Newmark Group
Market Cap
US$1.1b
Last Updated
2020/10/28 23:53 UTC
Data Sources
Company Financials +
Executive Summary
Newmark Group, Inc. provides commercial real estate services in the United States and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with moderate growth potential.
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
Stable Share Price: NMRK has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-10.0%
NMRK
-4.4%
US Real Estate
-4.6%
US Market
1 Year Return
-59.4%
NMRK
-19.9%
US Real Estate
11.5%
US Market
Return vs Industry: NMRK underperformed the US Real Estate industry which returned -19.9% over the past year.
Return vs Market: NMRK underperformed the US Market which returned 11.5% over the past year.
Shareholder returns
| NMRK | Industry | Market | |
|---|---|---|---|
| 7 Day | -10.0% | -4.4% | -4.6% |
| 30 Day | 0.5% | 6.8% | -0.9% |
| 90 Day | 0.9% | 8.9% | 2.2% |
| 1 Year | -58.5%-59.4% | -17.7%-19.9% | 14.0%11.5% |
| 3 Year | n/a | -15.5%-21.9% | 34.5%25.6% |
| 5 Year | n/a | -16.5%-25.8% | 73.0%53.6% |
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
3 days ago | Simply Wall St
Boasting A 13% Return On Equity, Is Newmark Group, Inc. (NASDAQ:NMRK) A Top Quality Stock?3 weeks ago | Simply Wall St
What You Need To Know About Newmark Group, Inc.'s (NASDAQ:NMRK) Investor Composition1 month ago | Simply Wall St
We Wouldn't Rely On Newmark Group's (NASDAQ:NMRK) Statutory Earnings As A GuideValuation
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
Below Fair Value: NMRK ($4.34) is trading below our estimate of fair value ($16.49)
Significantly Below Fair Value: 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 (10.3x) compared to the US Real Estate industry average (36.8x).
PE vs Market: NMRK is good value based on its PE Ratio (10.3x) compared to the US market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: NMRK is good value based on its PEG Ratio (0.3x)
Price to Book Ratio
PB vs Industry: NMRK is overvalued based on its PB Ratio (1.4x) compared to the US Real Estate industry average (1x).
Next Steps
Future Growth
How is Newmark Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
37.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NMRK's forecast earnings growth (37.5% per year) is above the savings rate (2.2%).
Earnings vs Market: NMRK's earnings (37.5% per year) are forecast to grow faster than the US market (22% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NMRK's revenue (9.8% per year) is forecast to grow slower than the US market (10% per year).
High Growth Revenue: NMRK's revenue (9.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
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?
-4.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NMRK has a large one-off gain of $68.5M impacting its June 30 2020 financial results.
Growing Profit Margin: NMRK's current net profit margins (3.6%) are lower than last year (5.3%).
Past Earnings Growth Analysis
Earnings Trend: NMRK's earnings have declined by 4.2% per year over the past 5 years.
Accelerating Growth: NMRK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NMRK had negative earnings growth (-34.6%) over the past year, making it difficult to compare to the Real Estate industry average (7.1%).
Return on Equity
High ROE: NMRK's Return on Equity (13.4%) is considered low.
Next Steps
Financial Health
How is Newmark Group's financial position?
Financial Position Analysis
Short Term Liabilities: NMRK's short term assets ($1.9B) exceed its short term liabilities ($1.7B).
Long Term Liabilities: NMRK's short term assets ($1.9B) exceed its long term liabilities ($1.6B).
Debt to Equity History and Analysis
Debt Level: NMRK's debt to equity ratio (222.7%) 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 operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: NMRK's interest payments on its debt are well covered by EBIT (3.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Newmark Group current dividend yield, its reliability and sustainability?
0.92%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NMRK's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.71%).
High Dividend: NMRK's dividend (0.92%) is low compared to the top 25% of dividend payers in the US market (4.86%).
Stability and Growth of Payments
Stable Dividend: NMRK has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: NMRK has only been paying a dividend for 2 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (52.1%), 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 thoroughly covered by earnings (12% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
18.6yrs
Average management tenure
CEO
Barry Gosin (69 yo)
41.75yrs
Tenure
US$11,618,653
Compensation
Mr. Barry M. Gosin has been the Chief Executive Officer of Newmark Group Inc. and Newmark Group, Inc. (formerly known as Newmark Grubb Knight Frank Capital Group) and Newmark Grubb Knight Frank since 1979. ...
CEO Compensation Analysis
Compensation vs Market: Barry's total compensation ($USD11.62M) is above average for companies of similar size in the US market ($USD3.00M).
Compensation vs Earnings: Barry's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 41.75yrs | US$11.62m | 1.55% $ 16.9m | |
| Chief Financial Officer | 8.5yrs | US$1.33m | 0.0011% $ 11.9k | |
| Executive VP | no data | US$3.45m | 0.0022% $ 24.0k | |
| President | 28.75yrs | no data | no data | |
| Chief Information Officer | no data | no data | no data | |
| Chief Administrative Officer | no data | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Chief Revenue Officer | no data | no data | no data | |
| President & Head of Newmark Knight Frank's Multifamily Capital Markets division | no data | no data | no data | |
| Executive VP & Regional MD of U.S. Northwest Region | no data | no data | no data | |
| Vice Chairman and Head of Northern California Retail Capital Markets | 4.17yrs | no data | no data | |
| Global Corporate Services Chairman | no data | no data | no data |
18.6yrs
Average Tenure
58yo
Average Age
Experienced Management: NMRK's management team is seasoned and experienced (18.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board | no data | US$5.50m | 2.38% $ 26.0m | |
| Independent Director | 2.33yrs | US$185.00k | 0.0096% $ 104.7k | |
| Independent Director | 0.75yr | no data | no data | |
| Independent Director | 2.83yrs | US$200.00k | 0.0041% $ 44.4k | |
| Independent Director | 2.33yrs | US$208.20k | 0.0040% $ 43.7k |
2.3yrs
Average Tenure
63yo
Average Age
Experienced Board: NMRK's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$1.093b
- Market Cap: US$777.973m
- Shares outstanding: 239.04m
- Website: https://www.ngkf.com
Number of Employees
Location
- Newmark Group, Inc.
- 125 Park Avenue
- New York
- New York
- 10017
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NMRK | NasdaqGS (Nasdaq Global Select) | Yes | Class A Common Stock | US | USD | Dec 2017 |
| NMB | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Dec 2017 |
Biography
Newmark Group, Inc. provides commercial real estate services in the United States and internationally. The company’s investor/owner services and products include capital markets, such as investment sales; ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/28 23:53 |
| End of Day Share Price | 2020/10/28 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.