NEWTEKONE INC (NEWT) Stock Fundamental Analysis
NASDAQ:NEWT - US6525262035 - Common Stock
12.39 USD
+0.1 (+0.81%)
12.39 USD
0 (0%)
Taking everything into account, NEWT scores 4 out of 10 in our fundamental rating. NEWT was compared to 100 industry peers in the Financial Services industry. While NEWT is still in line with the averages on profitability rating, there are concerns on its financial health. NEWT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year NEWT was profitable.
NEWT had a negative operating cash flow in the past year.
In the past 5 years NEWT has always been profitable.
In multiple years NEWT reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.43%, NEWT is doing good in the industry, outperforming 64.00% of the companies in the same industry.
NEWT has a better Return On Equity (16.57%) than 84.00% of its industry peers.
NEWT has a Return On Invested Capital (4.13%) which is comparable to the rest of the industry.
NEWT had an Average Return On Invested Capital over the past 3 years of 4.45%. This is below the industry average of 7.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 16.57% | ||
| ROIC | 4.13% |
ROA(3y)2.94%
ROA(5y)4.16%
ROE(3y)14.55%
ROE(5y)14.87%
ROIC(3y)4.45%
ROIC(5y)5.46%
1.3 Margins
NEWT's Profit Margin of 18.54% is fine compared to the rest of the industry. NEWT outperforms 77.00% of its industry peers.
NEWT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 41.07%, NEWT belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
NEWT's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 93.47%, NEWT belongs to the best of the industry, outperforming 98.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.07% | ||
| PM (TTM) | 18.54% | ||
| GM | 93.47% |
OM growth 3Y-13.36%
OM growth 5Y-7.51%
PM growth 3Y-29.94%
PM growth 5Y-13.6%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEWT is destroying value.
The number of shares outstanding for NEWT has been increased compared to 1 year ago.
The number of shares outstanding for NEWT has been increased compared to 5 years ago.
Compared to 1 year ago, NEWT has a worse debt to assets ratio.
2.2 Solvency
NEWT has an Altman-Z score of -0.07. This is a bad value and indicates that NEWT is not financially healthy and even has some risk of bankruptcy.
NEWT's Altman-Z score of -0.07 is on the low side compared to the rest of the industry. NEWT is outperformed by 66.00% of its industry peers.
A Debt/Equity ratio of 5.58 is on the high side and indicates that NEWT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 5.58, NEWT is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.07 |
ROIC/WACC0.64
WACC6.41%
2.3 Liquidity
NEWT has a Current Ratio of 0.18. This is a bad value and indicates that NEWT is not financially healthy enough and could expect problems in meeting its short term obligations.
NEWT has a Current ratio of 0.18. This is in the lower half of the industry: NEWT underperforms 72.00% of its industry peers.
NEWT has a Quick Ratio of 0.18. This is a bad value and indicates that NEWT is not financially healthy enough and could expect problems in meeting its short term obligations.
NEWT has a worse Quick ratio (0.18) than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
NEWT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.34%.
NEWT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.30% yearly.
The Revenue has grown by 21.18% in the past year. This is a very strong growth!
NEWT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.01% yearly.
EPS 1Y (TTM)-54.34%
EPS 3Y-17.2%
EPS 5Y-3.3%
EPS Q2Q%-255.56%
Revenue 1Y (TTM)21.18%
Revenue growth 3Y19.43%
Revenue growth 5Y20.01%
Sales Q2Q%11.72%
3.2 Future
NEWT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.73% yearly.
Based on estimates for the next years, NEWT will show a quite strong growth in Revenue. The Revenue will grow by 15.39% on average per year.
EPS Next Y16.19%
EPS Next 2Y9.36%
EPS Next 3Y13.31%
EPS Next 5Y11.73%
Revenue Next Year18.11%
Revenue Next 2Y15.39%
Revenue Next 3YN/A
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.68, which indicates a correct valuation of NEWT.
Compared to the rest of the industry, the Price/Earnings ratio of NEWT is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.14, NEWT is valued a bit cheaper.
The Price/Forward Earnings ratio is 5.26, which indicates a rather cheap valuation of NEWT.
NEWT's Price/Forward Earnings ratio is rather cheap when compared to the industry. NEWT is cheaper than 89.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NEWT to the average of the S&P500 Index (22.80), we can say NEWT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 5.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEWT is valued cheaply inside the industry as 86.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.85 |
4.3 Compensation for Growth
NEWT'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 NEWT's earnings are expected to grow with 13.31% in the coming years.
PEG (NY)0.97
PEG (5Y)N/A
EPS Next 2Y9.36%
EPS Next 3Y13.31%
5. Dividend
5.1 Amount
NEWT has a Yearly Dividend Yield of 6.32%, which is a nice return.
NEWT's Dividend Yield is rather good when compared to the industry average which is at 4.27. NEWT pays more dividend than 89.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, NEWT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.32% |
5.2 History
The dividend of NEWT decreases each year by -17.44%.
NEWT has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of NEWT decreased recently.
Dividend Growth(5Y)-17.44%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
NEWT pays out 40.47% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP40.47%
EPS Next 2Y9.36%
EPS Next 3Y13.31%
12.39
+0.1 (+0.81%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners43.07%
Inst Owner Change11.38%
Ins Owners6.57%
Ins Owner Change2.91%
Market Cap326.10M
Analysts73.33
Price Target14.36 (15.9%)
Short Float %11.04%
Short Ratio12.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.32% |
Yearly Dividend0.79
Dividend Growth(5Y)-17.44%
DP40.47%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-117%
Min EPS beat(2)-230.76%
Max EPS beat(2)-3.23%
EPS beat(4)2
Avg EPS beat(4)-57.52%
Min EPS beat(4)-230.76%
Max EPS beat(4)2.01%
EPS beat(8)5
Avg EPS beat(8)-22.77%
EPS beat(12)6
Avg EPS beat(12)-22.29%
EPS beat(16)9
Avg EPS beat(16)-14.99%
Revenue beat(2)1
Avg Revenue beat(2)4.91%
Min Revenue beat(2)-6.85%
Max Revenue beat(2)16.67%
Revenue beat(4)3
Avg Revenue beat(4)4.89%
Min Revenue beat(4)-6.85%
Max Revenue beat(4)16.67%
Revenue beat(8)5
Avg Revenue beat(8)2.78%
Revenue beat(12)8
Avg Revenue beat(12)11.76%
Revenue beat(16)12
Avg Revenue beat(16)41.25%
PT rev (1m)0.9%
PT rev (3m)-1.16%
EPS NQ rev (1m)3.99%
EPS NQ rev (3m)15.14%
EPS NY rev (1m)0.26%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)12.7%
Revenue NY rev (1m)-2.77%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 5.26 | ||
| P/S | 1.17 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.04 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 6.85 |
EPS(TTM)0.79
EY6.38%
EPS(NY)2.36
Fwd EY19.02%
FCF(TTM)-14.42
FCFYN/A
OCF(TTM)-14.41
OCFYN/A
SpS10.6
BVpS11.86
TBVpS11.3
PEG (NY)0.97
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 16.57% | ||
| ROCE | 11.82% | ||
| ROIC | 4.13% | ||
| ROICexc | 4.55% | ||
| ROICexgc | 5.13% | ||
| OM | 41.07% | ||
| PM (TTM) | 18.54% | ||
| GM | 93.47% | ||
| FCFM | N/A |
ROA(3y)2.94%
ROA(5y)4.16%
ROE(3y)14.55%
ROE(5y)14.87%
ROIC(3y)4.45%
ROIC(5y)5.46%
ROICexc(3y)5%
ROICexc(5y)5.8%
ROICexgc(3y)6.64%
ROICexgc(5y)8.35%
ROCE(3y)8.52%
ROCE(5y)8.88%
ROICexcg growth 3Y-25.12%
ROICexcg growth 5Y-10.78%
ROICexc growth 3Y-15.59%
ROICexc growth 5Y-4.63%
OM growth 3Y-13.36%
OM growth 5Y-7.51%
PM growth 3Y-29.94%
PM growth 5Y-13.6%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.58 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 15.04 | ||
| Cap/Depr | 34.93% | ||
| Cap/Sales | 0.14% | ||
| Interest Coverage | 1.3 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | -0.07 |
F-Score4
WACC6.41%
ROIC/WACC0.64
Cap/Depr(3y)13.5%
Cap/Depr(5y)8.1%
Cap/Sales(3y)0.13%
Cap/Sales(5y)0.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-54.34%
EPS 3Y-17.2%
EPS 5Y-3.3%
EPS Q2Q%-255.56%
EPS Next Y16.19%
EPS Next 2Y9.36%
EPS Next 3Y13.31%
EPS Next 5Y11.73%
Revenue 1Y (TTM)21.18%
Revenue growth 3Y19.43%
Revenue growth 5Y20.01%
Sales Q2Q%11.72%
Revenue Next Year18.11%
Revenue Next 2Y15.39%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y40%
EBIT growth 3Y3.47%
EBIT growth 5Y10.99%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-87.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-87.65%
OCF growth 3YN/A
OCF growth 5YN/A