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NewtekOne, Inc. (NEWT) stock analysis

NEWTNasdaqNational Commercial BanksFiscal year ends December 31Also trades as NEWTG, NEWTH, NEWTI, NEWTO, NEWTP
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 6, 2026Score 19/3039% below fair value
$10.44−0.35 (-3.24%)

Close on Nov 12, 2026Market cap $301.56MP/E 5.6Yield 7.28%

StockData Score

Prices as of Nov 11, 2026How the score works

Value6Growth2Performance2Health5Dividend4

Solid19 of 30 checks passed

NewtekOne passes 19 of the 30 checks behind our score; 6 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
6/6
Growth
2/6
Past performance
2/6
Financial health
5/6
Dividend
4/6

What stands out

  • Margin of safety over 20%

    The price is 38.8% below fair value, more than the 20% cushion we look for.

  • Trading below fair value

    The share price of $10.79 is below our fair value estimate of $17.63.

  • Revenue growing 10%+ a year

    Revenue grew 39.4% a year over the last three fiscal years.

  • EPS growing 10%+ a year

    Diluted EPS grew 17.6% a year over the last three fiscal years.

What to watch

  • Return on equity under 15%

    Return on equity was 14.5% over the last twelve months and averaged 16.4% over five years; we look for 15% on both.

  • Guidance lowered

    NewtekOne lowered its 2026 EPS outlook on Oct 28, 2026.

  • Growing slower than the industry

    Revenue grew 1.5% over the last twelve months; the Commercial Banks median is 11.3%.

  • Net margin below its 5-year average

    Net margin was 20.0% over the last twelve months, against a 5-year average of 30.4%.

Valuation6/6

  • P/E below its 5-year median

    NewtekOne's P/E of 5.8 is below its own 5-year median of 6.7.

  • P/E below the industry

    NewtekOne's P/E of 5.8 is below the Commercial Banks median of 12.1.

  • P/S below the industry

    NewtekOne's price-to-sales of 1.07 is below the Commercial Banks median of 3.60.

  • P/B below the industry

    NewtekOne's price-to-book of 0.75 is below the Commercial Banks median of 1.29.

  • Trading below fair value

    The share price of $10.79 is below our fair value estimate of $17.63.

  • Margin of safety over 20%

    The price is 38.8% below fair value, more than the 20% cushion we look for.

Growth2/6

  • Revenue growing 10%+ a year

    Revenue grew 39.4% a year over the last three fiscal years.

  • EPS growing 10%+ a year

    Diluted EPS grew 17.6% a year over the last three fiscal years.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing slower than the industry

    Revenue grew 1.5% over the last twelve months; the Commercial Banks median is 11.3%.

  • Guidance lowered

    NewtekOne lowered its 2026 EPS outlook on Oct 28, 2026.

  • Gross margin trend

    Banks and insurers do not report gross profit.

Past performance2/6

  • Return on equity under 15%

    Return on equity was 14.5% over the last twelve months and averaged 16.4% over five years; we look for 15% on both.

  • Return on assets over 1%

    Return on assets was 2.0%; for a bank or insurer, 1% or more is considered good.

  • Return on equity above the industry

    NewtekOne's return on equity of 14.5% is above the Commercial Banks median of 11.5%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin below its 5-year average

    Net margin was 20.0% over the last twelve months, against a 5-year average of 30.4%.

  • Net margin below the industry

    NewtekOne's net margin of 20.0% is below the Commercial Banks median of 30.3%.

Financial health5/6

  • Well capitalized

    Equity is 11.9% of total assets; 8% or more is a comfortable cushion.

  • Loans funded by deposits

    Loans equal 49.9% of deposits, so lending is funded by customer deposits.

  • Adequate loan-loss reserve

    The allowance for credit losses is 4.6% of loans; we look for at least 1%.

  • Efficient operations

    Non-interest expense takes 58.6% of revenue; under 60% is efficient for a bank.

  • Deposits growing

    Deposits grew 113% over the past year.

  • Borrowings

    Needs debt and equity figures.

Dividend4/6

  • Pays a dividend

    NewtekOne paid dividends worth 7.0% of the share price over the last twelve months.

  • Yield above Treasuries

    The 7.0% yield is above the 4.4% on a 1-year Treasury.

  • Yield in the top quarter

    The top quarter of US dividend payers yield 3.8% or more; NewtekOne yields 7.0%.

  • Dividend stability

    Fewer than five years of dividend history.

  • Covered by earnings

    Dividends take 53.8% of net income.

  • Cash-flow cover

    Needs dividends paid and free cash flow.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$17.63

The share price is 39% below this estimate.

20%+ below
Near fair value
20%+ above
$10.79Price$17.63Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E9.5×6.7×12.1×$17.8250%
P/B1.2×1.1×1.3×$17.4550%
Fair value$17.63100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 6.7
  • Commercial Banks median 12.1

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Medium risk

Average value traded per day
$2.73M
Value traded per 1% price move
$2.21M

Downside

Medium risk

Typical loss in a bad month
17.9%
Volatility (annualized)
37%
Sharpe ratio, 1 year
0.06
Beta to the S&P 500 (5Y)
1.11

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2020 to 2025

Net margin

21.2%

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