NEWTEKONE INC (NEWT) Stock Fundamental Analysis
USA - NASDAQ:NEWT - US6525262035 - Common Stock
11.53 USD
-0.18 (-1.54%)
11.53 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NEWT. 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 has a decent growth rate and is not valued too expensively.
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.
NEWT had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: NEWT reported negative operating cash flow in multiple years.
1.2 Ratios
NEWT's Return On Assets of 2.43% is fine compared to the rest of the industry. NEWT outperforms 63.37% of its industry peers.
NEWT's Return On Equity of 16.57% is amongst the best of the industry. NEWT outperforms 84.16% of its industry peers.
NEWT's Return On Invested Capital of 4.13% is fine compared to the rest of the industry. NEWT outperforms 60.40% of its industry peers.
NEWT had an Average Return On Invested Capital over the past 3 years of 4.45%. This is below the industry average of 7.64%.
| 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 76.24% of the companies in the same industry.
NEWT's Profit Margin has declined in the last couple of years.
The Operating Margin of NEWT (41.07%) is better than 81.19% of its industry peers.
NEWT's Operating Margin has declined in the last couple of years.
The Gross Margin of NEWT (93.47%) is better than 98.02% 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
NEWT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NEWT has more shares outstanding
Compared to 5 years ago, NEWT has more shares outstanding
Compared to 1 year ago, NEWT has a worse debt to assets ratio.
2.2 Solvency
NEWT has an Altman-Z score of -0.07. 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 -0.07, NEWT is not doing good in the industry: 66.34% of the companies in the same industry are doing better.
NEWT has a Debt/Equity ratio of 5.58. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 5.58, NEWT is doing worse than 80.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.07 |
ROIC/WACC0.65
WACC6.38%
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.
The Current ratio of NEWT (0.18) is worse than 72.28% of its industry peers.
A Quick Ratio of 0.18 indicates that NEWT may have some problems paying its short term obligations.
NEWT's Quick ratio of 0.18 is on the low side compared to the rest of the industry. NEWT is outperformed by 72.28% 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%.
Measured over the past years, NEWT shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.50% on average per year.
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
NEWT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.02% yearly.
The Revenue is expected to grow by 15.39% on average over the next years. This is quite good.
EPS Next Y17.38%
EPS Next 2Y9.92%
EPS Next 3Y13.7%
EPS Next 5Y12.02%
Revenue Next Year18.11%
Revenue Next 2Y15.39%
Revenue Next 3YN/A
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.
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
With a Price/Earnings ratio of 14.59, NEWT is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of NEWT is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.30, NEWT is valued a bit cheaper.
A Price/Forward Earnings ratio of 4.89 indicates a rather cheap valuation of NEWT.
Based on the Price/Forward Earnings ratio, NEWT is valued cheaper than 90.10% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NEWT to the average of the S&P500 Index (22.73), we can say NEWT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.59 | ||
| Fwd PE | 4.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEWT is valued cheaper than 86.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.86 |
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.
A more expensive valuation may be justified as NEWT's earnings are expected to grow with 13.70% in the coming years.
PEG (NY)0.84
PEG (5Y)N/A
EPS Next 2Y9.92%
EPS Next 3Y13.7%
5. Dividend
5.1 Amount
NEWT has a Yearly Dividend Yield of 8.00%, which is a nice return.
Compared to an average industry Dividend Yield of 4.86, NEWT pays a better dividend. On top of this NEWT pays more dividend than 90.10% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8% |
5.2 History
The dividend of NEWT decreases each year by -17.44%.
NEWT has paid a dividend for at least 10 years, which is 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
NEWT pays out 40.47% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP40.47%
EPS Next 2Y9.92%
EPS Next 3Y13.7%
11.53
-0.18 (-1.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners43.07%
Inst Owner Change11.38%
Ins Owners6.57%
Ins Owner Change2.91%
Market Cap326.53M
Analysts73.33
Price Target14.36 (24.54%)
Short Float %10.17%
Short Ratio11.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8% |
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)0%
PT rev (3m)5.35%
EPS NQ rev (1m)-2.71%
EPS NQ rev (3m)1.07%
EPS NY rev (1m)0.26%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)-2.77%
Revenue NY rev (3m)-2.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.59 | ||
| Fwd PE | 4.89 | ||
| P/S | 1.17 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.05 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 6.86 |
EPS(TTM)0.79
EY6.85%
EPS(NY)2.36
Fwd EY20.44%
FCF(TTM)-13.41
FCFYN/A
OCF(TTM)-13.39
OCFYN/A
SpS9.85
BVpS11.02
TBVpS10.51
PEG (NY)0.84
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 | -0.07 |
F-Score4
WACC6.38%
ROIC/WACC0.65
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 Y17.38%
EPS Next 2Y9.92%
EPS Next 3Y13.7%
EPS Next 5Y12.02%
Revenue 1Y (TTM)21.18%
Revenue growth 3Y19.43%
Revenue growth 5Y20.01%
Sales Q2Q%11.72%
Revenue Next Year18.11%
Revenue Next 2Y15.39%
Revenue Next 3YN/A
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