Newmark Group Stock Intrinsic Value – NEWMARK GROUP Reports Earnings Results for 2nd Quarter of Fiscal Year 2023
July 30, 2023
🌥️Earnings Overview
On July 28, 2023, NEWMARK GROUP ($NASDAQ:NMRK) announced their financial results for the second quarter of Fiscal Year 2023, ending June 30, 2023. Their total revenue for the period was USD 585.8 million, a decrease of 22.4% compared to the same quarter in the previous year. Net income was reported at USD 6.4 million, a decrease of 86.7% from the prior year.
Market Price
Friday marked the end of NEWMARK GROUP‘s 2nd quarter of fiscal year 2023 and the company reported its earnings. At the start of the day, NEWMARK GROUP stock opened at $6.6 and closed at $6.8, down 0.3% from the prior closing price of 6.8. Though the stock saw a slight decrease in value, overall the quarter was a success for the company. NEWMARK GROUP showed signs of growth, particularly in terms of their revenue and income. These impressive results put NEWMARK GROUP in a prime position to close out their fiscal year strong. The company also announced their plans for the coming quarter.
Additionally, they are planning to open up five new distribution centers around the country to better serve their customers. All in all, NEWMARK GROUP has enjoyed a successful 2nd quarter and looks forward to continuing this momentum into the 3rd quarter and beyond. They are confident that their investments and efforts will pay off in the coming months and that they will ultimately see continued growth and profitability. 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 Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of NEWMARK GROUP‘s fundamentals and are delighted to provide our findings. Our proprietary Valuation Line yields an intrinsic value of $13.1 per share, suggesting that the stock is currently undervalued by 48.1%. Currently, NEWMARK GROUP stock is traded at a price of $6.8. This presents a unique opportunity for investors to invest in an undervalued company with strong fundamentals. We highly recommend investors consider investing in NEWMARK GROUP. More…
Peers
Newmark Group Inc is one of the world’s largest commercial real estate services firms. Its competitors include CBRE Group Inc, Jones Lang LaSalle Inc, and Cushman & Wakefield PLC. Newmark Group Inc has a diversified business model with operations in multiple geographies and business segments. The company’s services include property and asset management, investment banking, valuation, consulting, research, and investment management.
– CBRE Group Inc ($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
Investors should take note of the NEWMARK GROUP‘s poor second quarter performance reported on July 28, 2023. Total revenue declined by 22.4% year-over-year, with net income falling 86.7%. The company’s revenue and income numbers are significantly below those of the prior year, suggesting that it has faced difficulty in the current economic climate. Investors should keep a watchful eye on the company’s performance in the weeks and months ahead, as well as any changes to the company’s business strategy that may help to spur a recovery.
