Newtek Business (1N31) AI Stock Analysis

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Newtek Business

(Frankfurt:1N31)

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Positive Factors

Deposit franchise growthRapid deposit accumulation strengthens Newtek Bank’s funding base and can support future lending while reducing reliance on more expensive wholesale sources. A larger customer relationship base also creates opportunities to cross-sell payments, payroll, insurance and other recurring business services.

Negative Factors

Elevated leverage and weak cash conversionThe sharp leverage increase and deeply negative cash generation reduce financial flexibility even though reported profitability remains positive. This leaves Newtek more sensitive to funding costs, credit losses and balance-sheet demands, potentially constraining growth and capital allocation.

Newtek Business (1N31) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 311.60M
Dividend Yield: 6.76%
Average Volume (3M): 2,000
Price to Earnings (P/E): 5.3
Beta (1Y): 0.62
Revenue Growth: 12.28%
EPS Growth: -19.74%
Country: Germany
Employees: 572
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Newtek Business Business Overview & Revenue Model

Company Description

NewtekOne, Inc. operates as a financial holding firm, specializing in delivering a comprehensive suite of business and financial solutions. Its diverse portfolio encompasses several key brands, including Newtek Bank, Newtek Lending, Newtek Payments,...

Newtek Business Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:-5.34%|Next Earnings Date:Mar 02, 2027

Earnings Call SentimentPositive

The call was broadly positive, supported by reiterated full-year EPS guidance, record quarterly net interest income, strong deposit and loan-origination growth, tangible book value appreciation, SBA lending leadership and continued investment in a differentiated digital SMB platform. However, elevated credit metrics, rising C&I nonperformers, stress in older loan vintages, a more challenging lending environment, muted origination volumes and slower-than-desired core deposit progress were notable challenges.

Positive Updates

Quarterly EPS and Full-Year Guidance Reiterated

Third-quarter 2026 basic and diluted earnings per share were $0.34. Management reiterated its 2026 full-year EPS guidance range of $1.70 to $1.80.

Negative Updates

Elevated Nonaccrual Loans

Nonaccruals were 3.9% when excluding government guarantees that the SBA prefers to be purchased out of the secondary market. Management noted that including the government guarantees produces a much higher reported number.

Company Guidance

Management reiterated 2026 earnings per share guidance of $1.70 to $1.80 for the full calendar year, said there is a seasonal lift to Q4 particularly for lending originations, expects third quarter C&I LA originations to benefit net interest income in the fourth quarter, and said net interest income probably is growing somewhere around 20% sequentially and certainly bigger numbers on a year-over-year basis; it has muted origination volumes with the guidance that we've given recently and going forward, and is looking to hopefully do a financing with about $350 million to $400 million of collateral in 1Q '27, closer to the $400 million, with bonds issued in the month of January.

Newtek Business Risk Analysis

Newtek Business disclosed 67 risk factors in its most recent earnings report. Newtek Business 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

Newtek Business Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DE:1N31 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIEN	73Outperform	$209.26M	6.60	10.45%	14.83%	47.16%	34.42%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TPVG	67Neutral	$166.64M	7.25	6.24%	24.21%	-17.53%	-31.89%
PNNT	64Neutral	$220.05M	20.77	2.27%	29.27%	138.32%	-27.91%
SCM	63Neutral	$193.87M	11.69	0.00%	18.96%	-11.79%	-47.23%

* Financial Sector Average

Performance Comparison

DE:1N31 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:1N31	Newtek Business Services	9.75	1.44	17.39%
PNNT	Pennantpark Investment	3.28	-1.90	-36.72%
SCM	Stellus Capital Investment	6.75	-3.72	-35.56%
TPVG	TriplePoint Venture Growth	4.13	-0.82	-16.57%
LIEN	Chicago Atlantic Bdc, Inc.	9.17	0.14	1.53%

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.

Newtek Business AI Stock Analysis