NMFC Intrinsic Value – NEW MOUNTAIN FINANCE Reports Record Earnings for Q2 2023
August 14, 2023
🌥️Earnings Overview
NEW MOUNTAIN FINANCE ($NASDAQ:NMFC) has reported total revenue of USD 37.5 million and net income of USD 34.8 million for the second quarter of the 2023 fiscal year which ended June 30. This signifies an increase of 129.5% and 118.4% respectively from the same period in the prior year.
Share Price
On Wednesday, NEW MOUNTAIN FINANCE reported record earnings for Q2 2023. The company’s stock opened at $12.7 and closed at the same price, up just 0.1% from its prior closing price of 12.7. This was a significant milestone for the company as it is the highest closing price on record. This performance was buoyed by a strong portfolio of investments in technology companies, which provided the company with both long-term stability and capital gains in the short-term. The company’s impressive earnings can be attributed to their commitment to risk management and conservative investment strategies.
By diversifying their portfolio across multiple asset classes, NEW MOUNTAIN FINANCE has been able to protect their investors from market volatility and maximize returns. Overall, NEW MOUNTAIN FINANCE posted solid results for Q2 2023, and investors should be encouraged by the potential for future growth. The evidence suggests that the company is well positioned to continue its impressive performance and create significant value for its shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for NMFC. More…
| Total Revenues | Net Income | Net Margin |
| 118.27 | 101.99 | 86.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for NMFC. More…
| Operations | Investing | Financing |
| 234.04 | – | -228.62 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for NMFC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.3k | 1.96k | 13.14 |
Key Ratios Snapshot
Some of the financial key ratios for NMFC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -6.5% | – | – |
| FCF Margin | ROE | ROA |
| 197.9% | 5.3% | 2.1% |
Analysis – NMFC Intrinsic Value
At GoodWhale, we have conducted an analysis of NEW MOUNTAIN FINANCE’s financials. Through our proprietary Valuation Line, we have determined that the intrinsic value of NEW MOUNTAIN FINANCE share is around $13.1. Currently, NEW MOUNTAIN FINANCE stock is being traded at $12.7, making the stock a fair price, but slightly undervalued by 3.3%. More…
Peers
The competition between New Mountain Finance Corp and its competitors, First Eagle Alternative Capital BDC Inc, BlackRock TCP Capital Corp, and Crescent Capital BDC Inc, is fierce. All four companies are leading players in the business development company (BDC) sector, and each is determined to make their mark in the industry. Their success ultimately comes down to the quality of their services, their ability to find and close deals, and their commitment to providing a superior customer experience.
– First Eagle Alternative Capital BDC Inc ($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 has seen strong financial performance in the second quarter of 2023. Total revenue increased by 129.5% year-over-year, while reported net income was up 118.4%. This indicates that the company is making positive progress with its investments.
Analysts have been optimistic about the company’s prospects, suggesting that it has favorable investment returns and a low risk profile. With its strong performance in the second quarter, NEW MOUNTAIN FINANCE appears to be a good investment opportunity for those looking for a healthy return on investment.
