New Mountain Finance (1N4) AI Stock Analysis

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New Mountain Finance

(Frankfurt:1N4)

Rating:―N/A

Action:N/A

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Positive Factors

Senior, Diversified PortfolioA predominantly senior portfolio diversified across 110 companies can help limit concentration and improve recovery prospects during borrower stress. The relatively small share represented by the top 10 issuers further supports portfolio resilience and reduces dependence on any single credit exposure.

Negative Factors

Credit Quality DeteriorationThe decline in NAV, weaker internal risk ratings, and higher nonaccruals indicate growing pressure in parts of the credit portfolio. If these trends persist, they could reduce asset values, impair investment income, and require more management attention or additional reserves.

New Mountain Finance (1N4) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 661.17M
Dividend Yield: 15.74%
Average Volume (3M): ―
Price to Earnings (P/E): -12.7
Beta (1Y): 0.48
Revenue Growth: -56.18%
EPS Growth: -177.07%
Country: Germany
Employees: 0
Sector: Financial
Sector Strength: 68
Industry: Asset Management

New Mountain Finance Business Overview & Revenue Model

Company Description

New Mountain Finance Corporation (NMFC), a Nasdaq-listed business development company (BDC), operates as both a private equity and lending vehicle. It specializes in providing capital through direct investments and loans to middle-market companies, w...

New Mountain Finance Earnings Call Summary

Earnings Call Date:Nov 01, 2026(Q3-2026)|% Change Since:0.00%|Next Earnings Date:Feb 28, 2027

Earnings Call SentimentPositive

The call was broadly positive. Management highlighted dividend coverage, attractive portfolio yields, strong long-term shareholder returns, improving direct lending spreads and structures, substantial liquidity, and continued performance at several major portfolio companies. The main challenges were a 2% decline in NAV per share, modest deterioration in portfolio ratings, higher nonaccruals, muted M&A activity, lower investment income, and continued PIK exposure. The number and significance of the stated positives outweighed the identified challenges.

Positive Updates

Net Investment Income Covered the Dividend

Third-quarter adjusted net investment income was $0.26 per share, covering the $0.25 per share cash dividend paid on September 30. The Board declared a $0.25 per share dividend payable on December 31 to shareholders of record as of December 17.

Negative Updates

Net Asset Value Declined

Net asset value per share ended the quarter at $10.67, down 22 cents from $10.89 in the second quarter, or approximately 2%. About $0.12 of the decline reflected broader market movements driven by higher discount rates on leveraged loan assets, while $0.10 reflected credit-specific movements in positions including Insight Software, DCA Dental, and RLG.

Company Guidance

For Q4, the Board declared a dividend of $0.25 per share payable on December 31 to shareholders of record as of December 17, and management believes the dividend is sustainable; NMFC expects to make progress migrating to newer names in the upcoming quarters, sees line of sight into further progress on portfolio diversification over the coming quarters, and expects to remain active in the unsecured debt market, while intending to continue optimizing its liability mix to reduce potential asset liability mismatches. Convey’s exit early in Q4 is expected to reduce nonaccruals next quarter by point 1% at fair market value and 0.6% at cost all things equal; management expects M&A activity will pick up at some point, expects a little bit of movement quarter over quarter in senior loan programs and net lease income, and has a target range for net debt to equity of 1 to 1.25 times and a target of more than 75% floating rate liabilities.

New Mountain Finance Risk Analysis

New Mountain Finance disclosed 26 risk factors in its most recent earnings report. New Mountain Finance reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

New Mountain Finance Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DE:1N4 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OCSL	72Outperform	$1.11B	25.88	2.98%	11.74%	-8.10%	-12.87%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CGBD	67Neutral	$759.60M	60.60	3.25%	13.77%	11.89%	-58.67%
MFIC	60Neutral	$850.91M	-12.08	-4.92%	12.76%	-3.53%	-179.09%
GSBD	59Neutral	$1.01B	35.20	4.17%	11.59%	117.29%	-58.47%
BCSF	53Neutral	$729.12M	11.26	5.79%	16.65%	-11.58%	-40.72%

* Financial Sector Average

Performance Comparison

DE:1N4 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:1N4	New Mountain Finance Corp.	6.24	-0.92	-12.90%
MFIC	Midcap Financial Investment Corporation	10.26	-0.23	-2.22%
OCSL	Oaktree Specialty Lending Corp	12.50	0.49	4.08%
GSBD	Goldman Sachs BDC Inc.	8.64	0.33	4.02%
CGBD	Carlyle Secured Lending Inc	11.17	0.78	7.48%
BCSF	Bain Capital Specialty Finance	11.14	-0.87	-7.21%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

New Mountain Finance AI Stock Analysis