25.43 USD
+0.08 (+0.32%)
NEWTI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 97 industry peers in the Financial Services industry. There are concerns on the financial health of NEWTI while its profitability can be described as average. NEWTI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- NEWTI had positive earnings in the past year.
- In the past year NEWTI has reported a negative cash flow from operations.
- Each year in the past 5 years NEWTI has been profitable.
- In multiple years NEWTI reported negative operating cash flow during the last 5 years.
1.2 Ratios
- NEWTI has a Return On Assets of 2.40%. This is in the better half of the industry: NEWTI outperforms 62.89% of its industry peers.
- NEWTI has a better Return On Equity (14.90%) than 77.32% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.26%, NEWTI is in line with its industry, outperforming 58.76% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for NEWTI is below the industry average of 8.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 14.9% | ||
| ROIC | 4.26% |
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
- NEWTI has a better Profit Margin (19.15%) than 74.23% of its industry peers.
- In the last couple of years the Profit Margin of NEWTI has declined.
- NEWTI has a Operating Margin of 44.30%. This is amongst the best in the industry. NEWTI outperforms 81.44% of its industry peers.
- NEWTI's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 93.95%, NEWTI belongs to the top of the industry, outperforming 94.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.3% | ||
| PM (TTM) | 19.15% | ||
| GM | 93.95% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NEWTI is destroying value.
- NEWTI has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for NEWTI has been increased compared to 5 years ago.
- NEWTI has a worse debt/assets ratio than last year.
2.2 Solvency
- NEWTI has an Altman-Z score of 0.06. This is a bad value and indicates that NEWTI is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.06, NEWTI perfoms like the industry average, outperforming 40.21% of the companies in the same industry.
- A Debt/Equity ratio of 4.98 is on the high side and indicates that NEWTI has dependencies on debt financing.
- NEWTI has a worse Debt to Equity ratio (4.98) than 83.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.06 |
ROIC/WACC0.56
WACC7.6%
2.3 Liquidity
- NEWTI has a Current Ratio of 0.15. This is a bad value and indicates that NEWTI is not financially healthy enough and could expect problems in meeting its short term obligations.
- NEWTI has a worse Current ratio (0.15) than 74.23% of its industry peers.
- NEWTI has a Quick Ratio of 0.15. This is a bad value and indicates that NEWTI is not financially healthy enough and could expect problems in meeting its short term obligations.
- NEWTI has a worse Quick ratio (0.15) than 74.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.15 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
- The earnings per share for NEWTI have decreased strongly by -43.58% in the last year.
- NEWTI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.50% yearly.
- Looking at the last year, NEWTI shows a very strong growth in Revenue. The Revenue has grown by 22.63%.
- Measured over the past years, NEWTI shows a very strong growth in Revenue. The Revenue has been growing by 20.01% on average per year.
EPS 1Y (TTM)-43.58%
EPS 3Y-17.48%
EPS 5Y-3.5%
EPS Q2Q%48.89%
Revenue 1Y (TTM)22.63%
Revenue growth 3Y19.43%
Revenue growth 5Y20.01%
Sales Q2Q%19.27%
3.2 Future
- NEWTI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.02% yearly.
- Based on estimates for the next years, NEWTI will show a quite strong growth in Revenue. The Revenue will grow by 14.21% on average per year.
EPS Next Y16.23%
EPS Next 2Y9.76%
EPS Next 3Y8.36%
EPS Next 5Y12.02%
Revenue Next Year16.6%
Revenue Next 2Y14.73%
Revenue Next 3Y14.21%
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
- The Price/Earnings ratio is 25.18, which means the current valuation is very expensive for NEWTI.
- NEWTI's Price/Earnings ratio is a bit more expensive when compared to the industry. NEWTI is more expensive than 61.86% of the companies in the same industry.
- NEWTI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 10.82 indicates a reasonable valuation of NEWTI.
- NEWTI's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of NEWTI to the average of the S&P500 Index (25.98), we can say NEWTI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.18 | ||
| Fwd PE | 10.82 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEWTI indicates a somewhat cheap valuation: NEWTI is cheaper than 65.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.01 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.55
PEG (5Y)N/A
EPS Next 2Y9.76%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.43%, NEWTI is a good candidate for dividend investing.
- NEWTI's Dividend Yield is rather good when compared to the industry average which is at 2.09. NEWTI pays more dividend than 90.72% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, NEWTI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.43% |
5.2 History
- The dividend of NEWTI decreases each year by -17.44%.
- NEWTI has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)-17.44%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- NEWTI pays out 37.16% of its income as dividend. This is a sustainable payout ratio.
DP37.16%
EPS Next 2Y9.76%
EPS Next 3Y8.36%
NEWTEKONE INC - NEWT 8 09/01/28 / NEWTI FAQ
Can you provide the ChartMill fundamental rating for NEWTEKONE INC - NEWT 8 09/01/28?
ChartMill assigns a fundamental rating of 4 / 10 to NEWTI.
What is the valuation status of NEWTEKONE INC - NEWT 8 09/01/28 (NEWTI) stock?
ChartMill assigns a valuation rating of 3 / 10 to NEWTEKONE INC - NEWT 8 09/01/28 (NEWTI). This can be considered as Overvalued.
How profitable is NEWTEKONE INC - NEWT 8 09/01/28 (NEWTI) stock?
NEWTEKONE INC - NEWT 8 09/01/28 (NEWTI) has a profitability rating of 5 / 10.
What is the earnings growth outlook for NEWTEKONE INC - NEWT 8 09/01/28?
The Earnings per Share (EPS) of NEWTEKONE INC - NEWT 8 09/01/28 (NEWTI) is expected to grow by 16.23% in the next year.
How sustainable is the dividend of NEWTEKONE INC - NEWT 8 09/01/28 (NEWTI) stock?
The dividend rating of NEWTEKONE INC - NEWT 8 09/01/28 (NEWTI) is 5 / 10 and the dividend payout ratio is 37.16%.