NewtekOne Inc. 8.50% Fixed Rate Senior Notes due 2031 (NEWTO)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look first at what I am buying. Here I am buying a senior note, not the common equity, so the coupon and repayment matter most. NewtekOne is a $722.1M market cap bank holding company serving small and medium-sized businesses. The note pays a fixed 8.50% and matures in 2031; at $25.00, the current yield is roughly the coupon. The equity metrics are mixed. Return on equity is 18.04%, which suggests the bank earns a respectable return on shareholder capital. But return on capital employed is only 5.18%, and debt-to-equity is 1.35, so leverage is meaningful and the spread earned on capital is thin. Recent filings show positive earnings: FY2023 net income $47.3M and EPS $1.88; FY2024 $50.9M and $1.96; FY2025 $60.5M and $2.18. In Q1 2026, net income was $13.4M and EPS $0.43; in Q2 2026, $14.6M and $0.47. That is not a collapsing business. Yet FairStock's Lynch category calls it a slow grower with profits shrinking 7.9% a year over four years, and its FairStock score is 41/100. P/B is 1.98, not a bargain for a bank with beta 1.38. The 52-week range is $24.97-$28.80, so $25.00 is near the low. For a senior note, margin of safety comes from earning power and balance-sheet strength, not equity upside. I would want consistent earnings coverage, stable leverage, and no deterioration in the 41/100 score. The coupon is attractive, but it is not a widow-and-orphan bond.

In plain English: NewtekOne is a bank holding company that lends to small and medium-sized businesses and offers business financial services. Its recent reported profits have been positive, but the scoring model sees a slow grower with shrinking profits over four years, so the business looks mixed rather than clearly strong. The 8.50% senior note due 2031 trades at $25.00, near the bottom of its 52-week range, so the price looks roughly at face value rather than obviously cheap or expensive based on the numbers provided.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer