Newmark Group, Inc.
Newmark Group, Inc. Fundamental Analysis
Newmark Group, Inc. (NMRK) shows moderate financial fundamentals with a PE ratio of 24.60, profit margin of 3.28%, and ROE of 8.01%. The company generates $3.1B in annual revenue with strong year-over-year growth of 10.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NMRK's fundamental strength across five key dimensions:
Efficiency Score
WeakNMRK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNMRK trades at attractive valuation levels.
Growth Score
ExcellentNMRK delivers strong and consistent growth momentum.
Financial Health Score
ModerateNMRK shows balanced financial health with some risks.
Profitability Score
WeakNMRK struggles to sustain strong margins.
Key Financial Metrics
Is NMRK Expensive or Cheap?
P/E Ratio
NMRK trades at 24.60 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NMRK's PEG of 0.68 indicates potential undervaluation.
Price to Book
The market values Newmark Group, Inc. at 1.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.22 times EBITDA. This is generally considered low.
How Well Does NMRK Make Money?
Net Profit Margin
For every $100 in sales, Newmark Group, Inc. keeps $3.28 as profit after all expenses.
Operating Margin
Core operations generate 6.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.01 in profit for every $100 of shareholder equity.
ROA
Newmark Group, Inc. generates $1.90 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Newmark Group, Inc. generates limited operating cash flow of $-43.49M, signaling weaker underlying cash strength.
Free Cash Flow
Newmark Group, Inc. generates weak or negative free cash flow of $-57.21M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.33 in free cash annually.
FCF Yield
NMRK converts -2.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How NMRK Stacks Against Its Sector Peers
| Metric | NMRK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.60 | 24.42 | Neutral |
| ROE | 8.01% | 679.00% | Weak |
| Net Margin | 3.28% | 4578.00% | Weak |
| Debt/Equity | 1.94 | -22.07 (disorted) | Distorted |
| Current Ratio | 1.03 | 14.99 | Neutral |
| ROA | 1.90% | -1370.00% (disorted) | Weak |
NMRK outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Newmark Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.47%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-46.10%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-101.04%
Industry Style: Income, Inflation Hedge, REIT
Declining