NEWTEKONE INC (NEWT) Stock Fundamental Analysis
NASDAQ:NEWT - Nasdaq - US6525262035 - Common Stock - Currency: USD
Taking everything into account, NEWT scores 4 out of 10 in our fundamental rating. NEWT was compared to 101 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. NEWT may be a bit undervalued, certainly considering the very reasonable score on growth
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 4 of the past 5 years.
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 61.39% of the companies in the same industry.
NEWT has a Return On Equity of 17.64%. This is in the better half of the industry: NEWT outperforms 79.21% of its industry peers.
NEWT has a better Return On Invested Capital (4.58%) than 63.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEWT is in line with the industry average of 7.61%.
| 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
The Profit Margin of NEWT (20.26%) is better than 76.24% of its industry peers.
NEWT's Profit Margin has declined in the last couple of years.
NEWT has a Operating Margin of 37.76%. This is amongst the best in the industry. NEWT outperforms 84.16% of its industry peers.
In the last couple of years the Operating Margin of NEWT has declined.
With an excellent Gross Margin value of 92.20%, NEWT belongs to the best of the industry, outperforming 99.01% of the companies in the same industry.
| 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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
NEWT has an Altman-Z score of 0.15. 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 0.15, NEWT is not doing good in the industry: 65.35% of the companies in the same industry are doing better.
NEWT has a Debt/Equity ratio of 4.63. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.63, NEWT is not doing good in the industry: 82.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.15 |
ROIC/WACC0.87
WACC5.28%
2.3 Liquidity
NEWT has a Current Ratio of 0.31. This is a bad value and indicates that NEWT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.31, NEWT is not doing good in the industry: 67.33% of the companies in the same industry are doing better.
NEWT has a Quick Ratio of 0.31. 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 Quick ratio (0.31) than 67.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
NEWT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.36%, which is quite impressive.
NEWT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.50% yearly.
EPS 1Y (TTM)22.36%
EPS 3Y-17.48%
EPS 5Y-3.5%
EPS Q2Q%30.19%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%31.01%
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 15.99% on average per year.
NEWT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.15% yearly.
EPS Next Y11.38%
EPS Next 2Y12.57%
EPS Next 3Y16.59%
EPS Next 5Y15.99%
Revenue Next Year8.51%
Revenue Next 2Y11.15%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 6.59, the valuation of NEWT can be described as very cheap.
Based on the Price/Earnings ratio, NEWT is valued cheaply inside the industry as 87.13% of the companies are valued more expensively.
NEWT is valuated cheaply when we compare the Price/Earnings ratio to 29.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 5.98, which indicates a rather cheap valuation of NEWT.
NEWT's Price/Forward Earnings ratio is rather cheap when compared to the industry. NEWT is cheaper than 91.09% of the companies in the same industry.
NEWT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.66.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 5.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEWT is valued a bit cheaper than the industry average as 79.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.83 |
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.
A more expensive valuation may be justified as NEWT's earnings are expected to grow with 16.59% in the coming years.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y12.57%
EPS Next 3Y16.59%
5. Dividend
5.1 Amount
NEWT has a Yearly Dividend Yield of 5.85%, which is a nice return.
Compared to an average industry Dividend Yield of 3.88, NEWT pays a better dividend. On top of this NEWT pays more dividend than 89.11% 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 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
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 2Y12.57%
EPS Next 3Y16.59%
12.99
-0.03 (-0.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners36.32%
Inst Owner Change3.22%
Ins Owners6.65%
Ins Owner Change3.87%
Market Cap341.77M
Analysts72.31
Price Target14.22 (9.47%)
Short Float %3.85%
Short Ratio6.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
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)4.1%
Min EPS beat(2)1.89%
Max EPS beat(2)6.31%
EPS beat(4)3
Avg EPS beat(4)12.4%
Min EPS beat(4)-10.15%
Max EPS beat(4)51.55%
EPS beat(8)5
Avg EPS beat(8)-3.17%
EPS beat(12)8
Avg EPS beat(12)-0.07%
EPS beat(16)9
Avg EPS beat(16)1.41%
Revenue beat(2)2
Avg Revenue beat(2)51.35%
Min Revenue beat(2)2.85%
Max Revenue beat(2)99.86%
Revenue beat(4)3
Avg Revenue beat(4)27.41%
Min Revenue beat(4)-10.96%
Max Revenue beat(4)99.86%
Revenue beat(8)5
Avg Revenue beat(8)17.91%
Revenue beat(12)9
Avg Revenue beat(12)51.64%
Revenue beat(16)13
Avg Revenue beat(16)61.51%
PT rev (1m)0%
PT rev (3m)-6.6%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)1.43%
EPS NY rev (1m)0%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)2.69%
Revenue NQ rev (3m)3.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 5.98 | ||
| P/S | 1.39 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.21 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 8.83 |
EPS(TTM)1.97
EY15.17%
EPS(NY)2.17
Fwd EY16.72%
FCF(TTM)-3.11
FCFYN/A
OCF(TTM)-3.09
OCFYN/A
SpS9.33
BVpS10.71
TBVpS10.15
PEG (NY)0.58
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 | 0.15 |
F-Score5
WACC5.28%
ROIC/WACC0.87
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)22.36%
EPS 3Y-17.48%
EPS 5Y-3.5%
EPS Q2Q%30.19%
EPS Next Y11.38%
EPS Next 2Y12.57%
EPS Next 3Y16.59%
EPS Next 5Y15.99%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%31.01%
Revenue Next Year8.51%
Revenue Next 2Y11.15%
Revenue Next 3YN/A
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