NEWMARK GROUP INC-CLASS A (NMRK) Stock Fundamental Analysis
NASDAQ:NMRK - Nasdaq - US65158N1028 - Common Stock - Currency: USD
Taking everything into account, NMRK scores 4 out of 10 in our fundamental rating. NMRK was compared to 65 industry peers in the Real Estate Management & Development industry. There are concerns on the financial health of NMRK while its profitability can be described as average. NMRK is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
NMRK had positive earnings in the past year.
In the past year NMRK has reported a negative cash flow from operations.
Each year in the past 5 years NMRK has been profitable.
In the past 5 years NMRK reported 4 times negative operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.42%, NMRK is doing good in the industry, outperforming 70.77% of the companies in the same industry.
With a decent Return On Equity value of 5.20%, NMRK is doing good in the industry, outperforming 76.92% of the companies in the same industry.
NMRK has a better Return On Invested Capital (2.83%) than 67.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NMRK is in line with the industry average of 5.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.42% | ||
| ROE | 5.2% | ||
| ROIC | 2.83% |
ROA(3y)1.46%
ROA(5y)4.08%
ROE(3y)5.18%
ROE(5y)16.9%
ROIC(3y)4.15%
ROIC(5y)7.06%
1.3 Margins
The Profit Margin of NMRK (2.40%) is better than 67.69% of its industry peers.
In the last couple of years the Profit Margin of NMRK has declined.
NMRK's Operating Margin of 6.16% is fine compared to the rest of the industry. NMRK outperforms 70.77% of its industry peers.
In the last couple of years the Operating Margin of NMRK has declined.
The Gross Margin of NMRK (99.00%) is better than 100.00% of its industry peers.
NMRK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.16% | ||
| PM (TTM) | 2.4% | ||
| GM | 99% |
OM growth 3Y-48.37%
OM growth 5Y-14.71%
PM growth 3Y-55.64%
PM growth 5Y-13.83%
GM growth 3Y-0.05%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NMRK is destroying value.
The number of shares outstanding for NMRK has been reduced compared to 1 year ago.
NMRK has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NMRK has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that NMRK is in the distress zone and has some risk of bankruptcy.
NMRK has a Altman-Z score (1.43) which is comparable to the rest of the industry.
NMRK has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
NMRK's Debt to Equity ratio of 1.20 is on the low side compared to the rest of the industry. NMRK is outperformed by 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.43 |
ROIC/WACC0.43
WACC6.56%
2.3 Liquidity
A Current Ratio of 1.01 indicates that NMRK should not have too much problems paying its short term obligations.
The Current ratio of NMRK (1.01) is worse than 67.69% of its industry peers.
NMRK has a Quick Ratio of 1.01. This is a normal value and indicates that NMRK is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.01, NMRK is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.58% over the past year.
The Earnings Per Share has been decreasing by -5.17% on average over the past years.
Looking at the last year, NMRK shows a quite strong growth in Revenue. The Revenue has grown by 14.48% in the last year.
The Revenue has been growing slightly by 4.31% on average over the past years.
EPS 1Y (TTM)23.58%
EPS 3Y-9.02%
EPS 5Y-5.17%
EPS Q2Q%40%
Revenue 1Y (TTM)14.48%
Revenue growth 3Y-1.96%
Revenue growth 5Y4.31%
Sales Q2Q%21.77%
3.2 Future
The Earnings Per Share is expected to grow by 11.37% on average over the next years. This is quite good.
Based on estimates for the next years, NMRK will show a small growth in Revenue. The Revenue will grow by 7.88% on average per year.
EPS Next Y16.28%
EPS Next 2Y17.52%
EPS Next 3Y14.58%
EPS Next 5Y11.37%
Revenue Next Year14.35%
Revenue Next 2Y11.73%
Revenue Next 3Y10.41%
Revenue Next 5Y7.88%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.69, the valuation of NMRK can be described as very reasonable.
Based on the Price/Earnings ratio, NMRK is valued cheaply inside the industry as 90.77% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NMRK to the average of the S&P500 Index (26.31), we can say NMRK is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.59, the valuation of NMRK can be described as very cheap.
Based on the Price/Forward Earnings ratio, NMRK is valued cheaper than 96.92% of the companies in the same industry.
NMRK is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 6.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NMRK is valued cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.95 |
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 NMRK's earnings are expected to grow with 14.58% in the coming years.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y17.52%
EPS Next 3Y14.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.08%, NMRK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.60, NMRK pays a better dividend. On top of this NMRK pays more dividend than 81.54% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, NMRK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
5.2 History
The dividend of NMRK decreases each year by -21.25%.
NMRK has been paying a dividend for over 5 years, so it has already some track record.
NMRK has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-21.25%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
30.28% of the earnings are spent on dividend by NMRK. This is a low number and sustainable payout ratio.
DP30.28%
EPS Next 2Y17.52%
EPS Next 3Y14.58%
11.38
-0.49 (-4.13%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners73.02%
Inst Owner Change-0.24%
Ins Owners12.65%
Ins Owner Change-21.38%
Market Cap2.10B
Analysts81.82
Price Target15.17 (33.3%)
Short Float %2.46%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend0.12
Dividend Growth(5Y)-21.25%
DP30.28%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.58%
Min EPS beat(2)8.36%
Max EPS beat(2)12.81%
EPS beat(4)4
Avg EPS beat(4)8.47%
Min EPS beat(4)3.95%
Max EPS beat(4)12.81%
EPS beat(8)5
Avg EPS beat(8)1.39%
EPS beat(12)6
Avg EPS beat(12)1.69%
EPS beat(16)10
Avg EPS beat(16)8.61%
Revenue beat(2)2
Avg Revenue beat(2)8.89%
Min Revenue beat(2)7.64%
Max Revenue beat(2)10.13%
Revenue beat(4)2
Avg Revenue beat(4)3.72%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)10.13%
Revenue beat(8)4
Avg Revenue beat(8)2.21%
Revenue beat(12)5
Avg Revenue beat(12)0.65%
Revenue beat(16)9
Avg Revenue beat(16)2.79%
PT rev (1m)-0.28%
PT rev (3m)-21.02%
EPS NQ rev (1m)-3.08%
EPS NQ rev (3m)-9.19%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 6.59 | ||
| P/S | 0.73 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.95 |
EPS(TTM)1.31
EY11.51%
EPS(NY)1.73
Fwd EY15.17%
FCF(TTM)-0.82
FCFYN/A
OCF(TTM)-0.65
OCFYN/A
SpS15.48
BVpS7.16
TBVpS-0.14
PEG (NY)0.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.42% | ||
| ROE | 5.2% | ||
| ROCE | 5.71% | ||
| ROIC | 2.83% | ||
| ROICexc | 2.95% | ||
| ROICexgc | 4.6% | ||
| OM | 6.16% | ||
| PM (TTM) | 2.4% | ||
| GM | 99% | ||
| FCFM | N/A |
ROA(3y)1.46%
ROA(5y)4.08%
ROE(3y)5.18%
ROE(5y)16.9%
ROIC(3y)4.15%
ROIC(5y)7.06%
ROICexc(3y)4.5%
ROICexc(5y)8.1%
ROICexgc(3y)9.76%
ROICexgc(5y)14.35%
ROCE(3y)7.43%
ROCE(5y)14.71%
ROICexcg growth 3Y-48.74%
ROICexcg growth 5Y-20.91%
ROICexc growth 3Y-49.32%
ROICexc growth 5Y-18.85%
OM growth 3Y-48.37%
OM growth 5Y-14.71%
PM growth 3Y-55.64%
PM growth 5Y-13.83%
GM growth 3Y-0.05%
GM growth 5Y0.03%
F-Score6
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.51 | ||
| Cap/Depr | 17.78% | ||
| Cap/Sales | 1.1% | ||
| Interest Coverage | 3.28 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 1.43 |
F-Score6
WACC6.56%
ROIC/WACC0.43
Cap/Depr(3y)29.92%
Cap/Depr(5y)23.99%
Cap/Sales(3y)1.92%
Cap/Sales(5y)1.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.58%
EPS 3Y-9.02%
EPS 5Y-5.17%
EPS Q2Q%40%
EPS Next Y16.28%
EPS Next 2Y17.52%
EPS Next 3Y14.58%
EPS Next 5Y11.37%
Revenue 1Y (TTM)14.48%
Revenue growth 3Y-1.96%
Revenue growth 5Y4.31%
Sales Q2Q%21.77%
Revenue Next Year14.35%
Revenue Next 2Y11.73%
Revenue Next 3Y10.41%
Revenue Next 5Y7.88%
EBIT growth 1Y-15.08%
EBIT growth 3Y-49.38%
EBIT growth 5Y-11.04%
EBIT Next Year99.61%
EBIT Next 3Y38.23%
EBIT Next 5Y24.29%
FCF growth 1Y-167.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-140.82%
OCF growth 3YN/A
OCF growth 5YN/A