NEWTEKONE INC - NEWT 5 1/2 02/01/26 (NEWTZ) Stock Fundamental Analysis
NASDAQ:NEWTZ - Nasdaq - US6525267083 - Currency: USD
We assign a fundamental rating of 4 out of 10 to NEWTZ. NEWTZ was compared to 100 industry peers in the Financial Services industry. There are concerns on the financial health of NEWTZ while its profitability can be described as average. NEWTZ is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year NEWTZ was profitable.
In the past year NEWTZ has reported a negative cash flow from operations.
In the past 5 years NEWTZ has always been profitable.
In multiple years NEWTZ reported negative operating cash flow during the last 5 years.
1.2 Ratios
NEWTZ has a Return On Assets (2.29%) which is in line with its industry peers.
NEWTZ has a better Return On Equity (16.20%) than 78.00% of its industry peers.
NEWTZ has a Return On Invested Capital (4.71%) which is in line with its industry peers.
NEWTZ 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 NEWTZ is above the 3 year average (4.45%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
NEWTZ has a Profit Margin of 16.71%. This is in the better half of the industry: NEWTZ outperforms 72.00% of its industry peers.
In the last couple of years the Profit Margin of NEWTZ has declined.
Looking at the Operating Margin, with a value of 44.47%, NEWTZ belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NEWTZ has declined.
Looking at the Gross Margin, with a value of 93.35%, NEWTZ belongs to the top of the industry, outperforming 97.00% of the companies in the same industry.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
NEWTZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NEWTZ has been increased compared to 1 year ago.
The number of shares outstanding for NEWTZ has been increased compared to 5 years ago.
Compared to 1 year ago, NEWTZ has a worse debt to assets ratio.
2.2 Solvency
NEWTZ has an Altman-Z score of 0.16. This is a bad value and indicates that NEWTZ is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.16, NEWTZ is not doing good in the industry: 62.00% of the companies in the same industry are doing better.
A Debt/Equity ratio of 5.76 is on the high side and indicates that NEWTZ has dependencies on debt financing.
The Debt to Equity ratio of NEWTZ (5.76) is worse than 81.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.16 |
ROIC/WACC0.63
WACC7.53%
2.3 Liquidity
NEWTZ has a Current Ratio of 0.26. This is a bad value and indicates that NEWTZ is not financially healthy enough and could expect problems in meeting its short term obligations.
NEWTZ has a Current ratio of 0.26. This is in the lower half of the industry: NEWTZ underperforms 69.00% of its industry peers.
A Quick Ratio of 0.26 indicates that NEWTZ may have some problems paying its short term obligations.
With a Quick ratio value of 0.26, NEWTZ is not doing good in the industry: 69.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
NEWTZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.97%, which is quite impressive.
Measured over the past years, NEWTZ shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.30% on average per year.
The Revenue has grown by 34.91% in the past year. This is a very strong growth!
NEWTZ 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
NEWTZ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.73% yearly.
The Revenue is expected to grow by 17.43% on average over the next years. This is quite good.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.89, the valuation of NEWTZ can be described as correct.
NEWTZ's Price/Earnings ratio is a bit cheaper when compared to the industry. NEWTZ is cheaper than 61.00% of the companies in the same industry.
NEWTZ is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.52, the valuation of NEWTZ can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as NEWTZ.
NEWTZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.89 | ||
| Fwd PE | 10.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEWTZ indicates a somewhat cheap valuation: NEWTZ is cheaper than 74.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.83 |
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.
NEWTZ'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. Dividend
5.1 Amount
NEWTZ has a Yearly Dividend Yield of 8.60%, which is a nice return.
NEWTZ's Dividend Yield is rather good when compared to the industry average which is at 5.00. NEWTZ pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, NEWTZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.6% |
5.2 History
The dividend of NEWTZ decreases each year by -17.44%.
NEWTZ has been paying a dividend for over 5 years, so it has already some track record.
NEWTZ has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-17.44%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
NEWTZ pays out 42.30% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP42.3%
EPS Next 2Y9.84%
EPS Next 3Y13.31%
NEWTEKONE INC - NEWT 5 1/2 02/01/26
NASDAQ:NEWTZ (7/11/2025, 8:00:02 PM)
25
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners42.12%
Inst Owner ChangeN/A
Ins Owners6.53%
Ins Owner ChangeN/A
Market Cap658.50M
Analysts73.33
Price Target34.34 (37.36%)
Short Float %0%
Short Ratio0.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.6% |
Yearly Dividend0.79
Dividend Growth(5Y)-17.44%
DP42.3%
Div Incr Years0
Div Non Decr Years3
Ex-Date
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)9
Avg Revenue beat(12)20.05%
Revenue beat(16)13
Avg Revenue beat(16)50.15%
PT rev (1m)0.23%
PT rev (3m)14.07%
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 Rank | Sector 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 | 8.83 |
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 Rank | Sector 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 Rank | Sector 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