NEWMARK GROUP INC-CLASS A (NMRK) Stock Fundamental Analysis
NASDAQ:NMRK - Nasdaq - US65158N1028 - Common Stock - Currency: USD
Overall NMRK gets a fundamental rating of 4 out of 10. We evaluated NMRK against 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
NMRK had positive earnings in the past year.
NMRK had a negative operating cash flow in the past year.
NMRK had positive earnings in each of the past 5 years.
In the past 5 years NMRK reported 4 times negative operating cash flow.
1.2 Ratios
NMRK has a Return On Assets of 1.05%. This is in the better half of the industry: NMRK outperforms 68.33% of its industry peers.
NMRK has a better Return On Equity (4.47%) than 73.33% of its industry peers.
The Return On Invested Capital of NMRK (2.33%) is better than 66.67% of its industry peers.
NMRK had an Average Return On Invested Capital over the past 3 years of 4.13%. This is in line with the industry average of 4.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 4.47% | ||
| ROIC | 2.33% |
ROA(3y)1.45%
ROA(5y)4.08%
ROE(3y)4.81%
ROE(5y)16.68%
ROIC(3y)4.13%
ROIC(5y)7.04%
1.3 Margins
NMRK has a Profit Margin of 2.00%. This is in the better half of the industry: NMRK outperforms 65.00% of its industry peers.
In the last couple of years the Profit Margin of NMRK has declined.
The Operating Margin of NMRK (5.72%) is better than 71.67% of its industry peers.
In the last couple of years the Operating Margin of NMRK has declined.
Looking at the Gross Margin, with a value of 98.92%, NMRK belongs to the top of the industry, outperforming 98.33% of the companies in the same industry.
In the last couple of years the Gross Margin of NMRK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.72% | ||
| PM (TTM) | 2% | ||
| GM | 98.92% |
OM growth 3Y-48.81%
OM growth 5Y-15.15%
PM growth 3Y-55.72%
PM growth 5Y-13.93%
GM growth 3Y-0.05%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NMRK is destroying value.
Compared to 1 year ago, NMRK has less shares outstanding
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 1.34, we must say that NMRK is in the distress zone and has some risk of bankruptcy.
NMRK has a Altman-Z score (1.34) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.50 is on the high side and indicates that NMRK has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.50, NMRK is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.34 |
ROIC/WACC0.31
WACC7.59%
2.3 Liquidity
NMRK has a Current Ratio of 1.02. This is a normal value and indicates that NMRK is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NMRK (1.02) is worse than 70.00% of its industry peers.
NMRK has a Quick Ratio of 1.02. This is a normal value and indicates that NMRK is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.02, NMRK is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.92% over the past year.
NMRK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.17% yearly.
NMRK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.49%.
NMRK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.42% yearly.
EPS 1Y (TTM)17.92%
EPS 3Y-9.02%
EPS 5Y-5.17%
EPS Q2Q%19.57%
Revenue 1Y (TTM)11.49%
Revenue growth 3Y-1.78%
Revenue growth 5Y4.42%
Sales Q2Q%18.85%
3.2 Future
NMRK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.32% yearly.
NMRK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.95% yearly.
EPS Next Y16.69%
EPS Next 2Y15.54%
EPS Next 3Y13.57%
EPS Next 5Y9.32%
Revenue Next Year13.91%
Revenue Next 2Y11.23%
Revenue Next 3Y8.66%
Revenue Next 5Y6.95%
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 11.33.
Compared to the rest of the industry, the Price/Earnings ratio of NMRK indicates a rather cheap valuation: NMRK is cheaper than 90.00% of the companies listed in the same industry.
NMRK is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.71 indicates a reasonable valuation of NMRK.
NMRK's Price/Forward Earnings ratio is rather cheap when compared to the industry. NMRK is cheaper than 96.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NMRK to the average of the S&P500 Index (22.68), we can say NMRK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NMRK is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.48 |
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.
NMRK's earnings are expected to grow with 13.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y15.54%
EPS Next 3Y13.57%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, NMRK is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.26, NMRK pays a better dividend. On top of this NMRK pays more dividend than 83.33% of the companies listed in the same industry.
With a Dividend Yield of 0.83, NMRK pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
The dividend of NMRK decreases each year by -13.90%.
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)-13.9%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
NMRK pays out 39.59% of its income as dividend. This is a sustainable payout ratio.
DP39.59%
EPS Next 2Y15.54%
EPS Next 3Y13.57%
14.16
-0.27 (-1.87%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners68.96%
Inst Owner Change7.47%
Ins Owners12.41%
Ins Owner Change10.59%
Market Cap2.42B
Analysts78.18
Price Target19.04 (34.46%)
Short Float %3.95%
Short Ratio5.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend0.12
Dividend Growth(5Y)-13.9%
DP39.59%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.35%
Min EPS beat(2)3.95%
Max EPS beat(2)8.75%
EPS beat(4)2
Avg EPS beat(4)1.84%
Min EPS beat(4)-3.36%
Max EPS beat(4)8.75%
EPS beat(8)3
Avg EPS beat(8)-1.38%
EPS beat(12)6
Avg EPS beat(12)3.97%
EPS beat(16)10
Avg EPS beat(16)12.75%
Revenue beat(2)0
Avg Revenue beat(2)-1.44%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-1.4%
Revenue beat(4)1
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)1.85%
Revenue beat(8)2
Avg Revenue beat(8)-1.18%
Revenue beat(12)5
Avg Revenue beat(12)0.16%
Revenue beat(16)9
Avg Revenue beat(16)4.46%
PT rev (1m)0%
PT rev (3m)15.46%
EPS NQ rev (1m)2.25%
EPS NQ rev (3m)3.35%
EPS NY rev (1m)1.03%
EPS NY rev (3m)4.12%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)2.88%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 9.71 | ||
| P/S | 0.93 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.48 |
EPS(TTM)1.25
EY8.83%
EPS(NY)1.46
Fwd EY10.3%
FCF(TTM)-1.35
FCFYN/A
OCF(TTM)-1.13
OCFYN/A
SpS15.27
BVpS6.84
TBVpS-1.12
PEG (NY)0.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 4.47% | ||
| ROCE | 4.91% | ||
| ROIC | 2.33% | ||
| ROICexc | 2.43% | ||
| ROICexgc | 3.77% | ||
| OM | 5.72% | ||
| PM (TTM) | 2% | ||
| GM | 98.92% | ||
| FCFM | N/A |
ROA(3y)1.45%
ROA(5y)4.08%
ROE(3y)4.81%
ROE(5y)16.68%
ROIC(3y)4.13%
ROIC(5y)7.04%
ROICexc(3y)4.48%
ROICexc(5y)8.09%
ROICexgc(3y)9.72%
ROICexgc(5y)14.33%
ROCE(3y)7.39%
ROCE(5y)14.69%
ROICexcg growth 3Y-49.17%
ROICexcg growth 5Y-21.3%
ROICexc growth 3Y-49.71%
ROICexc growth 5Y-19.22%
OM growth 3Y-48.81%
OM growth 5Y-15.15%
PM growth 3Y-55.72%
PM growth 5Y-13.93%
GM growth 3Y-0.05%
GM growth 5Y0.03%
F-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.44 | ||
| Cap/Depr | 22.24% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 2.94 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 1.34 |
F-Score6
WACC7.59%
ROIC/WACC0.31
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
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 Y16.69%
EPS Next 2Y15.54%
EPS Next 3Y13.57%
EPS Next 5Y9.32%
Revenue 1Y (TTM)11.49%
Revenue growth 3Y-1.78%
Revenue growth 5Y4.42%
Sales Q2Q%18.85%
Revenue Next Year13.91%
Revenue Next 2Y11.23%
Revenue Next 3Y8.66%
Revenue Next 5Y6.95%
EBIT growth 1Y-7.67%
EBIT growth 3Y-49.72%
EBIT growth 5Y-11.4%
EBIT Next Year104.06%
EBIT Next 3Y38.32%
EBIT Next 5Y28.08%
FCF growth 1Y-160.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-143.21%
OCF growth 3YN/A
OCF growth 5YN/A