NEWTEKONE INC (NEWT) Stock Fundamental Analysis
NASDAQ:NEWT - Nasdaq - US6525262035 - Common Stock - Currency: USD
NEWT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 100 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 evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
NEWT had positive earnings in the past year.
NEWT had a negative operating cash flow in the past year.
NEWT had positive earnings in each of the past 5 years.
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 in line with its industry peers.
Looking at the Return On Equity, with a value of 16.20%, NEWT is in the better half of the industry, outperforming 79.00% of the companies in the same industry.
NEWT's Return On Invested Capital of 4.71% is fine compared to the rest of the industry. NEWT outperforms 61.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEWT is significantly below the industry average of 11.84%.
The last Return On Invested Capital (4.71%) for NEWT is above the 3 year average (4.45%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 16.71%. This is in the better half of the industry: NEWT outperforms 73.00% 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 85.00% of its industry peers.
NEWT's Operating Margin has declined in the last couple of years.
The Gross Margin of NEWT (93.35%) is better than 98.00% 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
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
NEWT has more shares outstanding than it did 5 years ago.
NEWT has a worse debt/assets ratio than last year.
2.2 Solvency
NEWT has an Altman-Z score of 0.04. This is a bad value and indicates that NEWT is not financially healthy and even 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 65.00% of its industry peers.
NEWT has a Debt/Equity ratio of 5.76. This is a high value indicating a heavy dependency on external financing.
NEWT has a worse Debt to Equity ratio (5.76) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.04 |
ROIC/WACC0.74
WACC6.33%
2.3 Liquidity
A Current Ratio of 0.26 indicates that NEWT may have some problems paying its short term obligations.
NEWT has a worse Current ratio (0.26) than 68.00% 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 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
NEWT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.97%, which is quite impressive.
The Earnings Per Share has been decreasing by -3.30% on average over the past years.
The Revenue has grown by 34.91% in the past year. This is a very strong growth!
The Revenue has been growing by 20.01% on average over the past years. This is a very strong growth!
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.
The Revenue is expected to grow by 17.43% on average over the next years. This is quite good.
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
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.
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
NEWT is valuated cheaply with a Price/Earnings ratio of 5.97.
NEWT's Price/Earnings ratio is rather cheap when compared to the industry. NEWT is cheaper than 89.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, NEWT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.88, the valuation of NEWT can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEWT indicates a rather cheap valuation: NEWT is cheaper than 88.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. NEWT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.97 | ||
| Fwd PE | 4.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEWT is valued cheaply inside the industry as 89.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.14 |
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 13.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y9.84%
EPS Next 3Y13.31%
5. Dividend
5.1 Amount
NEWT has a Yearly Dividend Yield of 8.47%, which is a nice return.
NEWT's Dividend Yield is rather good when compared to the industry average which is at 5.02. NEWT pays more dividend than 89.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, NEWT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.47% |
5.2 History
The dividend of NEWT decreases each year by -17.44%.
NEWT has been paying a dividend for at least 10 years, so it has 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%
11.59
-0.34 (-2.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners42.12%
Inst Owner Change0%
Ins Owners6.53%
Ins Owner Change2.79%
Market Cap305.28M
Analysts73.33
Price Target14.48 (24.94%)
Short Float %11.13%
Short Ratio11.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.47% |
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)6.29%
PT rev (3m)-0.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)0.94%
EPS NY rev (3m)-0.11%
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 | 5.97 | ||
| Fwd PE | 4.88 | ||
| P/S | 1.04 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.01 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 6.14 |
EPS(TTM)1.94
EY16.74%
EPS(NY)2.38
Fwd EY20.51%
FCF(TTM)-6.72
FCFYN/A
OCF(TTM)-6.7
OCFYN/A
SpS11.13
BVpS11.48
TBVpS10.92
PEG (NY)0.38
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
WACC6.33%
ROIC/WACC0.74
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 Y15.88%
EPS Next 2Y9.84%
EPS Next 3Y13.31%
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