NewtekOne, Inc. (NEWTI)

NewtekOne, Inc. (NEWTI) Financial Services Profile

NewtekOne, Inc. is a financial holding company providing a suite of business and financial solutions, including banking, lending, payment processing, insurance, payroll, and technology services, primarily targeting the small and medium-sized business (SMB) market in the United States, differentiating itself through integrated service offerings.

What Is the Investment Thesis for NEWTI?

NewtekOne, Inc. presents a compelling investment case based on its integrated business model and focus on the underserved SMB market. With a market capitalization of $422.77M and a P/E ratio of 7.2, the company demonstrates strong profitability, evidenced by a 19.4% profit margin and a 70.5% gross margin. Key growth catalysts include the expansion of Newtek Bank and the continued adoption of its diverse service offerings. The company's dividend yield of 5.33% provides an attractive income stream for investors. However, potential risks include economic sensitivity and regulatory changes in the financial services sector. The company's beta of 1.32 indicates higher volatility compared to the market.

Based on FMP financials and quantitative analysis

NEWTI Key Highlights

• Market Cap of $422.77M indicates a mid-sized financial services company.
• P/E Ratio of 7.2 suggests the company may be undervalued compared to its earnings.
• Profit Margin of 19.4% demonstrates strong profitability and efficient operations.
• Gross Margin of 70.5% highlights the company's ability to maintain high margins on its services.
• Dividend Yield of 5.33% provides an attractive income stream for investors.

Who Are NEWTI's Competitors?

NEWTI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are NEWTI's Key Strengths?

• Diversified revenue streams through multiple service offerings.
• Strong focus on the underserved SMB market.
• Experienced management team with a proven track record.
• Established brand reputation and customer loyalty.

What Are NEWTI's Weaknesses?

• Sensitivity to economic cycles and interest rate fluctuations.
• Reliance on technology and potential for cybersecurity risks.
• Regulatory compliance costs and potential for changes in regulations.
• Competition from larger financial institutions and fintech companies.

What Could Drive NEWTI Stock Higher?

• Expansion of Newtek Bank and increased lending activities.
• Cross-selling of integrated services to existing customers.
• Potential strategic acquisitions to expand service offerings and geographic reach.
• Technological innovation and development of new solutions.

What Are the Key Risks for NEWTI?

• Economic downturn and decreased demand for financial services.
• Increased competition from fintech companies and alternative lenders.
• Changes in regulatory environment and compliance costs.
• Cybersecurity threats and data breaches.

What Are the Growth Opportunities for NEWTI?

• Expansion of Newtek Bank: NewtekOne's strategic focus on growing Newtek Bank presents a significant growth opportunity. By expanding its banking services, the company can deepen relationships with existing clients and attract new SMB customers. The market for SMB banking is substantial, with trillions of dollars in deposits and loans. This expansion aligns with the broader trend of community banking and personalized financial services, offering a competitive advantage against larger, less agile institutions. The timeline for realizing this growth is ongoing, with continuous efforts to increase deposits and loan portfolios.
• Cross-Selling of Integrated Services: NewtekOne's integrated business model allows for the cross-selling of various services, including lending, payments, insurance, payroll, and technology solutions. By offering a comprehensive suite of services, the company can increase customer lifetime value and generate recurring revenue streams. The market for integrated business solutions is growing, as SMBs seek to streamline operations and reduce costs. This strategy leverages NewtekOne's existing customer base and established brand reputation, providing a competitive advantage. The timeline for realizing this growth is ongoing, with continuous efforts to enhance cross-selling initiatives.
• Strategic Acquisitions: NewtekOne can pursue strategic acquisitions to expand its service offerings and geographic reach. By acquiring complementary businesses, the company can enter new markets and gain access to new technologies and expertise. The market for acquisitions in the financial services sector is active, with numerous opportunities to acquire smaller, specialized firms. This strategy requires careful due diligence and integration planning to ensure successful execution. The timeline for realizing this growth is dependent on identifying and completing suitable acquisitions.
• Technological Innovation: Investing in technological innovation is crucial for NewtekOne to maintain its competitive edge. By developing new and innovative solutions, the company can attract new customers and improve the efficiency of its operations. The market for fintech solutions is rapidly growing, with increasing demand for digital banking, mobile payments, and data analytics. This strategy requires ongoing investment in research and development and a focus on emerging technologies. The timeline for realizing this growth is ongoing, with continuous efforts to enhance its technology platform.
• Partnerships and Alliances: Forming strategic partnerships and alliances can help NewtekOne expand its reach and access new markets. By partnering with other companies, the company can leverage their expertise and resources to offer a broader range of services. The market for partnerships in the financial services sector is growing, with increasing collaboration between traditional financial institutions and fintech companies. This strategy requires careful selection of partners and a clear understanding of mutual benefits. The timeline for realizing this growth is dependent on establishing and executing successful partnerships.

What Opportunities Does NEWTI Have?

• Expansion of Newtek Bank and increased lending activities.
• Cross-selling of integrated services to existing customers.
• Strategic acquisitions to expand service offerings and geographic reach.
• Technological innovation and development of new solutions.

What Threats Does NEWTI Face?

• Economic downturn and decreased demand for financial services.
• Increased competition from fintech companies and alternative lenders.
• Changes in regulatory environment and compliance costs.
• Cybersecurity threats and data breaches.

What Are NEWTI's Competitive Advantages?

• Integrated service model providing a one-stop-shop for SMBs.
• Established brand reputation and long-term customer relationships.
• Proprietary technology platform and expertise in serving the SMB market.

What Does NEWTI Do?

Founded in 1998 by Barry Sloane, NewtekOne, Inc. has evolved into a comprehensive financial holding company dedicated to serving the needs of small and medium-sized businesses (SMBs). Initially focused on providing technology solutions, the company expanded its offerings to include a wide array of financial services. Today, NewtekOne operates through several brands, each specializing in a specific area: Newtek Bank, offering traditional banking services; Newtek Lending, providing various loan products; Newtek Payments, facilitating payment processing solutions; Newtek Insurance, offering commercial and personal insurance products; Newtek Payroll, managing payroll processing; and Newtek Technology, delivering technology solutions. Headquartered in Boca Raton, FL, NewtekOne's integrated approach aims to provide SMBs with a one-stop-shop for their diverse business needs. The company's strategy centers on leveraging technology and personalized service to create long-term relationships with its clients. NewtekOne's solutions are designed to help SMBs streamline operations, manage finances, and grow their businesses effectively.

What Products and Services Does NEWTI Offer?

• Provides banking services through Newtek Bank.
• Offers lending solutions to small and medium-sized businesses.
• Facilitates payment processing through Newtek Payments.
• Provides commercial and personal insurance products through Newtek Insurance.
• Manages payroll processing through Newtek Payroll.
• Delivers technology solutions to businesses through Newtek Technology.

How Does NEWTI Make Money?

• Generates revenue through interest income from loans.
• Earns fees from payment processing services.
• Receives commissions from insurance products.
• Charges fees for payroll processing and technology solutions.

What Industry Does NEWTI Operate In?

NewtekOne, Inc. operates within the financial services industry, specifically targeting the credit services segment. The SMB market represents a significant growth opportunity, as these businesses often face challenges in accessing traditional banking and financial services. The industry is characterized by increasing competition from fintech companies and evolving regulatory requirements. NewtekOne's integrated service model and focus on technology provide a competitive edge in this dynamic landscape. The financial services industry is expected to grow, driven by increasing demand for digital banking and personalized financial solutions.

Who Are NEWTI's Key Customers?

• Small and medium-sized businesses (SMBs) across various industries.
• Entrepreneurs seeking funding and financial services.
• Businesses requiring payment processing solutions.
• Companies needing insurance and payroll services.

ROE 17%Key Financial Metrics

Return on equity for NewtekOne, Inc. stands at 17.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.2%, showing how much profit it generates from its asset base. NEWTI trades at a trailing price-to-earnings ratio of 7.24, below the Financial Services sector average of ~18x. Its earnings yield is 13.8%, the inverse of the P/E and a quick read on earnings relative to price.

NewtekOne, Inc. (NEWTI) Valuation Context

Valued at $422.77M, NEWTI is classified as a small-cap stock. Relative to its peer group, NEWTI's quantitative score of 56/100 is roughly in line with the peer average of 66/100.

Company Profile

NewtekOne, Inc. operates in the Financial - Credit Services industry within the Financial Services sector. It is headquartered in Boca Raton, US. The company is led by CEO Barry Sloane. NEWTI has traded publicly since 2023.

F-Score 4/9Financial Health

NewtekOne, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile.

FY2026 estForward Outlook

Wall Street analysts project NewtekOne, Inc. revenue of about $332.1M for fiscal 2026, with EPS near $2.32.

Net buyingInsider Activity

Over the past six months, NewtekOne, Inc. insiders filed 24 SEC Form 4 transactions — 0 sales and 24 purchases. On net that is roughly 50K shares acquired (about $692K) — insiders putting money in tends to read as conviction.

NEWTI Financials

NEWTI Latest News

No recent news available for NEWTI.

NEWTI Analyst Consensus

NEWTI MoonshotScore

What Investors Ask About NewtekOne, Inc. (NEWTI) — Financial Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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