NEWTEKONE INC (NEWT) Stock Fundamental Analysis
NASDAQ:NEWT - Nasdaq - US6525262035 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to NEWT. NEWT was compared to 101 industry peers in the Financial Services industry. NEWT has a medium profitability rating, but doesn't score so well on its financial health evaluation. NEWT is not valued too expensively and it also shows a decent growth rate.
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.
In multiple years NEWT reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.29%, NEWT is in the better half of the industry, outperforming 60.40% of the companies in the same industry.
NEWT's Return On Equity of 16.20% is fine compared to the rest of the industry. NEWT outperforms 79.21% of its industry peers.
With a decent Return On Invested Capital value of 4.71%, NEWT is doing good in the industry, outperforming 62.38% of the companies in the same industry.
NEWT had an Average Return On Invested Capital over the past 3 years of 4.45%. This is below the industry average of 7.76%.
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
With a decent Profit Margin value of 16.71%, NEWT is doing good in the industry, outperforming 73.27% of the companies in the same industry.
NEWT's Profit Margin has declined in the last couple of years.
The Operating Margin of NEWT (44.47%) is better than 85.15% of its industry peers.
NEWT's Operating Margin has declined in the last couple of years.
NEWT has a better Gross Margin (93.35%) than 98.02% of its industry peers.
| 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
NEWT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NEWT has more shares outstanding
NEWT has more shares outstanding than it did 5 years ago.
NEWT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.04, we must say that NEWT is in the distress zone and has some risk of bankruptcy.
NEWT has a Altman-Z score of 0.04. This is in the lower half of the industry: NEWT underperforms 63.37% of its industry peers.
A Debt/Equity ratio of 5.76 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 5.76, NEWT is doing worse than 80.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.04 |
ROIC/WACC0.76
WACC6.23%
2.3 Liquidity
A Current Ratio of 0.26 indicates that NEWT may have some problems paying its short term obligations.
NEWT has a Current ratio of 0.26. This is in the lower half of the industry: NEWT underperforms 68.32% of its industry peers.
A Quick Ratio of 0.26 indicates that NEWT may have some problems paying its short term obligations.
NEWT's Quick ratio of 0.26 is on the low side compared to the rest of the industry. NEWT is outperformed by 68.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The earnings per share for NEWT have decreased strongly by -54.34% in the last year.
Measured over the past years, NEWT shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.30% on average per year.
The Revenue has grown by 34.25% 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)34.25%
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.
NEWT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.43% yearly.
EPS Next Y15.88%
EPS Next 2Y9.84%
EPS Next 3Y13.31%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.19, NEWT is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as NEWT.
When comparing the Price/Earnings ratio of NEWT to the average of the S&P500 Index (26.99), we can say NEWT is valued slightly cheaper.
NEWT is valuated cheaply with a Price/Forward Earnings ratio of 4.72.
Based on the Price/Forward Earnings ratio, NEWT is valued cheaper than 88.12% of the companies in the same industry.
NEWT is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 4.72 |
4.2 Price Multiples
NEWT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NEWT is cheaper than 90.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.1 |
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.
The decent profitability rating of NEWT may justify a higher PE ratio.
NEWT's earnings are expected to grow with 13.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)N/A
EPS Next 2Y9.84%
EPS Next 3Y13.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.68%, NEWT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.32, NEWT pays a better dividend. On top of this NEWT pays more dividend than 85.15% 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 | 6.68% |
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 2Y9.84%
EPS Next 3Y13.31%
11.21
-0.16 (-1.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners42.12%
Inst Owner Change1.09%
Ins Owners6.53%
Ins Owner Change2.79%
Market Cap295.27M
Analysts73.33
Price Target14.36 (28.1%)
Short Float %11.7%
Short Ratio14.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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)-1.76%
PT rev (3m)-2.04%
EPS NQ rev (1m)-0.35%
EPS NQ rev (3m)-0.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 4.72 | ||
| P/S | 1.01 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.98 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 6.1 |
EPS(TTM)0.79
EY7.05%
EPS(NY)2.38
Fwd EY21.2%
FCF(TTM)-6.72
FCFYN/A
OCF(TTM)-6.7
OCFYN/A
SpS11.13
BVpS11.48
TBVpS10.92
PEG (NY)0.89
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 | 0.04 |
F-Score3
WACC6.23%
ROIC/WACC0.76
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 Y15.88%
EPS Next 2Y9.84%
EPS Next 3Y13.31%
EPS Next 5Y11.73%
Revenue 1Y (TTM)34.25%
Revenue growth 3Y19.43%
Revenue growth 5Y20.01%
Sales Q2Q%11.72%
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