NEWTEKONE INC (NEWT) Stock Fundamental Analysis
NASDAQ:NEWT - Nasdaq - US6525262035 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to NEWT. NEWT was compared to 99 industry peers in the Financial Services industry. There are concerns on the financial health of NEWT while its profitability can be described as average. NEWT is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
In the past year NEWT was profitable.
In the past year NEWT has reported a negative cash flow from operations.
In the past 5 years NEWT has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: NEWT reported negative operating cash flow in multiple years.
1.2 Ratios
NEWT has a Return On Assets (2.29%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 16.20%, NEWT is doing good in the industry, outperforming 78.79% of the companies in the same industry.
NEWT has a Return On Invested Capital of 4.71%. This is in the better half of the industry: NEWT outperforms 60.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NEWT is significantly below the industry average of 11.83%.
The 3 year average ROIC (4.45%) for NEWT is below the current ROIC(4.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 16.2% | ||
| ROIC | 4.71% |
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 16.71% is fine compared to the rest of the industry. NEWT outperforms 72.73% of its industry peers.
In the last couple of years the Profit Margin of NEWT has declined.
The Operating Margin of NEWT (44.47%) is better than 84.85% of its industry peers.
NEWT's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 93.35%, NEWT belongs to the best of the industry, outperforming 97.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.47% | ||
| PM (TTM) | 16.71% | ||
| GM | 93.35% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NEWT is destroying value.
Compared to 1 year ago, NEWT has more shares outstanding
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 0.03. This is a bad value and indicates that NEWT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.03, NEWT is doing worse than 65.66% of the companies in the same industry.
NEWT has a Debt/Equity ratio of 5.76. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NEWT (5.76) is worse than 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.03 |
ROIC/WACC0.79
WACC6%
2.3 Liquidity
A Current Ratio of 0.26 indicates that NEWT may have some problems paying its short term obligations.
With a Current ratio value of 0.26, NEWT is not doing good in the industry: 67.68% of the companies in the same industry are doing better.
A Quick Ratio of 0.26 indicates that NEWT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.26, NEWT is doing worse than 67.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.97% over the past year.
The Earnings Per Share has been decreasing by -3.30% on average over the past years.
Looking at the last year, NEWT shows a very strong growth in Revenue. The Revenue has grown by 34.91%.
Measured over the past years, NEWT shows a very strong growth in Revenue. The Revenue has been growing by 20.01% on average per year.
EPS 1Y (TTM)25.97%
EPS 3Y-17.2%
EPS 5Y-3.3%
EPS Q2Q%-7.89%
Revenue 1Y (TTM)34.91%
Revenue growth 3Y19.43%
Revenue growth 5Y20.01%
Sales Q2Q%29.1%
3.2 Future
Based on estimates for the next years, NEWT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.73% on average per year.
Based on estimates for the next years, NEWT will show a quite strong growth in Revenue. The Revenue will grow by 17.43% on average per year.
EPS Next Y14.8%
EPS Next 2Y10.31%
EPS Next 3Y14.25%
EPS Next 5Y11.73%
Revenue Next Year21.48%
Revenue Next 2Y17.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 5.37 indicates a rather cheap valuation of NEWT.
87.88% of the companies in the same industry are more expensive than NEWT, based on the Price/Earnings ratio.
NEWT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
NEWT is valuated cheaply with a Price/Forward Earnings ratio of 4.34.
Based on the Price/Forward Earnings ratio, NEWT is valued cheaper than 90.91% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NEWT to the average of the S&P500 Index (22.13), we can say NEWT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.37 | ||
| Fwd PE | 4.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEWT is valued cheaply inside the industry as 87.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.91 |
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.
NEWT's earnings are expected to grow with 14.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y10.31%
EPS Next 3Y14.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.69%, NEWT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.10, NEWT pays a better dividend. On top of this NEWT pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, NEWT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.69% |
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.
NEWT has decreased its dividend recently.
Dividend Growth(5Y)-17.44%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
42.30% of the earnings are spent on dividend by NEWT. This is a bit on the high side, but may be sustainable.
DP42.3%
EPS Next 2Y10.31%
EPS Next 3Y14.25%
10.41
-0.54 (-4.93%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners42.12%
Inst Owner Change10.55%
Ins Owners6.53%
Ins Owner Change2.53%
Market Cap274.20M
Analysts72.31
Price Target13.63 (30.93%)
Short Float %10.8%
Short Ratio9.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.69% |
Yearly Dividend0.79
Dividend Growth(5Y)-17.44%
DP42.3%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.61%
Min EPS beat(2)-3.23%
Max EPS beat(2)2.01%
EPS beat(4)3
Avg EPS beat(4)1.74%
Min EPS beat(4)-3.23%
Max EPS beat(4)6.31%
EPS beat(8)5
Avg EPS beat(8)5.03%
EPS beat(12)7
Avg EPS beat(12)-2.92%
EPS beat(16)10
Avg EPS beat(16)3.08%
Revenue beat(2)2
Avg Revenue beat(2)13.05%
Min Revenue beat(2)9.43%
Max Revenue beat(2)16.67%
Revenue beat(4)4
Avg Revenue beat(4)7.32%
Min Revenue beat(4)0.33%
Max Revenue beat(4)16.67%
Revenue beat(8)5
Avg Revenue beat(8)3.49%
Revenue beat(12)9
Avg Revenue beat(12)20.05%
Revenue beat(16)13
Avg Revenue beat(16)50.15%
PT rev (1m)-6.18%
PT rev (3m)-4.16%
EPS NQ rev (1m)-2.01%
EPS NQ rev (3m)8.97%
EPS NY rev (1m)0%
EPS NY rev (3m)4.13%
Revenue NQ rev (1m)2.23%
Revenue NQ rev (3m)11.98%
Revenue NY rev (1m)2.93%
Revenue NY rev (3m)8.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.37 | ||
| Fwd PE | 4.34 | ||
| P/S | 0.94 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.91 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 5.91 |
EPS(TTM)1.94
EY18.64%
EPS(NY)2.4
Fwd EY23.03%
FCF(TTM)-6.72
FCFYN/A
OCF(TTM)-6.7
OCFYN/A
SpS11.13
BVpS11.48
TBVpS10.92
PEG (NY)0.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 16.2% | ||
| ROCE | 12.05% | ||
| ROIC | 4.71% | ||
| ROICexc | 5.43% | ||
| ROICexgc | 5.91% | ||
| OM | 44.47% | ||
| PM (TTM) | 16.71% | ||
| GM | 93.35% | ||
| 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-Score3
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.76 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 13.21 | ||
| Cap/Depr | 29.97% | ||
| Cap/Sales | 0.14% | ||
| Interest Coverage | 1.53 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 0.03 |
F-Score3
WACC6%
ROIC/WACC0.79
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)25.97%
EPS 3Y-17.2%
EPS 5Y-3.3%
EPS Q2Q%-7.89%
EPS Next Y14.8%
EPS Next 2Y10.31%
EPS Next 3Y14.25%
EPS Next 5Y11.73%
Revenue 1Y (TTM)34.91%
Revenue growth 3Y19.43%
Revenue growth 5Y20.01%
Sales Q2Q%29.1%
Revenue Next Year21.48%
Revenue Next 2Y17.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y88.42%
EBIT growth 3Y3.47%
EBIT growth 5Y10.99%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y4.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4.74%
OCF growth 3YN/A
OCF growth 5YN/A