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Newmark Group Inc (NMRK)
NASDAQ:NMRK
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Newmark Group (NMRK) AI Stock Analysis

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NMRK

Newmark Group

(NASDAQ:NMRK)

Rating:66Neutral
Price Target:
$18.50
▲(0.60% Upside)
Newmark Group's overall stock score is driven by strong earnings performance and positive corporate events, which are offset by valuation concerns and financial leverage. The technical analysis suggests bullish momentum, but caution is advised due to overbought signals. Addressing cash flow and leverage issues could further enhance the company's financial stability.

Newmark Group (NMRK) vs. SPDR S&P 500 ETF (SPY)

Newmark Group Business Overview & Revenue Model

Company DescriptionNewmark 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 MoneyNewmark Group generates revenue primarily through its various service offerings in the commercial real estate market. Key revenue streams include advisory and consulting fees from leasing and investment sales transactions, property management fees, and income from capital markets services. The company also earns commissions from brokerage transactions and consulting engagements. Significant partnerships with institutional investors and real estate firms enhance its capabilities and market presence, contributing to its earnings. Additionally, Newmark benefits from recurring revenue through long-term property management contracts and ongoing advisory relationships with clients.

Newmark Group Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: 27.53%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with significant revenue and earnings growth, increased market share, and a strong cash position. However, there are concerns about high expense growth and potential macroeconomic challenges that could impact future performance.
Q2-2025 Updates
Positive Updates
Strong Revenue and Earnings Growth
Newmark delivered strong revenue and earnings growth with a 20% increase in total revenues and a 41% increase in adjusted EPS, demonstrating strong operating leverage.
Record Debt Volume Increase
The company increased its total debt volumes by 135% compared to U.S. commercial and multifamily originations, which were up by 38%.
Market Share Gains in Investment Sales
Newmark was ranked as the #1 office broker in the U.S. in the first half of 2025 and improved to #3 among global sales brokers.
Strong Balance Sheet and Cash Position
Ended the quarter with $195.8 million of cash and cash equivalents, showing strong cash generation and improved adjusted free cash flow by 121.4% year-over-year.
Negative Updates
High Expense Growth
Total expenses for adjusted earnings increased by 18.4%, reflecting 26% improvement in commission-based revenues and costs related to growth initiatives.
Potential Macro Economic Challenges
There is an acknowledgment of potential macroeconomic events that could affect market activity, indicating uncertainty in future projections.
Company Guidance
In the second quarter of 2025, Newmark Group reported impressive financial results, with a revenue increase of 19.9% to $759.1 million, up from $633.4 million in the previous year. The company's adjusted EPS surged by 40.9% to $0.31, and adjusted EBITDA rose by 32.1% to $114 million, reflecting a 139 basis point improvement in the adjusted EBITDA margin to 15%. Newmark also achieved significant growth in its capital markets sector, with a 37.9% increase in revenues and a 135% rise in total debt volumes compared to a 38% increase in U.S. commercial and multifamily originations. Investment sales volumes grew by 26%, outperforming the U.S. industry's 11% growth. The company raised its full-year guidance, projecting total revenues between $3.05 billion and $3.25 billion, adjusted EPS between $1.47 and $1.57, and adjusted EBITDA in the range of $523 million to $573 million. Newmark's strategic initiatives, including its expansion into international markets, have positioned it as the #3 global sales broker across all property types for the first half of 2025, based on preliminary MSCI figures.

Newmark Group Financial Statement Overview

Summary
Newmark Group presents a mixed financial picture. While revenue growth and operational efficiency are evident, the company's profitability margins are moderate. High leverage is a concern, as is the negative cash flow situation, which indicates potential liquidity challenges. Overall, the company shows resilience but must address cash flow and leverage to enhance financial stability.
Income Statement
65
Positive
Newmark Group has shown a moderate revenue growth trajectory with a 9.0% increase in TTM revenue compared to the previous year. However, the gross profit margin at 52.2% and the net profit margin at 2.2% suggest modest profitability. The company has maintained a stable EBIT margin of 5.7% and an EBITDA margin of 9.9%, indicating consistent operational efficiency over time.
Balance Sheet
58
Neutral
The company's balance sheet shows a relatively high debt-to-equity ratio of 0.57, indicating significant leverage which could pose risks in economic downturns. The return on equity is a modest 4.2%, reflecting limited profitability relative to shareholder equity. However, a solid equity ratio of 28.3% suggests a reasonable proportion of assets financed by equity.
Cash Flow
50
Neutral
Newmark Group's cash flow statement reveals challenges, with a negative free cash flow of -$257 million, indicating operational cash flow struggles. The operating cash flow to net income ratio is negative, suggesting difficulty in translating earnings into cash. However, the free cash flow to net income ratio also being negative underscores cash generation issues relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.98B2.74B2.47B2.71B2.91B1.90B
Gross Profit1.56B2.74B2.47B2.71B2.91B1.90B
EBITDA348.57M337.34M291.56M351.38M1.38B325.19M
Net Income75.26M61.23M42.58M83.28M750.73M80.06M
Balance Sheet
Total Assets5.39B4.71B4.47B3.94B5.22B3.98B
Cash, Cash Equivalents and Short-Term Investments195.83M197.69M164.99M233.80M704.70M224.73M
Total Debt2.65B2.02B1.75B1.41B2.40B2.02B
Total Liabilities3.86B3.17B2.88B2.42B3.53B3.04B
Stockholders Equity1.52B1.21B1.25B1.18B1.30B655.05M
Cash Flow
Free Cash Flow-257.12M-43.05M-321.32M1.13B-68.43M-797.52M
Operating Cash Flow-241.81M-9.94M-265.96M1.20B-48.71M-777.69M
Investing Cash Flow-28.76M-33.43M-49.74M308.63M453.09M-3.60M
Financing Cash Flow301.96M89.53M261.46M-1.46B-396.28M817.82M

Newmark Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price18.39
Price Trends
50DMA
13.96
Positive
100DMA
12.49
Positive
200DMA
13.13
Positive
Market Momentum
MACD
1.18
Negative
RSI
84.45
Negative
STOCH
85.56
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 18.39 is above the 20-day moving average (MA) of 16.47, above the 50-day MA of 13.96, and above the 200-day MA of 13.13, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 84.45 is Negative, neither overbought nor oversold. The STOCH value of 85.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NMRK.

Newmark Group Risk Analysis

Newmark Group disclosed 56 risk factors in its most recent earnings report. Newmark Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Newmark Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$14.37B26.068.40%13.47%47.52%
75
Outperform
$3.61B17.7011.62%4.63%887.64%
74
Outperform
$48.92B46.0613.13%14.96%19.11%
67
Neutral
$1.73B-12.78%1.82%3.55%-36.05%
66
Neutral
$3.21B42.536.00%0.66%16.29%69.89%
55
Neutral
5.11%-29.67%
53
Neutral
$1.26B2.84-5.63%5.62%-4.43%-95.39%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NMRK
Newmark Group
18.39
4.73
34.63%
CBRE
CBRE Group
164.98
48.26
41.35%
JLL
Jones Lang Lasalle
304.50
48.31
18.86%
EXPI
eXp World Holdings
11.08
-2.06
-15.68%
RDFN
Redfin
11.19
-0.53
-4.52%
CWK
Cushman & Wakefield
15.99
2.69
20.23%

Newmark Group Corporate Events

Shareholder MeetingsFinancial Disclosures
Newmark Group Reports Strong Q2 2025 Financial Results
Positive
Jul 30, 2025

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.

Legal Proceedings
Newmark Group’s Settlement Hearing Rescheduled to August
Neutral
May 29, 2025

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.

M&A TransactionsStock BuybackRegulatory Filings and Compliance
Newmark Group’s Stock Buyback from Howard Lutnick
Positive
May 19, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025