New Mountain Finance

NMFC

Market cap $837M

New Mountain Finance trades at a 33% discount, offering an appealing entry for income-focused investors. NMFC boasts investment-grade credit ratings (BBB-, Baa3), a diversified portfolio, and only 1.4% non-accrual loans, supporting portfolio quality. Common stock's discount-adjusted expected ROE is 10%, outperforming NMFC's OTC and baby bonds on a risk-adjusted basis.

New Mountain Finance trades at a significant discount to NAV, reflecting private credit sector fears and recent valuation pressure. Plus, the private credit platform announced a 22% dividend cut. NMFC consistently supported its dividend, despite an uptick in non-accruals and portfolio contraction. The dividend cut will significantly improve the coverage profile. The portfolio has notable SaaS and software sector exposure, but corrective measures, such as the sale of a secondary loan portfolio, are set to improve the value proposition.

New Mountain Finance (NMFC) Q4 2025 Earnings Call Transcript

New Mountain Finance (NMFC) came out with quarterly earnings of $0.32 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.32 per share a year ago.

NEW YORK--(BUSINESS WIRE)--New Mountain Finance Corporation (NASDAQ: NMFC) (“New Mountain,” “New Mountain Finance” or the “Company”) today announced its financial results for the quarter and year ended December 31, 2025. Fourth Quarter and Recent Highlights1 Net investment income of $33.0 million, or $0.32 per weighted average share Net asset value of $11.52 per share compared to $12.06 per share as of September 30, 2025 Signed a definitive agreement (the "Secondary Sale") to sell $477 million.

There are multiple risks for your BDC investments now and three that specifically create risk for certain BDCs. Business development companies offer high yields but carry significant, often misunderstood risks, especially in falling interest rate environments. Volatile interest rates can damage BDC profitability and distributable income, causing dividend cuts and share price declines.

New Mountain (NMFC) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.

New Mountain Finance focuses on defensive growth, investing in acyclical, niche-dominant middle-market companies and triple net lease real estate. NMFC maintains a solid $3.1B balance sheet with $1.26B equity, conservative leverage, and only 1.7% of assets on non-accrual status. The 8.25% 2028 baby bond, NMFCZ, offers a 7.2-7.3% yield to maturity, with call risk as the primary concern.

NEW YORK--(BUSINESS WIRE)--New Mountain Finance Corporation (NASDAQ: NMFC) (“New Mountain” or “the Company”) announced today that it will release its financial results for the quarter and year ended December 31, 2025, on Tuesday, February 24, 2026, after markets close. The Company will host an earnings conference call and webcast at 11:30 am Eastern Time on Wednesday, February 25, 2026. During the live conference call, the Company's officers will review the fourth quarter and year ended Decembe.

Declining interest rates will weigh on loan yields, while demand for personalized financing is expected to rise. The Zacks SBIC & Commercial Finance industry players like NMFC and RWAY are worth investing in.