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

NASDAQ:NEWTI - Nasdaq - US6525268073

25.1301  +0.01 (+0.04%)

Premarket: 24.3 -0.83 (-3.3%)

Fundamental Rating

4

Overall NEWTI gets a fundamental rating of 4 out of 10. We evaluated NEWTI against 101 industry peers in the Financial Services industry. While NEWTI is still in line with the averages on profitability rating, there are concerns on its financial health. NEWTI is not overvalued while it is showing excellent growth. This is an interesting combination.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

NEWTI had positive earnings in the past year.
NEWTI had a negative operating cash flow in the past year.
NEWTI had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: NEWTI reported negative operating cash flow in multiple 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 0 50M -50M 100M -100M

1.2 Ratios

NEWTI has a better Return On Assets (2.97%) than 60.40% of its industry peers.
NEWTI has a Return On Equity of 17.64%. This is in the better half of the industry: NEWTI outperforms 79.21% of its industry peers.
NEWTI has a better Return On Invested Capital (4.58%) than 66.34% of its industry peers.
NEWTI had an Average Return On Invested Capital over the past 3 years of 6.24%. This is in line with the industry average of 7.84%.
Industry RankSector 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%
NEWTI Yearly ROA, ROE, ROICNEWTI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

With a decent Profit Margin value of 20.26%, NEWTI is doing good in the industry, outperforming 74.26% of the companies in the same industry.
In the last couple of years the Profit Margin of NEWTI has declined.
The Operating Margin of NEWTI (37.76%) is better than 82.18% of its industry peers.
NEWTI's Operating Margin has declined in the last couple of years.
The Gross Margin of NEWTI (92.20%) is better than 96.04% of its industry peers.
Industry RankSector 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
NEWTI Yearly Profit, Operating, Gross MarginsNEWTI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60 80

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0

2. Health

2.1 Basic Checks

NEWTI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NEWTI has more shares outstanding
NEWTI has more shares outstanding than it did 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 5M 10M 15M 20M
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 500M 1B

2.2 Solvency

Based on the Altman-Z score of 0.29, we must say that NEWTI is in the distress zone and has some risk of bankruptcy.
NEWTI has a Altman-Z score of 0.29. This is comparable to the rest of the industry: NEWTI outperforms 42.57% of its industry peers.
NEWTI has a Debt/Equity ratio of 4.63. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 4.63, NEWTI is doing worse than 85.15% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 4.63
Debt/FCF N/A
Altman-Z 0.29
ROIC/WACC0.81
WACC5.67%
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 0 200M 400M 600M

2.3 Liquidity

NEWTI has a Current Ratio of 0.31. 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's Current ratio of 0.31 is on the low side compared to the rest of the industry. NEWTI is outperformed by 71.29% of its industry peers.
NEWTI has a Quick Ratio of 0.31. This is a bad value and indicates that NEWTI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.31, NEWTI is not doing good in the industry: 71.29% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.31
Quick Ratio 0.31
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 100M 200M 300M 400M 500M

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7

3. Growth

3.1 Past

NEWTI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.02%, which is quite impressive.
NEWTI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.76% yearly.
Looking at the last year, NEWTI shows a very strong growth in Revenue. The Revenue has grown by 39.09%.
NEWTI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.02% yearly.
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%23.26%

3.2 Future

The Earnings Per Share is expected to grow by 17.00% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.17% on average over the next years. This is quite good.
EPS Next Y20.46%
EPS Next 2Y15.34%
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

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 2027 2028 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

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5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 14.04, NEWTI is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as NEWTI.
NEWTI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 11.73 indicates a reasonable valuation of NEWTI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEWTI is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of NEWTI to the average of the S&P500 Index (24.44), we can say NEWTI is valued rather cheaply.
Industry RankSector Rank
PE 14.04
Fwd PE 11.73
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

NEWTI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NEWTI is cheaper than 66.34% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.2
NEWTI Per share dataNEWTI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8 10

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.
NEWTI's earnings are expected to grow with 15.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)N/A
EPS Next 2Y15.34%
EPS Next 3Y15.35%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.90%, NEWTI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.66, NEWTI pays a better dividend. On top of this NEWTI pays more dividend than 95.05% of the companies listed in the same industry.
NEWTI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
Industry RankSector Rank
Dividend Yield 5.9%

5.2 History

The dividend of NEWTI decreases each year by -19.82%.
NEWTI is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)-19.82%
Div Incr Years1
Div Non Decr Years1
NEWTI Yearly Dividends per shareNEWTI Yearly Dividends per shareYearly Dividends per share 2023 2024 0.5 1 1.5

5.3 Sustainability

NEWTI pays out 39.76% of its income as dividend. This is a sustainable payout ratio.
DP39.76%
EPS Next 2Y15.34%
EPS Next 3Y15.35%
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 0 50M -50M 100M -100M
NEWTI Dividend Payout.NEWTI Dividend Payout, showing the Payout Ratio.NEWTI Dividend Payout.PayoutRetained Earnings

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NEWTEKONE INC - NEWT 8 09/01/28

NASDAQ:NEWTI (1/21/2025, 8:16:48 PM)

Premarket: 24.3 -0.83 (-3.3%)

25.1301

+0.01 (+0.04%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)N/A N/A
Inst Owners38.78%
Inst Owner ChangeN/A
Ins Owners6.67%
Ins Owner ChangeN/A
Market Cap661.17M
Analysts72.31
Price Target28.06 (11.66%)
Short Float %0%
Short Ratio0.24
Dividend
Industry RankSector Rank
Dividend Yield 5.9%
Yearly Dividend0.57
Dividend Growth(5Y)-19.82%
DP39.76%
Div Incr Years1
Div Non Decr Years1
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)8.85%
PT rev (3m)-0.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.52%
EPS NY rev (1m)0%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)-1.07%
Valuation
Industry RankSector Rank
PE 14.04
Fwd PE 11.73
P/S 2.69
P/FCF N/A
P/OCF N/A
P/B 2.35
P/tB 2.48
EV/EBITDA 12.2
EPS(TTM)1.79
EY7.12%
EPS(NY)2.14
Fwd EY8.52%
FCF(TTM)-3.11
FCFYN/A
OCF(TTM)-3.09
OCFYN/A
SpS9.33
BVpS10.71
TBVpS10.15
PEG (NY)0.69
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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
WACC5.67%
ROIC/WACC0.81
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 Y20.46%
EPS Next 2Y15.34%
EPS Next 3Y15.35%
EPS Next 5Y17%
Revenue 1Y (TTM)39.09%
Revenue growth 3Y25.21%
Revenue growth 5Y17.02%
Sales Q2Q%23.26%
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