NasdaqGS:NMRK

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Good value 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: NMRK's weekly volatility has decreased from 17% to 7% over the past year.


Market Performance


7 Day Return

18.4%

NMRK

-9.1%

US Real Estate

-2.5%

US Market


1 Year Return

-3.6%

NMRK

166.1%

US Real Estate

34.1%

US Market

Return vs Industry: NMRK underperformed the US Real Estate industry which returned 166.1% over the past year.

Return vs Market: NMRK underperformed the US Market which returned 34.1% over the past year.


Shareholder returns

NMRKIndustryMarket
7 Day18.4%-9.1%-2.5%
30 Day39.7%-25.2%0.1%
90 Day42.0%-54.1%4.5%
1 Year-2.0%-3.6%167.0%166.1%37.1%34.1%
3 Year-25.9%-31.6%403.2%395.2%58.0%47.9%
5 Yearn/a1,157.5%1,092.9%131.9%106.2%

Long-Term 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

Below Fair Value: NMRK ($10.24) is trading below our estimate of fair value ($23.14)

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 (26.1x) compared to the US Real Estate industry average (32.3x).

PE vs Market: NMRK is poor value based on its PE Ratio (26.1x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: NMRK is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: NMRK is overvalued based on its PB Ratio (2x) compared to the US Real Estate industry average (1.4x).


Next Steps

Future Growth

How is Newmark Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

38.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NMRK's forecast earnings growth (38.5% per year) is above the savings rate (2%).

Earnings vs Market: NMRK's earnings (38.5% per year) are forecast to grow faster than the US market (20.4% per year).

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

Revenue vs Market: NMRK's revenue (8.3% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: NMRK's revenue (8.3% 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?

-8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NMRK has a high level of non-cash earnings.

Growing Profit Margin: NMRK's current net profit margins (3.7%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: NMRK has become profitable over the past 5 years, growing earnings by -8.3% per year.

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 (-32.6%) over the past year, making it difficult to compare to the Real Estate industry average (-11.3%).


Return on Equity

High ROE: NMRK's Return on Equity (11.6%) 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 ($1.8B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: NMRK's short term assets ($1.8B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: NMRK's debt to equity ratio (185.5%) is considered high.

Reducing Debt: NMRK's debt to equity ratio has increased from 44.5% to 185.5% 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 (4.9x coverage).


Balance Sheet


Next Steps

Dividend

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

0.39%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: NMRK's dividend (0.39%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: NMRK's dividend (0.39%) is low compared to the top 25% of dividend payers in the US market (3.75%).


Stability and Growth of Payments

Stable Dividend: NMRK is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: NMRK is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NMRK is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NMRK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

19.0yrs

Average management tenure


CEO

Barry Gosin (69 yo)

42.08yrs

Tenure

US$11,618,653

Compensation

Mr. Barry M. Gosin has been the Chief Executive Officer of Newmark Group, Inc. (formerly known as Newmark Grubb Knight Frank Capital Group) and Newmark Grubb Knight Frank since 1979. He serves as the Chief...


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD11.62M) is above average for companies of similar size in the US market ($USD4.96M).

Compensation vs Earnings: Barry's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Barry Gosin
Chief Executive Officer42.08yrsUS$11.62m1.54%
$ 37.1m
Michael Rispoli
Chief Financial Officer8.83yrsUS$1.33m0.0011%
$ 26.3k
Stephen Merkel
Executive VPno dataUS$3.45m0.0022%
$ 52.6k
James Kuhn
President & Head of Investor Services29.08yrsno datano data
Raj Bhatti
Chief Information Officerno datano datano data
Alison Lewis
Chief Administrative Officerno datano datano data
Jason Harbes
Vice President of Investor Relationsno datano datano data
Joe Hudson
Chief Human Resources Officerno datano datano data
Luis Alvarado
Chief Revenue Officer & East Region Market Leaderno datano datano data
Jeffrey Day
Chief Strategy Officer and President & Head of Multifamily Capital Marketsno datano datano data
Michael Sheinkop
Executive VP & Regional MD of U.S. Northwest Regionno datano datano data
Nicholas Bicardo
Vice Chairman and Head of Northern California Retail Capital Markets4.5yrsno datano data

19.0yrs

Average Tenure

58yo

Average Age

Experienced Management: NMRK's management team is seasoned and experienced (19 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Howard Lutnick
Chairman of the Boardno dataUS$5.50m2.36%
$ 57.0m
Virginia Bauer
Independent Director2.67yrsUS$185.00k0.0095%
$ 229.6k
Kenneth McIntyre
Independent Director1.08yrsno datano data
Michael Snow
Independent Director3.17yrsUS$200.00k0.0040%
$ 97.2k
Peter Cervinka
Independent Director2.67yrsUS$208.20k0.0040%
$ 96.0k

2.7yrs

Average Tenure

63yo

Average Age

Experienced Board: NMRK's board of directors are not considered experienced ( 2.7 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$2.412b
  • Market Cap: US$1.847b
  • Shares outstanding: 237.83m
  • 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. The company’s investor/owner services and products include capital markets, such as investment sales; ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 00:04
End of Day Share Price2021/02/23 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.