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NEWTEKONE INC (NEWT) Stock Fundamental Analysis

NASDAQ:NEWT - Nasdaq - US6525262035 - Common Stock - Currency: USD

11.59  -0.34 (-2.85%)

After market: 11.59 0 (0%)

Fundamental Rating

5

NEWT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 100 industry peers in the Financial Services industry. While NEWT is still in line with the averages on profitability rating, there are concerns on its financial health. An interesting combination arises when we look at growth and value: NEWT is growing strongly while it also seems undervalued.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year NEWT was profitable.
NEWT had a negative operating cash flow in the past year.
In the past 5 years NEWT has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: NEWT reported negative operating cash flow in multiple years.
NEWT Yearly Net Income VS EBIT VS OCF VS FCFNEWT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M -150M

1.2 Ratios

Looking at the Return On Assets, with a value of 2.29%, NEWT is in line with its industry, outperforming 60.00% of the companies in the same industry.
With a decent Return On Equity value of 16.20%, NEWT is doing good in the industry, outperforming 79.00% of the companies in the same industry.
The Return On Invested Capital of NEWT (4.71%) is better than 61.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEWT is significantly below the industry average of 11.84%.
The 3 year average ROIC (4.45%) for NEWT is below the current ROIC(4.71%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.29%
ROE 16.2%
ROIC 4.71%
ROA(3y)2.94%
ROA(5y)4.16%
ROE(3y)14.55%
ROE(5y)14.87%
ROIC(3y)4.45%
ROIC(5y)5.46%
NEWT Yearly ROA, ROE, ROICNEWT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

NEWT has a Profit Margin of 16.71%. This is in the better half of the industry: NEWT outperforms 73.00% of its industry peers.
In the last couple of years the Profit Margin of NEWT has declined.
Looking at the Operating Margin, with a value of 44.47%, NEWT belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NEWT has declined.
The Gross Margin of NEWT (93.35%) is better than 98.00% of its industry peers.
Industry RankSector Rank
OM 44.47%
PM (TTM) 16.71%
GM 93.35%
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
NEWT Yearly Profit, Operating, Gross MarginsNEWT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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0

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NEWT is destroying value.
Compared to 1 year ago, NEWT has more shares outstanding
NEWT has more shares outstanding than it did 5 years ago.
NEWT has a worse debt/assets ratio than last year.
NEWT Yearly Shares OutstandingNEWT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M 25M
NEWT Yearly Total Debt VS Total AssetsNEWT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

Based on the Altman-Z score of 0.04, we must say that NEWT is in the distress zone and has some risk of bankruptcy.
NEWT has a Altman-Z score of 0.04. This is in the lower half of the industry: NEWT underperforms 65.00% of its industry peers.
NEWT has a Debt/Equity ratio of 5.76. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 5.76, NEWT is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 5.76
Debt/FCF N/A
Altman-Z 0.04
ROIC/WACC0.75
WACC6.31%
NEWT Yearly LT Debt VS Equity VS FCFNEWT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

2.3 Liquidity

A Current Ratio of 0.26 indicates that NEWT may have some problems paying its short term obligations.
The Current ratio of NEWT (0.26) is worse than 68.00% of its industry peers.
NEWT has a Quick Ratio of 0.26. This is a bad value and indicates that NEWT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of NEWT (0.26) is worse than 68.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.26
Quick Ratio 0.26
NEWT Yearly Current Assets VS Current LiabilitesNEWT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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8

3. Growth

3.1 Past

NEWT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.97%, which is quite impressive.
NEWT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.30% yearly.
NEWT shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.91%.
The Revenue has been growing by 20.01% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)25.97%
EPS 3Y-17.2%
EPS 5Y-3.3%
EPS Q2Q%-7.89%
Revenue 1Y (TTM)34.91%
Revenue growth 3Y19.43%
Revenue growth 5Y20.01%
Sales Q2Q%29.1%

3.2 Future

The Earnings Per Share is expected to grow by 11.73% on average over the next years. This is quite good.
Based on estimates for the next years, NEWT will show a quite strong growth in Revenue. The Revenue will grow by 17.43% on average per year.
EPS Next Y15.88%
EPS Next 2Y9.84%
EPS Next 3Y13.31%
EPS Next 5Y11.73%
Revenue Next Year21.48%
Revenue Next 2Y17.43%
Revenue Next 3YN/A
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 Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
NEWT Yearly Revenue VS EstimatesNEWT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M
NEWT Yearly EPS VS EstimatesNEWT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3

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7

4. Valuation

4.1 Price/Earnings Ratio

NEWT is valuated cheaply with a Price/Earnings ratio of 5.97.
Based on the Price/Earnings ratio, NEWT is valued cheaply inside the industry as 89.00% of the companies are valued more expensively.
NEWT is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.88, 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 88.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NEWT to the average of the S&P500 Index (21.76), we can say NEWT is valued rather cheaply.
Industry RankSector Rank
PE 5.97
Fwd PE 4.88
NEWT Price Earnings VS Forward Price EarningsNEWT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

NEWT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NEWT is cheaper than 89.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.21
NEWT Per share dataNEWT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

NEWT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NEWT's earnings are expected to grow with 13.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y9.84%
EPS Next 3Y13.31%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 8.60%, NEWT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.00, NEWT pays a better dividend. On top of this NEWT pays more dividend than 89.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, NEWT pays a better dividend.
Industry RankSector Rank
Dividend Yield 8.6%

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.
NEWT has decreased its dividend recently.
Dividend Growth(5Y)-17.44%
Div Incr Years1
Div Non Decr Years1
NEWT Yearly Dividends per shareNEWT Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

42.30% of the earnings are spent on dividend by NEWT. This is a bit on the high side, but may be sustainable.
DP42.3%
EPS Next 2Y9.84%
EPS Next 3Y13.31%
NEWT Yearly Income VS Free CF VS DividendNEWT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M -150M
NEWT Dividend Payout.NEWT Dividend Payout, showing the Payout Ratio.NEWT Dividend Payout.PayoutRetained Earnings

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NEWTEKONE INC

NASDAQ:NEWT (7/11/2025, 8:00:02 PM)

After market: 11.59 0 (0%)

11.59

-0.34 (-2.85%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)05-06 2025-05-06/amc
Earnings (Next)07-28 2025-07-28/amc
Inst Owners42.12%
Inst Owner Change0%
Ins Owners6.53%
Ins Owner Change2.79%
Market Cap305.28M
Analysts73.33
Price Target14.48 (24.94%)
Short Float %11.13%
Short Ratio11.34
Dividend
Industry RankSector Rank
Dividend Yield 8.6%
Yearly Dividend0.79
Dividend Growth(5Y)-17.44%
DP42.3%
Div Incr Years1
Div Non Decr Years1
Ex-Date07-09 2025-07-09 (0.19)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.61%
Min EPS beat(2)-3.23%
Max EPS beat(2)2.01%
EPS beat(4)3
Avg EPS beat(4)1.74%
Min EPS beat(4)-3.23%
Max EPS beat(4)6.31%
EPS beat(8)5
Avg EPS beat(8)5.03%
EPS beat(12)7
Avg EPS beat(12)-2.92%
EPS beat(16)10
Avg EPS beat(16)3.08%
Revenue beat(2)2
Avg Revenue beat(2)13.05%
Min Revenue beat(2)9.43%
Max Revenue beat(2)16.67%
Revenue beat(4)4
Avg Revenue beat(4)7.32%
Min Revenue beat(4)0.33%
Max Revenue beat(4)16.67%
Revenue beat(8)5
Avg Revenue beat(8)3.49%
Revenue beat(12)9
Avg Revenue beat(12)20.05%
Revenue beat(16)13
Avg Revenue beat(16)50.15%
PT rev (1m)-0.28%
PT rev (3m)-0.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)0.94%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.38%
Valuation
Industry RankSector Rank
PE 5.97
Fwd PE 4.88
P/S 1.04
P/FCF N/A
P/OCF N/A
P/B 1.01
P/tB 1.06
EV/EBITDA 6.21
EPS(TTM)1.94
EY16.74%
EPS(NY)2.38
Fwd EY20.51%
FCF(TTM)-6.72
FCFYN/A
OCF(TTM)-6.7
OCFYN/A
SpS11.13
BVpS11.48
TBVpS10.92
PEG (NY)0.38
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.29%
ROE 16.2%
ROCE 12.05%
ROIC 4.71%
ROICexc 5.43%
ROICexgc 5.91%
OM 44.47%
PM (TTM) 16.71%
GM 93.35%
FCFM N/A
ROA(3y)2.94%
ROA(5y)4.16%
ROE(3y)14.55%
ROE(5y)14.87%
ROIC(3y)4.45%
ROIC(5y)5.46%
ROICexc(3y)5%
ROICexc(5y)5.8%
ROICexgc(3y)6.64%
ROICexgc(5y)8.35%
ROCE(3y)8.52%
ROCE(5y)8.88%
ROICexcg growth 3Y-25.12%
ROICexcg growth 5Y-10.78%
ROICexc growth 3Y-15.59%
ROICexc growth 5Y-4.63%
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
F-Score3
Asset Turnover0.14
Health
Industry RankSector Rank
Debt/Equity 5.76
Debt/FCF N/A
Debt/EBITDA 13.21
Cap/Depr 29.97%
Cap/Sales 0.14%
Interest Coverage 1.53
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.26
Quick Ratio 0.26
Altman-Z 0.04
F-Score3
WACC6.31%
ROIC/WACC0.75
Cap/Depr(3y)13.5%
Cap/Depr(5y)8.1%
Cap/Sales(3y)0.13%
Cap/Sales(5y)0.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.97%
EPS 3Y-17.2%
EPS 5Y-3.3%
EPS Q2Q%-7.89%
EPS Next Y15.88%
EPS Next 2Y9.84%
EPS Next 3Y13.31%
EPS Next 5Y11.73%
Revenue 1Y (TTM)34.91%
Revenue growth 3Y19.43%
Revenue growth 5Y20.01%
Sales Q2Q%29.1%
Revenue Next Year21.48%
Revenue Next 2Y17.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y88.42%
EBIT growth 3Y3.47%
EBIT growth 5Y10.99%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y4.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4.74%
OCF growth 3YN/A
OCF growth 5YN/A