NEXPOINT REAL ESTATE FINANCE (NREF) Stock Fundamental Analysis
NYSE:NREF - New York Stock Exchange, Inc. - US65342V1017 - REIT - Currency: USD
NREF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. NREF has a medium profitability rating, but doesn't score so well on its financial health evaluation. NREF is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
NREF had positive earnings in the past year.
NREF had a positive operating cash flow in the past year.
Of the past 5 years NREF 4 years were profitable.
Of the past 5 years NREF 4 years had a positive operating cash flow.
1.2 Ratios
NREF has a Return On Assets (0.40%) which is in line with its industry peers.
With a Return On Equity value of 5.18%, NREF perfoms like the industry average, outperforming 48.44% of the companies in the same industry.
NREF's Return On Invested Capital of 0.55% is in line compared to the rest of the industry. NREF outperforms 56.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NREF is in line with the industry average of 1.55%.
The 3 year average ROIC (0.37%) for NREF is below the current ROIC(0.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 5.18% | ||
| ROIC | 0.55% |
ROA(3y)0.22%
ROA(5y)0.17%
ROE(3y)6.8%
ROE(5y)N/A
ROIC(3y)0.37%
ROIC(5y)N/A
1.3 Margins
NREF has a Profit Margin of 19.56%. This is in the better half of the industry: NREF outperforms 73.44% of its industry peers.
NREF's Profit Margin has declined in the last couple of years.
The Operating Margin of NREF (33.32%) is better than 90.63% of its industry peers.
In the last couple of years the Operating Margin of NREF has declined.
NREF has a Gross Margin of 58.14%. This is amongst the best in the industry. NREF outperforms 92.19% of its industry peers.
In the last couple of years the Gross Margin of NREF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.32% | ||
| PM (TTM) | 19.56% | ||
| GM | 58.14% |
OM growth 3Y-28.59%
OM growth 5YN/A
PM growth 3Y-14.61%
PM growth 5YN/A
GM growth 3Y-10.71%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NREF is destroying value.
Compared to 1 year ago, NREF has more shares outstanding
Compared to 1 year ago, NREF has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.01, we must say that NREF is in the distress zone and has some risk of bankruptcy.
NREF has a Altman-Z score (0.01) which is in line with its industry peers.
NREF has a debt to FCF ratio of 187.94. This is a negative value and a sign of low solvency as NREF would need 187.94 years to pay back of all of its debts.
NREF has a Debt to FCF ratio (187.94) which is comparable to the rest of the industry.
NREF has a Debt/Equity ratio of 11.58. This is a high value indicating a heavy dependency on external financing.
NREF's Debt to Equity ratio of 11.58 is on the low side compared to the rest of the industry. NREF is outperformed by 89.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.58 | ||
| Debt/FCF | 187.94 | ||
| Altman-Z | 0.01 |
ROIC/WACC0.47
WACC1.15%
2.3 Liquidity
A Current Ratio of 0.13 indicates that NREF may have some problems paying its short term obligations.
NREF's Current ratio of 0.13 is on the low side compared to the rest of the industry. NREF is outperformed by 60.94% of its industry peers.
A Quick Ratio of 0.13 indicates that NREF may have some problems paying its short term obligations.
With a Quick ratio value of 0.13, NREF is not doing good in the industry: 60.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
NREF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.79%.
The Earnings Per Share has been growing slightly by 5.62% on average over the past years.
The Revenue has grown by 37.74% in the past year. This is a very strong growth!
Measured over the past years, NREF shows a quite strong growth in Revenue. The Revenue has been growing by 14.59% on average per year.
EPS 1Y (TTM)-25.79%
EPS 3Y5.62%
EPS 5YN/A
EPS Q2Q%74.42%
Revenue 1Y (TTM)37.74%
Revenue growth 3Y14.59%
Revenue growth 5YN/A
Sales Q2Q%125.88%
3.2 Future
The Earnings Per Share is expected to grow by 4.50% on average over the next years.
NREF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.64% yearly.
EPS Next Y-6.13%
EPS Next 2Y12%
EPS Next 3Y4.5%
EPS Next 5YN/A
Revenue Next Year-12.53%
Revenue Next 2Y8.51%
Revenue Next 3Y6.64%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.04, which indicates a very decent valuation of NREF.
Based on the Price/Earnings ratio, NREF is valued a bit cheaper than 67.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.12, NREF is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.71, the valuation of NREF can be described as very cheap.
Based on the Price/Forward Earnings ratio, NREF is valued cheaper than 84.38% of the companies in the same industry.
NREF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 6.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NREF is valued a bit cheaper than 78.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NREF is valued a bit cheaper than the industry average as 67.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.95 | ||
| EV/EBITDA | 115.07 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12%
EPS Next 3Y4.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.98%, NREF is a good candidate for dividend investing.
NREF's Dividend Yield is comparable with the industry average which is at 13.23.
NREF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.98% |
5.2 History
NREF has been paying a dividend for over 5 years, so it has already some track record.
NREF has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
NREF pays out 199.87% of its income as dividend. This is not a sustainable payout ratio.
DP199.87%
EPS Next 2Y12%
EPS Next 3Y4.5%
NEXPOINT REAL ESTATE FINANCE
NYSE:NREF (2/7/2025, 8:04:00 PM)
After market: 15.56 0 (0%)15.56
-0.24 (-1.52%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners69.97%
Inst Owner Change0.05%
Ins Owners6.23%
Ins Owner Change0%
Market Cap271.68M
Analysts48.89
Price Target16.32 (4.88%)
Short Float %0.72%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.98% |
Yearly Dividend3
Dividend Growth(5Y)N/A
DP199.87%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)51.22%
Min EPS beat(2)49.25%
Max EPS beat(2)53.19%
EPS beat(4)2
Avg EPS beat(4)23.37%
Min EPS beat(4)-7.23%
Max EPS beat(4)53.19%
EPS beat(8)4
Avg EPS beat(8)10.88%
EPS beat(12)7
Avg EPS beat(12)9.28%
EPS beat(16)10
Avg EPS beat(16)9.48%
Revenue beat(2)1
Avg Revenue beat(2)10.51%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)22.62%
Revenue beat(4)1
Avg Revenue beat(4)-0.7%
Min Revenue beat(4)-21.24%
Max Revenue beat(4)22.62%
Revenue beat(8)2
Avg Revenue beat(8)-2.38%
Revenue beat(12)5
Avg Revenue beat(12)56.43%
Revenue beat(16)9
Avg Revenue beat(16)110.29%
PT rev (1m)-3.03%
PT rev (3m)3.23%
EPS NQ rev (1m)-1.2%
EPS NQ rev (3m)58.92%
EPS NY rev (1m)-1.02%
EPS NY rev (3m)54.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 6.71 | ||
| P/S | 2.32 | ||
| P/FCF | 9.95 | ||
| P/OCF | 9.69 | ||
| P/B | 0.61 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 115.07 |
EPS(TTM)1.41
EY9.06%
EPS(NY)2.32
Fwd EY14.91%
FCF(TTM)1.56
FCFY10.05%
OCF(TTM)1.61
OCFY10.33%
SpS6.72
BVpS25.39
TBVpS25.39
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 5.18% | ||
| ROCE | 0.72% | ||
| ROIC | 0.55% | ||
| ROICexc | 0.55% | ||
| ROICexgc | 0.55% | ||
| OM | 33.32% | ||
| PM (TTM) | 19.56% | ||
| GM | 58.14% | ||
| FCFM | 23.28% |
ROA(3y)0.22%
ROA(5y)0.17%
ROE(3y)6.8%
ROE(5y)N/A
ROIC(3y)0.37%
ROIC(5y)N/A
ROICexc(3y)0.38%
ROICexc(5y)N/A
ROICexgc(3y)0.38%
ROICexgc(5y)N/A
ROCE(3y)0.49%
ROCE(5y)N/A
ROICexcg growth 3Y-21.61%
ROICexcg growth 5YN/A
ROICexc growth 3Y-21.62%
ROICexc growth 5YN/A
OM growth 3Y-28.59%
OM growth 5YN/A
PM growth 3Y-14.61%
PM growth 5YN/A
GM growth 3Y-10.71%
GM growth 5YN/A
F-Score8
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.58 | ||
| Debt/FCF | 187.94 | ||
| Debt/EBITDA | 115.02 | ||
| Cap/Depr | 13.26% | ||
| Cap/Sales | 0.63% | ||
| Interest Coverage | 0.84 | ||
| Cash Conversion | 62.85% | ||
| Profit Quality | 119.01% | ||
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | 0.01 |
F-Score8
WACC1.15%
ROIC/WACC0.47
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)83.94%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.79%
EPS 3Y5.62%
EPS 5YN/A
EPS Q2Q%74.42%
EPS Next Y-6.13%
EPS Next 2Y12%
EPS Next 3Y4.5%
EPS Next 5YN/A
Revenue 1Y (TTM)37.74%
Revenue growth 3Y14.59%
Revenue growth 5YN/A
Sales Q2Q%125.88%
Revenue Next Year-12.53%
Revenue Next 2Y8.51%
Revenue Next 3Y6.64%
Revenue Next 5YN/A
EBIT growth 1Y1226.8%
EBIT growth 3Y-18.17%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y119.04%
FCF growth 3Y-1.38%
FCF growth 5YN/A
OCF growth 1Y-60.42%
OCF growth 3Y-1.38%
OCF growth 5YN/A