NEWTEKONE INC (NEWT) Stock Fundamental Analysis
USA - NASDAQ:NEWT - US6525262035 - Common Stock
10.96 USD
-0.08 (-0.72%)
10.96 USD
0 (0%)
NEWT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 99 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
The Return On Assets of NEWT (2.43%) is better than 63.64% of its industry peers.
NEWT has a Return On Equity of 16.57%. This is amongst the best in the industry. NEWT outperforms 83.84% of its industry peers.
NEWT's Return On Invested Capital of 4.13% is in line compared to the rest of the industry. NEWT outperforms 59.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEWT is below the industry average of 7.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 16.57% | ||
| ROIC | 4.13% |
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
With a decent Profit Margin value of 18.54%, NEWT is doing good in the industry, outperforming 75.76% of the companies in the same industry.
NEWT's Profit Margin has declined in the last couple of years.
NEWT has a Operating Margin of 41.07%. This is amongst the best in the industry. NEWT outperforms 80.81% of its industry peers.
In the last couple of years the Operating Margin of NEWT has declined.
NEWT has a Gross Margin of 93.47%. This is amongst the best in the industry. NEWT outperforms 97.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.07% | ||
| PM (TTM) | 18.54% | ||
| GM | 93.47% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEWT is destroying value.
Compared to 1 year ago, NEWT has more shares outstanding
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
NEWT has an Altman-Z score of -0.08. This is a bad value and indicates that NEWT is not financially healthy and even has some risk of bankruptcy.
NEWT's Altman-Z score of -0.08 is on the low side compared to the rest of the industry. NEWT is outperformed by 65.66% of its industry peers.
A Debt/Equity ratio of 5.58 is on the high side and indicates that NEWT has dependencies on debt financing.
NEWT's Debt to Equity ratio of 5.58 is on the low side compared to the rest of the industry. NEWT is outperformed by 79.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.08 |
ROIC/WACC0.76
WACC5.47%
2.3 Liquidity
NEWT has a Current Ratio of 0.18. 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 (0.18) than 72.73% of its industry peers.
NEWT has a Quick Ratio of 0.18. 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 Quick ratio of 0.18. This is in the lower half of the industry: NEWT underperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
NEWT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.80%.
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 21.18%.
The Revenue has been growing by 20.01% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-53.8%
EPS 3Y-17.48%
EPS 5Y-3.5%
EPS Q2Q%-262.79%
Revenue 1Y (TTM)21.18%
Revenue growth 3Y19.43%
Revenue growth 5Y20.01%
Sales Q2Q%11.72%
3.2 Future
The Earnings Per Share is expected to grow by 12.02% 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 13.38% on average per year.
EPS Next Y17.12%
EPS Next 2Y9.35%
EPS Next 3Y7.27%
EPS Next 5Y12.02%
Revenue Next Year18.54%
Revenue Next 2Y15.43%
Revenue Next 3Y13.38%
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 13.87, which indicates a correct valuation of NEWT.
Compared to the rest of the industry, the Price/Earnings ratio of NEWT is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.34. NEWT is valued slightly cheaper when compared to this.
NEWT is valuated cheaply with a Price/Forward Earnings ratio of 4.70.
89.90% of the companies in the same industry are more expensive than NEWT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, NEWT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 4.7 |
4.2 Price Multiples
NEWT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NEWT is cheaper than 85.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.74 |
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)0.81
PEG (5Y)N/A
EPS Next 2Y9.35%
EPS Next 3Y7.27%
5. Dividend
5.1 Amount
NEWT has a Yearly Dividend Yield of 8.89%, which is a nice return.
Compared to an average industry Dividend Yield of 4.87, NEWT pays a better dividend. On top of this NEWT pays more dividend than 89.90% of the companies listed in the same industry.
NEWT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.89% |
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
40.47% of the earnings are spent on dividend by NEWT. This is a bit on the high side, but may be sustainable.
DP40.47%
EPS Next 2Y9.35%
EPS Next 3Y7.27%
10.96
-0.08 (-0.72%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners47.38%
Inst Owner Change0%
Ins Owners6.58%
Ins Owner Change2.88%
Market Cap310.39M
Analysts73.85
Price Target15.3 (39.6%)
Short Float %9.6%
Short Ratio10.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.89% |
Yearly Dividend0.79
Dividend Growth(5Y)-17.44%
DP40.47%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-117%
Min EPS beat(2)-230.76%
Max EPS beat(2)-3.23%
EPS beat(4)2
Avg EPS beat(4)-57.52%
Min EPS beat(4)-230.76%
Max EPS beat(4)2.01%
EPS beat(8)5
Avg EPS beat(8)-23.36%
EPS beat(12)6
Avg EPS beat(12)-22.68%
EPS beat(16)9
Avg EPS beat(16)-15.28%
Revenue beat(2)1
Avg Revenue beat(2)4.91%
Min Revenue beat(2)-6.85%
Max Revenue beat(2)16.67%
Revenue beat(4)3
Avg Revenue beat(4)4.89%
Min Revenue beat(4)-6.85%
Max Revenue beat(4)16.67%
Revenue beat(8)5
Avg Revenue beat(8)2.78%
Revenue beat(12)8
Avg Revenue beat(12)11.76%
Revenue beat(16)12
Avg Revenue beat(16)41.25%
PT rev (1m)6.57%
PT rev (3m)5.63%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)1.62%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 4.7 | ||
| P/S | 1.11 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.99 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 6.74 |
EPS(TTM)0.79
EY7.21%
EPS(NY)2.33
Fwd EY21.27%
FCF(TTM)-13.41
FCFYN/A
OCF(TTM)-13.39
OCFYN/A
SpS9.85
BVpS11.02
TBVpS10.51
PEG (NY)0.81
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 16.57% | ||
| ROCE | 11.82% | ||
| ROIC | 4.13% | ||
| ROICexc | 4.55% | ||
| ROICexgc | 5.13% | ||
| OM | 41.07% | ||
| PM (TTM) | 18.54% | ||
| GM | 93.47% | ||
| 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-Score4
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.58 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 15.04 | ||
| Cap/Depr | 34.93% | ||
| Cap/Sales | 0.14% | ||
| Interest Coverage | 1.3 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | -0.08 |
F-Score4
WACC5.47%
ROIC/WACC0.76
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)-53.8%
EPS 3Y-17.48%
EPS 5Y-3.5%
EPS Q2Q%-262.79%
EPS Next Y17.12%
EPS Next 2Y9.35%
EPS Next 3Y7.27%
EPS Next 5Y12.02%
Revenue 1Y (TTM)21.18%
Revenue growth 3Y19.43%
Revenue growth 5Y20.01%
Sales Q2Q%11.72%
Revenue Next Year18.54%
Revenue Next 2Y15.43%
Revenue Next 3Y13.38%
Revenue Next 5YN/A
EBIT growth 1Y40%
EBIT growth 3Y3.47%
EBIT growth 5Y10.99%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-87.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-87.65%
OCF growth 3YN/A
OCF growth 5YN/A