NasdaqGS:NMRK

Stock Analysis Report

Executive Summary

Newmark Group, Inc. provides commercial real estate services in the United States and internationally.

Snowflake

Fundamentals

Undervalued with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Newmark Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.1%

NMRK

2.7%

US Real Estate

1.3%

US Market


1 Year Return

-16.2%

NMRK

3.0%

US Real Estate

5.9%

US Market

Return vs Industry: NMRK underperformed the US Real Estate industry which returned 3% over the past year.

Return vs Market: NMRK underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

NMRKIndustryMarket
7 Day3.1%2.7%1.3%
30 Day-9.9%-3.6%-1.9%
90 Day-7.6%-2.5%-1.8%
1 Year-12.6%-16.2%4.0%3.0%8.3%5.9%
3 Yearn/a31.8%28.1%45.6%36.2%
5 Yearn/a12.2%7.9%66.1%47.9%

Price Volatility Vs. Market

How volatile is Newmark Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Newmark Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NMRK ($9.11) is trading below our estimate of fair value ($21.09)

Significantly Undervalued: NMRK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NMRK is good value based on its PE Ratio (13.5x) compared to the Real Estate industry average (20.4x).

PE vs Market: NMRK is good value based on its PE Ratio (13.5x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: NMRK is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: NMRK is overvalued based on its PB Ratio (2.9x) compared to the US Real Estate industry average (1.5x).


Next Steps

Future Growth

How is Newmark Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NMRK's forecast earnings growth (21.9% per year) is above the savings rate (2.7%).

Earnings vs Market: NMRK's earnings (21.9% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NMRK's revenue (5.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: NMRK's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if NMRK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Newmark Group performed over the past 5 years?

0.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NMRK's earnings have grown by 0.3% per year over the past 5 years.

Accelerating Growth: NMRK's earnings growth over the past year (56.1%) exceeds its 5-year average (0.3% per year).

Earnings vs Industry: NMRK earnings growth over the past year (56.1%) exceeded the Real Estate industry -20%.


Return on Equity

High ROE: Whilst NMRK's Return on Equity (20.2%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: NMRK's Return on Assets is below or equal to the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: NMRK has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Newmark Group's financial position?


Financial Position Analysis

Short Term Liabilities: NMRK's short term assets ($1.6B) exceeds its short term liabilities ($1.5B)

Long Term Liabilities: NMRK's short term assets (1.6B) exceeds its long term liabilities (942.1M)


Debt to Equity History and Analysis

Debt Level: NMRK's debt to equity ratio (135.2%) is considered high

Reducing Debt: Insufficient data to determine if NMRK's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NMRK's debt is not well covered by operating cash flow (0.5%).

Interest Coverage: NMRK's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet

Inventory Level: NMRK has a low level of unsold assets or inventory.

Debt Coverage by Assets: NMRK's debt is covered by short term assets (assets are 1.110440x debt).


Next Steps

Dividend

What is Newmark Group's current dividend yield, its reliability and sustainability?

4.39%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%1.5%markettop25%3.8%industryaverage2.6%forecastin3Years5.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NMRK's dividend (4.39%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: NMRK's dividend (4.39%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: Too early to tell whether NMRK's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if NMRK's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.2%), NMRK's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NMRK's dividends in 3 years are forecast to be well covered by earnings (27% payout ratio).


Next Steps

Management

What is the CEO of Newmark Group's salary, the management and board of directors tenure and is there insider trading?

27.8yrs

Average management tenure


CEO

Howard Lutnick (57yo)

0yrs

Tenure

US$13,029,510

Compensation

Mr. Howard W. Lutnick has been Chairman of the Board at Newmark Group, Inc. since 2016 and served as its Principal Executive Officer. He serves as Chairman at Newmark & Company Real Estate, Inc. Mr. Lutnic ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Howard's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Howard's compensation has increased by more than 20% in the past year.


Management Age and Tenure

27.8yrs

Average Tenure

58.5yo

Average Age

Experienced Management: NMRK's management team is seasoned and experienced (27.8 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

66yo

Average Age

Experienced Board: NMRK's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$9,57617 May 19
Barry Gosin
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares1,200
Max PriceUS$7.98
BuyUS$4,328,08614 May 19
Barry Gosin
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares561,084
Max PriceUS$7.99
BuyUS$6,358,10812 Dec 18
Barry Gosin
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares687,363
Max PriceUS$9.25
BuyUS$2,632,22510 Dec 18
Barry Gosin
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares306,429
Max PriceUS$8.59
BuyUS$83,80010 Dec 18
Virginia Bauer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$8.38

Ownership Breakdown


Management Team

  • Howard Lutnick (57yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$13.03m
  • Stephen Merkel (60yo)

    Executive VP

    • Tenure: 0yrs
  • Alison Lewis

    Chief Administrative Officer

    • Tenure: 0yrs
  • Barry Gosin (68yo)

    Chief Executive Officer

    • Tenure: 40.8yrs
    • Compensation: US$11.12m
  • Jimmy Kuhn

    • Tenure: 27.8yrs
  • Jason Harbes

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Mike Rispoli (47yo)

    Chief Financial Officer

    • Tenure: 7.5yrs
    • Compensation: US$1.10m
  • Jeff Day

    President & Head of Newmark Knight Frank's Multifamily Capital Markets division

    • Tenure: 0yrs
  • Raj Bhatti

    Chief Information Officer

    • Tenure: 0yrs
  • Lou Alvarado

    Chief Revenue Officer

    • Tenure: 0yrs

Board Members

  • Howard Lutnick (57yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$13.03m
  • Virginia Bauer (62yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$197.00k
  • Michael Snow (71yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$210.00k
  • Peter Cervinka (70yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$203.25k

Company Information

Newmark Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Newmark Group, Inc.
  • Ticker: NMRK
  • Exchange: NasdaqGS
  • Founded: 1929
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Implied Market Cap: US$2.235b
  • Market Cap: US$1.618b
  • Shares outstanding: 245.09m
  • Website: https://www.ngkf.com

Number of Employees


Location

  • Newmark Group, Inc.
  • 125 Park Avenue
  • New York
  • New York
  • 10017
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NMRKNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDDec 2017
NMBDB (Deutsche Boerse AG)YesClass A Common StockDEEURDec 2017

Biography

Newmark Group, Inc. provides commercial real estate services in the United States and internationally. Its investor/owner services and products include capital markets, such as investment sales; and agency ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 00:38
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.