3 Buy-Rated Dividend Stocks: KCAP, HGT, NMFC
New Mountain Finance (NYSE: NMFC) shares currently have a dividend yield of 9.00%. New Mountain Finance Corporation operates as a closed-end, non-diversified management investment company. The company has a P/E ratio of 8.26. The average volume for New Mountain Finance has been 328,000 shares per day over the past 30 days. New Mountain Finance has a market cap of $687.0 million and is part of the financial services industry. Shares are up 1% year-to-date as of the close of trading on Tuesday. 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, attractive valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 16.9%. Since the same quarter one year prior, revenues rose by 18.6%. 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.
- The gross profit margin for NEW MOUNTAIN FINANCE CORP is rather high; currently it is at 61.45%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 79.39% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 175.55% to $63.21 million when compared to the same quarter last year. In addition, NEW MOUNTAIN FINANCE CORP has also vastly surpassed the industry average cash flow growth rate of -112.87%.
- NEW MOUNTAIN FINANCE CORP's earnings per share declined by 25.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, NEW MOUNTAIN FINANCE CORP increased its bottom line by earning $2.20 versus $1.02 in the prior year. For the next year, the market is expecting a contraction of 30.2% in earnings ($1.54 versus $2.20).
- You can view the full New Mountain Finance Ratings Report.
- Our dividend calendar.
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