NewLake Capital Partners (NLCP) AI Stock Analysis

• Market Cap: $285.50M
• Dividend Yield: 12.37%
• Average Volume (3M): 26.80K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.56
• Revenue Growth: 4.61%
• EPS Growth: 1.49%
• Country: US
• Employees: 8
• Sector: Real Estate
• Sector Strength: 50
• Industry: REIT - Specialty
• EPS (TTM): 0.31
• Shares Outstanding: 20,539,486
• 10 Day Avg. Volume: 33,826
• 30 Day Avg. Volume: 26,799
• PEG Ratio: -6.99
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.61
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 6.34
• Enterprise Value/Ebitda: 1.66
• 1Y Price Target: $17.00
• Price Target Upside: 21.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $15.50 ▲(10.71%Upside)

NewLake Capital Partners' strong financial performance and attractive valuation are key strengths, supported by a robust balance sheet and high dividend yield. However, technical analysis suggests a bearish trend, and industry-specific challenges pose risks, resulting in a balanced overall score.

NewLake Capital Partners Business Overview & Revenue Model

Company Description

NewLake Capital Partners is a leading provider of real estate capital to state-licensed cannabis operators. Founded in 2019, it is a triple-net lease REIT that acquires industrial and retail properties through sale-leaseback transactions, third-party purchases and build-to-suit projects. Its tenants are some of the leading operators in the U.S. state-licensed cannabis industry and it is a trusted partner for their real estate needs.

How the Company Makes Money

NewLake Capital Partners generates revenue primarily through leasing its property portfolio to cannabis operators. The company engages in sale-leaseback transactions and direct purchases of properties, which are then leased out under long-term, triple-net lease agreements. These agreements require tenants to cover property-related expenses such as taxes, insurance, and maintenance, ensuring a stable and predictable income stream for NewLake. Additionally, the company's earnings are supported by the appreciation in property values and strategic property acquisitions that enhance its portfolio. Partnerships with cannabis operators and a focus on key markets where cannabis is legalized further strengthen its revenue model.

NewLake Capital Partners Financial Statement Overview

Summary

NewLake Capital Partners exhibits strong financial health with impressive revenue growth, high profitability margins, and a robust, debt-free balance sheet. The company's cash flow is solid, despite historical fluctuations, indicating strong financial stability and growth potential.

Income Statement

NewLake Capital Partners shows strong growth in revenue and profitability. The gross profit margin is exceptionally high, indicating efficient cost management. Net profit margin and EBIT margins are robust, suggesting strong operational performance. The revenue growth rate has been positive year-over-year, showcasing a healthy upward trajectory in sales.

Balance Sheet

The company maintains a healthy balance sheet with zero total debt, resulting in a strong equity ratio. The debt-to-equity ratio is exceptionally low, indicating minimal leverage risk. Return on equity is impressive, reflecting effective use of shareholders' funds. The high stockholders' equity compared to total assets suggests financial stability.

Cash Flow

Operating cash flow is strong and consistently covers net income, indicating solid cash generation from core operations. Free cash flow has shown significant growth over the years, reflecting efficient capital management. However, fluctuations in free cash flow in earlier years highlight potential investment volatility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.13M	47.30M	44.79M	28.20M	11.66M
Gross Profit	49.89M	46.65M	44.73M	28.06M	-3.96M
EBITDA	42.03M	38.92M	35.34M	19.59M	-7.83M
Net Income	26.11M	24.59M	21.98M	11.23M	-10.67M
Balance Sheet
Total Assets	431.54M	433.29M	454.25M	460.88M	144.18M
Cash, Cash Equivalents and Short-Term Investments	20.21M	25.84M	45.19M	127.10M	19.62M
Total Debt	7.60M	2.19M	2.99M	3.76M	598.00K
Total Liabilities	27.56M	21.34M	23.31M	21.55M	3.15M
Stockholders Equity	396.76M	404.58M	423.55M	427.56M	134.76M
Cash Flow
Free Cash Flow	43.35M	40.08M	-8.24M	11.53M	7.35M
Operating Cash Flow	43.35M	40.08M	37.01M	26.70M	7.35M
Investing Cash Flow	-19.14M	-12.84M	-86.45M	-39.91M	-65.05M
Financing Cash Flow	-29.84M	-46.60M	-32.46M	120.69M	10.42M

NewLake Capital Partners Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NLCP, the sentiment is Negative. The current price of 14 is below the 20-day moving average (MA) of 14.15, below the 50-day MA of 14.12, and below the 200-day MA of 15.53, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 47.84 is Neutral, neither overbought nor oversold. The STOCH value of 41.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NLCP.

NewLake Capital Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NLCP	74 Outperform	$285.50M	11.41	6.41%	12.37%	4.61%	1.49%
Sector *	59 Neutral	C$1.26B	-1.09	-8.19%	4.98%	10.83%	-22.67%
PW	―	$3.97M	―	-139.84%	―	―	―
AFCG	52 Neutral	$102.36M	4.59	8.11%	22.76%	-28.20%	89.65%

NewLake Capital Partners Corporate Events

NewLake Capital Partners Reports Q1 2025 Financial Results

NewLake Capital Partners reported its financial results for the first quarter of 2025, highlighting a revenue increase of 4.8% year-over-year to $13.2 million and a net income of $6.3 million. The company maintained a strong liquidity position with $102.3 million available and a low debt ratio, despite challenges from tenant defaults. The results reflect the company’s resilience and strategic risk management in a volatile industry.