Newmark Group, Inc. (NMRK) stock analysis

P/E below its 5-year median

Newmark's P/E of 15.4 is below its own 5-year median of 25.1.

P/E below the industry

Newmark's P/E of 15.4 is below the Real Estate median of 23.6.

EV/EBITDA below its 5-year median

Newmark's EV/EBITDA of 6.5 is below its 5-year median of 8.9.

P/B below the industry

Newmark's price-to-book of 1.40 is below the Real Estate median of 1.70.

Trading below fair value

The share price of $11.27 is below our fair value estimate of $17.94.

Margin of safety over 20%

The price is 37.2% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 6.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 14.8% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 18.1% over the last twelve months, against a 5-year average of 2.9% a year.

Growing faster than the industry

Revenue grew 17.5% over the last twelve months; the Real Estate median is 8.9%.

Guidance issued

The latest outlook (FY 2026 Total Revenues (millions), Oct 29, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 10.7% over the last twelve months and averaged 26.4% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 10.2%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Newmark's return on equity of 10.7% is above the Real Estate median of -3.3%.

Earnings grew over 5 years

Net income grew 2.9% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 4.1% over the last twelve months, against a 5-year average of 9.5%.

Net margin above the industry

Newmark's net margin of 4.1% is above the Real Estate median of -1.4%.

High debt

Debt is 60.1% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 104% five years ago to 60.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 50.5% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.09 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.49; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Newmark paid dividends worth 1.6% of the share price over the last twelve months.

Yield below Treasuries

The 1.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Newmark yields 1.6%.

Dividend stability

Fewer than five years of dividend history.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.