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NEWTEKONE INC - NEWT 8 09/01/28 (NEWTI) Stock Fundamental Analysis

NASDAQ:NEWTI - Nasdaq - US6525268073 - Currency: USD

25  -0.1 (-0.4%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to NEWTI. NEWTI was compared to 100 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

In the past year NEWTI was profitable.
NEWTI had a negative operating cash flow in the past year.
NEWTI had positive earnings in each of the past 5 years.
In multiple years NEWTI reported negative operating cash flow during the last 5 years.
NEWTI Yearly Net Income VS EBIT VS OCF VS FCFNEWTI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M -150M

1.2 Ratios

NEWTI has a Return On Assets (2.29%) which is in line with its industry peers.
NEWTI has a better Return On Equity (16.20%) than 76.00% of its industry peers.
The Return On Invested Capital of NEWTI (4.71%) is comparable to the rest of the industry.
NEWTI had an Average Return On Invested Capital over the past 3 years of 4.45%. This is significantly below the industry average of 11.84%.
The last Return On Invested Capital (4.71%) for NEWTI is above the 3 year average (4.45%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.29%
ROE 16.2%
ROIC 4.71%
ROA(3y)2.94%
ROA(5y)4.16%
ROE(3y)14.55%
ROE(5y)14.87%
ROIC(3y)4.45%
ROIC(5y)5.46%
NEWTI Yearly ROA, ROE, ROICNEWTI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

NEWTI has a better Profit Margin (16.71%) than 70.00% of its industry peers.
In the last couple of years the Profit Margin of NEWTI has declined.
With an excellent Operating Margin value of 44.47%, NEWTI belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
NEWTI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 93.35%, NEWTI belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
Industry RankSector Rank
OM 44.47%
PM (TTM) 16.71%
GM 93.35%
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
NEWTI Yearly Profit, Operating, Gross MarginsNEWTI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

0

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEWTI is destroying value.
The number of shares outstanding for NEWTI has been increased compared to 1 year ago.
The number of shares outstanding for NEWTI has been increased compared to 5 years ago.
Compared to 1 year ago, NEWTI has a worse debt to assets ratio.
NEWTI Yearly Shares OutstandingNEWTI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M 25M
NEWTI Yearly Total Debt VS Total AssetsNEWTI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

NEWTI has an Altman-Z score of 0.16. This is a bad value and indicates that NEWTI is not financially healthy and even has some risk of bankruptcy.
NEWTI has a worse Altman-Z score (0.16) than 60.00% of its industry peers.
A Debt/Equity ratio of 5.76 is on the high side and indicates that NEWTI has dependencies on debt financing.
NEWTI has a Debt to Equity ratio of 5.76. This is amonst the worse of the industry: NEWTI underperforms 83.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.76
Debt/FCF N/A
Altman-Z 0.16
ROIC/WACC0.63
WACC7.53%
NEWTI Yearly LT Debt VS Equity VS FCFNEWTI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

2.3 Liquidity

A Current Ratio of 0.26 indicates that NEWTI may have some problems paying its short term obligations.
With a Current ratio value of 0.26, NEWTI is not doing good in the industry: 71.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.26 indicates that NEWTI may have some problems paying its short term obligations.
NEWTI has a worse Quick ratio (0.26) than 71.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.26
Quick Ratio 0.26
NEWTI Yearly Current Assets VS Current LiabilitesNEWTI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 25.97% over the past year.
NEWTI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.30% yearly.
The Revenue has grown by 34.91% in the past year. This is a very strong growth!
NEWTI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.01% yearly.
EPS 1Y (TTM)25.97%
EPS 3Y-17.2%
EPS 5Y-3.3%
EPS Q2Q%-7.89%
Revenue 1Y (TTM)34.91%
Revenue growth 3Y19.43%
Revenue growth 5Y20.01%
Sales Q2Q%29.1%

3.2 Future

The Earnings Per Share is expected to grow by 11.73% on average over the next years. This is quite good.
NEWTI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.43% yearly.
EPS Next Y15.88%
EPS Next 2Y9.84%
EPS Next 3Y13.31%
EPS Next 5Y11.73%
Revenue Next Year21.48%
Revenue Next 2Y17.43%
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 Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
NEWTI Yearly Revenue VS EstimatesNEWTI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M
NEWTI Yearly EPS VS EstimatesNEWTI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 12.89 indicates a correct valuation of NEWTI.
Compared to the rest of the industry, the Price/Earnings ratio of NEWTI is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.30. NEWTI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.52, the valuation of NEWTI can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEWTI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, NEWTI is valued rather cheaply.
Industry RankSector Rank
PE 12.89
Fwd PE 10.52
NEWTI Price Earnings VS Forward Price EarningsNEWTI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 72.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 8.85
NEWTI Per share dataNEWTI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

NEWTI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NEWTI's earnings are expected to grow with 13.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.81
PEG (5Y)N/A
EPS Next 2Y9.84%
EPS Next 3Y13.31%

5

5. Dividend

5.1 Amount

NEWTI has a Yearly Dividend Yield of 8.60%, which is a nice return.
NEWTI's Dividend Yield is rather good when compared to the industry average which is at 5.00. NEWTI pays more dividend than 92.00% of the companies in the same industry.
NEWTI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
Industry RankSector Rank
Dividend Yield 8.6%

5.2 History

The dividend of NEWTI decreases each year by -17.44%.
NEWTI has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)-17.44%
Div Incr Years1
Div Non Decr Years1
NEWTI Yearly Dividends per shareNEWTI Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

42.30% of the earnings are spent on dividend by NEWTI. This is a bit on the high side, but may be sustainable.
DP42.3%
EPS Next 2Y9.84%
EPS Next 3Y13.31%
NEWTI Yearly Income VS Free CF VS DividendNEWTI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M -150M
NEWTI Dividend Payout.NEWTI Dividend Payout, showing the Payout Ratio.NEWTI Dividend Payout.PayoutRetained Earnings

NEWTEKONE INC - NEWT 8 09/01/28

NASDAQ:NEWTI (7/11/2025, 8:00:02 PM)

25

-0.1 (-0.4%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)05-06 2025-05-06/amc
Earnings (Next)07-28 2025-07-28/amc
Inst Owners42.12%
Inst Owner ChangeN/A
Ins Owners6.53%
Ins Owner ChangeN/A
Market Cap658.50M
Analysts73.33
Price Target34.51 (38.04%)
Short Float %0.01%
Short Ratio1.22
Dividend
Industry RankSector Rank
Dividend Yield 8.6%
Yearly Dividend0.79
Dividend Growth(5Y)-17.44%
DP42.3%
Div Incr Years1
Div Non Decr Years1
Ex-Date05-15 2025-05-15 (0.5)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.61%
Min EPS beat(2)-3.23%
Max EPS beat(2)2.01%
EPS beat(4)3
Avg EPS beat(4)1.74%
Min EPS beat(4)-3.23%
Max EPS beat(4)6.31%
EPS beat(8)5
Avg EPS beat(8)5.03%
EPS beat(12)7
Avg EPS beat(12)-2.92%
EPS beat(16)10
Avg EPS beat(16)3.08%
Revenue beat(2)2
Avg Revenue beat(2)13.05%
Min Revenue beat(2)9.43%
Max Revenue beat(2)16.67%
Revenue beat(4)4
Avg Revenue beat(4)7.32%
Min Revenue beat(4)0.33%
Max Revenue beat(4)16.67%
Revenue beat(8)5
Avg Revenue beat(8)3.49%
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)-6.1%
PT rev (3m)13.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)0.94%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.38%
Valuation
Industry RankSector Rank
PE 12.89
Fwd PE 10.52
P/S 2.25
P/FCF N/A
P/OCF N/A
P/B 2.18
P/tB 2.29
EV/EBITDA 8.85
EPS(TTM)1.94
EY7.76%
EPS(NY)2.38
Fwd EY9.51%
FCF(TTM)-6.72
FCFYN/A
OCF(TTM)-6.7
OCFYN/A
SpS11.13
BVpS11.48
TBVpS10.92
PEG (NY)0.81
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.29%
ROE 16.2%
ROCE 12.05%
ROIC 4.71%
ROICexc 5.43%
ROICexgc 5.91%
OM 44.47%
PM (TTM) 16.71%
GM 93.35%
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-Score3
Asset Turnover0.14
Health
Industry RankSector Rank
Debt/Equity 5.76
Debt/FCF N/A
Debt/EBITDA 13.21
Cap/Depr 29.97%
Cap/Sales 0.14%
Interest Coverage 1.53
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.26
Quick Ratio 0.26
Altman-Z 0.16
F-Score3
WACC7.53%
ROIC/WACC0.63
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)25.97%
EPS 3Y-17.2%
EPS 5Y-3.3%
EPS Q2Q%-7.89%
EPS Next Y15.88%
EPS Next 2Y9.84%
EPS Next 3Y13.31%
EPS Next 5Y11.73%
Revenue 1Y (TTM)34.91%
Revenue growth 3Y19.43%
Revenue growth 5Y20.01%
Sales Q2Q%29.1%
Revenue Next Year21.48%
Revenue Next 2Y17.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y88.42%
EBIT growth 3Y3.47%
EBIT growth 5Y10.99%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y4.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4.74%
OCF growth 3YN/A
OCF growth 5YN/A