayment, not getting a large capital discount. The filed profit record, however, does not give me much comfort. In fiscal Q1 2026, the quarter ended 2026-03-31, net income was -$50.9M and diluted EPS -$0.51. Fiscal Q2 2026, the quarter ended 2026-06-30, rebounded to $17.3M and $0.18, but that does not fully offset the prior loss. On an annual basis, net income fell from $135.3M in fiscal year 2023, the period ended 2023-12-31, to $113.4M in fiscal year 2024, the period ended 2024-12-31, and then to $16.5M in fiscal year 2025, the period ended 2025-12-31; diluted EPS went from $1.24 to $1.03 to $0.16. FairStock's computed Lynch category is SLOW GROWER — Shrinking: profit -22.4% a year over five years. I cannot identify a durable competitive moat from these figures, and I have no revenue, balance-sheet, interest-coverage, or asset-coverage figures here, so I cannot verify the credit's margin of safety. The coupon is attractive, and the narrow trading range implies low perceived price volatility, but the earnings trend is volatile and recently weak. At $25.41, the note looks fairly to fully priced for the visible numbers; the high coupon is compensation for credit risk, not a free lunch. I would want evidence of stabilized earnings and coverage before calling it a bargain.

In plain English: New Mountain Finance is a financial-services company, and this security is a bond-like note that pays 8.25% and comes due in 2028. The company's recent profits have been weak and uneven, including a loss in early 2026. At $25.41, it trades near the top of its $25.00-$25.68 recent range, so the price looks fair to full compared with what we can see.

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Data as of 2026-10-16 close · note generated 2026-10-20 · 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