NEWTEKONE INC - NEWT 8 1/2 06/01/29 (NEWTG) Stock Fundamental Analysis
NASDAQ:NEWTG - Nasdaq - US6525268800 - Currency: USD
Taking everything into account, NEWTG scores 4 out of 10 in our fundamental rating. NEWTG was compared to 101 industry peers in the Financial Services industry. NEWTG has a medium profitability rating, but doesn't score so well on its financial health evaluation. NEWTG is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year NEWTG was profitable.
NEWTG had a negative operating cash flow in the past year.
NEWTG had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: NEWTG reported negative operating cash flow in multiple years.
1.2 Ratios
NEWTG has a Return On Assets (2.97%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 17.64%, NEWTG is doing good in the industry, outperforming 77.23% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.58%, NEWTG is in the better half of the industry, outperforming 64.36% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NEWTG is in line with the industry average of 7.75%.
| 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
NEWTG has a better Profit Margin (20.26%) than 73.27% of its industry peers.
In the last couple of years the Profit Margin of NEWTG has declined.
NEWTG has a better Operating Margin (37.76%) than 82.18% of its industry peers.
In the last couple of years the Operating Margin of NEWTG has declined.
Looking at the Gross Margin, with a value of 92.20%, NEWTG belongs to the top of the industry, outperforming 96.04% 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
NEWTG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NEWTG has more shares outstanding than it did 1 year ago.
NEWTG has more shares outstanding than it did 5 years ago.
NEWTG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.29, we must say that NEWTG is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.29, NEWTG perfoms like the industry average, outperforming 45.54% of the companies in the same industry.
A Debt/Equity ratio of 4.63 is on the high side and indicates that NEWTG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.63, NEWTG is doing worse than 85.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.29 |
ROIC/WACC0.6
WACC7.65%
2.3 Liquidity
A Current Ratio of 0.31 indicates that NEWTG may have some problems paying its short term obligations.
NEWTG has a Current ratio of 0.31. This is in the lower half of the industry: NEWTG underperforms 70.30% of its industry peers.
A Quick Ratio of 0.31 indicates that NEWTG may have some problems paying its short term obligations.
With a Quick ratio value of 0.31, NEWTG is not doing good in the industry: 70.30% of the companies in the same industry are doing better.
| 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.
NEWTG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.76% yearly.
NEWTG 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%18.66%
3.2 Future
Based on estimates for the next years, NEWTG will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.00% on average per year.
Based on estimates for the next years, NEWTG will show a quite strong growth in Revenue. The Revenue will grow by 13.17% on average per year.
EPS Next Y21.73%
EPS Next 2Y16.15%
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.
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
NEWTG is valuated correctly with a Price/Earnings ratio of 14.15.
The rest of the industry has a similar Price/Earnings ratio as NEWTG.
Compared to an average S&P500 Price/Earnings ratio of 29.63, NEWTG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.66, the valuation of NEWTG can be described as reasonable.
NEWTG's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of NEWTG to the average of the S&P500 Index (22.68), we can say NEWTG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 11.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEWTG is valued a bit cheaper than the industry average as 67.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.28 |
4.3 Compensation for Growth
NEWTG'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 NEWTG's earnings are expected to grow with 15.35% in the coming years.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y16.15%
EPS Next 3Y15.35%
5. Dividend
5.1 Amount
NEWTG has a Yearly Dividend Yield of 5.96%, which is a nice return.
NEWTG's Dividend Yield is rather good when compared to the industry average which is at 3.84. NEWTG pays more dividend than 94.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, NEWTG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.96% |
5.2 History
The dividend of NEWTG decreases each year by -19.82%.
NEWTG is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)-19.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NEWTG pays out 39.76% of its income as dividend. This is a sustainable payout ratio.
DP39.76%
EPS Next 2Y16.15%
EPS Next 3Y15.35%
NEWTEKONE INC - NEWT 8 1/2 06/01/29
NASDAQ:NEWTG (2/21/2025, 8:00:01 PM)
25.33
-0.06 (-0.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners38.78%
Inst Owner ChangeN/A
Ins Owners6.67%
Ins Owner ChangeN/A
Market Cap666.43M
Analysts72.31
Price Target28.24 (11.49%)
Short Float %0.02%
Short Ratio0.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.96% |
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)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)8.35%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)1.81%
EPS NY rev (1m)1.05%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 11.66 | ||
| P/S | 2.72 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.37 | ||
| P/tB | 2.5 | ||
| EV/EBITDA | 12.28 |
EPS(TTM)1.79
EY7.07%
EPS(NY)2.17
Fwd EY8.57%
FCF(TTM)-3.11
FCFYN/A
OCF(TTM)-3.09
OCFYN/A
SpS9.33
BVpS10.71
TBVpS10.15
PEG (NY)0.65
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 | 0.29 |
F-Score5
WACC7.65%
ROIC/WACC0.6
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 Y21.73%
EPS Next 2Y16.15%
EPS Next 3Y15.35%
EPS Next 5Y17%
Revenue 1Y (TTM)39.09%
Revenue growth 3Y25.21%
Revenue growth 5Y17.02%
Sales Q2Q%18.66%
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