NEWTEKONE INC (NEWT) Stock Fundamental Analysis
NASDAQ:NEWT - Nasdaq - US6525262035 - Common Stock - Currency: USD
Taking everything into account, NEWT scores 5 out of 10 in our fundamental rating. NEWT was compared to 102 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.
1. Profitability
1.1 Basic Checks
In the past year NEWT was profitable.
In the past year NEWT has reported a negative cash flow from operations.
Each year in the past 5 years NEWT has been profitable.
In multiple years NEWT reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.97%, NEWT is in the better half of the industry, outperforming 63.73% of the companies in the same industry.
NEWT's Return On Equity of 17.64% is amongst the best of the industry. NEWT outperforms 82.35% of its industry peers.
The Return On Invested Capital of NEWT (4.58%) is better than 69.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NEWT is in line with the industry average of 7.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 17.64% | ||
| ROIC | 4.58% |
ROA(3y)4.8%
ROA(5y)4.71%
ROE(3y)15.95%
ROE(5y)14.1%
ROIC(3y)6.24%
ROIC(5y)6.3%
1.3 Margins
NEWT has a better Profit Margin (20.26%) than 77.45% of its industry peers.
NEWT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 37.76%, NEWT belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
NEWT's Operating Margin has declined in the last couple of years.
The Gross Margin of NEWT (92.20%) is better than 99.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.76% | ||
| PM (TTM) | 20.26% | ||
| GM | 92.2% |
OM growth 3Y-21.9%
OM growth 5Y-13.16%
PM growth 3Y-11.4%
PM growth 5Y-10.15%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NEWT is creating some 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.
The debt/assets ratio for NEWT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.16, we must say that NEWT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NEWT (0.16) is worse than 62.75% of its industry peers.
A Debt/Equity ratio of 4.63 is on the high side and indicates that NEWT has dependencies on debt financing.
The Debt to Equity ratio of NEWT (4.63) is worse than 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.16 |
ROIC/WACC0.9
WACC5.09%
2.3 Liquidity
A Current Ratio of 0.31 indicates that NEWT may have some problems paying its short term obligations.
NEWT has a worse Current ratio (0.31) than 68.63% of its industry peers.
A Quick Ratio of 0.31 indicates that NEWT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.31, NEWT is doing worse than 68.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 57.02% over the past year.
Measured over the past years, NEWT shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.76% on average per year.
NEWT shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.09%.
The Revenue has been growing by 17.02% on average over the past years. This is quite good.
EPS 1Y (TTM)57.02%
EPS 3Y-7.89%
EPS 5Y-3.76%
EPS Q2Q%21.62%
Revenue 1Y (TTM)39.09%
Revenue growth 3Y25.21%
Revenue growth 5Y17.02%
Sales Q2Q%23.26%
3.2 Future
NEWT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.00% yearly.
NEWT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.17% yearly.
EPS Next Y20.46%
EPS Next 2Y15.34%
EPS Next 3Y15.35%
EPS Next 5Y17%
Revenue Next Year17.32%
Revenue Next 2Y12.83%
Revenue Next 3Y13.17%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.42, the valuation of NEWT can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of NEWT indicates a rather cheap valuation: NEWT is cheaper than 85.29% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.46. NEWT is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.20, the valuation of NEWT can be described as very cheap.
Based on the Price/Forward Earnings ratio, NEWT is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NEWT to the average of the S&P500 Index (92.56), we can say NEWT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.42 | ||
| Fwd PE | 6.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEWT is valued a bit cheaper than 79.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.92 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NEWT's earnings are expected to grow with 15.35% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y15.34%
EPS Next 3Y15.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.91%, NEWT is a good candidate for dividend investing.
NEWT's Dividend Yield is rather good when compared to the industry average which is at 3.82. NEWT pays more dividend than 90.20% of the companies in the same industry.
NEWT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
5.2 History
The dividend of NEWT decreases each year by -19.82%.
NEWT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-19.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
39.76% of the earnings are spent on dividend by NEWT. This is a low number and sustainable payout ratio.
DP39.76%
EPS Next 2Y15.34%
EPS Next 3Y15.35%
NEWTEKONE INC
NASDAQ:NEWT (1/31/2025, 4:30:01 PM)
After market: 13.28 0 (0%)13.28
-0.06 (-0.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners38.78%
Inst Owner Change-0.59%
Ins Owners6.67%
Ins Owner Change4.19%
Market Cap349.40M
Analysts72.31
Price Target14.22 (7.08%)
Short Float %4.03%
Short Ratio6.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.91% |
Yearly Dividend0.57
Dividend Growth(5Y)-19.82%
DP39.76%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.74%
Min EPS beat(2)1.58%
Max EPS beat(2)1.89%
EPS beat(4)3
Avg EPS beat(4)11.22%
Min EPS beat(4)-10.15%
Max EPS beat(4)51.55%
EPS beat(8)5
Avg EPS beat(8)-3.76%
EPS beat(12)8
Avg EPS beat(12)-0.46%
EPS beat(16)9
Avg EPS beat(16)1.11%
Revenue beat(2)2
Avg Revenue beat(2)21.54%
Min Revenue beat(2)0.33%
Max Revenue beat(2)42.76%
Revenue beat(4)3
Avg Revenue beat(4)12.5%
Min Revenue beat(4)-10.96%
Max Revenue beat(4)42.76%
Revenue beat(8)5
Avg Revenue beat(8)10.46%
Revenue beat(12)9
Avg Revenue beat(12)46.67%
Revenue beat(16)13
Avg Revenue beat(16)57.78%
PT rev (1m)-4.13%
PT rev (3m)7.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.52%
EPS NY rev (1m)0%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.42 | ||
| Fwd PE | 6.2 | ||
| P/S | 1.42 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.24 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 8.92 |
EPS(TTM)1.79
EY13.48%
EPS(NY)2.14
Fwd EY16.13%
FCF(TTM)-3.11
FCFYN/A
OCF(TTM)-3.09
OCFYN/A
SpS9.33
BVpS10.71
TBVpS10.15
PEG (NY)0.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 17.64% | ||
| ROCE | 9.78% | ||
| ROIC | 4.58% | ||
| ROICexc | 5.1% | ||
| ROICexgc | 5.6% | ||
| OM | 37.76% | ||
| PM (TTM) | 20.26% | ||
| GM | 92.2% | ||
| FCFM | N/A |
ROA(3y)4.8%
ROA(5y)4.71%
ROE(3y)15.95%
ROE(5y)14.1%
ROIC(3y)6.24%
ROIC(5y)6.3%
ROICexc(3y)6.52%
ROICexc(5y)6.47%
ROICexgc(3y)9.75%
ROICexgc(5y)9.8%
ROCE(3y)8.63%
ROCE(5y)8.41%
ROICexcg growth 3Y-23.81%
ROICexcg growth 5Y-15.83%
ROICexc growth 3Y-14.68%
ROICexc growth 5Y-10.86%
OM growth 3Y-21.9%
OM growth 5Y-13.16%
PM growth 3Y-11.4%
PM growth 5Y-10.15%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.63 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 13.8 | ||
| Cap/Depr | 27.28% | ||
| Cap/Sales | 0.22% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 0.16 |
F-Score5
WACC5.09%
ROIC/WACC0.9
Cap/Depr(3y)5.29%
Cap/Depr(5y)7.18%
Cap/Sales(3y)0.08%
Cap/Sales(5y)0.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)57.02%
EPS 3Y-7.89%
EPS 5Y-3.76%
EPS Q2Q%21.62%
EPS Next Y20.46%
EPS Next 2Y15.34%
EPS Next 3Y15.35%
EPS Next 5Y17%
Revenue 1Y (TTM)39.09%
Revenue growth 3Y25.21%
Revenue growth 5Y17.02%
Sales Q2Q%23.26%
Revenue Next Year17.32%
Revenue Next 2Y12.83%
Revenue Next 3Y13.17%
Revenue Next 5YN/A
EBIT growth 1Y115.91%
EBIT growth 3Y-2.22%
EBIT growth 5Y1.62%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y40.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y41.22%
OCF growth 3YN/A
OCF growth 5YN/A