NEWMARK GROUP INC-CLASS A (NMRK) Stock Fundamental Analysis
USA - NASDAQ:NMRK - US65158N1028 - Common Stock
17.29 USD
-0.19 (-1.09%)
17.29 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NMRK. NMRK was compared to 63 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 has a correct valuation and a medium growth rate.
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.
NMRK had positive earnings in each of the past 5 years.
In the past 5 years NMRK reported 4 times negative operating cash flow.
1.2 Ratios
The Return On Assets of NMRK (1.40%) is better than 66.67% of its industry peers.
The Return On Equity of NMRK (5.88%) is better than 73.02% of its industry peers.
NMRK has a Return On Invested Capital of 2.52%. This is in the better half of the industry: NMRK outperforms 65.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NMRK is below the industry average of 6.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 5.88% | ||
| ROIC | 2.52% |
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
Looking at the Profit Margin, with a value of 2.52%, NMRK is in the better half of the industry, outperforming 65.08% of the companies in the same industry.
In the last couple of years the Profit Margin of NMRK has declined.
The Operating Margin of NMRK (5.97%) is better than 66.67% of its industry peers.
In the last couple of years the Operating Margin of NMRK has declined.
The Gross Margin of NMRK (99.01%) is better than 100.00% of its industry peers.
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 | 5.97% | ||
| PM (TTM) | 2.52% | ||
| GM | 99.01% |
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 1.44, we must say that NMRK is in the distress zone and has some risk of bankruptcy.
NMRK has a Altman-Z score (1.44) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.69 is on the high side and indicates that NMRK has dependencies on debt financing.
With a Debt to Equity ratio value of 1.69, NMRK is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.44 |
ROIC/WACC0.35
WACC7.18%
2.3 Liquidity
A Current Ratio of 1.04 indicates that NMRK should not have too much problems paying its short term obligations.
NMRK has a Current ratio of 1.04. This is in the lower half of the industry: NMRK underperforms 71.43% of its industry peers.
A Quick Ratio of 1.04 indicates that NMRK should not have too much problems paying its short term obligations.
NMRK's Quick ratio of 1.04 is on the low side compared to the rest of the industry. NMRK is outperformed by 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.45% over the past year.
The Earnings Per Share has been decreasing by -5.17% on average over the past years.
NMRK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.85%.
Measured over the past years, NMRK shows a small growth in Revenue. The Revenue has been growing by 4.31% on average per year.
EPS 1Y (TTM)28.45%
EPS 3Y-9.02%
EPS 5Y-5.17%
EPS Q2Q%27.27%
Revenue 1Y (TTM)10.85%
Revenue growth 3Y-1.96%
Revenue growth 5Y4.31%
Sales Q2Q%25.88%
3.2 Future
The Earnings Per Share is expected to grow by 10.29% on average over the next years. This is quite good.
Based on estimates for the next years, NMRK will show a quite strong growth in Revenue. The Revenue will grow by 9.49% on average per year.
EPS Next Y28.05%
EPS Next 2Y21.99%
EPS Next 3Y17.49%
EPS Next 5Y10.29%
Revenue Next Year20.96%
Revenue Next 2Y15.13%
Revenue Next 3Y12.45%
Revenue Next 5Y9.49%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.60 indicates a reasonable valuation of NMRK.
Based on the Price/Earnings ratio, NMRK is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
NMRK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
With a Price/Forward Earnings ratio of 9.30, the valuation of NMRK can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NMRK indicates a rather cheap valuation: NMRK is cheaper than 96.83% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.43. NMRK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 9.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NMRK is valued cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.47 |
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 17.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y21.99%
EPS Next 3Y17.49%
5. Dividend
5.1 Amount
With a yearly dividend of 0.44%, NMRK is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.45, NMRK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, NMRK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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
28.13% of the earnings are spent on dividend by NMRK. This is a low number and sustainable payout ratio.
DP28.13%
EPS Next 2Y21.99%
EPS Next 3Y17.49%
17.29
-0.19 (-1.09%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners76.59%
Inst Owner Change-0.62%
Ins Owners3.76%
Ins Owner Change-127.46%
Market Cap3.06B
Revenue(TTM)2.74B
Net Income(TTM)75.26M
Analysts81.67
Price Target19.43 (12.38%)
Short Float %2.39%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Yearly Dividend0.12
Dividend Growth(5Y)-21.25%
DP28.13%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.24%
Min EPS beat(2)8.36%
Max EPS beat(2)20.13%
EPS beat(4)4
Avg EPS beat(4)12.51%
Min EPS beat(4)8.36%
Max EPS beat(4)20.13%
EPS beat(8)6
Avg EPS beat(8)6.15%
EPS beat(12)6
Avg EPS beat(12)1.34%
EPS beat(16)10
Avg EPS beat(16)7.68%
Revenue beat(2)2
Avg Revenue beat(2)8.03%
Min Revenue beat(2)7.64%
Max Revenue beat(2)8.42%
Revenue beat(4)3
Avg Revenue beat(4)6.2%
Min Revenue beat(4)-1.4%
Max Revenue beat(4)10.13%
Revenue beat(8)4
Avg Revenue beat(8)2.92%
Revenue beat(12)5
Avg Revenue beat(12)0.54%
Revenue beat(16)9
Avg Revenue beat(16)2.56%
PT rev (1m)3.25%
PT rev (3m)6.42%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)3.86%
EPS NY rev (1m)1.68%
EPS NY rev (3m)10.12%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)1.74%
Revenue NY rev (3m)5.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 9.3 | ||
| P/S | 1.02 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.47 |
EPS(TTM)1.49
EY8.62%
EPS(NY)1.86
Fwd EY10.76%
FCF(TTM)-1.53
FCFYN/A
OCF(TTM)-1.37
OCFYN/A
SpS16.88
BVpS7.24
TBVpS-0.38
PEG (NY)0.41
PEG (5Y)N/A
Graham Number15.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.4% | ||
| ROE | 5.88% | ||
| ROCE | 5.68% | ||
| ROIC | 2.52% | ||
| ROICexc | 2.64% | ||
| ROICexgc | 3.88% | ||
| OM | 5.97% | ||
| PM (TTM) | 2.52% | ||
| GM | 99.01% | ||
| 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%
ROICexgc growth 3Y-48.74%
ROICexgc 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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.07 | ||
| Cap/Depr | 16.06% | ||
| Cap/Sales | 0.96% | ||
| Interest Coverage | 3.24 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.44 |
F-Score5
WACC7.18%
ROIC/WACC0.35
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)28.45%
EPS 3Y-9.02%
EPS 5Y-5.17%
EPS Q2Q%27.27%
EPS Next Y28.05%
EPS Next 2Y21.99%
EPS Next 3Y17.49%
EPS Next 5Y10.29%
Revenue 1Y (TTM)10.85%
Revenue growth 3Y-1.96%
Revenue growth 5Y4.31%
Sales Q2Q%25.88%
Revenue Next Year20.96%
Revenue Next 2Y15.13%
Revenue Next 3Y12.45%
Revenue Next 5Y9.49%
EBIT growth 1Y29.57%
EBIT growth 3Y-49.38%
EBIT growth 5Y-11.04%
EBIT Next Year107.4%
EBIT Next 3Y40.06%
EBIT Next 5Y24.48%
FCF growth 1Y-124.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-473.02%
OCF growth 3YN/A
OCF growth 5YN/A
NEWMARK GROUP INC-CLASS A / NMRK FAQ
What is the fundamental rating for NMRK stock?
ChartMill assigns a fundamental rating of 4 / 10 to NMRK.
What is the valuation status for NMRK stock?
ChartMill assigns a valuation rating of 6 / 10 to NEWMARK GROUP INC-CLASS A (NMRK). This can be considered as Fairly Valued.
How profitable is NEWMARK GROUP INC-CLASS A (NMRK) stock?
NEWMARK GROUP INC-CLASS A (NMRK) has a profitability rating of 5 / 10.
What is the expected EPS growth for NEWMARK GROUP INC-CLASS A (NMRK) stock?
The Earnings per Share (EPS) of NEWMARK GROUP INC-CLASS A (NMRK) is expected to grow by 28.05% in the next year.
Can you provide the dividend sustainability for NMRK stock?
The dividend rating of NEWMARK GROUP INC-CLASS A (NMRK) is 3 / 10 and the dividend payout ratio is 28.13%.