Newmark Group (NMRK) AI Stock Analysis

• Market Cap: $2.10B
• Dividend Yield: 1.05%
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 28.9
• Beta (1Y): 1.67
• Revenue Growth: 13.87%
• EPS Growth: 90.42%
• Country: US
• Employees: 8,100
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate - Services
• EPS (TTM): 0.21
• Shares Outstanding: 163,266,590
• 10 Day Avg. Volume: 880,064
• 30 Day Avg. Volume: 1,003,545
• PEG Ratio: -2.21
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.52
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 0.88
• Enterprise Value/Ebitda: 1.95
• 1Y Price Target: $14.69
• Price Target Upside: 29.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 64 Neutral
• Price Target: $12.00 ▲(5.45%Upside)

Newmark Group's overall stock score of 64 reflects a balance between positive earnings growth and strategic corporate actions against challenges in valuation and cash flow. The strong earnings call and corporate events are major positives, but the high P/E ratio and cash flow issues weigh on the score.

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 shows moderate revenue growth and strong gross margins, but faces challenges with profitability and cash flow generation. Improved leverage is a positive, but low returns on equity and significant cash flow issues highlight the need for better 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
2.86B	2.74B	2.47B	2.71B	2.91B	1.90B
	Gross Profit
2.86B	2.74B	2.47B	2.71B	2.91B	1.90B
	EBIT
168.13M	163.04M	125.22M	185.57M	1.25B	184.00M
	EBITDA
344.81M	337.34M	291.56M	351.38M	1.38B	325.19M
	Net Income Common Stockholders
68.72M	61.23M	42.58M	83.28M	750.73M	80.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
157.08M	197.69M	164.99M	233.80M	704.70M	224.73M
	Total Assets
4.85B	4.71B	4.47B	3.94B	5.22B	3.98B
	Total Debt
2.20B	2.02B	1.75B	1.41B	2.40B	2.02B
	Net Debt
2.04B	1.83B	1.59B	1.18B	2.21B	1.83B
	Total Liabilities
3.29B	3.17B	2.88B	2.42B	3.53B	3.04B
	Stockholders Equity
1.32B	1.21B	1.25B	1.18B	1.30B	655.05M
Cash Flow		Free Cash Flow
-150.58M	-43.05M	-321.32M	1.13B	-68.43M	-797.52M
	Operating Cash Flow
-120.56M	-9.94M	-265.96M	1.20B	-48.71M	-777.69M
	Investing Cash Flow
-31.52M	-33.43M	-49.74M	308.63M	453.09M	-3.60M
	Financing Cash Flow
181.01M	89.53M	261.46M	-1.46B	-396.28M	817.82M

Newmark Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.38
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NMRK, the sentiment is Negative. The current price of 11.38 is above the 20-day moving average (MA) of 11.18, above the 50-day MA of 11.02, and below the 200-day MA of 13.31, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 51.67 is Neutral, neither overbought nor oversold. The STOCH value of 75.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NMRK.

Newmark Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JLL	77 Outperform	$11.25B	21.43	8.16%	―	13.63%	78.40%
CBRE	74 Outperform	$39.64B	40.61	12.15%	―	13.14%	1.70%
CWK	71 Outperform	$2.41B	15.04	9.53%	―	1.24%	1205.18%
EXPI	67 Neutral	$1.39B	―	-6.44%	2.24%	6.69%	-137.52%
NMRK	64 Neutral	$2.10B	28.95	5.32%	1.05%	13.87%	90.42%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
RDFN	55 Neutral	$1.38B	―	199.35%	―	5.11%	-29.67%

Newmark Group Corporate Events

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.

Newmark Group Appoints Luis Alvarado as COO

On April 7, 2025, Newmark Group appointed Luis Alvarado as Chief Operating Officer, a role in which he will optimize global operations and drive business expansion. Alvarado, who has been with Newmark since 2015, has played a crucial role in the company’s growth and will continue to enhance market share and operational efficiency in his new position.