NEWMARK GROUP INC-CLASS A (NMRK) Stock Fundamental Analysis
NASDAQ:NMRK - Nasdaq - US65158N1028 - Common Stock - Currency: USD
Taking everything into account, NMRK scores 4 out of 10 in our fundamental rating. NMRK was compared to 64 industry peers in the Real Estate Management & Development industry. NMRK has a medium profitability rating, but doesn't score so well on its financial health evaluation. NMRK scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year NMRK was profitable.
NMRK had a negative operating cash flow in the past year.
Each year in the past 5 years NMRK has been profitable.
NMRK had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
NMRK's Return On Assets of 1.30% is fine compared to the rest of the industry. NMRK outperforms 71.88% of its industry peers.
NMRK's Return On Equity of 5.08% is fine compared to the rest of the industry. NMRK outperforms 75.00% of its industry peers.
NMRK's Return On Invested Capital of 2.83% is fine compared to the rest of the industry. NMRK outperforms 70.31% of its industry peers.
NMRK had an Average Return On Invested Capital over the past 3 years of 4.15%. This is in line with the industry average of 5.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 5.08% | ||
| ROIC | 2.83% |
ROA(3y)1.46%
ROA(5y)4.08%
ROE(3y)5.18%
ROE(5y)16.9%
ROIC(3y)4.15%
ROIC(5y)7.06%
1.3 Margins
Looking at the Profit Margin, with a value of 2.24%, NMRK is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
In the last couple of years the Profit Margin of NMRK has declined.
NMRK has a Operating Margin of 6.08%. This is in the better half of the industry: NMRK outperforms 73.44% of its industry peers.
NMRK's Operating Margin has declined in the last couple of years.
NMRK's Gross Margin of 99.03% is amongst the best of the industry. NMRK outperforms 100.00% of its industry peers.
NMRK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 2.24% | ||
| GM | 99.03% |
OM growth 3Y-48.37%
OM growth 5Y-14.71%
PM growth 3Y-55.64%
PM growth 5Y-13.83%
GM growth 3Y-0.05%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NMRK is destroying value.
NMRK has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NMRK has been reduced compared to 5 years ago.
The debt/assets ratio for NMRK is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that NMRK is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.38, NMRK is in line with its industry, outperforming 51.56% of the companies in the same industry.
A Debt/Equity ratio of 1.18 is on the high side and indicates that NMRK has dependencies on debt financing.
NMRK has a worse Debt to Equity ratio (1.18) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.38 |
ROIC/WACC0.46
WACC6.22%
2.3 Liquidity
NMRK has a Current Ratio of 1.00. This is a bad value and indicates that NMRK is not financially healthy enough and could expect problems in meeting its short term obligations.
NMRK has a Current ratio of 1.00. This is in the lower half of the industry: NMRK underperforms 70.31% of its industry peers.
A Quick Ratio of 1.00 indicates that NMRK may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, NMRK is doing worse than 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
NMRK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.92%, which is quite good.
The Earnings Per Share has been decreasing by -5.17% on average over the past years.
Looking at the last year, NMRK shows a quite strong growth in Revenue. The Revenue has grown by 10.86% in the last year.
NMRK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.31% yearly.
EPS 1Y (TTM)17.92%
EPS 3Y-9.02%
EPS 5Y-5.17%
EPS Q2Q%19.57%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y-1.96%
Revenue growth 5Y4.31%
Sales Q2Q%18.85%
3.2 Future
The Earnings Per Share is expected to grow by 10.84% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.79% on average over the next years.
EPS Next Y16.2%
EPS Next 2Y16.46%
EPS Next 3Y13.95%
EPS Next 5Y10.84%
Revenue Next Year14.35%
Revenue Next 2Y11.6%
Revenue Next 3Y10.01%
Revenue Next 5Y7.79%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NMRK is valuated reasonably with a Price/Earnings ratio of 8.30.
NMRK's Price/Earnings ratio is rather cheap when compared to the industry. NMRK is cheaper than 90.63% of the companies in the same industry.
NMRK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.33.
Based on the Price/Forward Earnings ratio of 7.15, the valuation of NMRK can be described as very cheap.
Based on the Price/Forward Earnings ratio, NMRK is valued cheaper than 96.88% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.37. NMRK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 7.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NMRK indicates a rather cheap valuation: NMRK is cheaper than 93.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.89 |
4.3 Compensation for Growth
NMRK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NMRK's earnings are expected to grow with 13.95% in the coming years.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y16.46%
EPS Next 3Y13.95%
5. Dividend
5.1 Amount
NMRK has a Yearly Dividend Yield of 1.15%.
In the last 3 months the price of NMRK has falen by -25.05%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.72, NMRK pays a better dividend. On top of this NMRK pays more dividend than 82.81% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, NMRK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
The dividend of NMRK decreases each year by -21.25%.
NMRK has been paying a dividend for over 5 years, so it has already some track record.
NMRK has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-21.25%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
NMRK pays out 33.68% of its income as dividend. This is a sustainable payout ratio.
DP33.68%
EPS Next 2Y16.46%
EPS Next 3Y13.95%
10.38
+0.29 (+2.87%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners73.02%
Inst Owner Change0.43%
Ins Owners12.65%
Ins Owner Change47.06%
Market Cap1.87B
Analysts78.18
Price Target18.36 (76.88%)
Short Float %3.54%
Short Ratio4.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend0.12
Dividend Growth(5Y)-21.25%
DP33.68%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.78%
Min EPS beat(2)8.75%
Max EPS beat(2)12.81%
EPS beat(4)3
Avg EPS beat(4)5.89%
Min EPS beat(4)-1.96%
Max EPS beat(4)12.81%
EPS beat(8)4
Avg EPS beat(8)0.31%
EPS beat(12)6
Avg EPS beat(12)3.89%
EPS beat(16)10
Avg EPS beat(16)12.35%
Revenue beat(2)1
Avg Revenue beat(2)4.37%
Min Revenue beat(2)-1.4%
Max Revenue beat(2)10.13%
Revenue beat(4)2
Avg Revenue beat(4)2.28%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)10.13%
Revenue beat(8)3
Avg Revenue beat(8)1.18%
Revenue beat(12)5
Avg Revenue beat(12)0.16%
Revenue beat(16)9
Avg Revenue beat(16)3.65%
PT rev (1m)-4.42%
PT rev (3m)-3.57%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)2.15%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)0.84%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 7.15 | ||
| P/S | 0.68 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.89 |
EPS(TTM)1.25
EY12.04%
EPS(NY)1.45
Fwd EY13.99%
FCF(TTM)-0.24
FCFYN/A
OCF(TTM)-0.06
OCFYN/A
SpS15.18
BVpS6.68
TBVpS-0.82
PEG (NY)0.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 5.08% | ||
| ROCE | 5.68% | ||
| ROIC | 2.83% | ||
| ROICexc | 2.99% | ||
| ROICexgc | 4.89% | ||
| OM | 6.08% | ||
| PM (TTM) | 2.24% | ||
| GM | 99.03% | ||
| FCFM | N/A |
ROA(3y)1.46%
ROA(5y)4.08%
ROE(3y)5.18%
ROE(5y)16.9%
ROIC(3y)4.15%
ROIC(5y)7.06%
ROICexc(3y)4.5%
ROICexc(5y)8.1%
ROICexgc(3y)9.76%
ROICexgc(5y)14.35%
ROCE(3y)7.43%
ROCE(5y)14.71%
ROICexcg growth 3Y-48.74%
ROICexcg growth 5Y-20.91%
ROICexc growth 3Y-49.32%
ROICexc growth 5Y-18.85%
OM growth 3Y-48.37%
OM growth 5Y-14.71%
PM growth 3Y-55.64%
PM growth 5Y-13.83%
GM growth 3Y-0.05%
GM growth 5Y0.03%
F-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.18 | ||
| Cap/Depr | 18.94% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 5.18 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 1.38 |
F-Score5
WACC6.22%
ROIC/WACC0.46
Cap/Depr(3y)29.92%
Cap/Depr(5y)23.99%
Cap/Sales(3y)1.92%
Cap/Sales(5y)1.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.92%
EPS 3Y-9.02%
EPS 5Y-5.17%
EPS Q2Q%19.57%
EPS Next Y16.2%
EPS Next 2Y16.46%
EPS Next 3Y13.95%
EPS Next 5Y10.84%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y-1.96%
Revenue growth 5Y4.31%
Sales Q2Q%18.85%
Revenue Next Year14.35%
Revenue Next 2Y11.6%
Revenue Next 3Y10.01%
Revenue Next 5Y7.79%
EBIT growth 1Y-21.8%
EBIT growth 3Y-49.38%
EBIT growth 5Y-11.04%
EBIT Next Year102.65%
EBIT Next 3Y38.44%
EBIT Next 5Y25.64%
FCF growth 1Y86.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y96.26%
OCF growth 3YN/A
OCF growth 5YN/A