Newmark Group (NMRK) AI Stock Analysis

• Market Cap: $3.41B
• Dividend Yield: 0.62%
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 45.2
• Beta (1Y): 1.68
• Revenue Growth: 16.29%
• EPS Growth: 69.89%
• Country: US
• Employees: 8,100
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.31
• Shares Outstanding: 155,422,360
• 10 Day Avg. Volume: 1,358,300
• 30 Day Avg. Volume: 1,439,275
• 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: 1.69
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 1.93
• Enterprise Value/Ebitda: 16.55
• 1Y Price Target: $17.88
• Price Target Upside: -7.26% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: $18.50 ▼(-4.05% Downside)

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.

Positive Factors

Revenue Growth

The 20% revenue growth indicates robust demand for Newmark's services, suggesting strong market positioning and potential for sustained expansion.

Market Position

Being the top office broker in the U.S. underscores Newmark's competitive edge and enhances its reputation, likely leading to more business opportunities.

Cash Position

A strong cash position provides financial flexibility for strategic investments, debt reduction, or shareholder returns, supporting long-term stability.

Negative Factors

High Leverage

High leverage can increase financial risk, especially in economic downturns, potentially impacting Newmark's ability to invest in growth or weather financial stress.

Negative Cash Flow

Negative cash flow suggests difficulties in generating cash from operations, which could constrain Newmark's ability to fund growth initiatives or reduce debt.

High Expense Growth

Rising expenses may pressure profit margins, reducing profitability unless offset by revenue growth or cost management improvements.

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 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 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

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

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

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.

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	2.98B	2.74B	2.47B	2.71B	2.91B	1.90B
EBITDA	348.57M	337.34M	291.56M	351.38M	1.38B	325.19M
Net Income	75.26M	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	2.75B	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: 19.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 19.28 is above the 20-day moving average (MA) of 18.11, above the 50-day MA of 15.69, and above the 200-day MA of 13.34, indicating a bullish trend. The MACD of 0.91 indicates Positive momentum. The RSI at 75.51 is Negative, neither overbought nor oversold. The STOCH value of 82.71 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
JLL	78 Outperform	$14.80B	26.85	8.40%	―	13.47%	47.52%
CBRE	74 Outperform	$48.80B	45.95	13.13%	―	14.96%	19.11%
CWK	73 Outperform	$3.85B	18.90	11.62%	―	4.63%	887.64%
EXPI	67 Neutral	$1.75B	―	-12.78%	1.79%	3.55%	-36.05%
NMRK	66 Neutral	$3.41B	45.21	6.00%	0.62%	16.29%	69.89%
Sector *	63 Neutral	$7.11B	13.20	-0.32%	6.82%	4.02%	-23.53%
RDFN	55 Neutral		―		―	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.