13.69 USD
-0.31 (-2.21%)
13.69 USD
0 (0%)
NEWT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 97 industry peers in the Financial Services industry. There are concerns on the financial health of NEWT while its profitability can be described as average. NEWT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year NEWT was profitable.
- NEWT had a negative operating cash flow in the past year.
- NEWT had positive earnings in each of the past 5 years.
- In multiple years NEWT reported negative operating cash flow during the last 5 years.
1.2 Ratios
- With a decent Return On Assets value of 2.40%, NEWT is doing good in the industry, outperforming 65.98% of the companies in the same industry.
- NEWT has a better Return On Equity (14.90%) than 80.41% of its industry peers.
- NEWT has a better Return On Invested Capital (4.26%) than 61.86% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NEWT is below the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 14.9% | ||
| ROIC | 4.26% |
ROA(3y)2.94%
ROA(5y)4.16%
ROE(3y)14.55%
ROE(5y)14.87%
ROIC(3y)4.45%
ROIC(5y)5.46%
1.3 Margins
- NEWT's Profit Margin of 19.15% is fine compared to the rest of the industry. NEWT outperforms 77.32% of its industry peers.
- NEWT's Profit Margin has declined in the last couple of years.
- The Operating Margin of NEWT (44.30%) is better than 84.54% of its industry peers.
- In the last couple of years the Operating Margin of NEWT has declined.
- NEWT's Gross Margin of 93.95% is amongst the best of the industry. NEWT outperforms 97.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.3% | ||
| PM (TTM) | 19.15% | ||
| GM | 93.95% |
OM growth 3Y-13.36%
OM growth 5Y-7.51%
PM growth 3Y-29.94%
PM growth 5Y-13.6%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- NEWT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, NEWT has more shares outstanding
- Compared to 5 years ago, NEWT has more shares outstanding
- The debt/assets ratio for NEWT is higher compared to a year ago.
2.2 Solvency
- NEWT has an Altman-Z score of -0.05. This is a bad value and indicates that NEWT is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of -0.05, NEWT is not doing good in the industry: 63.92% of the companies in the same industry are doing better.
- NEWT has a Debt/Equity ratio of 4.98. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 4.98, NEWT is not doing good in the industry: 80.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.05 |
ROIC/WACC0.62
WACC6.92%
2.3 Liquidity
- NEWT has a Current Ratio of 0.15. This is a bad value and indicates that NEWT is not financially healthy enough and could expect problems in meeting its short term obligations.
- NEWT has a worse Current ratio (0.15) than 71.13% of its industry peers.
- A Quick Ratio of 0.15 indicates that NEWT may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.15, NEWT is doing worse than 71.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
- NEWT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.58%.
- NEWT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.50% yearly.
- Looking at the last year, NEWT shows a very strong growth in Revenue. The Revenue has grown by 22.63%.
- The Revenue has been growing by 20.01% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-43.58%
EPS 3Y-17.48%
EPS 5Y-3.5%
EPS Q2Q%48.89%
Revenue 1Y (TTM)22.63%
Revenue growth 3Y19.43%
Revenue growth 5Y20.01%
Sales Q2Q%19.27%
3.2 Future
- Based on estimates for the next years, NEWT will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.02% on average per year.
- Based on estimates for the next years, NEWT will show a quite strong growth in Revenue. The Revenue will grow by 14.21% on average per year.
EPS Next Y16.44%
EPS Next 2Y8.49%
EPS Next 3Y7.01%
EPS Next 5Y12.02%
Revenue Next Year16.6%
Revenue Next 2Y14.73%
Revenue Next 3Y14.21%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.55, the valuation of NEWT can be described as correct.
- The rest of the industry has a similar Price/Earnings ratio as NEWT.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, NEWT is valued rather cheaply.
- With a Price/Forward Earnings ratio of 5.97, the valuation of NEWT can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NEWT indicates a rather cheap valuation: NEWT is cheaper than 84.54% of the companies listed in the same industry.
- NEWT is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 5.97 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEWT indicates a rather cheap valuation: NEWT is cheaper than 81.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.37 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.82
PEG (5Y)N/A
EPS Next 2Y8.49%
EPS Next 3Y7.01%
5. Dividend
5.1 Amount
- NEWT has a Yearly Dividend Yield of 5.21%, which is a nice return.
- NEWT's Dividend Yield is rather good when compared to the industry average which is at 2.24. NEWT pays more dividend than 83.51% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, NEWT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.21% |
5.2 History
- The dividend of NEWT decreases each year by -17.44%.
- NEWT has paid a dividend for at least 10 years, which is a reliable track record.
- NEWT has decreased its dividend recently.
Dividend Growth(5Y)-17.44%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 37.16% of the earnings are spent on dividend by NEWT. This is a low number and sustainable payout ratio.
DP37.16%
EPS Next 2Y8.49%
EPS Next 3Y7.01%
NEWTEKONE INC / NEWT FAQ
Can you provide the ChartMill fundamental rating for NEWTEKONE INC?
ChartMill assigns a fundamental rating of 4 / 10 to NEWT.
Can you provide the valuation status for NEWTEKONE INC?
ChartMill assigns a valuation rating of 5 / 10 to NEWTEKONE INC (NEWT). This can be considered as Fairly Valued.
Can you provide the profitability details for NEWTEKONE INC?
NEWTEKONE INC (NEWT) has a profitability rating of 5 / 10.
What is the financial health of NEWTEKONE INC (NEWT) stock?
The financial health rating of NEWTEKONE INC (NEWT) is 0 / 10.
How sustainable is the dividend of NEWTEKONE INC (NEWT) stock?
The dividend rating of NEWTEKONE INC (NEWT) is 6 / 10 and the dividend payout ratio is 37.16%.