MeritValue

New Mountain Finance Corp

NMFCdata completeness 75%6 fiscal years on file

Data notes: no data for concept 'revenue'; no data for concept 'capex'; no data for concept 'pretaxIncome'

The thesis, from the filings

New Mountain Finance Corp earns about 8% on equity, but has diluted owners by 10% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $9.71 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue—————
Net income$201.4M1$74.7M2$135.3M3$113.4M3$16.5M3
Operating cash flow−$22.1M4$35M5$332.7M6$42M6$379M6
Capital expenditure—————
Free cash flow (derived)—————
Total debt$1.91B7$1.98B8$1.79B9$1.84B10$1.67B10
Cash & equivalents$58.1M11$71.2M12$70.1M13$80.3M14$80.7M14
Diluted shares110.2M115.4M123.5M125.5M121.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$97.63
your share of equity
Profit it earned you last year
$1.36
Free cash flow it threw off
—
Debt you’d be carrying
$138

10 shares is a claim on $97.63 of net worth that earned you $1.36 last year, against $138 of debt.

iii. Is this a good business?
Moat signal · return on equity
8% avg · 5y
FY21 15%FY22 6%FY23 10%FY24 8%FY25 1%

It earned an average 8% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+10% shares · 5y

Share count is up 10% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 12% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$9.71
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$113.4M
  • growthAssumed0.0%
Graham Number
$5.93
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001496099-24-000012 (NetIncomeLoss)
  2. 10-K · period ending 2022-12-31 · accession 0001496099-25-000010 (NetIncomeLoss)
  3. 10-K · period ending 2023-12-31 · accession 0001496099-26-000008 (NetIncomeLoss)
  4. 10-K · period ending 2021-12-31 · accession 0001496099-24-000012 (NetCashProvidedByUsedInOperatingActivities)
  5. 10-K · period ending 2022-12-31 · accession 0001496099-25-000010 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2023-12-31 · accession 0001496099-26-000008 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2021-12-31 · accession 0001496099-23-000003 (LongTermDebt)
  8. 10-K · period ending 2022-12-31 · accession 0001496099-24-000012 (LongTermDebt)
  9. 10-K · period ending 2023-12-31 · accession 0001496099-25-000010 (LongTermDebt)
  10. 10-K · period ending 2024-12-31 · accession 0001496099-26-000008 (LongTermDebt)
  11. 10-K · period ending 2021-12-31 · accession 0001496099-23-000003 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K · period ending 2022-12-31 · accession 0001496099-24-000012 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2023-12-31 · accession 0001496099-25-000010 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2024-12-31 · accession 0001496099-26-000008 (CashAndCashEquivalentsAtCarryingValue)