NEWMARK GROUP INC-CLASS A (NMRK) Stock Fundamental Analysis
NASDAQ:NMRK - Nasdaq - US65158N1028 - Common Stock - Currency: USD
NMRK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 64 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NMRK was profitable.
In the past year NMRK has reported a negative cash flow from operations.
In the past 5 years NMRK has always been profitable.
NMRK had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.42%, NMRK is in the better half of the industry, outperforming 70.31% of the companies in the same industry.
NMRK's Return On Equity of 5.20% is fine compared to the rest of the industry. NMRK outperforms 76.56% of its industry peers.
NMRK has a Return On Invested Capital of 2.83%. This is in the better half of the industry: NMRK outperforms 68.75% 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 5.48%.
| 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
NMRK has a better Profit Margin (2.40%) than 67.19% of its industry peers.
In the last couple of years the Profit Margin of NMRK has declined.
NMRK has a Operating Margin of 6.16%. This is in the better half of the industry: NMRK outperforms 68.75% of its industry peers.
In the last couple of years the Operating Margin of NMRK has declined.
NMRK has a Gross Margin of 99.00%. This is amongst the best in the industry. NMRK outperforms 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
NMRK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NMRK has less shares outstanding than it did 1 year ago.
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 1.53, we must say that NMRK is in the distress zone and has some risk of bankruptcy.
NMRK has a Altman-Z score (1.53) 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.
Looking at the Debt to Equity ratio, with a value of 1.20, NMRK is doing worse than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.53 |
ROIC/WACC0.42
WACC6.72%
2.3 Liquidity
NMRK has a Current 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 Current ratio value of 1.01, NMRK is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
A Quick Ratio of 1.01 indicates that NMRK should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.01, NMRK perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
NMRK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.27%, which is quite impressive.
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.
The Revenue has been growing slightly by 4.31% on average over the past years.
EPS 1Y (TTM)27.27%
EPS 3Y-9.02%
EPS 5Y-5.17%
EPS Q2Q%40.91%
Revenue 1Y (TTM)10.85%
Revenue growth 3Y-1.96%
Revenue growth 5Y4.31%
Sales Q2Q%19.85%
3.2 Future
Based on estimates for the next years, NMRK will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.37% on average per year.
The Revenue is expected to grow by 7.88% on average over the next years.
EPS Next Y16.28%
EPS Next 2Y18.4%
EPS Next 3Y14.58%
EPS Next 5Y11.37%
Revenue Next Year14.83%
Revenue Next 2Y12.22%
Revenue Next 3Y10.51%
Revenue Next 5Y7.88%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.64 indicates a reasonable valuation of NMRK.
Compared to the rest of the industry, the Price/Earnings ratio of NMRK indicates a rather cheap valuation: NMRK is cheaper than 90.63% of the companies listed in the same industry.
NMRK is valuated cheaply when we compare the Price/Earnings ratio to 27.61, which is the current average of the S&P500 Index.
NMRK is valuated reasonably with a Price/Forward Earnings ratio of 8.50.
Based on the Price/Forward Earnings ratio, NMRK is valued cheaper than 96.88% of the companies in the same industry.
NMRK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 8.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NMRK is valued cheaper than 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.53 |
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)0.65
PEG (5Y)N/A
EPS Next 2Y18.4%
EPS Next 3Y14.58%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, NMRK is not a good candidate for dividend investing.
NMRK's Dividend Yield is rather good when compared to the industry average which is at 3.54. NMRK pays more dividend than 82.81% of the companies in the same industry.
With a Dividend Yield of 0.83, NMRK pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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
NMRK pays out 30.28% of its income as dividend. This is a sustainable payout ratio.
DP30.28%
EPS Next 2Y18.4%
EPS Next 3Y14.58%
14.9
+0.46 (+3.19%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners71.53%
Inst Owner Change-0.17%
Ins Owners3.55%
Ins Owner Change-24.41%
Market Cap2.75B
Analysts81.82
Price Target15.17 (1.81%)
Short Float %2.28%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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%
PT rev (3m)-7.51%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-9.43%
EPS NY rev (1m)0%
EPS NY rev (3m)0.07%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-2.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 8.5 | ||
| P/S | 0.96 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.53 |
EPS(TTM)1.4
EY9.4%
EPS(NY)1.75
Fwd EY11.76%
FCF(TTM)-0.82
FCFYN/A
OCF(TTM)-0.65
OCFYN/A
SpS15.48
BVpS7.16
TBVpS-0.14
PEG (NY)0.65
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 | 1.53 |
F-Score6
WACC6.72%
ROIC/WACC0.42
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)27.27%
EPS 3Y-9.02%
EPS 5Y-5.17%
EPS Q2Q%40.91%
EPS Next Y16.28%
EPS Next 2Y18.4%
EPS Next 3Y14.58%
EPS Next 5Y11.37%
Revenue 1Y (TTM)10.85%
Revenue growth 3Y-1.96%
Revenue growth 5Y4.31%
Sales Q2Q%19.85%
Revenue Next Year14.83%
Revenue Next 2Y12.22%
Revenue Next 3Y10.51%
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