NASDAQ$NMFC

New Mountain Finance Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported fourth quarter net investment income and book value recovery.

New Mountain Finance Corporation reported a strong Q4 with positive credit migration and book value recovery, leading to a NAV per share of $12.62. The company's portfolio continued to perform well, and the board declared a first quarter distribution of $0.30 per share.

  • Portfolio continued to perform well through Q4 with $217 million of positive credit migration.
  • Book value recovery improved a further $0.38 to $12.62 per share.
  • First quarter distribution of $0.30 per share declared, payable on March 31, 2021.
  • Company's investment strategy focuses on middle market defensive growth companies.

Headline financials

Total Revenue

$68.1M

No prior period
EPS (adj)

$0.30

No prior period
NAV per Share

$12.62

No prior period
Statutory Debt/Equity

1.24

No prior period
Weighted Average YTM

8.6%

No prior period
Net Income

$58.5M

No prior period
Operating Income

$117M

No prior period
Cash & Equivalents

$79M

No prior period
Total Assets

$3.1B

No prior period

Revenue & EPS history

NMFC · Revenue · Quarterly

$68.1M

Q4 2020
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

NMFC · $2.88B total across 5 segments · Q3 2023

  • First Lien
    $1.69B-4.4%
  • Second Lien
    $546M-7.9%
  • Common Equity and Other
    $356M-8.7%
  • Preferred Equity
    $196M+12.3%
  • Subordinated
    $86.2M+16.9%

Forward guidance

Company anticipates further book value recovery in 2021 as COVID headwinds abate.

Tailwinds

  • Expected further book value recovery in 2021.
  • COVID headwinds are expected to abate.
  • Focus on defensive growth industries.
  • Strength of the team.
  • Continued stable credit performance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-0.2%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+0.0%

Avg return

30 days after

56%

10 / 18 earnings

Positive

+4.3%

Q1 2025

Best reaction

-4.3%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%-3.7%-8.8%
Q4 2025-4.3%-4.5%-8.1%
Q3 2025+0.2%-0.5%+0.4%
Q1 2025+4.3%+6.7%+9.4%
Q3 2024+0.4%-5.1%+4.9%
Q2 2024-1.0%-4.5%-1.5%
Q1 2024+0.0%-0.4%-0.8%
Q4 2023+1.8%+0.7%-0.9%
Q3 2023+2.7%+1.4%+3.1%
Q2 2023+0.5%+3.1%+0.9%
Q1 2023+0.5%+2.6%+7.5%
Q4 2022-1.7%-0.6%-5.1%
Q3 2022-3.0%+0.3%+1.0%
Q2 2022+0.7%+2.5%-0.3%
Q1 2022-2.7%-5.4%-2.9%
Q4 2021+1.0%+1.6%+2.4%
Q3 2021-1.8%-0.5%-3.3%
Q4 2020+0.2%+2.3%+3.0%

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