Fundamentals snapshot
NMRK · NMS · Real Estate · Real Estate Services
Current price
$12.02
52-week range
$11.13 - $18.25
Market cap
$2.94B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net debt $2.47B. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Newmark Group advises businesses on buying, selling, and leasing commercial properties, helping them find spaces and manage their real estate needs. Their main income comes from fees earned on these transactions and services, which is important because it means their earnings can fluctuate with the ups and downs of the commercial real estate market.
Newmark Group, Inc. has a long history, tracing its origins back to 1929 when it was founded as Newmark & Company Real Estate in New York City. [1, 2, 4] For many years, it operated as a regional brokerage firm, specializing in tenant representation and landlord services within the New York metropolitan area. [2] The company grew significantly through acquisitions, especially in the 2010s under the ownership of BGC Partners, which merged it with Grubb & Ellis Company to expand its national reach. [1, 2, 4] In 2017, Newmark Group, Inc. became a publicly traded company on the NASDAQ, allowing it to operate as a distinct entity in the commercial real estate services market. [2, 4]
Newmark is a global commercial real estate advisory and services firm. [1, 7, 9] It helps clients—including property owners, investors, tenants, and developers—navigate the complexities of commercial real estate. [7, 8, 9] The company provides a wide range of services, from helping clients buy and sell properties to managing those properties and offering strategic advice on real estate portfolios. [8, 9] Newmark's expertise spans various types of commercial properties, such as office buildings, industrial spaces, and retail centers. [9]
This segment is where Newmark helps clients with the financial aspects of commercial real estate transactions. [3, 8] This includes services like investment sales, where they assist in selling properties or portfolios of properties, and raising capital (equity) for real estate ventures. [1, 8] They also act as commercial mortgage brokers, arranging debt financing (loans) for properties, including specialized lending through government-sponsored enterprises (GSEs) and the Federal Housing Administration (FHA). [1, 8] This part of the business is crucial for facilitating large-scale property deals and ensuring clients have the necessary funding. [3]
This is a core part of Newmark's business where they facilitate the leasing of commercial properties. [3, 4, 8] This involves representing either the landlord (owner) who wants to rent out their space or the tenant (occupier) who is looking for space to lease. [1, 8] They handle negotiations for office, industrial, and retail spaces, and their income in this area is often tied to the volume and value of the leases they help secure. [3, 4] Historically, this has been one of Newmark's largest and most sensitive revenue streams, meaning it can fluctuate with market conditions. [4]
This segment focuses on the ongoing management and servicing of commercial real estate properties and loans. [3, 10] For property owners, Newmark offers services like property management, facilities management, and workspace solutions, which involve the day-to-day operations and upkeep of buildings. [1, 8] They also provide loan servicing, which means managing mortgage loans on behalf of lenders, including special loan servicing and asset management for properties that may be in distress. [1, 8] This area is increasingly important for Newmark as it provides more predictable, recurring revenue compared to transaction-based services. [10, 12]
Newmark's current strategy heavily emphasizes growing its recurring revenue streams, such as management and servicing fees, which provide more stable income regardless of market fluctuations. [10, 12] They are also focused on gaining market share in key areas like leasing and capital markets, and expanding their international presence, particularly in the United Kingdom. [4, 10] The company is investing in talent, technology, and selective acquisitions to bolster its service offerings and drive growth. [5, 11] Additionally, Newmark is committed to sustainability initiatives, aiming to help clients achieve their environmental goals while reducing its own operational impact. [11]
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net debt $2.5B. Interest coverage 7.2x.
Newmark Group, Inc.'s profit covers its interest bill about 7.2 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Total debt $2.71B Interest coverage 7.20x This is the baseline the peer rows are being compared against.
Total debt $10.68B Interest coverage 25.70x +257% vs NMRK Carries about 3.6x more debt cushion than NMRK.
Total debt $3.22B Interest coverage 10.93x +52% vs NMRK Carries about 1.5x more debt cushion than NMRK.
Total debt $2.98B Interest coverage 2.12x -71% vs NMRK Carries about 3.4x less debt cushion than NMRK.
Total debt $3.15B Interest coverage 4.87x -32% vs NMRK Carries about 1.5x less debt cushion than NMRK.
Total debt $72.32M Interest coverage -17.74x -100% vs NMRK This peer has almost no interest-payment cushion compared with NMRK.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know