Now trading at a price of $9.06, Newmark has moved 6.0% so far today. In contrast, the S&P 500 index moved 0.6%. Read below for a basic value analysis of Newmark.
Newmark shares moved -45.0% over the last 52 weeks, with a high of $18.43 and a low of $7.41. During this time, the stock lagged the S&P 500 index by -37.0%. As of January 2022, the company's 50-day average price is $8.36. Newmark Group, Inc. provides commercial real estate services in the United States and internationally. The small-cap Real Estate company has 5,200 full time employees and is based in New York, NY. Newmark has returned a 1.2% dividend yield over the last 12 months.
Higher Operating Margins Than the 1.17% Industry Average:
2019-12-31 | 2020-12-31 | 2021-12-31 | |
---|---|---|---|
Revenue (MM) | $2,218 | $1,905 | $2,906 |
Revenue Growth | n/a | -14.12% | 52.57% |
Operating Margins | 7.4% | 8.9% | 0.8% |
Operating Margins Growth | n/a | 20.27% | -91.01% |
Net Margins | 5.29% | 4.2% | 25.83% |
Net Margins Growth | n/a | -20.6% | 515.0% |
Earnings Per Share | $0.58 | $0.39 | $3.8 |
EPS Growth | n/a | -32.76% | 874.36% |
Free Cash Flow (MM) | $951 | -$798 | -$68 |
FCF Growth | n/a | -183.88% | 91.42% |
Capital Expenditures (MM) | -$36 | -$20 | -$20 |
Net Debt / EBITDA | 2.27 | 4.96 | 1.18 |
Newmark Is Currently Fairly Valued:
Compared to the Real Estate sector's average of 27.16, Newmark has a trailing twelve month P/E ratio of 7.9 and, according to its EPS guidance of 1.3, an expected P/E ratio of 7.0. Newmark's PEG ratio is 0.03 based on its 258.33% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by Newmark's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 0.6, which still suggests that company's shares are possibly undervalued.
Furthermore, Newmark is likely undervalued in terms of its equity because its P/B ratio is 1.3 compared to its sector average of 2.39. The company's shares are currently trading -41.6% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 1.59 * 6.739) = $15.53
Newmark Is the Subject of Mixed Market Indicators:
4 analysts are following Newmark and have set target prices ranging from $8 to $10 per share. On average, they have given the company a rating of hold. At the current price of $9.06, NMRK is trading 0.72% away from its average analyst target price of $9 per share, implying an analyst consensus of little upside potential for the stock.
The company has an average amount of shares sold short since 2.4% of the company's shares are tied to short positions. Institutions own 66.3% of Newmark's shares, while the insider ownership rate stands at 8.42%. The biggest shareholder is the Vanguard Group, Inc. with a 15% stake in the company worth approximately $198,801,918.