Loading...

Newmark Group

Nasdaq:NMRK
Snowflake Description

Undervalued average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NMRK
Nasdaq
$2B
Imp Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

Newmark Group, Inc. provides commercial real estate services in the United States and internationally. The last earnings update was 6 days ago. More info.


Add to Portfolio Compare Print
  • Newmark Group has significant price volatility in the past 3 months.
NMRK Share Price and Events
7 Day Returns
9%
NasdaqGS:NMRK
-5.8%
US Real Estate
-3.9%
US Market
1 Year Returns
-42.5%
NasdaqGS:NMRK
-14.8%
US Real Estate
1.4%
US Market
NMRK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Newmark Group (NMRK) 9% -2.4% -19.9% -42.5% - -
US Real Estate -5.8% -8.3% -7.1% -14.8% 21.3% 4.4%
US Market -3.9% -3.6% 1.8% 1.4% 35.8% 40.8%
1 Year Return vs Industry and Market
  • NMRK underperformed the Real Estate industry which returned -14.8% over the past year.
  • NMRK underperformed the Market in United States of America which returned 1.4% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is Newmark Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Newmark Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Newmark Group.

NasdaqGS:NMRK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:NMRK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.124 (1 + (1- 21%) (85.95%))
1.595
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.59
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.595 * 5.96%)
12.23%

Discounted Cash Flow Calculation for NasdaqGS:NMRK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Newmark Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:NMRK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.23%)
2019 442.00 Analyst x1 393.82
2020 503.00 Analyst x1 399.32
2021 542.00 Analyst x1 383.38
2022 592.00 Analyst x1 373.10
2023 656.00 Analyst x1 368.37
2024 702.17 Est @ 7.04% 351.32
2025 742.52 Est @ 5.75% 331.01
2026 778.47 Est @ 4.84% 309.21
2027 811.22 Est @ 4.21% 287.10
2028 841.76 Est @ 3.76% 265.43
Present value of next 10 years cash flows $3,462.07
NasdaqGS:NMRK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $841.76 × (1 + 2.73%) ÷ (12.23% – 2.73%)
$9,098.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $9,098.99 ÷ (1 + 12.23%)10
$2,869.19
NasdaqGS:NMRK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,462.07 + $2,869.19
$6,331.26
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,331.26 / 243.47
$26
NasdaqGS:NMRK Discount to Share Price
Calculation Result
Value per share (USD) From above. $26.00
Current discount Discount to share price of $8.27
= -1 x ($8.27 - $26.00) / $26.00
68.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Newmark Group is available for.
Intrinsic value
>50%
Share price is $8.27 vs Future cash flow value of $26
Current Discount Checks
For Newmark Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Newmark Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Newmark Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Newmark Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Newmark Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:NMRK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.58
NasdaqGS:NMRK Share Price ** NasdaqGS (2019-05-15) in USD $8.27
United States of America Real Estate Industry PE Ratio Median Figure of 27 Publicly-Listed Real Estate Companies 16x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Newmark Group.

NasdaqGS:NMRK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:NMRK Share Price ÷ EPS (both in USD)

= 8.27 ÷ 0.58

14.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Newmark Group is good value based on earnings compared to the US Real Estate industry average.
  • Newmark Group is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Newmark Group's expected growth come at a high price?
Raw Data
NasdaqGS:NMRK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.14x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
25.7%per year
United States of America Real Estate Industry PEG Ratio Median Figure of 12 Publicly-Listed Real Estate Companies 0.34x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NasdaqGS:NMRK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.14x ÷ 25.7%

0.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Newmark Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Newmark Group's assets?
Raw Data
NasdaqGS:NMRK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $3.16
NasdaqGS:NMRK Share Price * NasdaqGS (2019-05-15) in USD $8.27
United States of America Real Estate Industry PB Ratio Median Figure of 53 Publicly-Listed Real Estate Companies 1.45x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NasdaqGS:NMRK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:NMRK Share Price ÷ Book Value per Share (both in USD)

= 8.27 ÷ 3.16

2.62x

* Primary Listing of Newmark Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Newmark Group is overvalued based on assets compared to the US Real Estate industry average.
X
Value checks
We assess Newmark Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. Newmark Group has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
25.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Newmark Group expected to grow at an attractive rate?
  • Newmark Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Newmark Group's earnings growth is expected to exceed the United States of America market average.
  • Newmark Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:NMRK Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:NMRK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 25.7%
NasdaqGS:NMRK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 5.3%
United States of America Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 6.3%
United States of America Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 7.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:NMRK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:NMRK Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,665 551 1
2022-12-31 2,531 493 1
2021-12-31 2,413 281 3
2020-12-31 2,299 256 3
2019-12-31 2,166 222 3
NasdaqGS:NMRK Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,065 297 95
2018-12-31 2,048 -332 102
2018-09-30 1,876 -295 41
2018-06-30 1,756 540 73
2018-03-31 1,694 -33 128
2017-12-31 1,596 854 144
2017-09-30 1,523 76 243
2017-06-30 1,498 -236 208
2017-03-31 1,388 -240 179
2016-12-31 1,350 -644 168
2016-09-30 1,452 180 68

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Newmark Group's earnings are expected to grow significantly at over 20% yearly.
  • Newmark Group's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:NMRK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Newmark Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NMRK Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.45 1.45 1.45 1.00
2022-12-31 1.40 1.40 1.40 1.00
2021-12-31 0.46 0.46 0.46 1.00
2020-12-31 0.42 0.42 0.42 1.00
2019-12-31 0.42 0.42 0.42 1.00
NasdaqGS:NMRK Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.58
2018-12-31 0.65
2018-09-30 0.26
2018-06-30 0.47
2018-03-31 0.83
2017-12-31 1.08
2017-09-30
2017-06-30
2017-03-31
2016-12-31
2016-09-30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Newmark Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Newmark Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Newmark Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Newmark Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Newmark Group's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Newmark Group's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Newmark Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Newmark Group's 1-year earnings growth is negative, it can't be compared to the US Real Estate industry average.
Earnings and Revenue History
Newmark Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Newmark Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NMRK Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,064.78 95.32 1,755.57
2018-12-31 2,047.58 101.64 1,744.55
2018-09-30 1,876.46 40.94 1,629.01
2018-06-30 1,755.88 73.17 1,552.12
2018-03-31 1,694.33 127.78 1,457.71
2017-12-31 1,596.45 144.49 1,374.77
2017-09-30 1,523.46 243.12 1,270.35
2017-06-30 1,497.87 207.68 1,230.15
2017-03-31 1,387.68 178.83 1,153.87
2016-12-31 1,349.98 168.40 1,125.65
2016-09-30 1,452.19 68.10 1,296.35
2015-12-31 1,200.25 -2.80 1,139.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Newmark Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Newmark Group used its assets less efficiently than the US Real Estate industry average last year based on Return on Assets.
  • Newmark Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Newmark Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Newmark Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Newmark Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Newmark Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Newmark Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Newmark Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Newmark Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Newmark Group Company Filings, last reported 1 month ago.

NasdaqGS:NMRK Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,047.38 1,674.14 116.27
2018-12-31 1,082.97 1,510.31 171.42
2018-09-30 1,012.43 1,956.82 164.32
2018-06-30 778.28 1,209.35 69.40
2018-03-31 553.68 1,771.60 56.69
2017-12-31 243.41 1,501.27 178.65
2017-09-30 1,290.54 659.73 214.26
2017-06-30 1,081.70 933.91 95.72
2017-03-31 983.78 257.97 66.63
2016-12-31 983.78 257.97 66.63
2016-09-30 496.85 0.00 24.08
2015-12-31 804.03 359.63 111.43
  • Newmark Group's level of debt (159.8%) compared to net worth is high (greater than 40%).
  • Unable to establish if Newmark Group's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (17.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.8x coverage).
X
Financial health checks
We assess Newmark Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Newmark Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.84%
Current annual income from Newmark Group dividends. Estimated to be 5.32% next year.
If you bought $2,000 of Newmark Group shares you are expected to receive $97 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Newmark Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Newmark Group's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).
Upcoming dividend payment

Purchase Newmark Group before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:NMRK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:NMRK Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.48 1.00
2020-12-31 0.44 1.00
2019-12-31 0.40 1.00
NasdaqGS:NMRK Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-09 0.400 5.082
2019-03-15 0.360 4.262
2019-02-12 0.360 3.825
2018-11-14 0.360 3.911
2018-10-25 0.360 3.697
2018-08-02 0.360 3.100
2018-05-15 0.360 2.532
2018-05-03 0.360 2.479

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Newmark Group has stable dividend payments.
  • Newmark Group only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Newmark Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).
X
Income/ dividend checks
We assess Newmark Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Newmark Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Newmark Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Barry Gosin
COMPENSATION $11,124,398
AGE 67
TENURE AS CEO 40.3 years
CEO Bio

Mr. Barry M. Gosin has been the Chief Executive Officer of Newmark Group Inc. and Newmark Grubb Knight Frank Capital Group and Newmark Grubb Knight Frank since 1979. He serves as the Chief Executive Officer at Newmark & Company Real Estate, Inc. Mr. Gosin guides Newmark Grubb Knight Frank's national and global expansion initiatives and oversees all facets of its day-to-day operations. Mr. Gosin served as a Principal of Newmark & Company Real Estate, Inc. since 1978 and served as its Chief Executive Officer since 1979. Mr. Gosin spearheaded Newmark Grubb Knight Frank's merger with BGC Partners in 2011 and continues to captain the real estate division's growth. Since merging with BGC, he has led Newmark Grubb Knight Frank in the acquisition of 22 companies and quadrupled the firm's annual revenues. An active industry and community leader, Mr. Gosin serves as a Trustee of the Citizens Budget Commission. He serves as a Member of The Young President' Organization, Inc. He served at Bank of New York, Citigroup Inc. and The Interpublic Group of Companies, Inc. in various capacities. He served on Senator Schumer’s “Group of 35”, making recommendation for New York City’s long term development. He served as Vice Chairman and Director of Newmark & Company Real Estate, Inc. He serves as a Director of The Partnership for New York City, Inc. He serves as a Trustee of Pace Budget Commission and Pace University. He serves as a Director of Federal Employment and Guidance Services. He serves as a Member of the Board of the Real Estate Board of Nw York Board of Governors. He serves as an Honorary Trustee of the High School of Economics and Finance. He serves as the Chairman of The Young Men's/Women's Real Estate Association. He serves as a Member of YMWREA, a Member of the Board of Directors of the Avenue of the Americas Association and a Member of NACORE. He serves as a Trustee for the Parker Jewish Institute, a Member of the Board of Directors for Northern Westchester Hospital Center and the Center for Downtown New York. He serves as a Member of the Board of the New York Junior Tennis League and a Trustee for the Parker Jewish Geriatric Institute. He served as a Director of BGC Partners, Inc. from February 1, 2007 to November 7, 2007. He served as a Director of NYC & Company Inc. He is leading the NYC Partnership initiative for incentives downtown and throughout the five boroughs. The Real Estate Board of New York (REBNY) has granted Mr. Gosin its "Most Ingenious Deal of the Year" award on three occasions and he has received frequent formal recognition from his peers as an industry leader. He has been honored by Public Education Association as a Distinguished Graduate of New York City Public Schools and he has also been recognized and honored by Parker Jewish Geriatric Institute, New York Junior Tennis League, Association for the Help of Retarded Children and UJA-Federation of New York. He received the Ernst & Young "Entrepreneur of the Year" award in 2002 and was honored by Northern Westchester Hospital as "2001 Man of the Year". Mr. Gosin serves as Trustee of Pace University, He also received "Leadership in Management Award" from Pace University. Mr. Gosin holds a B.A. in Economics and History from Indiana University.

CEO Compensation
  • Barry's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Barry's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Newmark Group management team in years:

17.2
Average Tenure
56
Average Age
  • The average tenure for the Newmark Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Barry Gosin

TITLE
Chief Executive Officer
COMPENSATION
$11M
AGE
67
TENURE
40.3 yrs

Mike Rispoli

TITLE
Chief Financial Officer
COMPENSATION
$1M
AGE
46
TENURE
7.1 yrs

Jimmy Kuhn

TITLE
President
TENURE
27.3 yrs

Raj Bhatti

TITLE
Chief Information Officer

Alison Lewis

TITLE
Chief Administrative Officer

Stephen Merkel

TITLE
Executive VP
AGE
59

Lou Alvarado

TITLE
Chief Revenue Officer

Jeff Day

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

Michael Sheinkop

TITLE
Executive Vice President and Regional Managing Director
AGE
53

Chuck Seufferlein

TITLE
President of Western Region
TENURE
5.3 yrs
Board of Directors Tenure

Average tenure and age of the Newmark Group board of directors in years:

1.6
Average Tenure
65
Average Age
  • The average tenure for the Newmark Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Howard Lutnick

TITLE
Chairman
COMPENSATION
$13M
AGE
56
TENURE
3.3 yrs

Michael Snow

TITLE
Independent Director
COMPENSATION
$210K
AGE
70
TENURE
2.3 yrs

Peter Cervinka

TITLE
Director
COMPENSATION
$203K
AGE
69
TENURE
0.9 yrs

Virginia Bauer

TITLE
Director
COMPENSATION
$197K
AGE
61
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Newmark Group insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. May 19 Buy Barry Gosin Individual 10. May 19 14. May 19 561,084 $7.99 $4,328,086
12. Dec 18 Buy Barry Gosin Individual 11. Dec 18 12. Dec 18 687,363 $9.25 $6,358,108
10. Dec 18 Buy Barry Gosin Individual 10. Dec 18 10. Dec 18 306,429 $8.59 $2,632,225
10. Dec 18 Buy Virginia Bauer Individual 07. Dec 18 07. Dec 18 10,000 $8.38 $83,800
X
Management checks
We assess Newmark Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Newmark Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Newmark Group, Inc. (NASDAQ:NMRK): Time For A Financial Health Check

(NASDAQ:NMRK) is a small-cap stock with a market capitalization of US$2.0b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is

Simply Wall St -

These Factors Make Newmark Group, Inc. (NASDAQ:NMRK) An Interesting Investment

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … that has been a rockstar for income investors, currently trading at an attractive share price

Simply Wall St -

Newmark Group, Inc. (NASDAQ:NMRK): What's The Analyst Consensus Outlook?

In December 2018, Newmark Group, Inc. … (NASDAQ:NMRK) announced its most recent earnings update, whicha … revealed

Simply Wall St -

How Does Newmark Group, Inc. (NASDAQ:NMRK) Fare As A Dividend Stock?

Does Newmark Group tick all the boxes of a great dividend stock? … 5 questions I ask before picking a dividend stock … When researching a dividend stock, I always follow the following screening criteria:

Simply Wall St -

What Kind Of Shareholder Owns Most Newmark Group, Inc. (NASDAQ:NMRK) Stock?

The big shareholder groups in Newmark Group, Inc. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … institutions own shares in the company.

Simply Wall St -

The Newmark Group Share Price Is Down 36% So Some Shareholders Are Getting Worried

But that is minimal compensation for the share price under-performance over the last year. … We note that the 36% share price drop is very close to the EPS drop. … Rather, the share price has approximately tracked EPS growth

Simply Wall St -

Newmark Group Inc (NASDAQ:NMRK): Dividend Is Coming In 2 Days, Should You Buy?

Important news for shareholders and potential investors in Newmark Group Inc (NASDAQ:NMRK): The dividend payment of US$0.09 per share will be distributed into shareholder on 05 September 2018, and the stock will begin trading ex-dividend at an earlier date, 17 August 2018. … Below, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

Simply Wall St -

Does Newmark Group Inc's (NASDAQ:NMRK) PE Ratio Signal A Selling Opportunity?

This analysis is intended to introduce important early concepts to people who are starting to invest. … While NMRK might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … View our latest analysis for Newmark Group

Simply Wall St -

Why You Should Look Beyond Newmark Group Inc's (NASDAQ:NMRK) Growth

A big red-siren warning for NMRK is its high level of debt exceeding its total level of equity. … One reason I do like NMRK as a business is its low level of fixed assets on its balance sheet (2.85% of total assets). … In order to invest in NMRK, you have to believe in its growth story, and the possibility that it has not yet been factored into its share price.

Simply Wall St -

Is Now The Right Time To Buy Newmark Group Inc (NASDAQ:NMRK)?

In isolation, this metric can be a bit too simplistic but in comparison to benchmarks, it tells us that NMRK is undervalued relative to the current US market average of 18.68x , and overvalued based on current earnings compared to the real estate industry average of 10.43x. … But, since Newmark Group is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … This tells us that when we include its growth in our analysis Newmark Group's stock can be considered slightly overvalued , based on the fundamentals.

Simply Wall St -

Company Info

Description

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 leasing, property management, valuation and advisory, and diligence and underwriting, as well as government sponsored enterprise lending, loan servicing, debt and structured finance, and loan sales under the Newmark Knight Frank name. The company’s occupier services and products comprise tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration, and facilities management. It provides its services to commercial real estate tenants, owner-occupiers, investors, and developers. As of March 12, 2019, Newmark Group, Inc. operated approximately 430 offices in 6 continents. The company was formerly known as Newmark Knight Frank and changed its name to Newmark Group, Inc. in October 2017. The company was founded in 1929 and is headquartered in New York, New York.

Details
Name: Newmark Group, Inc.
NMRK
Exchange: NasdaqGS
Founded: 1929
$1,947,770,096
$1,476,959,536
243,471,262
Website: http://www.ngkf.com
Address: Newmark Group, Inc.
125 Park Avenue,
New York,
New York, 10017,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS NMRK Class A Common Stock Nasdaq Global Select US USD 15. Dec 2017
DB NMB Class A Common Stock Deutsche Boerse AG DE EUR 15. Dec 2017
Number of employees
Current staff
Staff numbers
3,600
Newmark Group employees.
Industry
Real Estate Services
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/16 02:54
End of day share price update: 2019/05/15 00:00
Last estimates confirmation: 2019/05/15
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.