New Mountain Net Income vs. Price To Earning

NMFC Stock  USD 11.86  0.08  0.68%   
Considering New Mountain's profitability and operating efficiency indicators, New Mountain Finance is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess New Mountain's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2009-03-31
Previous Quarter
34.5 M
Current Value
23.9 M
Quarterly Volatility
34.5 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, New Mountain's Operating Cash Flow Sales Ratio is projected to increase significantly based on the last few years of reporting. At present, New Mountain's Net Income Applicable To Common Shares is projected to increase significantly based on the last few years of reporting. The current year's Net Income Per Share is expected to grow to 2.42, whereas Accumulated Other Comprehensive Income is projected to grow to (154.6 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.880.7606
Fairly Up
Slightly volatile
For New Mountain profitability analysis, we use financial ratios and fundamental drivers that measure the ability of New Mountain to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well New Mountain Finance utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between New Mountain's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of New Mountain Finance over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of New Mountain. If investors know New will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about New Mountain listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.19)
Dividend Share
1.28
Earnings Share
1.04
Revenue Per Share
3.557
Quarterly Revenue Growth
0.01
The market value of New Mountain Finance is measured differently than its book value, which is the value of New that is recorded on the company's balance sheet. Investors also form their own opinion of New Mountain's value that differs from its market value or its book value, called intrinsic value, which is New Mountain's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because New Mountain's market value can be influenced by many factors that don't directly affect New Mountain's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between New Mountain's value and its price as these two are different measures arrived at by different means. Investors typically determine if New Mountain is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, New Mountain's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

New Mountain Finance Price To Earning vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining New Mountain's current stock value. Our valuation model uses many indicators to compare New Mountain value to that of its competitors to determine the firm's financial worth.
New Mountain Finance is regarded third in net income category among its peers. It also is regarded third in price to earning category among its peers . The ratio of Net Income to Price To Earning for New Mountain Finance is about  6,435,711 . At present, New Mountain's Net Income is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the New Mountain's earnings, one of the primary drivers of an investment's value.

New Price To Earning vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

New Mountain

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
135.34 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

New Mountain

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
21.03 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

New Price To Earning Comparison

New Mountain is currently under evaluation in price to earning category among its peers.

New Mountain Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in New Mountain, profitability is also one of the essential criteria for including it into their portfolios because, without profit, New Mountain will eventually generate negative long term returns. The profitability progress is the general direction of New Mountain's change in net profit over the period of time. It can combine multiple indicators of New Mountain, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-162.8 M-154.6 M
Operating Income285.1 M299.4 M
Income Before Tax137.9 M88.7 M
Total Other Income Expense Net-147.2 M-139.9 M
Net Income135.3 M86.3 M
Net Income Applicable To Common Shares85.9 M93.8 M
Net Income From Continuing Ops123.4 M104.7 M
Income Tax Expense1.8 M1.4 M
Interest Income274.9 M196.2 M
Net Interest Income152.5 M135.2 M
Change To Netincome-8.5 M-8.9 M
Net Income Per Share 1.34  2.42 
Income Quality 2.46  2.58 
Net Income Per E B T 0.98  1.07 

New Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on New Mountain. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of New Mountain position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the New Mountain's important profitability drivers and their relationship over time.

Use New Mountain in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if New Mountain position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in New Mountain will appreciate offsetting losses from the drop in the long position's value.

New Mountain Pair Trading

New Mountain Finance Pair Trading Analysis

The ability to find closely correlated positions to New Mountain could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace New Mountain when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back New Mountain - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling New Mountain Finance to buy it.
The correlation of New Mountain is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as New Mountain moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if New Mountain Finance moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for New Mountain can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your New Mountain position

In addition to having New Mountain in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Furniture Thematic Idea Now

Furniture
Furniture Theme
Companies producing and selling home and office furniture. The Furniture theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Furniture Theme or any other thematic opportunities.
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When determining whether New Mountain Finance offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of New Mountain's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of New Mountain Finance Stock. Outlined below are crucial reports that will aid in making a well-informed decision on New Mountain Finance Stock:
Check out Correlation Analysis.
You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
To fully project New Mountain's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of New Mountain Finance at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include New Mountain's income statement, its balance sheet, and the statement of cash flows.
Potential New Mountain investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although New Mountain investors may work on each financial statement separately, they are all related. The changes in New Mountain's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on New Mountain's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.