NewtekOne Inc. 8.625% Fixed Rate Senior Notes due 2029 (NEWTH)
StalwartFairStock Score: 41/100 — MIXED
Key Financials
| Current Price | $25.16 |
| Market Cap | — |
| P/E Ratio | — |
| ROE | 17.13% |
| Dividend Yield | —% |
| Sector | Financial Services |
Strengths
- Solid return on equity of 17.1% above cost of capital
Concerns
- High leverage at 2.40x debt-to-equity increases financial risk and interest expense burden
AI Analysis
NewtekOne Inc. 8.625% Fixed Rate Senior Notes due 2029 is a micro-cap financial services company. The business generates $301 million in annual revenue with a 3.6% net margin. From a quality standpoint, NewtekOne shows adequate 17% ROE and elevated leverage at 2.40x D/E. Our composite FairStock Score of 41/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.
Bear Case
Elevated leverage at 2.4x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer