New Mountain Finance (NYSE: NMFC) shares currently have a dividend yield of 9.40%. New Mountain Finance Corporation operates as a closed-end, non-diversified management investment company. The company has a P/E ratio of 6.63. The average volume for New Mountain Finance has been 401,900 shares per day over the past 30 days. New Mountain Finance has a market cap of $539.3 million and is part of the financial services industry. Shares are down 2.7% year to date as of the close of trading on Friday. TheStreet Ratings rates New Mountain Finance as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues rose by 33.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to -$15.76 million or 47.66% when compared to the same quarter last year. In addition, NEW MOUNTAIN FINANCE CORP has also modestly surpassed the industry average cash flow growth rate of 44.54%.
- The gross profit margin for NEW MOUNTAIN FINANCE CORP is rather high; currently it is at 58.05%. Regardless of NMFC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NMFC's net profit margin of 97.01% significantly outperformed against the industry.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, NEW MOUNTAIN FINANCE CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Capital Markets industry average. The net income increased by 3.8% when compared to the same quarter one year prior, going from $23.67 million to $24.56 million.
- You can view the full New Mountain Finance Ratings Report.
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