NEWTEKONE INC - NEWT 5 1/2 02/01/26 (NEWTZ) Stock Fundamental Analysis
NASDAQ:NEWTZ - Nasdaq - US6525267083 - Currency: USD
Taking everything into account, NEWTZ scores 4 out of 10 in our fundamental rating. NEWTZ was compared to 101 industry peers in the Financial Services industry. While NEWTZ is still in line with the averages on profitability rating, there are concerns on its financial health. NEWTZ is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
NEWTZ had positive earnings in the past year.
In the past year NEWTZ has reported a negative cash flow from operations.
NEWTZ had positive earnings in each of the past 5 years.
In multiple years NEWTZ reported negative operating cash flow during the last 5 years.
1.2 Ratios
NEWTZ's Return On Assets of 2.39% is fine compared to the rest of the industry. NEWTZ outperforms 60.40% of its industry peers.
NEWTZ's Return On Equity of 16.62% is fine compared to the rest of the industry. NEWTZ outperforms 77.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.11%, NEWTZ is in line with its industry, outperforming 57.43% of the companies in the same industry.
NEWTZ 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%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 16.62% | ||
| ROIC | 4.11% |
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 18.04%, NEWTZ is doing good in the industry, outperforming 71.29% of the companies in the same industry.
In the last couple of years the Profit Margin of NEWTZ has declined.
The Operating Margin of NEWTZ (40.41%) is better than 84.16% of its industry peers.
In the last couple of years the Operating Margin of NEWTZ has declined.
The Gross Margin of NEWTZ (92.72%) is better than 97.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.41% | ||
| PM (TTM) | 18.04% | ||
| GM | 92.72% |
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), NEWTZ is destroying value.
NEWTZ has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NEWTZ has more shares outstanding
Compared to 1 year ago, NEWTZ has a worse debt to assets ratio.
2.2 Solvency
NEWTZ has an Altman-Z score of 0.20. This is a bad value and indicates that NEWTZ is not financially healthy and even has some risk of bankruptcy.
NEWTZ's Altman-Z score of 0.20 is in line compared to the rest of the industry. NEWTZ outperforms 41.58% of its industry peers.
NEWTZ has a Debt/Equity ratio of 5.67. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 5.67, NEWTZ is doing worse than 80.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.2 |
ROIC/WACC0.52
WACC7.93%
2.3 Liquidity
A Current Ratio of 0.39 indicates that NEWTZ may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.39, NEWTZ is doing worse than 67.33% of the companies in the same industry.
A Quick Ratio of 0.39 indicates that NEWTZ may have some problems paying its short term obligations.
The Quick ratio of NEWTZ (0.39) is worse than 67.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
NEWTZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.36%, which is quite impressive.
NEWTZ shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.30% yearly.
Looking at the last year, NEWTZ shows a very strong growth in Revenue. The Revenue has grown by 36.18%.
NEWTZ shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.01% yearly.
EPS 1Y (TTM)22.36%
EPS 3Y-17.2%
EPS 5Y-3.3%
EPS Q2Q%30.19%
Revenue 1Y (TTM)36.18%
Revenue growth 3Y19.43%
Revenue growth 5Y20.01%
Sales Q2Q%33.62%
3.2 Future
Based on estimates for the next years, NEWTZ 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, NEWTZ will show a quite strong growth in Revenue. The Revenue will grow by 16.43% on average per year.
EPS Next Y16.39%
EPS Next 2Y11.84%
EPS Next 3Y14.25%
EPS Next 5Y11.73%
Revenue Next Year17.5%
Revenue Next 2Y16.43%
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
Based on the Price/Earnings ratio of 12.51, the valuation of NEWTZ can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of NEWTZ is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.10. NEWTZ is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.75, the valuation of NEWTZ can be described as very reasonable.
NEWTZ's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of NEWTZ to the average of the S&P500 Index (20.74), we can say NEWTZ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 10.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NEWTZ is valued a bit cheaper than the industry average as 69.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.95 |
4.3 Compensation for Growth
NEWTZ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NEWTZ's earnings are expected to grow with 14.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y11.84%
EPS Next 3Y14.25%
5. Dividend
5.1 Amount
NEWTZ has a Yearly Dividend Yield of 7.22%, which is a nice return.
NEWTZ's Dividend Yield is rather good when compared to the industry average which is at 4.97. NEWTZ pays more dividend than 90.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, NEWTZ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.22% |
5.2 History
The dividend of NEWTZ decreases each year by -17.44%.
NEWTZ has been paying a dividend for over 5 years, so it has already some track record.
NEWTZ has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-17.44%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
41.12% of the earnings are spent on dividend by NEWTZ. This is a bit on the high side, but may be sustainable.
DP41.12%
EPS Next 2Y11.84%
EPS Next 3Y14.25%
NEWTEKONE INC - NEWT 5 1/2 02/01/26
NASDAQ:NEWTZ (5/2/2025, 8:12:57 PM)
24.64
-0.03 (-0.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners36.32%
Inst Owner ChangeN/A
Ins Owners6.65%
Ins Owner ChangeN/A
Market Cap649.02M
Analysts72.31
Price Target34.26 (39.04%)
Short Float %0.02%
Short Ratio0.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.22% |
Yearly Dividend0.79
Dividend Growth(5Y)-17.44%
DP41.12%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.95%
Min EPS beat(2)1.89%
Max EPS beat(2)2.01%
EPS beat(4)4
Avg EPS beat(4)15.44%
Min EPS beat(4)1.89%
Max EPS beat(4)51.55%
EPS beat(8)6
Avg EPS beat(8)8.42%
EPS beat(12)8
Avg EPS beat(12)-0.48%
EPS beat(16)10
Avg EPS beat(16)2.97%
Revenue beat(2)2
Avg Revenue beat(2)4.88%
Min Revenue beat(2)0.33%
Max Revenue beat(2)9.43%
Revenue beat(4)4
Avg Revenue beat(4)7.62%
Min Revenue beat(4)0.33%
Max Revenue beat(4)17.89%
Revenue beat(8)5
Avg Revenue beat(8)4.29%
Revenue beat(12)9
Avg Revenue beat(12)28.37%
Revenue beat(16)13
Avg Revenue beat(16)51.66%
PT rev (1m)15.14%
PT rev (3m)23.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.08%
EPS NY rev (1m)0.33%
EPS NY rev (3m)5.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)9.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 10.75 | ||
| P/S | 2.38 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.19 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 8.95 |
EPS(TTM)1.97
EY8%
EPS(NY)2.29
Fwd EY9.31%
FCF(TTM)-5.88
FCFYN/A
OCF(TTM)-5.86
OCFYN/A
SpS10.37
BVpS11.25
TBVpS10.69
PEG (NY)0.76
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 16.62% | ||
| ROCE | 10.89% | ||
| ROIC | 4.11% | ||
| ROICexc | 5% | ||
| ROICexgc | 5.42% | ||
| OM | 40.41% | ||
| PM (TTM) | 18.04% | ||
| GM | 92.72% | ||
| 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 Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.67 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 14.99 | ||
| Cap/Depr | 24.61% | ||
| Cap/Sales | 0.16% | ||
| Interest Coverage | 1.39 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 0.2 |
F-Score3
WACC7.93%
ROIC/WACC0.52
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)22.36%
EPS 3Y-17.2%
EPS 5Y-3.3%
EPS Q2Q%30.19%
EPS Next Y16.39%
EPS Next 2Y11.84%
EPS Next 3Y14.25%
EPS Next 5Y11.73%
Revenue 1Y (TTM)36.18%
Revenue growth 3Y19.43%
Revenue growth 5Y20.01%
Sales Q2Q%33.62%
Revenue Next Year17.5%
Revenue Next 2Y16.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y102.8%
EBIT growth 3Y3.47%
EBIT growth 5Y10.99%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-34.95%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-35.11%
OCF growth 3YN/A
OCF growth 5YN/A