Newmark Group (NMRK) AI Stock Analysis

• Market Cap: $3.20B
• Dividend Yield: 0.68%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 30.6
• Beta (1Y): 1.27
• Revenue Growth: 22.22%
• EPS Growth: 94.52%
• Country: US
• Employees: 8,100
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.42
• Shares Outstanding: 159,448,530
• 10 Day Avg. Volume: 1,199,484
• 30 Day Avg. Volume: 1,184,202
• PEG Ratio: 0.82
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.81
• P/FCF Ratio: -51.23
• Enterprise Value/Market Cap: 2.28
• Enterprise Value/Revenue: 2.30
• Enterprise Value/Gross Profit: 2.30
• Enterprise Value/Ebitda: 18.60
• 1Y Price Target: $20.33
• Price Target Upside: 15.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.59
• Revenue Forecast (FY): $3.11B

• Rating: 59 Neutral
• Price Target: $18.00 ▲(1.98% Upside)

Newmark Group's overall stock score is primarily influenced by its mixed financial performance and stretched valuation, which are offset by strong earnings call highlights. The company's robust revenue growth and strategic initiatives are promising, but high leverage and cash flow challenges pose risks. Technical indicators suggest a neutral market sentiment.

Positive Factors

Revenue Growth

The strong revenue growth across all major business lines indicates a robust market position and effective business strategies, supporting long-term expansion.

Strategic Acquisitions

Strategic acquisitions like Catella enhance Newmark's service offerings and geographic reach, strengthening its competitive advantage and market presence.

International Expansion

Expanding into international markets diversifies revenue streams and positions Newmark for sustained growth in emerging regions.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting Newmark's ability to invest in growth opportunities.

Cash Flow Challenges

Negative cash flows indicate potential liquidity issues, which could hinder Newmark's operational efficiency and financial stability.

Low Profitability Margins

Low profitability margins suggest challenges in cost management, which could affect long-term earnings potential and shareholder returns.

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 generates revenue primarily through its brokerage and advisory services, which include leasing and sales transactions in commercial real estate. The company earns commissions from successfully closed deals, which are based on a percentage of the transaction value. Additionally, Newmark provides property management and consulting services, contributing to its revenue through management fees and advisory charges. The firm also engages in capital markets activities, facilitating debt and equity placements, which generate income through origination fees and interest income. Key partnerships with financial institutions, real estate developers, and investment firms further enhance Newmark's ability to attract client transactions and expand its service offerings, ultimately driving its earnings.

Newmark Group Financial Statement Overview

Summary

Newmark Group shows mixed financial performance. Revenue growth is positive, but profitability margins are low, and high leverage poses financial risks. The negative cash flow situation is a significant concern, indicating potential liquidity issues. Overall, the company needs to focus on improving profitability and managing its debt levels to enhance financial stability.

Income Statement

Newmark Group's revenue has shown a positive growth trend with a 5.95% increase in the TTM period. However, the net profit margin remains relatively low at 2.52%, indicating limited profitability. The EBIT and EBITDA margins are moderate, reflecting some operational efficiency but also highlighting room for improvement in cost management.

Balance Sheet

The company's debt-to-equity ratio is high at 1.81, suggesting significant leverage, which could pose financial risks. Return on equity is modest at 4.36%, indicating average returns for shareholders. The equity ratio is not explicitly provided but the high leverage suggests a lower equity proportion in the asset base.

Cash Flow

Newmark Group's cash flow situation is concerning, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is significantly negative, and the operating cash flow to net income ratio is also negative, indicating cash flow challenges that could impact liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.16B	2.74B	2.47B	2.71B	2.91B	1.90B
Gross Profit	3.16B	2.74B	2.47B	2.71B	2.91B	1.90B
EBITDA	391.56M	337.34M	291.56M	351.38M	1.38B	303.80M
Net Income	103.62M	61.23M	42.58M	83.28M	750.73M	80.06M
Balance Sheet
Total Assets	5.46B	4.71B	4.47B	3.94B	5.22B	3.98B
Cash, Cash Equivalents and Short-Term Investments	224.09M	197.69M	164.99M	233.80M	715.90M	224.73M
Total Debt	2.66B	2.02B	1.75B	1.41B	2.40B	2.02B
Total Liabilities	3.84B	3.17B	2.88B	2.42B	3.55B	3.04B
Stockholders Equity	1.37B	1.21B	1.25B	1.18B	1.28B	655.05M
Cash Flow
Free Cash Flow	-57.80M	-43.05M	-321.32M	1.13B	-68.43M	-797.52M
Operating Cash Flow	-43.94M	-9.94M	-265.96M	1.20B	-48.71M	-777.69M
Investing Cash Flow	-136.09M	-33.43M	-49.74M	308.63M	453.09M	-3.60M
Financing Cash Flow	122.73M	89.53M	261.46M	-1.46B	-396.28M	817.82M

Newmark Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 17.65 is above the 20-day moving average (MA) of 17.38, above the 50-day MA of 17.50, and above the 200-day MA of 14.77, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 56.49 is Neutral, neither overbought nor oversold. The STOCH value of 70.26 is Neutral, 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
JLL	79 Outperform	$16.37B	26.60	9.14%	―	12.51%	32.34%
CBRE	70 Outperform	$49.08B	40.68	14.26%	―	14.61%	30.19%
CWK	69 Neutral	$3.83B	17.33	12.21%	―	6.77%	150.72%
EXPI	67 Neutral	$1.51B	-74.80	-8.09%	2.09%	5.08%	41.21%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
NMRK	59 Neutral	$3.20B	30.59	8.08%	0.68%	22.22%	94.52%
MMI	56 Neutral	$1.08B	-159.28	-1.09%	1.80%	20.74%	78.92%

Newmark Group Corporate Events

Newmark Group Reports Strong Q3 2025 Financial Results

Newmark Group, Inc. announced a change in the date for its 2025 Annual Meeting of Stockholders to December 30, 2025, which affects the deadline for stockholder proposals. The company also reported strong financial results for the third quarter of 2025, with a 26% increase in revenues and significant growth in GAAP and Adjusted EPS. Newmark’s strategic investments in recurring revenue businesses and global expansion, including the acquisition of RealFoundations and expansion into India and the Asia-Pacific region, have bolstered its market position. The company remains optimistic about its growth prospects, raising its full-year outlook and targeting an expansion of its Adjusted EBITDA margin.