NEWTEKONE INC - NEWT 8 09/01/28 (NEWTI) Stock Fundamental Analysis
NASDAQ:NEWTI - Nasdaq - US6525268073 - Currency: USD
Taking everything into account, NEWTI scores 4 out of 10 in our fundamental rating. NEWTI was compared to 100 industry peers in the Financial Services industry. While NEWTI is still in line with the averages on profitability rating, there are concerns on its financial health. NEWTI is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year NEWTI was profitable.
NEWTI had a negative operating cash flow in the past year.
NEWTI had positive earnings in each of the past 5 years.
In multiple years NEWTI reported negative operating cash flow during the last 5 years.
1.2 Ratios
NEWTI has a Return On Assets (2.29%) which is in line with its industry peers.
NEWTI has a Return On Equity of 16.20%. This is in the better half of the industry: NEWTI outperforms 77.00% of its industry peers.
NEWTI has a Return On Invested Capital of 4.71%. This is comparable to the rest of the industry: NEWTI outperforms 59.00% of its industry peers.
NEWTI had an Average Return On Invested Capital over the past 3 years of 4.45%. This is significantly below the industry average of 11.84%.
The last Return On Invested Capital (4.71%) for NEWTI 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
NEWTI's Profit Margin of 16.71% is fine compared to the rest of the industry. NEWTI outperforms 71.00% of its industry peers.
In the last couple of years the Profit Margin of NEWTI has declined.
Looking at the Operating Margin, with a value of 44.47%, NEWTI belongs to the top of the industry, outperforming 83.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NEWTI has declined.
The Gross Margin of NEWTI (93.35%) is better than 96.00% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NEWTI is destroying value.
The number of shares outstanding for NEWTI has been increased compared to 1 year ago.
The number of shares outstanding for NEWTI has been increased compared to 5 years ago.
NEWTI has a worse debt/assets ratio than last year.
2.2 Solvency
NEWTI has an Altman-Z score of 0.16. This is a bad value and indicates that NEWTI is not financially healthy and even has some risk of bankruptcy.
NEWTI has a worse Altman-Z score (0.16) than 62.00% of its industry peers.
NEWTI 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 NEWTI (5.76) is worse than 82.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.16 |
ROIC/WACC0.62
WACC7.55%
2.3 Liquidity
NEWTI has a Current Ratio of 0.26. This is a bad value and indicates that NEWTI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of NEWTI (0.26) is worse than 70.00% of its industry peers.
A Quick Ratio of 0.26 indicates that NEWTI may have some problems paying its short term obligations.
NEWTI's Quick ratio of 0.26 is on the low side compared to the rest of the industry. NEWTI is outperformed by 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
NEWTI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.97%, which is quite impressive.
NEWTI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.30% yearly.
NEWTI shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.91%.
Measured over the past years, NEWTI 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, NEWTI will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.73% on average per year.
NEWTI 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.
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
Based on the Price/Earnings ratio of 12.89, the valuation of NEWTI can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of NEWTI is on the same level as its industry peers.
NEWTI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
A Price/Forward Earnings ratio of 10.52 indicates a reasonable valuation of NEWTI.
The rest of the industry has a similar Price/Forward Earnings ratio as NEWTI.
NEWTI is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.89 | ||
| Fwd PE | 10.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEWTI is valued a bit cheaper than 73.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.83 |
4.3 Compensation for Growth
NEWTI'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 NEWTI's earnings are expected to grow with 13.31% in the coming years.
PEG (NY)0.81
PEG (5Y)N/A
EPS Next 2Y9.84%
EPS Next 3Y13.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.47%, NEWTI is a good candidate for dividend investing.
NEWTI's Dividend Yield is rather good when compared to the industry average which is at 4.86. NEWTI pays more dividend than 90.00% of the companies in the same industry.
NEWTI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.47% |
5.2 History
The dividend of NEWTI decreases each year by -17.44%.
NEWTI has paid a dividend for less than 5 years, so there is no long track record yet.
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 NEWTI. This is a bit on the high side, but may be sustainable.
DP42.3%
EPS Next 2Y9.84%
EPS Next 3Y13.31%
NEWTEKONE INC - NEWT 8 09/01/28
NASDAQ:NEWTI (7/11/2025, 8:00:02 PM)
25
-0.1 (-0.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners42.12%
Inst Owner ChangeN/A
Ins Owners6.53%
Ins Owner ChangeN/A
Market Cap658.50M
Analysts73.33
Price Target34.51 (38.04%)
Short Float %0.01%
Short Ratio1.22
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)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)8.99%
PT rev (3m)13.57%
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 | 12.89 | ||
| Fwd PE | 10.52 | ||
| P/S | 2.25 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.18 | ||
| P/tB | 2.29 | ||
| EV/EBITDA | 8.83 |
EPS(TTM)1.94
EY7.76%
EPS(NY)2.38
Fwd EY9.51%
FCF(TTM)-6.72
FCFYN/A
OCF(TTM)-6.7
OCFYN/A
SpS11.13
BVpS11.48
TBVpS10.92
PEG (NY)0.81
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 | 0.16 |
F-Score3
WACC7.55%
ROIC/WACC0.62
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