NEWMARK GROUP INC-CLASS A (NMRK) Stock Fundamental Analysis
NASDAQ:NMRK - Nasdaq - US65158N1028 - Common Stock - Currency: USD
Overall NMRK gets a fundamental rating of 4 out of 10. We evaluated NMRK against 66 industry peers in the Real Estate Management & Development industry. While NMRK is still in line with the averages on profitability rating, there are concerns on its financial health. NMRK scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year NMRK was profitable.
NMRK had a negative operating cash flow in the past year.
In the past 5 years NMRK has always 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 1.30%, NMRK is doing good in the industry, outperforming 72.73% of the companies in the same industry.
NMRK's Return On Equity of 5.08% is fine compared to the rest of the industry. NMRK outperforms 77.27% of its industry peers.
With a decent Return On Invested Capital value of 2.83%, NMRK is doing good in the industry, outperforming 69.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NMRK is in line with the industry average of 5.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 5.08% | ||
| 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 (2.24%) is better than 65.15% of its industry peers.
In the last couple of years the Profit Margin of NMRK has declined.
The Operating Margin of NMRK (6.08%) is better than 74.24% of its industry peers.
In the last couple of years the Operating Margin of NMRK has declined.
With an excellent Gross Margin value of 99.03%, NMRK belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of NMRK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 2.24% | ||
| GM | 99.03% |
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
NMRK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NMRK has less shares outstanding
NMRK has less shares outstanding than it did 5 years ago.
NMRK has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that NMRK is in the distress zone and has some risk of bankruptcy.
NMRK has a Altman-Z score of 1.40. This is comparable to the rest of the industry: NMRK outperforms 53.03% of its industry peers.
NMRK has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.18, NMRK is doing worse than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.4 |
ROIC/WACC0.44
WACC6.46%
2.3 Liquidity
NMRK has a Current Ratio of 1.00. This is a bad value and indicates that NMRK is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of NMRK (1.00) is worse than 69.70% of its industry peers.
NMRK has a Quick Ratio of 1.00. This is a bad value and indicates that NMRK is not financially healthy enough and could expect problems in meeting its short term obligations.
NMRK has a worse Quick ratio (1.00) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.58% over the past year.
NMRK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.17% yearly.
The Revenue has grown by 10.85% in the past year. This is quite good.
NMRK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.31% yearly.
EPS 1Y (TTM)23.58%
EPS 3Y-9.02%
EPS 5Y-5.17%
EPS Q2Q%40%
Revenue 1Y (TTM)10.85%
Revenue growth 3Y-1.96%
Revenue growth 5Y4.31%
Sales Q2Q%21.77%
3.2 Future
NMRK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.84% yearly.
NMRK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.79% yearly.
EPS Next Y16.2%
EPS Next 2Y16.46%
EPS Next 3Y13.95%
EPS Next 5Y10.84%
Revenue Next Year14.35%
Revenue Next 2Y11.73%
Revenue Next 3Y10.41%
Revenue Next 5Y7.79%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
NMRK is valuated reasonably with a Price/Earnings ratio of 9.10.
NMRK's Price/Earnings ratio is rather cheap when compared to the industry. NMRK is cheaper than 90.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.83. NMRK is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.03, the valuation of NMRK can be described as very cheap.
Based on the Price/Forward Earnings ratio, NMRK is valued cheaply inside the industry as 96.97% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.94, NMRK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.1 | ||
| Fwd PE | 7.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NMRK is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.33 |
4.3 Compensation for Growth
NMRK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NMRK's earnings are expected to grow with 13.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y16.46%
EPS Next 3Y13.95%
5. Dividend
5.1 Amount
NMRK has a Yearly Dividend Yield of 1.06%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.77, NMRK pays a better dividend. On top of this NMRK pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, NMRK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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 Years2
Div Non Decr Years3
5.3 Sustainability
33.68% of the earnings are spent on dividend by NMRK. This is a low number and sustainable payout ratio.
DP33.68%
EPS Next 2Y16.46%
EPS Next 3Y13.95%
11.92
+0.7 (+6.24%)
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-1.47%
Ins Owners12.65%
Ins Owner Change47.06%
Market Cap2.15B
Analysts78.18
Price Target15.22 (27.68%)
Short Float %3.37%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend0.12
Dividend Growth(5Y)-21.25%
DP33.68%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.78%
Min EPS beat(2)8.75%
Max EPS beat(2)12.81%
EPS beat(4)3
Avg EPS beat(4)5.89%
Min EPS beat(4)-1.96%
Max EPS beat(4)12.81%
EPS beat(8)4
Avg EPS beat(8)0.31%
EPS beat(12)6
Avg EPS beat(12)3.89%
EPS beat(16)10
Avg EPS beat(16)12.35%
Revenue beat(2)1
Avg Revenue beat(2)4.37%
Min Revenue beat(2)-1.4%
Max Revenue beat(2)10.13%
Revenue beat(4)2
Avg Revenue beat(4)2.28%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)10.13%
Revenue beat(8)3
Avg Revenue beat(8)1.18%
Revenue beat(12)5
Avg Revenue beat(12)0.16%
Revenue beat(16)9
Avg Revenue beat(16)3.65%
PT rev (1m)-17.13%
PT rev (3m)-20.09%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)1.9%
EPS NY rev (1m)-2.47%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.1 | ||
| Fwd PE | 7.03 | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.33 |
EPS(TTM)1.31
EY10.99%
EPS(NY)1.7
Fwd EY14.22%
FCF(TTM)-0.24
FCFYN/A
OCF(TTM)-0.06
OCFYN/A
SpS15.18
BVpS6.68
TBVpS-0.82
PEG (NY)0.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 5.08% | ||
| ROCE | 5.68% | ||
| ROIC | 2.83% | ||
| ROICexc | 2.99% | ||
| ROICexgc | 4.89% | ||
| OM | 6.08% | ||
| PM (TTM) | 2.24% | ||
| GM | 99.03% | ||
| 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-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.18 | ||
| Cap/Depr | 18.94% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 5.18 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 1.4 |
F-Score5
WACC6.46%
ROIC/WACC0.44
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 Y16.2%
EPS Next 2Y16.46%
EPS Next 3Y13.95%
EPS Next 5Y10.84%
Revenue 1Y (TTM)10.85%
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 5Y7.79%
EBIT growth 1Y-21.8%
EBIT growth 3Y-49.38%
EBIT growth 5Y-11.04%
EBIT Next Year102.65%
EBIT Next 3Y38.44%
EBIT Next 5Y25.64%
FCF growth 1Y86.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y96.26%
OCF growth 3YN/A
OCF growth 5YN/A