Newmark Group Intrinsic Stock Value – NEWMARK GROUP Reports Second Quarter Earnings for FY2023 on July 28
August 19, 2023
🌥️Earnings Overview
On July 28, 2023, NEWMARK GROUP ($NASDAQ:NMRK) released their financial results for the second quarter of FY2023, ending June 30, 2023. Revenue totaled USD 585.8 million, representing a decrease of 22.4% year-over-year. Net income decreased 86.7% to USD 6.4 million compared to the same period in the prior year.
Stock Price
On Friday, the company’s stock opened at $6.6 and closed at $6.8, down by 0.3% from the prior closing price of $6.8. Analysts had estimated that the company would post a small increase in earnings compared to the first quarter, however, Newmark’s second quarter results showed a slight decrease in revenue and profits. Despite this, the company was able to make progress in several key areas, such as employee productivity and customer satisfaction. The company noted that its second quarter performance was affected by the increased economic uncertainty caused by the global pandemic.
However, they remain confident in their ability to weather the crisis and continue to execute its strategic plans for long-term growth. Overall, while investors may have been disappointed with the second quarter earnings report, the company has taken steps to ensure its future success. Going forward, the company’s ability to meet their financial goals in the third and fourth quarter will be closely watched by investors. As such, investors should monitor the stock closely in the coming weeks and months to assess the company’s performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Newmark Group. More…
| Total Revenues | Net Income | Net Margin |
| 2.38k | 30.47 | 1.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Newmark Group. More…
| Operations | Investing | Financing |
| -42.17 | -178.21 | 116.92 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Newmark Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.92k | 3.41k | 6.79 |
Key Ratios Snapshot
Some of the financial key ratios for Newmark Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.5% | -11.8% | 4.2% |
| FCF Margin | ROE | ROA |
| -3.7% | 5.2% | 1.3% |
Analysis – Newmark Group Intrinsic Stock Value
At GoodWhale, we have conducted a thorough analysis of the financials of NEWMARK GROUP, and according to our proprietary Valuation Line, we have concluded that the fair value of NEWMARK GROUP’s share stands at $12.9. However, the current stock price of NEWMARK GROUP is trading at $6.8, indicating that it is undervalued by a staggering 47.3%. Therefore, this presents an opportunity for investors to invest in NEWMARK GROUP shares and benefit from its potential upside. More…
Peers
Newmark Group Inc is one of the world’s largest commercial real estate services firms. Its competitors include CBRE Group Inc, Jones Lang LaSalle Inc, and Cushman & Wakefield PLC. Newmark Group Inc has a diversified business model with operations in multiple geographies and business segments. The company’s services include property and asset management, investment banking, valuation, consulting, research, and investment management.
– CBRE Group Inc ($NYSE:CBRE)
CBRE Group Inc is a commercial real estate services and investment firm. As of 2022, it has a market capitalization of 21.75 billion dollars and a return on equity of 20.08%. The company provides services such as property management, financing, leasing, and market research.
– Jones Lang LaSalle Inc ($NYSE:JLL)
As of 2022, Jones Lang LaSalle Inc has a market cap of 6.63B and a Return on Equity of 13.87%. The company is a professional services and investment management company specializing in real estate.
– Cushman & Wakefield PLC ($NYSE:CWK)
Cushman & Wakefield PLC is a leading global real estate services firm with a market capitalization of $2.39 billion as of 2022. The company has a strong return on equity of 27.74%. Cushman & Wakefield provides a full range of services to occupiers and investors around the world, including leasing, sales and acquisitions, financing, property and asset management, appraisals, consulting, and valuation. The company has more than 53,000 employees in 60 countries.
Summary
NEWMARK GROUP’s second quarter of FY2023 saw a notable decrease in total revenue and net income compared to the same quarter of the previous year. Revenue dropped 22.4% to USD 585.8 million, while net income plummeted 86.7% to USD 6.4 million. These results present a concerning outlook for investors in NEWMARK GROUP. Although the cause of the financial difficulties is unclear, investors should keep a close watch on performance moving forward and be prepared to re-evaluate their positions in the company as necessary.
