NEWMARK GROUP INC-CLASS A (NMRK)
US65158N1028 - Common Stock
Overall NMRK gets a fundamental rating of 4 out of 10. We evaluated NMRK against 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 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.
In the past 5 years NMRK has always been profitable.
In multiple years NMRK reported negative operating cash flow during the last 5 years.
1.2 Ratios
NMRK's Return On Assets of 0.95% is fine compared to the rest of the industry. NMRK outperforms 70.31% of its industry peers.
Looking at the Return On Equity, with a value of 3.39%, NMRK is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.07%, NMRK is doing good in the industry, outperforming 76.56% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NMRK is above the industry average of 5.41%.
The last Return On Invested Capital (4.07%) for NMRK is well below the 3 year average (10.15%), which needs to be investigated, but indicates that NMRK had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 3.39% | ||
| ROIC | 4.07% |
ROA(3y)5.78%
ROA(5y)4.47%
ROE(3y)22.9%
ROE(5y)19.37%
ROIC(3y)10.15%
ROIC(5y)8.54%
1.3 Margins
Looking at the Profit Margin, with a value of 1.72%, NMRK is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
NMRK's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 8.62%, NMRK is doing good in the industry, outperforming 78.13% of the companies in the same industry.
NMRK's Operating Margin has declined in the last couple of years.
NMRK has a Gross Margin of 98.90%. 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 | 8.62% | ||
| PM (TTM) | 1.72% | ||
| GM | 98.9% |
OM growth 3Y-23.16%
OM growth 5Y-20.65%
PM growth 3Y-22.41%
PM growth 5Y-19.06%
GM growth 3Y0.03%
GM growth 5Y0.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NMRK is creating some value.
NMRK has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NMRK has been increased compared to 5 years ago.
The debt/assets ratio for NMRK is higher compared to a year ago.
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 in line with its industry peers.
NMRK has a Debt/Equity ratio of 0.83. This is a neutral value indicating NMRK is somewhat dependend on debt financing.
NMRK has a Debt to Equity ratio (0.83) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.44 |
ROIC/WACC0.51
WACC7.94%
2.3 Liquidity
A Current Ratio of 1.01 indicates that NMRK should not have too much problems paying its short term obligations.
NMRK has a worse Current ratio (1.01) than 75.00% of its industry peers.
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 is not doing good in the industry: 67.19% 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 for NMRK have decreased strongly by -17.19% in the last year.
The Earnings Per Share has been decreasing by -6.83% on average over the past years.
NMRK shows a decrease in Revenue. In the last year, the revenue decreased by -8.69%.
The Revenue has been growing slightly by 3.83% on average over the past years.
EPS 1Y (TTM)-17.19%
EPS 3Y4.46%
EPS 5Y-6.83%
EPS growth Q2Q0%
Revenue 1Y (TTM)-8.69%
Revenue growth 3Y9.05%
Revenue growth 5Y3.83%
Revenue growth Q2Q4.93%
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 10.34% yearly.
Based on estimates for the next years, NMRK will show a small growth in Revenue. The Revenue will grow by 5.89% on average per year.
EPS Next Y4.89%
EPS Next 2Y12.7%
EPS Next 3Y10.44%
EPS Next 5Y10.34%
Revenue Next Year4.01%
Revenue Next 2Y8.34%
Revenue Next 3Y5.93%
Revenue Next 5Y5.89%
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
Based on the Price/Earnings ratio of 10.58, the valuation of NMRK can be described as reasonable.
NMRK's Price/Earnings ratio is rather cheap when compared to the industry. NMRK is cheaper than 89.06% of the companies in the same industry.
When comparing the Price/Earnings ratio of NMRK to the average of the S&P500 Index (28.15), we can say NMRK is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.33, the valuation of NMRK can be described as reasonable.
NMRK's Price/Forward Earnings ratio is rather cheap when compared to the industry. NMRK is cheaper than 93.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NMRK to the average of the S&P500 Index (20.20), we can say NMRK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 8.33 |
4.2 Price Multiples
96.88% of the companies in the same industry are more expensive than NMRK, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NMRK does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of NMRK may justify a higher PE ratio.
PEG (NY)2.17
PEG (5Y)N/A
EPS Next 2Y12.7%
EPS Next 3Y10.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, NMRK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.11, NMRK pays a better dividend. On top of this NMRK pays more dividend than 84.38% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, NMRK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
The dividend of NMRK decreases each year by -13.90%.
NMRK has been paying a dividend for over 5 years, so it has already some track record.
NMRK has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-13.9%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
49.25% of the earnings are spent on dividend by NMRK. This is a bit on the high side, but may be sustainable.
DP49.25%
EPS Next 2Y12.7%
EPS Next 3Y10.44%
NEWMARK GROUP INC-CLASS A
NASDAQ:NMRK (5/17/2024, 7:16:18 PM)
After market: 11.22 0 (0%)11.22
+0.3 (+2.75%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.97B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 8.33 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 3.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.62% | ||
| PM (TTM) | 1.72% | ||
| GM | 98.9% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.01 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-17.19%
EPS 3Y4.46%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.69%
Revenue growth 3Y9.05%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y