NEWMARK GROUP INC-CLASS A (NMRK) Stock Fundamental Analysis
NASDAQ:NMRK - US65158N1028 - Common Stock
18.32 USD
-0.07 (-0.38%)
18.32 USD
0 (0%)
Overall NMRK gets a fundamental rating of 4 out of 10. We evaluated NMRK against 63 industry peers in the Real Estate Management & Development industry. NMRK has a medium profitability rating, but doesn't score so well on its financial health evaluation. NMRK is not valued too expensively and it also shows a decent 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.
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
The Return On Assets of NMRK (1.40%) is better than 69.84% of its industry peers.
NMRK's Return On Equity of 5.88% is fine compared to the rest of the industry. NMRK outperforms 74.60% 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 68.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NMRK is in line with the industry average of 5.46%.
| 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 68.25% of the companies in the same industry.
NMRK's Profit Margin has declined in the last couple of years.
NMRK has a Operating Margin of 5.97%. This is in the better half of the industry: NMRK outperforms 66.67% of its industry peers.
NMRK's Operating Margin has declined in the last couple of years.
The Gross Margin of NMRK (99.01%) 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 | 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.
The number of shares outstanding for NMRK has been reduced compared to 5 years ago.
NMRK has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.47, we must say that NMRK is in the distress zone and has some risk of bankruptcy.
NMRK has a Altman-Z score (1.47) which is in line with its industry peers.
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: 74.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.47 |
ROIC/WACC0.35
WACC7.17%
2.3 Liquidity
NMRK has a Current Ratio of 1.04. This is a normal value and indicates that NMRK is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NMRK (1.04) is worse than 69.84% of its industry peers.
A Quick Ratio of 1.04 indicates that NMRK should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.04, NMRK is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
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.
Measured over the past years, NMRK shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.17% on average per year.
Looking at the last year, NMRK shows a quite strong growth in Revenue. The Revenue has grown by 17.28% in the last year.
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)17.28%
Revenue growth 3Y-1.96%
Revenue growth 5Y4.31%
Sales Q2Q%19.85%
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.
Based on estimates for the next years, NMRK will show a quite strong growth in Revenue. The Revenue will grow by 8.92% on average per year.
EPS Next Y25.93%
EPS Next 2Y21.25%
EPS Next 3Y16.65%
EPS Next 5Y10.84%
Revenue Next Year18.19%
Revenue Next 2Y13.73%
Revenue Next 3Y12.02%
Revenue Next 5Y8.92%
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
The Price/Earnings ratio is 13.09, which indicates a correct valuation of NMRK.
88.89% of the companies in the same industry are more expensive than NMRK, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.08, NMRK is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.97, the valuation of NMRK can be described as reasonable.
Based on the Price/Forward Earnings ratio, NMRK is valued cheaply inside the industry as 96.83% of the companies are valued more expensively.
NMRK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 9.97 |
4.2 Price Multiples
NMRK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NMRK is cheaper than 92.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.01 |
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 16.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y21.25%
EPS Next 3Y16.65%
5. Dividend
5.1 Amount
NMRK has a yearly dividend return of 0.70%, which is pretty low.
Compared to an average industry Dividend Yield of 3.53, NMRK pays a better dividend. On top of this NMRK pays more dividend than 80.95% of the companies listed in the same industry.
With a Dividend Yield of 0.70, NMRK pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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 28.13% of its income as dividend. This is a sustainable payout ratio.
DP28.13%
EPS Next 2Y21.25%
EPS Next 3Y16.65%
18.32
-0.07 (-0.38%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners71.3%
Inst Owner Change0.78%
Ins Owners3.55%
Ins Owner Change-127.52%
Market Cap3.24B
Analysts81.67
Price Target18.82 (2.73%)
Short Float %2.02%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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)24.03%
PT rev (3m)23.69%
EPS NQ rev (1m)10.8%
EPS NQ rev (3m)4.64%
EPS NY rev (1m)8.29%
EPS NY rev (3m)8.29%
Revenue NQ rev (1m)3.1%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)2.79%
Revenue NY rev (3m)3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 9.97 | ||
| P/S | 1.09 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.01 |
EPS(TTM)1.4
EY7.64%
EPS(NY)1.84
Fwd EY10.03%
FCF(TTM)-1.53
FCFYN/A
OCF(TTM)-1.37
OCFYN/A
SpS16.88
BVpS7.24
TBVpS-0.38
PEG (NY)0.5
PEG (5Y)N/A
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%
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 Turnover0.55
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 | 1.47 |
F-Score5
WACC7.17%
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)27.27%
EPS 3Y-9.02%
EPS 5Y-5.17%
EPS Q2Q%40.91%
EPS Next Y25.93%
EPS Next 2Y21.25%
EPS Next 3Y16.65%
EPS Next 5Y10.84%
Revenue 1Y (TTM)17.28%
Revenue growth 3Y-1.96%
Revenue growth 5Y4.31%
Sales Q2Q%19.85%
Revenue Next Year18.19%
Revenue Next 2Y13.73%
Revenue Next 3Y12.02%
Revenue Next 5Y8.92%
EBIT growth 1Y29.57%
EBIT growth 3Y-49.38%
EBIT growth 5Y-11.04%
EBIT Next Year107.85%
EBIT Next 3Y40.06%
EBIT Next 5Y24.45%
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