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

NASDAQ:NEWTZ - Nasdaq - US6525267083 - Currency: USD

24.775  +0.06 (+0.26%)

Fundamental Rating

4

NEWTZ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. While NEWTZ is still in line with the averages on profitability rating, there are concerns on its financial health. NEWTZ is growing strongly while it is still valued neutral. This is a good combination!


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

NEWTZ had positive earnings in the past year.
NEWTZ had a negative operating cash flow in the past year.
NEWTZ had positive earnings in each of the past 5 years.
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

Looking at the Return On Assets, with a value of 2.97%, NEWTZ is in the better half of the industry, outperforming 61.39% of the companies in the same industry.
With a decent Return On Equity value of 17.64%, NEWTZ is doing good in the industry, outperforming 79.21% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.58%, NEWTZ is doing good in the industry, outperforming 66.34% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NEWTZ is in line with the industry average of 7.75%.
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

With a decent Profit Margin value of 20.26%, NEWTZ is doing good in the industry, outperforming 75.25% of the companies in the same industry.
In the last couple of years the Profit Margin of NEWTZ has declined.
NEWTZ's Operating Margin of 37.76% is amongst the best of the industry. NEWTZ outperforms 84.16% of its industry peers.
In the last couple of years the Operating Margin of NEWTZ has declined.
The Gross Margin of NEWTZ (92.20%) is better 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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEWTZ is destroying value.
Compared to 1 year ago, NEWTZ has more shares outstanding
NEWTZ has more shares outstanding than it did 5 years ago.
NEWTZ has a worse debt/assets ratio than last year.
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 43.56% of its industry peers.
A Debt/Equity ratio of 4.63 is on the high side and indicates that NEWTZ has dependencies on debt financing.
NEWTZ has a Debt to Equity ratio of 4.63. This is amonst the worse of the industry: NEWTZ underperforms 83.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.63
Debt/FCF N/A
Altman-Z 0.29
ROIC/WACC0.61
WACC7.57%
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.
With a Current ratio value of 0.31, NEWTZ is not doing good in the industry: 68.32% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.31, NEWTZ is not doing good in the industry: 68.32% of the companies in the same industry are doing better.
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.
NEWTZ shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.76% yearly.
The Revenue has grown by 39.09% in the past year. This is a very strong growth!
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

Based on estimates for the next years, NEWTZ will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.00% on average per year.
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 Y21.73%
EPS Next 2Y16.15%
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

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.
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

Based on the Price/Earnings ratio of 13.84, the valuation of NEWTZ can be described as correct.
NEWTZ's Price/Earnings ratio is in line with the industry average.
NEWTZ is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.41, the valuation of NEWTZ can be described as very reasonable.
NEWTZ's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of NEWTZ to the average of the S&P500 Index (22.68), we can say NEWTZ is valued slightly cheaper.
Industry RankSector Rank
PE 13.84
Fwd PE 11.41
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

Based on the Enterprise Value to EBITDA ratio, NEWTZ is valued a bit cheaper than 69.31% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.09
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

NEWTZ's 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 15.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y16.15%
EPS Next 3Y15.35%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.96%, NEWTZ is a good candidate for dividend investing.
NEWTZ's Dividend Yield is rather good when compared to the industry average which is at 3.84. NEWTZ pays more dividend than 92.08% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, NEWTZ pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.96%

5.2 History

The dividend of NEWTZ decreases each year by -19.82%.
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)-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 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

39.76% of the earnings are spent on dividend by NEWTZ. This is a low number and sustainable payout ratio.
DP39.76%
EPS Next 2Y16.15%
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 (2/21/2025, 8:00:01 PM)

24.775

+0.06 (+0.26%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-26 2025-02-26/amc
Inst Owners38.78%
Inst Owner ChangeN/A
Ins Owners6.67%
Ins Owner ChangeN/A
Market Cap651.83M
Analysts72.31
Price Target27.69 (11.77%)
Short Float %0.01%
Short Ratio0.39
Dividend
Industry RankSector Rank
Dividend Yield 5.96%
Yearly Dividend0.57
Dividend Growth(5Y)-19.82%
DP39.76%
Div Incr Years0
Div Non Decr Years3
Ex-Date01-15 2025-01-15 (0.34375)
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)0%
PT rev (3m)0.76%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)1.81%
EPS NY rev (1m)1.05%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.68%
Valuation
Industry RankSector Rank
PE 13.84
Fwd PE 11.41
P/S 2.66
P/FCF N/A
P/OCF N/A
P/B 2.31
P/tB 2.44
EV/EBITDA 12.09
EPS(TTM)1.79
EY7.23%
EPS(NY)2.17
Fwd EY8.77%
FCF(TTM)-3.11
FCFYN/A
OCF(TTM)-3.09
OCFYN/A
SpS9.33
BVpS10.71
TBVpS10.15
PEG (NY)0.64
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
WACC7.57%
ROIC/WACC0.61
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 Y21.73%
EPS Next 2Y16.15%
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