Newmark Group Inc. Class A Common Stock (NMRK)

FairStock Score: 59/100 — STEADY

Key Financials

Strengths

• Generates $312 million in annual free cash flow (10.6% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Revenue growth of 15.3% demonstrates strong top-line momentum

Concerns

• Altman Z-Score of 1.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Newmark Group Inc. Class A Common Stock is a small-cap real estate company valued at $2.9 billion. The business generates $3.3 billion in annual revenue with a 2.1% net margin and $312 million in free cash flow. From a quality standpoint, Newmark shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.2 warrants caution. On valuation, the stock is reasonably priced at 23.6x earnings, with trades above its Graham Number with a negative 44% margin. Growth dynamics show revenue growing at 15.3% and profit growth of 49.7%. Our composite FairStock Score of 59/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Newmark's 15% revenue growth trajectory could accelerate as it captures additional market share in the real estate sector. With $312 million in annual free cash flow (10.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the real estate space. 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