Piotroski F-Score is 9, indicates a very healthy situation.
The zones of discrimination were as such:
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
New Mountain Finance has an F-score of 9. It is a good or high score, which usually indicates a very healthy situation.
The historical rank and industry rank for New Mountain Finance's Piotroski F-Score or its related term are showing as below:
NMFC'
s Piotroski F-Score Range Over the Past 10 Years
Min: 1 Med: 4 Max: 9
Current: 9
During the past 13 years, the highest Piotroski F-Score of New Mountain Finance was 9. The lowest was 1. And the median was 4.
New Mountain Finance Piotroski F-Score Historical Data
The historical data trend for New Mountain Finance's Piotroski F-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Asset Management subindustry, New Mountain Finance's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
New Mountain Finance Piotroski F-Score Distribution
For the Asset Management industry and Financial Services sector, New Mountain Finance's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where New Mountain Finance's Piotroski F-Score falls into.
How is the Piotroski F-Score calculated?
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
This Year (Dec23) TTM:
Last Year (Dec22) TTM:
Net Income was 44.573 + 34.83 + 28.696 + 27.244 = $135.3 Mil. Cash Flow from Operations was -3.504 + 123.443 + 87.107 + 125.683 = $332.7 Mil. Revenue was 46.477 + 37.477 + 29.155 + 30.566 = $143.7 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(3354.927 + 3378.935 + 3296.981 + 3279.586 + 3159.214) / 5 = $3293.9286 Mil. Total Assets at the begining of this year (Dec22) was $3,354.9 Mil. Long-Term Debt & Capital Lease Obligation was $1,785.4 Mil. Total Assets was $3,159.2 Mil. Total Liabilities was $1,827.5 Mil.
Net Income was 36.192 + 15.954 + 7.705 + 14.881 = $74.7 Mil.
Revenue was 38.437 + 16.333 + 8.557 + 25.762 = $89.1 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(3295.812 + 3361.843 + 3404.781 + 3347.993 + 3354.927) / 5 = $3353.0712 Mil. Total Assets at the begining of last year (Dec21) was $3,295.8 Mil. Long-Term Debt & Capital Lease Obligation was $1,980.7 Mil. Total Assets was $3,354.9 Mil. Total Liabilities was $2,028.7 Mil.
*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.
Profitability
Question 1. Return on Assets (ROA)
Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
New Mountain Finance's current Net Income (TTM) was 135.3.
==> Positive ==> Score 1.
Question 2. Cash Flow Return on Assets (CFROA)
Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.
New Mountain Finance's return on assets of this year was 0.04034156. New Mountain Finance's return on assets of last year was 0.02267484.
==> This year is higher. ==> Score 1.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Score 1 if CFROA > ROA, 0 if CFROA <= ROA.
New Mountain Finance's current Net Income (TTM) was 135.3. New Mountain Finance's current Cash Flow from Operations (TTM) was 332.7.
==> 332.7 > 135.3 ==> CFROA > ROA ==> Score 1.
Funding
Question 5. Change in Gearing or Leverage
Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.
Score 0 if this year's gearing is higher, 1 otherwise.
New Mountain Finance's gearing of this year was 0.54204241. New Mountain Finance's gearing of last year was 0.59070055.
==> This year is lower or equal to last year. ==> Score 1.
Question 6. Change in Working Capital (Liquidity)
Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.
Score 1 if this year's current ratio is higher, 0 if it's lower
* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.
New Mountain Finance's current ratio of this year was 1.72871658. New Mountain Finance's current ratio of last year was 1.65370309.
==> This year's current ratio is higher. ==> Score 1.
Question 7. Change in Shares in Issue
Compare the number of shares in issue this year, to the number in issue last year.
Score 0 if there is larger number of shares in issue this year, 1 otherwise.
New Mountain Finance's number of shares in issue this year was 120.168. New Mountain Finance's number of shares in issue last year was 122.066.
==> There is smaller number of shares in issue this year, or the same. ==> Score 1.
Efficiency
Question 8. Change in Gross Margin
Compare this year's gross margin (Gross Profit divided by sales) to last year's.
Score 1 if this year's gross margin is higher, 0 if it's lower.
* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.
New Mountain Finance's net margin of this year was 0.942008. New Mountain Finance's net margin of last year was 0.83884655.
==> This year's net margin is higher. ==> Score 1.
Question 9. Change in asset turnover
Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.
Score 1 if this year's asset turnover ratio is higher, 0 if it's lower
New Mountain Finance's asset turnover of this year was 0.04282507. New Mountain Finance's asset turnover of last year was 0.02703097.
==> This year's asset turnover is higher. ==> Score 1.
Evaluation
Piotroski F-Score
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Que. 1
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Que. 2
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Que. 9
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1
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9
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
New Mountain Finance has an F-score of 9. It is a good or high score, which usually indicates a very healthy situation.
New Mountain Finance (NAS:NMFC) Piotroski F-Score Explanation
The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.
He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.
He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.
What he found was something that exceeded his most optimistic expectations.
Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.
Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).
Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.
New Mountain Finance Piotroski F-Score Related Terms
Thank you for viewing the detailed overview of New Mountain Finance's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
New Mountain Finance (New Mountain Finance) Business Description
New Mountain Finance Corp is a closed-end, non-diversified management investment company. It invests in equity interests such as preferred stock, common stock, warrants, or options received in connection with debt investments or may include direct investment in the equity of private companies. The company's investment objective is to generate current income and capital appreciation through the sourcing and origination of debt securities at all levels of the capital structure, including first and second-lien debt, notes, bonds, and mezzanine securities.
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