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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#4547
Positioning
Market Dominance
Transportation, Communications, Electric, Gas, And Sanitary Services
Communication
$1.6B
Christopher Ruddy
Newsmax Media is a television broadcaster and multi-platform content publisher with a mixed-revenue model that primarily derives income from (i) digital, linear and over-the-top (“OTT”) television advertising, (ii) online web and digital advertising, (iii) cable license fees and streaming subscriptions, and (iv) subscriptions to online and print publications. The principal executive offices of the Company are located in Boca Raton, Florida.
Headcount
400
HQ Base
BOCA RATON, Florida
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UGP ULTRAPAR HOLDINGS INC | 79 | 90 | 95 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$TNK TEEKAY TANKERS LTD. | 78 | 94 | 97 | 82 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$DHT DHT Holdings, Inc. | 75 | 84 | 88 | 78 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$STNG Scorpio Tankers Inc. | 75 | 86 | 95 | 74 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NAT NORDIC AMERICAN TANKERS Ltd | 75 | 82 | 88 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMX AMERICA MOVIL SAB DE CV/ | 74 | 86 | 81 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PAC Pacific Airport Group | 73 | 94 | 80 | 78 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GSL Global Ship Lease, Inc. | 73 | 82 | 94 | 81 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$TRMD TORM plc | 73 | 86 | 94 | 65 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$VIV TELEFONICA BRASIL S.A. | 73 | 82 | 90 | 78 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMAX Newsmax Inc. | 30 | 38 | 28 | 15 | - | - | -15.5% | -7.1% | 35.3% | -15.9% | -9.1% | 4.0% | 0.0% | 120.0x | $1.6B | ||
| SECTOR BENCH | - | - | - | - | - | 16.9x | 6.1x | 11.9% | 3.2% | 52.6% | 14.8% | 7.7% | 4.2% | 1.4% | 1.3x | - | REF |
Newsmax Inc. (NMAX) receives a "Avoid" rating with a composite score of 29.7/100. It ranks #4547 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Lagging peers — losers tend to keep underperforming
Expensive relative to fundamentals — limited margin of safety
Average quality profile
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Below-average composite — caution warranted
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Relative valuation derived from Transportation, Communications, Electric, Gas, And Sanitary Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for NMAX.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 38 | 33 | +5NEUTRAL |
| MOMENTUM | 15 | 9 | +6ALPHA |
| VALUATION | 28 | 19 | +9ALPHA |
| INVESTMENT | 29 | 23 | +6ALPHA |
| STABILITY | 16 | 10 | +6ALPHA |
| SHORT INT | 28 | 19 | +9ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy -15.5% (sector 11.9%)
GM 35% vs sector 53%, OM -16% vs sector 15%
Capital turnover N/A
Rev growth 4%
Interest coverage -1319.6x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Newsmax Inc. (NMAX) as Avoid with a composite score of 29.7/100 at a current price of $5.59. The stock falls in the bottom quintile, and the multi-factor weakness suggests a high probability of continued underperformance.
Newsmax Inc. holds a top-quartile position (#0 of 50) within the Transportation, Communications, Electric, Gas, And Sanitary Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 29.7/100 places it at rank #4547 in our full universe.
No Moat
Very High
Poor
Fair Value
Stable competitive position in a defensive sector.
Leverage of 120% D/E amplifies downside risk.
Weak momentum suggests persistent institutional selling pressure.
Vulnerability to macroeconomic shocks and interest rate volatility.
Newsmax Inc. represents a avoid based on multi-factor quantitative performance.
Our quantitative model flags Newsmax Inc. with an Avoid rating, assigning a composite score of 29.7/100 and 1 out of 5 stars. Ranked #4547 of 7,333 stocks, NMAX falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
NMAX's quality score of 38/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -15.5% (sector avg: 11.9%), gross margins of 35.3% (sector avg: 52.6%), net margins of -9.1% (sector avg: 7.7%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
NMAX registers a value score of just 28/100, suggesting the stock trades at a significant premium to its fundamental metrics. Key valuation metrics include a P/B ratio of 6.85x. High-premium valuations like this require strong future execution to avoid multiple compression, and downside risk is elevated if growth disappoints.
Newsmax Inc.'s investment score of 29/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 4.0% vs. a sector average of 4.2% and a return on assets of -7.1% (sector: 3.2%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
Newsmax Inc. is experiencing notably weak momentum with a score of just 15/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at 4.0% year-over-year, while a beta of 0.88 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
Newsmax Inc. registers a low stability score of 16/100, indicating high volatility and potentially stressed financial conditions. Key stability metrics include a beta of 0.88 and a debt-to-equity ratio of 120.00x (sector avg: 1.3x). Stocks at this level carry elevated capital loss risk and may be unsuitable for conservative portfolios without careful risk management.
Newsmax Inc.'s short interest score of 28/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 120.00x), small-cap liquidity risk. At $1.6B (small-cap), NMAX carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
Newsmax Inc. is a small-cap company in the Transportation, Communications, Electric, Gas, And Sanitary Services sector, ranked #0 of 50 in its sector (100th percentile) and #4547 of 7,333 overall (38th percentile). Key comparisons include ROE of -15.5% trailing the 11.9% sector median and operating margins of -15.9% below the 14.8% sector average. This top-quartile standing reflects exceptional competitive strength relative to Transportation, Communications, Electric, Gas, And Sanitary Services peers.
While NMAX currently exhibits a AVOID profile, superior opportunities exist within the TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS, AND SANITARY SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Transportation, Communications, Electric, Gas, And Sanitary Services Alpha →Quant Factor Profile
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Improvement in Momentum (15) would have the largest impact on the composite score.
ROE 230% BELOW SECTOR MEDIAN
Gross Margin 33% BELOW SECTOR MEDIAN
Op. Margin 207% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081

Newsmax stock, which surged during its March 2025 IPO meme wave, has since fallen below its initial price. Despite the decline, the stock remains overvalued at an EV/sales ratio of 5.1 compared to competitors like Fox Corp (2.0) and Sinclair (1.45). With modest growth projections of 13.8% and profitability not expected until 2027, the analyst recommends avoiding the stock unless the company uses its valuation to make strategic acquisitions.

President Trump endorsed Nexstar Media Group's $6.2 billion acquisition of Tegna Inc., reversing his November opposition to the deal. The combined entity would reach roughly 80% of U.S. households, though the FCC must lift its 39% household reach cap for the deal to proceed. The transaction is expected to close in the second half of 2026.

Newsmax, a conservative media network, went public with initial high expectations but has since seen its stock price drop significantly. Despite showing revenue growth, the company remains unprofitable and trades at a higher valuation compared to industry peers.