NEWMARK GROUP INC-CLASS A (NMRK) Stock Fundamental Analysis
NASDAQ:NMRK - Nasdaq - US65158N1028 - Common Stock
We assign a fundamental rating of 4 out of 10 to NMRK. NMRK was compared to 65 industry peers in the Real Estate Management & Development industry. There are concerns on the financial health of NMRK while its profitability can be described as average. 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.
In the past 5 years NMRK has always been profitable.
In multiple years NMRK reported negative operating cash flow during the last 5 years.
1.2 Ratios
NMRK has a Return On Assets of 1.05%. This is in the better half of the industry: NMRK outperforms 68.85% of its industry peers.
NMRK has a Return On Equity of 4.47%. This is in the better half of the industry: NMRK outperforms 73.77% of its industry peers.
NMRK has a Return On Invested Capital of 2.47%. This is in the better half of the industry: NMRK outperforms 67.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NMRK is significantly above the industry average of 4.84%.
The 3 year average ROIC (10.15%) for NMRK is well above the current ROIC(2.47%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 4.47% | ||
| ROIC | 2.47% |
ROA(3y)5.78%
ROA(5y)4.47%
ROE(3y)22.9%
ROE(5y)19.37%
ROIC(3y)10.15%
ROIC(5y)8.54%
1.3 Margins
With a decent Profit Margin value of 2.00%, NMRK is doing good in the industry, outperforming 65.57% of the companies in the same industry.
In the last couple of years the Profit Margin of NMRK has declined.
NMRK has a better Operating Margin (5.72%) than 72.13% of its industry peers.
In the last couple of years the Operating Margin of NMRK has declined.
The Gross Margin of NMRK (98.92%) is better than 98.36% of its industry peers.
NMRK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.72% | ||
| PM (TTM) | 2% | ||
| GM | 98.92% |
OM growth 3Y-23.16%
OM growth 5Y-20.65%
PM growth 3Y-22.41%
PM growth 5Y-19.06%
GM growth 3Y0.03%
GM growth 5Y0.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NMRK is still creating some value.
Compared to 1 year ago, NMRK has more shares outstanding
NMRK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NMRK has a worse debt to assets ratio.
2.2 Solvency
NMRK has an Altman-Z score of 1.32. This is a bad value and indicates that NMRK is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.32, NMRK is in line with its industry, outperforming 49.18% of the companies in the same industry.
NMRK has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
NMRK has a Debt to Equity ratio of 1.50. This is in the lower half of the industry: NMRK underperforms 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.32
WACC7.7%
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.
Looking at the Current ratio, with a value of 1.02, NMRK is doing worse than 70.49% of the companies in the same industry.
A Quick Ratio of 1.02 indicates that NMRK should not have too much problems paying its short term obligations.
The Quick ratio of NMRK (1.02) is worse than 63.93% of its industry peers.
| 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 impressive 26.09% over the past year.
NMRK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.83% yearly.
NMRK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.15%.
The Revenue has been growing slightly by 3.83% on average over the past years.
EPS 1Y (TTM)26.09%
EPS 3Y4.46%
EPS 5Y-6.83%
EPS Q2Q%22.22%
Revenue 1Y (TTM)12.15%
Revenue growth 3Y9.05%
Revenue growth 5Y3.83%
Sales Q2Q%11.3%
3.2 Future
Based on estimates for the next years, NMRK will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.99% on average per year.
The Revenue is expected to grow by 7.06% on average over the next years.
EPS Next Y11.82%
EPS Next 2Y15.82%
EPS Next 3Y14.79%
EPS Next 5Y10.99%
Revenue Next Year7.55%
Revenue Next 2Y10.28%
Revenue Next 3Y9.68%
Revenue Next 5Y7.06%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 11.89, the valuation of NMRK can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of NMRK indicates a rather cheap valuation: NMRK is cheaper than 88.52% of the companies listed in the same industry.
NMRK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 9.70 indicates a reasonable valuation of NMRK.
Based on the Price/Forward Earnings ratio, NMRK is valued cheaply inside the industry as 95.08% of the companies are valued more expensively.
NMRK 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 9.7 |
4.2 Price Multiples
93.44% of the companies in the same industry are more expensive than NMRK, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.14 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of NMRK may justify a higher PE ratio.
A more expensive valuation may be justified as NMRK's earnings are expected to grow with 14.79% in the coming years.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y15.82%
EPS Next 3Y14.79%
5. Dividend
5.1 Amount
NMRK has a yearly dividend return of 0.91%, which is pretty low.
Compared to an average industry Dividend Yield of 4.56, NMRK pays a better dividend. On top of this NMRK pays more dividend than 81.97% of the companies listed in the same industry.
With a Dividend Yield of 0.91, NMRK pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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
39.59% of the earnings are spent on dividend by NMRK. This is a low number and sustainable payout ratio.
DP39.59%
EPS Next 2Y15.82%
EPS Next 3Y14.79%
NEWMARK GROUP INC-CLASS A
NASDAQ:NMRK (1/21/2025, 8:17:10 PM)
After market: 13.79 0 (0%)13.79
+0.5 (+3.76%)
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 Change-0.33%
Ins Owners12.41%
Ins Owner Change1.48%
Market Cap2.36B
Analysts78.18
Price Target19.04 (38.07%)
Short Float %4.11%
Short Ratio5.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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)0.9%
PT rev (3m)15.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.72%
EPS NY rev (1m)0%
EPS NY rev (3m)2.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 9.7 | ||
| P/S | 0.9 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.14 |
EPS(TTM)1.16
EY8.41%
EPS(NY)1.42
Fwd EY10.31%
FCF(TTM)-1.35
FCFYN/A
OCF(TTM)-1.13
OCFYN/A
SpS15.27
BVpS6.84
TBVpS-1.12
PEG (NY)1.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 4.47% | ||
| ROCE | 4.91% | ||
| ROIC | 2.47% | ||
| ROICexc | 2.58% | ||
| ROICexgc | 4% | ||
| OM | 5.72% | ||
| PM (TTM) | 2% | ||
| GM | 98.92% | ||
| FCFM | N/A |
ROA(3y)5.78%
ROA(5y)4.47%
ROE(3y)22.9%
ROE(5y)19.37%
ROIC(3y)10.15%
ROIC(5y)8.54%
ROICexc(3y)11.84%
ROICexc(5y)9.76%
ROICexgc(3y)21.47%
ROICexgc(5y)17.54%
ROCE(3y)19.68%
ROCE(5y)16.35%
ROICexcg growth 3Y-14.45%
ROICexcg growth 5Y-20.33%
ROICexc growth 3Y-17.65%
ROICexc growth 5Y-21.59%
OM growth 3Y-23.16%
OM growth 5Y-20.65%
PM growth 3Y-22.41%
PM growth 5Y-19.06%
GM growth 3Y0.03%
GM growth 5Y0.04%
F-Score5
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 | 1.32 |
F-Score5
WACC7.7%
ROIC/WACC0.32
Cap/Depr(3y)29%
Cap/Depr(5y)25.7%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.09%
EPS 3Y4.46%
EPS 5Y-6.83%
EPS Q2Q%22.22%
EPS Next Y11.82%
EPS Next 2Y15.82%
EPS Next 3Y14.79%
EPS Next 5Y10.99%
Revenue 1Y (TTM)12.15%
Revenue growth 3Y9.05%
Revenue growth 5Y3.83%
Sales Q2Q%11.3%
Revenue Next Year7.55%
Revenue Next 2Y10.28%
Revenue Next 3Y9.68%
Revenue Next 5Y7.06%
EBIT growth 1Y-7.67%
EBIT growth 3Y-16.21%
EBIT growth 5Y-17.62%
EBIT Next Year103.28%
EBIT Next 3Y43.11%
EBIT Next 5Y27.72%
FCF growth 1Y-146.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-135.49%
OCF growth 3YN/A
OCF growth 5YN/A