Newtek Business (NEWT) AI Stock Analysis

• Market Cap: $311.36M
• Dividend Yield: 6.67%
• Average Volume (3M): 181.59K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 1.08
• Revenue Growth: 9.20%
• EPS Growth: 17.37%
• Country: US
• Employees: 591
• Sector: Financial
• Sector Strength: 73
• Industry: Asset Management
• EPS (TTM): 0.52
• Shares Outstanding: 26,342,028
• 10 Day Avg. Volume: 198,191
• 30 Day Avg. Volume: 181,586
• PEG Ratio: -5.78
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.45
• Enterprise Value/Market Cap: 5.89
• Enterprise Value/Revenue: 7.47
• Enterprise Value/Gross Profit: 47.95
• Enterprise Value/Ebitda: 69.72
• 1Y Price Target: $12.00
• Price Target Upside: 5.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: $12.00 ▲(5.36%Upside)

Newtek Business faces significant financial challenges with zero revenue in 2024, offset by a positive earnings call highlighting revenue and deposit growth. The stock's valuation is attractive due to a low P/E ratio and high dividend yield. Technical analysis shows moderate positive momentum. The expansion of the Equity Distribution Agreement adds strategic flexibility.

Newtek Business Business Overview & Revenue Model

Company Description

Newtek Business Services Corp (NEWT) is a business development company that provides a range of financial and business solutions to small and medium-sized businesses (SMBs) across the United States. Its core offerings include lending solutions, payment processing, insurance services, web services, and technology solutions. Newtek aims to support SMBs by providing them with the necessary tools and resources to enhance their operational efficiency and growth.

How the Company Makes Money

Newtek Business Services Corp makes money through a diversified revenue model that primarily revolves around financial products and services tailored for small and medium-sized businesses. Key revenue streams include interest income from its lending solutions, where it provides loans such as SBA 7(a) loans, term loans, and lines of credit. Additionally, the company generates fees and commissions from its payment processing services, which include electronic payment processing and payroll solutions. Insurance services contribute to revenue through the sale of commercial and personal insurance products. Newtek also earns income from its technology solutions, offering cloud computing, data backup, and web hosting services. The company benefits from strategic partnerships with financial institutions and service providers, which enhance its product offerings and expand its market reach.

Newtek Business Financial Statement Overview

Summary

Newtek Business faces significant financial challenges, with zero revenue reported in 2024, despite a previous growth trajectory. While debt reduction is positive, profitability and cash flow sustainability are major concerns, particularly with negative free cash flow.

Income Statement

Newtek Business has experienced inconsistent revenue growth, with a significant drop in revenue to zero in 2024 from $253 million in 2023. Historical data shows fluctuating profit margins, with a net profit margin of 18.7% in 2023. The company has struggled to maintain EBIT and EBITDA margins due to operational challenges.

Balance Sheet

The company has improved its debt position, with total debt dropping to zero in 2024, indicating strong debt management. However, the equity ratio decreased from 25.6% in 2023 to 14.4% in 2024, which may pose risks if asset growth does not translate into profitability.

Cash Flow

Newtek Business has faced significant cash flow challenges, as indicated by negative free cash flow in recent years. The operating cash flow to net income ratio was negative in 2023, showing inefficiencies in converting income to cash. The lack of free cash flow in 2024 raises concerns about liquidity and operational funding.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	318.85M	253.14M	105.17M	147.76M	74.96M
Gross Profit	211.52M	208.83M	74.19M	147.76M	74.96M
EBITDA	70.48M	125.70M	23.24M	106.51M	51.95M
Net Income	50.85M	47.33M	32.31M	84.14M	33.62M
Balance Sheet
Total Assets	2.06B	1.44B	998.90M	1.06B	840.98M
Cash, Cash Equivalents and Short-Term Investments	353.15M	153.09M	72.86M	2.40M	2.07M
Total Debt	714.54M	644.12M	547.30M	481.11M	460.48M
Total Liabilities	1.76B	1.18B	623.54M	652.67M	501.63M
Stockholders Equity	296.28M	249.05M	375.36M	403.89M	339.35M
Cash Flow
Free Cash Flow	-153.45M	-89.06M	-62.43M	140.92M	17.75M
Operating Cash Flow	-153.01M	-88.60M	-62.42M	140.92M	17.76M
Investing Cash Flow	-209.05M	-172.24M	-11.00K	0.00	-10.00K
Financing Cash Flow	560.90M	344.97M	1.18M	-5.49M	465.00K

Newtek Business Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEWT, the sentiment is Negative. The current price of 11.39 is below the 20-day moving average (MA) of 11.65, above the 50-day MA of 11.07, and below the 200-day MA of 11.85, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 49.46 is Neutral, neither overbought nor oversold. The STOCH value of 52.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEWT.

Newtek Business Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIEN	75 Outperform	$233.91M	11.86	8.67%	12.40%	―	―
SWKH	74 Outperform	$185.27M	10.21	6.38%	―	18.18%	54.41%
Sector *	70 Outperform	S$32.61B	14.69	11.69%	4.37%	5.53%	14.18%
SAR	68 Neutral	$359.54M	10.12	9.27%	14.33%	-24.05%	28.25%
WHF	67 Neutral	$206.17M	22.54	3.07%	20.22%	-27.52%	-46.85%
TPVG	59 Neutral	$282.03M	7.57	10.68%	16.95%	22.53%	―
NEWT	58 Neutral	$311.36M	5.91	18.20%	6.67%	9.20%	17.37%

Newtek Business Corporate Events

Newtek Business Shareholders Approve Key Decisions in Meeting

NewtekOne, Inc. held its Annual Meeting of Shareholders on June 13, 2025, where shareholders approved the election of three directors to serve until 2028 and ratified the selection of RSM US LLP as the independent auditors for the fiscal year ending December 31, 2025. Additionally, an advisory vote on executive compensation was conducted, with a majority of shareholders voting in favor.

The most recent analyst rating on (NEWT) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Newtek Business stock, see the NEWT Stock Forecast page.

Newtek Business Expands Equity Distribution Agreement

On June 6, 2025, NewtekOne, Inc. amended its Equity Distribution Agreement, increasing the number of shares from 3,000,000 to 5,000,000 and adding new placement agents. This strategic move aims to enhance the company’s market presence by allowing sales through various methods, including Nasdaq and private transactions.

The most recent analyst rating on (NEWT) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Newtek Business stock, see the NEWT Stock Forecast page.