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NEWTEKONE INC - NEWT 5 1/2 02/01/26 (NEWTZ) Stock Fundamental Analysis

NASDAQ:NEWTZ - Nasdaq - US6525267083

24.69  -0.03 (-0.12%)

Fundamental Rating

4

Overall NEWTZ gets a fundamental rating of 4 out of 10. We evaluated NEWTZ against 101 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 not overvalued while it is showing excellent growth. This is an interesting combination.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year NEWTZ was profitable.
NEWTZ had a negative operating cash flow in the past year.
In the past 5 years NEWTZ has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: NEWTZ reported negative operating cash flow in multiple years.
NEWTZ Yearly Net Income VS EBIT VS OCF VS FCFNEWTZ 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

With a decent Return On Assets value of 2.97%, NEWTZ is doing good in the industry, outperforming 62.38% of the companies in the same industry.
With an excellent Return On Equity value of 17.64%, NEWTZ belongs to the best of the industry, outperforming 81.19% of the companies in the same industry.
NEWTZ has a Return On Invested Capital of 4.58%. This is in the better half of the industry: NEWTZ outperforms 68.32% of its industry peers.
NEWTZ 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%
NEWTZ Yearly ROA, ROE, ROICNEWTZ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

NEWTZ's Profit Margin of 20.26% is fine compared to the rest of the industry. NEWTZ outperforms 76.24% of its industry peers.
In the last couple of years the Profit Margin of NEWTZ has declined.
With an excellent Operating Margin value of 37.76%, NEWTZ belongs to the best of the industry, outperforming 84.16% of the companies in the same industry.
NEWTZ's Operating Margin has declined in the last couple of years.
NEWTZ has a better Gross Margin (92.20%) than 98.02% 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
NEWTZ Yearly Profit, Operating, Gross MarginsNEWTZ 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

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NEWTZ is still creating some value.
NEWTZ has more shares outstanding than it did 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.
NEWTZ Yearly Shares OutstandingNEWTZ Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
NEWTZ Yearly Total Debt VS Total AssetsNEWTZ 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 NEWTZ is in the distress zone and has some risk of bankruptcy.
NEWTZ's Altman-Z score of 0.29 is in line compared to the rest of the industry. NEWTZ outperforms 40.59% of its industry peers.
NEWTZ has a Debt/Equity ratio of 4.63. This is a high value indicating a heavy dependency on external financing.
NEWTZ has a worse Debt to Equity ratio (4.63) than 83.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.63
Debt/FCF N/A
Altman-Z 0.29
ROIC/WACC0.81
WACC5.65%
NEWTZ Yearly LT Debt VS Equity VS FCFNEWTZ 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

NEWTZ has a Current Ratio of 0.31. This is a bad value and indicates that NEWTZ is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of NEWTZ (0.31) is worse than 69.31% of its industry peers.
NEWTZ has a Quick Ratio of 0.31. 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 worse Quick ratio (0.31) than 69.31% of its industry peers.
Industry RankSector Rank
Current Ratio 0.31
Quick Ratio 0.31
NEWTZ Yearly Current Assets VS Current LiabilitesNEWTZ 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

The Earnings Per Share has grown by an impressive 57.02% over the past year.
Measured over the past years, NEWTZ shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.76% on average per year.
Looking at the last year, NEWTZ shows a very strong growth in Revenue. The Revenue has grown by 39.09%.
Measured over the past years, NEWTZ shows a quite strong growth in Revenue. The Revenue has been growing by 17.02% on average per year.
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

NEWTZ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.00% yearly.
Based on estimates for the next years, NEWTZ will show a quite strong growth in Revenue. The Revenue will grow by 13.17% on average per year.
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.
NEWTZ Yearly Revenue VS EstimatesNEWTZ 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
NEWTZ Yearly EPS VS EstimatesNEWTZ 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

NEWTZ is valuated correctly with a Price/Earnings ratio of 13.79.
Compared to the rest of the industry, the Price/Earnings ratio of NEWTZ is on the same level as its industry peers.
NEWTZ is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
NEWTZ is valuated reasonably with a Price/Forward Earnings ratio of 11.53.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEWTZ is on the same level as its industry peers.
NEWTZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.79
Fwd PE 11.53
NEWTZ Price Earnings VS Forward Price EarningsNEWTZ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

68.32% of the companies in the same industry are more expensive than NEWTZ, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.08
NEWTZ Per share dataNEWTZ 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.
NEWTZ has a very decent profitability rating, which may justify a higher PE ratio.
NEWTZ's earnings are expected to grow with 15.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)N/A
EPS Next 2Y15.34%
EPS Next 3Y15.35%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.90%, NEWTZ is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.66, NEWTZ pays a better dividend. On top of this NEWTZ pays more dividend than 93.07% of the companies listed in the same industry.
NEWTZ'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 NEWTZ decreases each year by -19.82%.
NEWTZ has been paying a dividend for less than 5 years, so it still needs to build a track record.
NEWTZ has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-19.82%
Div Incr Years0
Div Non Decr Years3
NEWTZ Yearly Dividends per shareNEWTZ Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

NEWTZ 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%
NEWTZ Yearly Income VS Free CF VS DividendNEWTZ 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
NEWTZ Dividend Payout.NEWTZ Dividend Payout, showing the Payout Ratio.NEWTZ Dividend Payout.PayoutRetained Earnings

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NEWTEKONE INC - NEWT 5 1/2 02/01/26

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

24.69

-0.03 (-0.12%)

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 Cap649.59M
Analysts72.31
Price Target27.69 (12.15%)
Short Float %0.02%
Short Ratio0.82
Dividend
Industry RankSector Rank
Dividend Yield 5.9%
Yearly Dividend0.57
Dividend Growth(5Y)-19.82%
DP39.76%
Div Incr Years0
Div Non Decr Years3
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)5
Avg Revenue beat(8)10.46%
Revenue beat(12)9
Avg Revenue beat(12)46.67%
Revenue beat(16)13
Avg Revenue beat(16)57.78%
PT rev (1m)8.38%
PT rev (3m)0.76%
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 13.79
Fwd PE 11.53
P/S 2.65
P/FCF N/A
P/OCF N/A
P/B 2.31
P/tB 2.43
EV/EBITDA 12.08
EPS(TTM)1.79
EY7.25%
EPS(NY)2.14
Fwd EY8.68%
FCF(TTM)-3.11
FCFYN/A
OCF(TTM)-3.09
OCFYN/A
SpS9.33
BVpS10.71
TBVpS10.15
PEG (NY)0.67
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
WACC5.65%
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