Newtek Business (NEWT) AI Stock Analysis

• Market Cap: $305.30M
• Dividend Yield: 6.81%
• Average Volume (3M): 187.21K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 1.08
• Revenue Growth: 21.99%
• EPS Growth: 23.40%
• Country: US
• Employees: 591
• Sector: Financial
• Sector Strength: 73
• Industry: Asset Management
• EPS (TTM): 0.35
• Shares Outstanding: 26,342,028
• 10 Day Avg. Volume: 202,287
• 30 Day Avg. Volume: 187,212
• PEG Ratio: -5.79
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.45
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 1.61
• Enterprise Value/Ebitda: 0.65
• 1Y Price Target: $12.75
• Price Target Upside: 12.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: $13.00 ▲(14.54%Upside)

Newtek Business faces significant financial challenges, notably zero revenue in 2024, which dampens its overall score. However, strong technical momentum and a favorable valuation offer potential upside, while positive earnings call outcomes and strategic corporate events contribute to an optimistic outlook.

Newtek Business Business Overview & Revenue Model

Company Description

Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small-and medium-sized business market in the United States. The firm also seeks to invest in early stage businesses. The firm seeks to makes both debt and equity investments. Under debt investments, it focuses on first lien loans, which have terms of 1 to 25 years; second lien loans, which have terms of 5 to 25 years, and unsecured loans, which are provided to meet short-term funding needs and are repaid within 6 to 12 months. It operates through Electronic Payment Processing, Managed Technology Solutions, Small Business Finance, and Capcos segments. The company originates small business administration loans for the purpose of acquiring commercial real estate, machinery, equipment, and inventory, as well as to refinance debt and fund franchises, working capital, and business acquisitions; and offers small business loan servicing and consulting services to the Federal Deposit Insurance Corporation and various other financial institutions, as well as provides management services. Its electronic payment processing services include credit and debit card processing, check approval, ancillary processing equipment and software to merchants, eCommerce, electronic solutions to accept non-cash payments, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty card programs. The company also provides Website hosting, dedicated server, and cloud hosting services; Web design and development; Internet marketing; data storage and backup and other related services; and ecommerce services, such as payment processing, online shopping cart tools, Website design and Web related services; Accounts Receivable Financing, and The Secure Gateway. In addition, it offers Newtek Advantage, a mobile, real-time operating platform enabling a business to access data on a smartphone, tablet, laptop, or PC for eCommerce, credit/debit transactions, Website statistics, payroll, insurance, and business loans. Further, the company sells personal, commercial, and health/benefits lines of insurance products; and payroll management processing and employee tax filing services. It has strategic alliances with American International Group, CTAA, Navy Federal Credit Union, Credit Union National Association, Pershing, and others to provide agent services to small business clients. The firm seeks to invest in New York and Louisiana area. The firm seeks to invest $0.3 million to $3 million in businesses. It provides small business terms loans ranging from $0.05 million to $10 million. The firm also provides account receivable financing ranging from $0.05 million to $1.5 million. It also provides $0.05 million to $10 million financing to owner occupied real estate businesses whose average net income over the last 2 years must not exceed $2.5 million. Newtek Business Services Corp.,was founded in 1998 and converted to a BDC company in 2014 and is headquartered in Boca Raton, Florida with additional offices in Lake Success, New York, Garden City, New York; Miami, Florida; Milwaukee, Wisconsin; New Orleans, Louisiana; and New York, New York.

How the Company Makes Money

Newtek Business Services Corp makes money through a diversified revenue model that primarily revolves around financial products and services tailored for small and medium-sized businesses. Key revenue streams include interest income from its lending solutions, where it provides loans such as SBA 7(a) loans, term loans, and lines of credit. Additionally, the company generates fees and commissions from its payment processing services, which include electronic payment processing and payroll solutions. Insurance services contribute to revenue through the sale of commercial and personal insurance products. Newtek also earns income from its technology solutions, offering cloud computing, data backup, and web hosting services. The company benefits from strategic partnerships with financial institutions and service providers, which enhance its product offerings and expand its market reach.

Newtek Business Financial Statement Overview

Summary

Despite a positive debt reduction, Newtek Business faces significant financial challenges with zero revenue in 2024 and negative free cash flow. The company's profitability and cash flow sustainability are major concerns, necessitating improvements in revenue generation and cash flow.

Income Statement

Newtek Business has experienced inconsistent revenue growth, with a significant drop in revenue to zero in 2024 from $253 million in 2023. Historical data shows fluctuating profit margins, with a net profit margin of 18.7% in 2023. The company has struggled to maintain EBIT and EBITDA margins due to operational challenges.

Balance Sheet

The company has improved its debt position, with total debt dropping to zero in 2024, indicating strong debt management. However, the equity ratio decreased from 25.6% in 2023 to 14.4% in 2024, which may pose risks if asset growth does not translate into profitability.

Cash Flow

Newtek Business has faced significant cash flow challenges, as indicated by negative free cash flow in recent years. The operating cash flow to net income ratio was negative in 2023, showing inefficiencies in converting income to cash. The lack of free cash flow in 2024 raises concerns about liquidity and operational funding.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	318.85M	253.14M	105.17M	147.76M	74.96M
Gross Profit	211.52M	208.83M	74.19M	147.76M	74.96M
EBITDA	70.48M	125.70M	23.24M	106.51M	51.95M
Net Income	50.85M	47.33M	32.31M	84.14M	33.62M
Balance Sheet
Total Assets	2.06B	1.44B	998.90M	1.06B	840.98M
Cash, Cash Equivalents and Short-Term Investments	353.15M	153.09M	72.86M	2.40M	2.07M
Total Debt	714.54M	644.12M	547.30M	481.11M	460.48M
Total Liabilities	1.76B	1.18B	623.54M	652.67M	501.63M
Stockholders Equity	296.28M	249.05M	375.36M	403.89M	339.35M
Cash Flow
Free Cash Flow	-153.45M	-89.06M	-62.43M	140.92M	17.75M
Operating Cash Flow	-153.01M	-88.60M	-62.42M	140.92M	17.76M
Investing Cash Flow	-209.05M	-172.24M	-11.00K	0.00	-10.00K
Financing Cash Flow	560.90M	344.97M	1.18M	-5.49M	465.00K

Newtek Business Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEWT, the sentiment is Positive. The current price of 11.35 is above the 20-day moving average (MA) of 11.20, above the 50-day MA of 10.84, and below the 200-day MA of 11.85, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 53.05 is Neutral, neither overbought nor oversold. The STOCH value of 21.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEWT.

Newtek Business Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIEN	75 Outperform	$239.84M	12.16	8.67%	12.94%	―	―
SWKH	74 Outperform	$185.88M	10.23	6.38%	―	18.18%	54.41%
SAR	68 Neutral	$359.54M	10.07	9.27%	12.05%	-24.05%	28.25%
Sector *	68 Neutral	¥723.82B	10.78	7.55%	3.29%	7.95%	15.83%
WHF	67 Neutral	$206.86M	22.62	3.07%	17.30%	-27.52%	-46.85%
NEWT	67 Neutral	$305.30M	6.07	18.18%	6.81%	21.99%	23.40%
TPVG	59 Neutral	$288.47M	7.74	10.68%	16.81%	22.53%	―

Newtek Business Corporate Events

Newtek Business Shareholders Approve Key Decisions in Meeting

NewtekOne, Inc. held its Annual Meeting of Shareholders on June 13, 2025, where shareholders approved the election of three directors to serve until 2028 and ratified the selection of RSM US LLP as the independent auditors for the fiscal year ending December 31, 2025. Additionally, an advisory vote on executive compensation was conducted, with a majority of shareholders voting in favor.

The most recent analyst rating on (NEWT) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Newtek Business stock, see the NEWT Stock Forecast page.

Newtek Business Expands Equity Distribution Agreement

On June 6, 2025, NewtekOne, Inc. amended its Equity Distribution Agreement, increasing the number of shares from 3,000,000 to 5,000,000 and adding new placement agents. This strategic move aims to enhance the company’s market presence by allowing sales through various methods, including Nasdaq and private transactions.

The most recent analyst rating on (NEWT) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Newtek Business stock, see the NEWT Stock Forecast page.

Newtek Business Announces Leadership Changes at Newtek Bank

On April 21, 2025, Newtek Business announced leadership changes at Newtek Bank, N.A., with Nicolas Young resigning as President and COO, effective May 16, 2025. Peter Downs, previously the Chief Lending Officer, was appointed as the new President, effective April 22, 2025. Additionally, Frank DeMaria was named Chief Financial Officer of the company, while M. Scott Price continued as CFO of the bank. These appointments are part of strategic leadership restructuring aimed at strengthening the company’s operational and financial strategies.