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Upturn AI SWOT - About
NewtekOne Inc. 8.00% Fixed Rate Senior Notes due 2028 (NEWTI)
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Upturn Advisory Summary
06/06/2024: NEWTI (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Outstanding Performance
These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.
Analysis of Past Performance
Type Stock | Historic Profit 6.24% | Avg. Invested days 151 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  5.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 06/06/2024 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 426.24M USD | Price to earnings Ratio - | 1Y Target Price - |
Price to earnings Ratio - | 1Y Target Price - | ||
Volume (30-day avg) 9915 | Beta - | 52 Weeks Range 22.10 - 25.80 | Updated Date 06/10/2024 |
52 Weeks Range 22.10 - 25.80 | Updated Date 06/10/2024 | ||
Dividends yield (FY) - | Basic EPS (TTM) - |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin - | Operating Margin (TTM) - |
Management Effectiveness
Return on Assets (TTM) - | Return on Equity (TTM) - |
Valuation
Trailing PE - | Forward PE - | Enterprise Value - | Price to Sales(TTM) - |
Enterprise Value - | Price to Sales(TTM) - | ||
Enterprise Value to Revenue - | Enterprise Value to EBITDA - | Shares Outstanding - | Shares Floating - |
Shares Outstanding - | Shares Floating - | ||
Percent Insiders - | Percent Institutions - |
Analyst Ratings
Rating - | Target Price - | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
NewtekOne Inc. 8.00% Fixed Rate Senior Notes due 2028
Company Overview
History and Background
This request concerns a specific debt instrument (8.00% Fixed Rate Senior Notes due 2028) issued by NewtekOne, Inc. rather than the company itself. The analysis below will address the issuer, NewtekOne, Inc. NewtekOne, Inc. (formerly Newtek Business Services Corp.) was founded to provide financial and business solutions to small and medium-sized businesses (SMBs). Significant milestones include its evolution into a diversified financial holding company.
Core Business Areas
- Newtek Bank: A commercial bank offering deposit accounts, commercial loans, and other banking services.
- Newtek Merchant Solutions: Provides payment processing solutions for businesses.
- Newtek Small Business Finance: Offers SBA lending and other financing options to small businesses.
- Newtek Insurance Agency: Offers a range of insurance products and services.
- Newtek Technology Solutions: Provides IT services and support.
Leadership and Structure
Barry Sloane serves as Chairman, President, and Chief Executive Officer. The company operates as a financial holding company with various subsidiaries under its umbrella.
Top Products and Market Share
Key Offerings
- SBA Lending: Provides SBA 7(a) loans to small businesses. Market share varies, but Newtek is a significant player in the non-bank SBA lending market. Competitors include traditional banks, other non-bank lenders like Live Oak Bancshares and publicly traded companies such as Velocity Financial (VEL).
- Payment Processing: Offers merchant services including credit card processing. Competitors include Fiserv (FISV), Global Payments (GPN), and Block (SQ).
- Commercial Lending: Directly funds a variety of commercial loans. The commercial loan market is highly fragmented. Competitors include regional and national banks, and alternative lenders.
Market Dynamics
Industry Overview
The SMB lending and business services industry is large and competitive. Fintech companies and traditional banks vie for market share. Interest rate environment significantly affects the cost of capital and overall lending activity.
Positioning
NewtekOne positions itself as a one-stop shop for SMBs, providing various financial and business solutions. Its competitive advantage lies in its diversified offerings and focus on SMBs.
Total Addressable Market (TAM)
The TAM for SMB financial services is estimated to be in the hundreds of billions of dollars annually. NewtekOne has a relatively small percentage of that TAM, indicating growth potential. They are positioned to expand services within the SMB space.
Upturn SWOT Analysis
Strengths
- Diversified revenue streams
- Focus on the SMB market
- Established SBA lending platform
- Integrated business service offerings
- Experienced management team
Weaknesses
- Sensitivity to interest rate fluctuations
- Reliance on SBA programs
- Credit risk associated with SMB lending
- Regulatory compliance burden
- Limited brand recognition compared to larger competitors
Opportunities
- Expansion of product offerings
- Strategic acquisitions
- Increased demand for SMB lending
- Growth in the fintech sector
- Partnerships with other financial institutions
Threats
- Increased competition
- Economic downturn impacting SMBs
- Changes in SBA lending regulations
- Cybersecurity risks
- Rising interest rates
Competitors and Market Share
Key Competitors
- FISV
- GPN
- SQ
- LIVK
- VEL
Competitive Landscape
NewtekOne operates in a competitive landscape. Its advantages lie in its focus on SMBs and its integrated business services, while its disadvantages stem from its smaller scale and brand recognition compared to larger competitors.
Major Acquisitions
Small Business Lending Platform by United Payment Services
- Year: 2016
- Acquisition Price (USD millions): 1.1
- Strategic Rationale: To expand its reach in the alternative finance industry.
Growth Trajectory and Initiatives
Historical Growth: Analyze past revenue growth, customer acquisition rates, and market share gains.
Future Projections: Consult analyst reports for revenue growth, earnings per share, and stock price targets. Consider future interest rate forecasts to assess potential risk to the company.
Recent Initiatives: Monitor strategic acquisitions, new product launches, and partnerships to assess future growth potential.
Summary
NewtekOne is a diversified financial holding company focused on SMBs. Its strengths lie in diversified revenue and SBA lending, but it's sensitive to interest rates and regulations. Future growth depends on expanding offerings and navigating competition in the fintech space. The company's success hinges on effectively managing credit risk and adapting to evolving regulations.
Similar Companies
FISV
Fiserv Inc.
FISV
Fiserv Inc.
GPN
Global Payments Inc
GPN
Global Payments Inc
Sources and Disclaimers
Data Sources:
- SEC Filings
- Analyst Reports
- Company Website
- Industry Research Reports
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual due diligence and consultation with a qualified financial advisor. Market share estimates may not reflect most current available data. Values of 'Financial Metrics' that were not provided were due to limited access to financial statements at the time of generation.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About NewtekOne Inc. 8.00% Fixed Rate Senior Notes due 2028
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 2018-02-22 | CEO - | ||
Sector Other | Industry Other | Full time employees 162 | Website |
Full time employees 162 | Website | ||
Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small-and medium-sized business market in the United States. The firm also seeks to invest in early stage businesses. The firm seeks to makes both debt and equity investments. Under debt investments, it focuses on first lien loans, which have terms of 1 to 25 years; second lien loans, which have terms of 5 to 25 years, and unsecured loans, which are provided to meet short-term funding needs and are repaid within 6 to 12 months. It operates through Electronic Payment Processing, Managed Technology Solutions, Small Business Finance, and Capcos segments. The company originates small business administration loans for the purpose of acquiring commercial real estate, machinery, equipment, and inventory, as well as to refinance debt and fund franchises, working capital, and business acquisitions; and offers small business loan servicing and consulting services to the Federal Deposit Insurance Corporation and various other financial institutions, as well as provides management services. Its electronic payment processing services include credit and debit card processing, check approval, ancillary processing equipment and software to merchants, eCommerce, electronic solutions to accept non-cash payments, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty card programs. The company also provides Website hosting, dedicated server, and cloud hosting services; Web design and development; Internet marketing; data storage and backup and other related services; and ecommerce services, such as payment processing, online shopping cart tools, Website design and Web related services; Accounts Receivable Financing, and The Secure Gateway. In addition, it offers Newtek Advantage, a mobile, real-time operating platform enabling a business to access data on a smartphone, tablet, laptop, or PC for eCommerce, credit/debit transactions, Website statistics, payroll, insurance
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