NMAX:NYSENewsmax, Inc. Analysis
Data as of 2026-06-03 - not real-time
$8.52
Latest Price
8/10Risk
Risk Level: High
Executive Summary
Newsmax, Inc. (NMAX) shows mixed signals. On the technical side, the 20‑day SMA (≈7.39) sits above the 50‑day SMA (≈6.69) and the MACD line is bullish, while RSI is at 64, suggesting modest upward momentum and an "Extreme Greed" market mood. However, the price (≈$8.52) remains below the 200‑day SMA (≈8.71) and is trapped between a support of $5.90 and resistance near $9.28, indicating a fragile setup.
Fundamentally, the company posted a 14% YoY revenue increase to $51.7 M, driven by a surge in licensing revenue and audience growth, yet it continues to generate negative operating and free cash flow, carries a high debt‑to‑equity ratio, and trades at a forward PE of over 120× versus an industry average of ~16×. The combination of high beta (≈2.0), 30‑day volatility above 130%, and a historic max drawdown of over 70% underscores substantial risk, while the lack of a dividend eliminates any income cushion.
Fundamentally, the company posted a 14% YoY revenue increase to $51.7 M, driven by a surge in licensing revenue and audience growth, yet it continues to generate negative operating and free cash flow, carries a high debt‑to‑equity ratio, and trades at a forward PE of over 120× versus an industry average of ~16×. The combination of high beta (≈2.0), 30‑day volatility above 130%, and a historic max drawdown of over 70% underscores substantial risk, while the lack of a dividend eliminates any income cushion.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 5/10
Key Factors
- Bullish MACD and rising volume suggest short‑term buying pressure
- Price is near support and still below long‑term trend
- Fundamentals remain weak with negative cash flow and high valuation
Medium Term
1–3 yearsNeutral
Model confidence: 6/10
Key Factors
- Revenue growth of 14% and expanding licensing agreements
- Continued operating losses and high leverage
- Potential upside of ~117% versus downside risk
Long Term
> 3 yearsCautious
Model confidence: 7/10
Key Factors
- Sustained overvaluation relative to peers
- Extreme price volatility and large historical drawdown
- Absence of profitability and dividend, limiting upside potential
Key Metrics & Analysis
Financial Health
Revenue Growth14.00%
Profit Margin-43.17%
P/E Ratio121.6
ROE-59.39%
ROA-22.98%
Debt/Equity7.78
P/B Ratio10.4
Op. Cash Flow$-91371760
Free Cash Flow$-60526588
Industry P/E16.5
Technical Analysis
TrendNeutral
RSI64.0
Support$5.90
Resistance$9.28
MA 20$7.39
MA 50$6.69
MA 200$8.71
MACDBullish
VolumeIncreasing
Fear & Greed Index92.39
Valuation
Target Price$18.50
Upside/Downside117.26%
GradeOvervalued
TypeBlend
Risk Assessment
Beta1.96
Volatility134.45%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.