NEWTEKONE INC - NEWT 8 09/01/28 (NEWTI) Stock Fundamental Analysis
NASDAQ:NEWTI - Nasdaq - US6525268073 - Currency: USD
We assign a fundamental rating of 4 out of 10 to NEWTI. NEWTI was compared to 99 industry peers in the Financial Services industry. There are concerns on the financial health of NEWTI while its profitability can be described as average. NEWTI is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
NEWTI had positive earnings in the past year.
In the past year NEWTI has reported a negative cash flow from operations.
Each year in the past 5 years NEWTI has been profitable.
The reported operating cash flow has been mixed in the past 5 years: NEWTI reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.29%, NEWTI is in line with its industry, outperforming 56.57% of the companies in the same industry.
NEWTI has a Return On Equity of 16.20%. This is in the better half of the industry: NEWTI outperforms 75.76% 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 57.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NEWTI is significantly below the industry average of 11.83%.
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
Looking at the Profit Margin, with a value of 16.71%, NEWTI is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
NEWTI's Profit Margin has declined in the last couple of years.
NEWTI's Operating Margin of 44.47% is amongst the best of the industry. NEWTI outperforms 81.82% of its industry peers.
In the last couple of years the Operating Margin of NEWTI has declined.
NEWTI has a better Gross Margin (93.35%) than 94.95% 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 NEWTI is destroying value.
The number of shares outstanding for NEWTI has been increased compared to 1 year ago.
Compared to 5 years ago, NEWTI has more shares outstanding
NEWTI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.16, we must say that NEWTI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.16, NEWTI is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
A Debt/Equity ratio of 5.76 is on the high side and indicates that NEWTI has dependencies on debt financing.
NEWTI has a worse Debt to Equity ratio (5.76) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.76 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.16 |
ROIC/WACC0.63
WACC7.47%
2.3 Liquidity
A Current Ratio of 0.26 indicates that NEWTI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.26, NEWTI is doing worse than 70.71% of the companies in the same industry.
NEWTI has a Quick 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.
NEWTI has a Quick ratio of 0.26. This is in the lower half of the industry: NEWTI underperforms 70.71% 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 has grown by an impressive 25.97% over the past year.
Measured over the past years, NEWTI shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.30% on average per year.
The Revenue has grown by 34.91% 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
The Earnings Per Share is expected to grow by 11.73% on average over the next years. This is quite good.
Based on estimates for the next years, NEWTI 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
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
A Price/Earnings ratio of 12.86 indicates a correct valuation of NEWTI.
Compared to the rest of the industry, the Price/Earnings ratio of NEWTI is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.35, NEWTI is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.41, the valuation of NEWTI can be described as very reasonable.
NEWTI's Price/Forward Earnings is on the same level as the industry average.
NEWTI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 10.41 |
4.2 Price Multiples
NEWTI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NEWTI is cheaper than 70.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.81 |
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.
A more expensive valuation may be justified as NEWTI's earnings are expected to grow with 14.25% in the coming years.
PEG (NY)0.87
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%, NEWTI is a good candidate for dividend investing.
NEWTI's Dividend Yield is rather good when compared to the industry average which is at 4.73. NEWTI pays more dividend than 91.92% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, NEWTI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.69% |
5.2 History
The dividend of NEWTI decreases each year by -17.44%.
NEWTI has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)-17.44%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
NEWTI pays out 42.30% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP42.3%
EPS Next 2Y10.31%
EPS Next 3Y14.25%
NEWTEKONE INC - NEWT 8 09/01/28
NASDAQ:NEWTI (6/20/2025, 8:00:02 PM)
24.955
+0.03 (+0.12%)
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 Cap657.31M
Analysts72.31
Price Target31.67 (26.91%)
Short Float %0.01%
Short Ratio1
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)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-13.84%
PT rev (3m)15.03%
EPS NQ rev (1m)-2.01%
EPS NQ rev (3m)-2.65%
EPS NY rev (1m)0%
EPS NY rev (3m)4.13%
Revenue NQ rev (1m)2.23%
Revenue NQ rev (3m)3.56%
Revenue NY rev (1m)2.93%
Revenue NY rev (3m)8.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 10.41 | ||
| P/S | 2.24 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.17 | ||
| P/tB | 2.29 | ||
| EV/EBITDA | 8.81 |
EPS(TTM)1.94
EY7.77%
EPS(NY)2.4
Fwd EY9.61%
FCF(TTM)-6.72
FCFYN/A
OCF(TTM)-6.7
OCFYN/A
SpS11.13
BVpS11.48
TBVpS10.92
PEG (NY)0.87
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
WACC7.47%
ROIC/WACC0.63
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