Newmark Group
Market Cap
US$2.2b
Last Updated
2019/10/15 00:38 UTC
Data Sources
Company Financials +
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
| NMRK | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.1% | 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 Year | n/a | 31.8%28.1% | 45.6%36.2% |
| 5 Year | n/a | 12.2%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
2 weeks ago | Simply Wall St
Those Who Purchased Newmark Group (NASDAQ:NMRK) Shares A Year Ago Have A 17% Loss To Show For It1 month ago | Simply Wall St
Should You Be Excited About Newmark Group, Inc.'s (NASDAQ:NMRK) 20% Return On Equity?1 month ago | Simply Wall St
Here's How P/E Ratios Can Help Us Understand Newmark Group, Inc. (NASDAQ:NMRK)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
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
| Entity | Individual |
| Role | Chief Executive Officer Chief Executive Officer |
| Shares | 1,200 |
| Max Price | US$7.98 |
| Entity | Individual |
| Role | Chief Executive Officer Chief Executive Officer |
| Shares | 561,084 |
| Max Price | US$7.99 |
| Entity | Individual |
| Role | Chief Executive Officer Chief Executive Officer |
| Shares | 687,363 |
| Max Price | US$9.25 |
| Entity | Individual |
| Role | Chief Executive Officer Chief Executive Officer |
| Shares | 306,429 |
| Max Price | US$8.59 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 10,000 |
| Max Price | US$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
| 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. Its investor/owner services and products include capital markets, such as investment sales; and agency ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/15 00:38 |
| End of Day Share Price | 2019/10/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.