New Mountain Finance Declares Special Distribution, Extends Stock Repurchase Program

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New Mountain Finance ($NASDAQ:NMFC) Corporation (NMFC) has announced a special distribution and the extension of their stock repurchase program. NMFC is a leading business development company (BDC) that provides financing solutions to middle-market companies across the United States. This announcement is in addition to the previous regular quarterly distributions which will continue to be paid. At the same time, NMFC has also extended their stock repurchase program. Under the program, NMFC may buy back their common shares from time to time at prevailing market prices or in privately negotiated transactions.

This extension allows for additional financial flexibility for NMFC and signals their confidence in the future growth of the company. The recent announcements by New Mountain Finance are sure to attract investors as they demonstrate the company’s commitment to returning value to shareholders. Investors can expect a strong return on their investment as NMFC continues to perform well in this challenging economic climate.

Market Price

The news of the special distribution and the stock repurchase program was welcomed by investors, as seen by the surge in share price on the same day. NMFC’s stock opened at $12.9 and closed at $13.2, representing a 2.5% increase from the prior closing price of $12.9. The special distribution and the stock repurchase program further demonstrate NMFC’s commitment to rewarding its shareholders with strong dividend and share repurchases. Through its previous special distributions and stock repurchases, NMFC has consistently demonstrated its commitment to providing value for shareholders. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for NMFC. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for NMFC. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for NMFC. More…

Key Ratios Snapshot

Some of the financial key ratios for NMFC are shown below. More…

Analysis

GoodWhale recently conducted an analysis of the fundamentals of NEW MOUNTAIN FINANCE. According to our Star Chart, NEW MOUNTAIN FINANCE has a low health score of 1/10 when it comes to both cash flow and debt, making it less likely that the company can safely ride out any crisis without the risk of bankruptcy. Our analysis also revealed that NEW MOUNTAIN FINANCE is strong in terms of growth, medium in terms of dividend, and weak in terms of asset and profitability. This leads us to classify NEW MOUNTAIN FINANCE as a ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given this information, we believe that investors who are looking for high growth potential but are willing to take on the additional risk should consider investing in NEW MOUNTAIN FINANCE. Additionally, investors who are looking for a more stable investment might be better off looking at other companies with similar fundamentals but higher stability ratings. More…

Peers

The competition between New Mountain Finance Corp and its competitors, First Eagle Alternative Capital BDC Inc, BlackRock TCP Capital Corp, and Crescent Capital BDC Inc, is fierce. All four companies are leading players in the business development company (BDC) sector, and each is determined to make their mark in the industry. Their success ultimately comes down to the quality of their services, their ability to find and close deals, and their commitment to providing a superior customer experience.

– First Eagle Alternative Capital BDC Inc ($NASDAQ:FCRD)

First Eagle Alternative Capital BDC Inc is a business development company that provides investment capital to small and mid-sized businesses. It operates through two divisions, Private Equity and Private Credit. The company has a market cap of 128.96M in 2023 and a Return on Equity of -11.78%. This market cap indicates that the company’s stock is not very attractive to investors, as the return on equity indicates that the company is not generating enough profits to justify its market valuation. Despite this, First Eagle Alternative Capital BDC Inc remains a popular choice among investors due to its focus on providing capital to small and mid-sized businesses.

– BlackRock TCP Capital Corp ($NASDAQ:TCPC)

BlackRock TCP Capital Corp is a business development company that provides customized financing solutions to middle-market companies in the United States and Europe. With a market cap of 753.86M as of 2023, the company has established itself as one of the largest and most successful financial institutions in the world. Its Return on Equity (ROE) of 5.48% demonstrates the company’s ability to generate returns for its shareholders. BlackRock TCP Capital Corp offers a wide range of debt and equity products to its clients, including subordinated debt, senior secured debt, mezzanine debt, and equity investments. The company provides financing solutions to companies seeking to expand, refinance, recapitalize, or reposition their businesses.

– Crescent Capital BDC Inc ($NASDAQ:CCAP)

Crescent Capital BDC Inc is a publicly-traded business development company that provides debt and equity capital to small and middle-market companies in a variety of industries. The company has a current market capitalization of 409.57 million dollars, reflecting its current size and success in the market. In addition, Crescent Capital BDC Inc has an impressive Return on Equity (ROE) of 2.78%, indicating that the company is efficiently utilizing its capital to generate strong returns for shareholders.

Summary

New Mountain Finance is a publicly traded business development company, focusing on providing capital to small and mid-sized businesses. This indicates that New Mountain Finance has enough available cash to return value to investors. Analysts suggest that investors should consider the company’s consistent dividend payments, steady earnings growth, and attractive valuation before making a decision. The company’s future performance is closely tied to the health of the businesses it finances and economic conditions in general.