13.67 USD
0 (0%)
13.67 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. NEWT has a medium profitability rating, but doesn't score so well on its financial health evaluation. NEWT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- NEWT had positive earnings in the past year.
- 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
- The Return On Assets of NEWT (2.40%) is better than 65.98% of its industry peers.
- NEWT has a better Return On Equity (14.90%) than 80.41% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.26%, NEWT is in the better half of the industry, outperforming 62.89% of the companies in the same industry.
- NEWT had an Average Return On Invested Capital over the past 3 years of 4.45%. This is below the industry average of 8.46%.
| 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 has a better Profit Margin (19.15%) than 78.35% of its industry peers.
- In the last couple of years the Profit Margin of NEWT has declined.
- With an excellent Operating Margin value of 44.30%, NEWT belongs to the best of the industry, outperforming 85.57% of the companies in the same industry.
- NEWT's Operating Margin has declined in the last couple of years.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NEWT is destroying value.
- NEWT has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for NEWT has been increased compared to 5 years ago.
- Compared to 1 year ago, NEWT has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of -0.05, we must say that NEWT is in the distress zone and has some risk of bankruptcy.
- NEWT has a Altman-Z score of -0.05. This is in the lower half of the industry: NEWT underperforms 64.95% of its industry peers.
- A Debt/Equity ratio of 4.98 is on the high side and indicates that NEWT has dependencies on debt financing.
- NEWT has a worse Debt to Equity ratio (4.98) than 80.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.05 |
ROIC/WACC0.62
WACC6.91%
2.3 Liquidity
- A Current Ratio of 0.15 indicates that NEWT may have some problems paying its short term obligations.
- NEWT has a Current ratio of 0.15. This is in the lower half of the industry: NEWT underperforms 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
- The earnings per share for NEWT have decreased strongly by -43.58% in the last year.
- NEWT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.50% yearly.
- NEWT shows a strong growth in Revenue. In the last year, 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.
- NEWT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.21% yearly.
EPS Next Y16.23%
EPS Next 2Y9.76%
EPS Next 3Y8.36%
EPS Next 5Y12.02%
Revenue Next Year16.6%
Revenue Next 2Y14.73%
Revenue Next 3Y14.21%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 13.53, which indicates a correct valuation of NEWT.
- The rest of the industry has a similar Price/Earnings ratio as NEWT.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, NEWT is valued rather cheaply.
- The Price/Forward Earnings ratio is 5.82, which indicates a rather cheap valuation of NEWT.
- 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 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 5.82 |
4.2 Price Multiples
- NEWT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NEWT is cheaper than 81.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.3 |
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)0.83
PEG (5Y)N/A
EPS Next 2Y9.76%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.43%, NEWT is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.09, NEWT pays a better dividend. On top of this NEWT pays more dividend than 88.66% of the companies listed 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 | 5.43% |
5.2 History
- The dividend of NEWT decreases each year by -17.44%.
- NEWT has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of NEWT decreased 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 2Y9.76%
EPS Next 3Y8.36%
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%.