Newmark Group (NMRK) AI Stock Analysis

• Market Cap: $2.79B
• Dividend Yield: 0.79%
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 35.8
• Beta (1Y): 1.63
• Revenue Growth: 16.74%
• EPS Growth: 69.89%
• Country: US
• Employees: 8,100
• Sector: Real Estate
• Sector Strength: 57
• Industry: Real Estate - Services
• EPS (TTM): 0.31
• Shares Outstanding: 163,266,590
• 10 Day Avg. Volume: 1,816,522
• 30 Day Avg. Volume: 1,432,862
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.94
• Enterprise Value/Revenue: 1.81
• Enterprise Value/Gross Profit: 3.47
• Enterprise Value/Ebitda: 18.37
• 1Y Price Target: $16.00
• Price Target Upside: 5.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: $16.50 ▲(9.13%Upside)

Newmark Group's stock score is influenced primarily by its mixed financial performance and strong technical indicators. While recent earnings and corporate events provide positive momentum, high leverage and valuation concerns pose risks. The company's ability to manage cash flow and leverage will be crucial for future stability.

Newmark Group Business Overview & Revenue Model

Company Description

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, debt and structured finance, and loan sales; agency leasing, property management, and valuation and advisory; and commercial real estate due diligence consulting and advisory services, as well as government sponsored enterprise lending, loan servicing, mortgage broking, and equity-raising services. Its occupier services and products comprise tenant representation; real estate management technology systems; workplace and occupancy strategy; global corporate consulting; project management; account and transaction management; and lease administration and facilities management services. The company provides its services to commercial real estate tenants, investors, owners, occupiers, and developers, as well as lenders and multi-national corporations. As of December 31, 2021, it operated approximately 160 offices on four continents. The company was formerly known as Newmark Knight Frank and changed its name to Newmark Group, Inc. in October 2017. Newmark Group, Inc. was founded in 1929 and is based in New York, New York.

How the Company Makes Money

Newmark Group makes money primarily through fees generated from its diverse array of commercial real estate services. The company earns revenue from transaction-based services, such as commissions on leasing and sales transactions where it represents either landlords or tenants. Additionally, Newmark generates income through recurring revenue streams like property and facilities management fees, and advisory services fees. The company's capital markets division also contributes significantly by facilitating financing and investment sales transactions. Key partnerships with real estate investors, developers, and financial institutions enhance Newmark's ability to secure lucrative deals, further bolstering its earnings.

Newmark Group Financial Statement Overview

Summary

Newmark Group exhibits a mixed financial performance with moderate revenue growth and strong gross margins, but struggles with profitability and cash flow generation. The improved leverage position is a positive sign, but low returns on equity and significant cash flow challenges highlight the need for strategic focus on improving operational efficiency and cash management.

Income Statement

Newmark Group's revenue has shown a modest growth trajectory with a 4.34% increase in the TTM (Trailing-Twelve-Months) compared to the previous year. The gross profit margin remains strong at 100%, indicating efficient cost management. However, the net profit margin for TTM is relatively low at 1.52%, reflecting challenges in translating revenue growth into net income. The EBIT and EBITDA margins are moderate at 5.88% and 12.06%, respectively, suggesting room for operational improvement.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.49 in the TTM, indicating a more balanced leverage compared to previous years. The return on equity (ROE) for TTM stands at 2.79%, which is relatively low, suggesting limited returns for equity holders. The equity ratio is stable at 32.18%, reflecting a moderate level of financial stability. Despite improvements in leverage, the overall financial stability could be enhanced with better profitability.

Cash Flow

Newmark Group's cash flow situation is concerning, with negative free cash flow in the TTM, reflecting challenges in generating cash from operations. The operating cash flow to net income ratio is negative, indicating inefficiencies in cash generation from core operations. Additionally, the free cash flow to net income ratio is negative, which may signal liquidity concerns and the need for improved cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.98B	2.74B	2.47B	2.71B	2.91B	1.90B
Gross Profit	1.56B	2.74B	2.47B	2.71B	2.91B	1.90B
EBITDA	294.32M	337.34M	291.56M	351.38M	1.38B	325.19M
Net Income	64.72M	61.23M	42.58M	83.28M	750.73M	80.06M
Balance Sheet
Total Assets	5.39B	4.71B	4.47B	3.94B	5.22B	3.98B
Cash, Cash Equivalents and Short-Term Investments	195.83M	197.69M	164.99M	233.80M	704.70M	224.73M
Total Debt	871.21M	2.02B	1.75B	1.41B	2.40B	2.02B
Total Liabilities	3.86B	3.17B	2.88B	2.42B	3.53B	3.04B
Stockholders Equity	1.52B	1.21B	1.25B	1.18B	1.30B	655.05M
Cash Flow
Free Cash Flow	-257.12M	-43.05M	-321.32M	1.13B	-68.43M	-797.52M
Operating Cash Flow	-241.81M	-9.94M	-265.96M	1.20B	-48.71M	-777.69M
Investing Cash Flow	-28.76M	-33.43M	-49.74M	308.63M	453.09M	-3.60M
Financing Cash Flow	301.96M	89.53M	261.46M	-1.46B	-396.28M	817.82M

Newmark Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NMRK, the sentiment is Positive. The current price of 15.12 is above the 20-day moving average (MA) of 13.16, above the 50-day MA of 12.14, and above the 200-day MA of 12.98, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 81.76 is Negative, neither overbought nor oversold. The STOCH value of 85.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NMRK.

Newmark Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBRE	77 Outperform	$45.81B	43.13	13.13%	―	14.96%	19.11%
JLL	77 Outperform	$12.60B	24.00	8.16%	―	13.63%	78.40%
CWK	74 Outperform	$2.76B	17.24	9.53%	―	1.24%	1205.18%
EXPI	67 Neutral	$1.48B	―	-12.78%	2.12%	6.69%	-137.52%
NMRK	66 Neutral	$2.79B	35.78	5.49%	0.79%	16.74%	69.89%
Sector *	63 Neutral	$6.73B	14.24	-1.44%	7.30%	4.75%	-35.88%
RDFN	55 Neutral	$1.43B	―	199.35%	―	5.11%	-29.67%

Newmark Group Corporate Events

Newmark Group Reports Strong Q2 2025 Financial Results

Newmark Group announced the date for its 2025 Annual Meeting of Stockholders as November 20, 2025, and set a new deadline for stockholder proposals due to the meeting date being more than 30 days after the previous year’s anniversary. The company also reported strong financial results for the second quarter of 2025, with a 20% increase in total revenues and significant growth in GAAP and adjusted EPS. Newmark raised its full-year guidance, expecting a substantial year-over-year increase in adjusted earnings per share, driven by improvements in macroeconomic conditions for commercial real estate.

The most recent analyst rating on (NMRK) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on Newmark Group stock, see the NMRK Stock Forecast page.

Newmark Group’s Settlement Hearing Rescheduled to August

On May 19, 2025, the Delaware Court of Chancery rescheduled a hearing regarding a settlement agreement involving Newmark Group, its Board, and certain executive officers, set for August 13, 2025. This settlement aims to resolve stockholder derivative litigation related to a 2021 cash bonus and partnership unit redemption involving Newmark’s Executive Chairman. The settlement, funded by insurance proceeds, will release the Board and officers from civil claims without admitting liability, avoiding prolonged litigation.

The most recent analyst rating on (NMRK) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on Newmark Group stock, see the NMRK Stock Forecast page.

Newmark Group’s Stock Buyback from Howard Lutnick

On May 16, 2025, Howard W. Lutnick, the U.S. Secretary of Commerce and former Executive Chairman of Newmark Group, agreed to sell 10,969,523 shares of Class A Common Stock back to the company as part of a divestiture to comply with U.S. government ethics rules. The transaction, valued at $127,027,077, is part of Newmark’s stock repurchase program and is expected to enhance shareholder value. Additionally, Mr. Lutnick transferred his voting shares of CFGM and other interests to trusts controlled by Brandon G. Lutnick, ensuring that Cantor Fitzgerald remains Newmark’s largest shareholder.

The most recent analyst rating on (NMRK) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on Newmark Group stock, see the NMRK Stock Forecast page.