NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
USA - NYSE:NXRT - US65341D1028 - REIT
30.56 USD
-0.07 (-0.23%)
30.56 USD
0 (0%)
Taking everything into account, NXRT scores 2 out of 10 in our fundamental rating. NXRT was compared to 20 industry peers in the Residential REITs industry. NXRT may be in some trouble as it scores bad on both profitability and health. NXRT is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NXRT had negative earnings in the past year.
NXRT had a positive operating cash flow in the past year.
NXRT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years NXRT had a positive operating cash flow.
1.2 Ratios
NXRT has a worse Return On Assets (-2.64%) than 90.00% of its industry peers.
NXRT's Return On Equity of -15.06% is on the low side compared to the rest of the industry. NXRT is outperformed by 90.00% of its industry peers.
The Return On Invested Capital of NXRT (1.26%) is worse than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NXRT is in line with the industry average of 2.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.64% | ||
| ROE | -15.06% | ||
| ROIC | 1.26% |
ROA(3y)0.58%
ROA(5y)1.05%
ROE(3y)2.48%
ROE(5y)4.62%
ROIC(3y)1.37%
ROIC(5y)1.09%
1.3 Margins
NXRT's Profit Margin has declined in the last couple of years.
The Operating Margin of NXRT (11.35%) is worse than 75.00% of its industry peers.
NXRT's Operating Margin has improved in the last couple of years.
NXRT has a better Gross Margin (63.29%) than 90.00% of its industry peers.
In the last couple of years the Gross Margin of NXRT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.35% | ||
| PM (TTM) | N/A | ||
| GM | 63.29% |
OM growth 3Y12.71%
OM growth 5Y7.38%
PM growth 3Y-65.59%
PM growth 5Y-62.11%
GM growth 3Y-12.32%
GM growth 5Y-7.43%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NXRT is destroying value.
NXRT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NXRT has more shares outstanding
NXRT has a worse debt/assets ratio than last year.
2.2 Solvency
NXRT has an Altman-Z score of 0.41. This is a bad value and indicates that NXRT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.41, NXRT is doing worse than 65.00% of the companies in the same industry.
NXRT has a debt to FCF ratio of 33.86. This is a negative value and a sign of low solvency as NXRT would need 33.86 years to pay back of all of its debts.
The Debt to FCF ratio of NXRT (33.86) is comparable to the rest of the industry.
NXRT has a Debt/Equity ratio of 4.55. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NXRT (4.55) is worse than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.55 | ||
| Debt/FCF | 33.86 | ||
| Altman-Z | 0.41 |
ROIC/WACC0.16
WACC7.69%
2.3 Liquidity
NXRT has a Current Ratio of 0.72. This is a bad value and indicates that NXRT is not financially healthy enough and could expect problems in meeting its short term obligations.
NXRT has a Current ratio of 0.72. This is in the better half of the industry: NXRT outperforms 65.00% of its industry peers.
A Quick Ratio of 0.72 indicates that NXRT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.72, NXRT is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
NXRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -209.25%.
NXRT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -65.41% yearly.
The Revenue has decreased by -4.46% in the past year.
The Revenue has been growing slightly by 7.48% on average over the past years.
EPS 1Y (TTM)-209.25%
EPS 3Y-70.76%
EPS 5Y-65.41%
EPS Q2Q%11.43%
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y5.81%
Revenue growth 5Y7.48%
Sales Q2Q%-1.98%
3.2 Future
The Earnings Per Share is expected to decrease by -287.31% on average over the next years. This is quite bad
Based on estimates for the next years, NXRT will show a small growth in Revenue. The Revenue will grow by 2.48% on average per year.
EPS Next Y-6407.02%
EPS Next 2Y-703.28%
EPS Next 3Y-287.31%
EPS Next 5YN/A
Revenue Next Year-2.51%
Revenue Next 2Y0.18%
Revenue Next 3Y1.61%
Revenue Next 5Y2.48%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 negative for NXRT. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for NXRT. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
NXRT's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, NXRT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.88 | ||
| EV/EBITDA | 17.83 |
4.3 Compensation for Growth
A cheap valuation may be justified as NXRT's earnings are expected to decrease with -287.31% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-703.28%
EPS Next 3Y-287.31%
5. Dividend
5.1 Amount
NXRT has a Yearly Dividend Yield of 6.77%, which is a nice return.
NXRT's Dividend Yield is a higher than the industry average which is at 7.21.
NXRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.77% |
5.2 History
The dividend of NXRT is nicely growing with an annual growth rate of 10.88%!
NXRT has paid a dividend for at least 10 years, which is a reliable track record.
As NXRT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)10.88%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
NXRT has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-109.03%
EPS Next 2Y-703.28%
EPS Next 3Y-287.31%
30.56
-0.07 (-0.23%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners75.78%
Inst Owner Change0.94%
Ins Owners13.32%
Ins Owner Change0.09%
Market Cap775.00M
Revenue(TTM)252.99M
Net Income(TTM)-48.65M
Analysts72.86
Price Target36.04 (17.93%)
Short Float %2.43%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.77% |
Yearly Dividend1.93
Dividend Growth(5Y)10.88%
DP-109.03%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.4%
Min EPS beat(2)12.33%
Max EPS beat(2)18.46%
EPS beat(4)3
Avg EPS beat(4)-34.15%
Min EPS beat(4)-176.12%
Max EPS beat(4)18.46%
EPS beat(8)6
Avg EPS beat(8)63.98%
EPS beat(12)7
Avg EPS beat(12)18.82%
EPS beat(16)9
Avg EPS beat(16)53.78%
Revenue beat(2)0
Avg Revenue beat(2)-1.79%
Min Revenue beat(2)-2%
Max Revenue beat(2)-1.59%
Revenue beat(4)0
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-2%
Max Revenue beat(4)-1.36%
Revenue beat(8)2
Avg Revenue beat(8)3.27%
Revenue beat(12)3
Avg Revenue beat(12)1.74%
Revenue beat(16)5
Avg Revenue beat(16)1.32%
PT rev (1m)-0.47%
PT rev (3m)-6.81%
EPS NQ rev (1m)-6.92%
EPS NQ rev (3m)-10.32%
EPS NY rev (1m)0.54%
EPS NY rev (3m)-1.51%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.06 | ||
| P/FCF | 17.88 | ||
| P/OCF | 9.23 | ||
| P/B | 2.4 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 17.83 |
EPS(TTM)-1.89
EYN/A
EPS(NY)-1.25
Fwd EYN/A
FCF(TTM)1.71
FCFY5.59%
OCF(TTM)3.31
OCFY10.83%
SpS9.98
BVpS12.73
TBVpS12.73
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.64% | ||
| ROE | -15.06% | ||
| ROCE | 1.59% | ||
| ROIC | 1.26% | ||
| ROICexc | 1.27% | ||
| ROICexgc | 1.28% | ||
| OM | 11.35% | ||
| PM (TTM) | N/A | ||
| GM | 63.29% | ||
| FCFM | 17.14% |
ROA(3y)0.58%
ROA(5y)1.05%
ROE(3y)2.48%
ROE(5y)4.62%
ROIC(3y)1.37%
ROIC(5y)1.09%
ROICexc(3y)1.38%
ROICexc(5y)1.1%
ROICexgc(3y)1.43%
ROICexgc(5y)1.13%
ROCE(3y)1.73%
ROCE(5y)1.38%
ROICexgc growth 3Y22.72%
ROICexgc growth 5Y15.26%
ROICexc growth 3Y21.87%
ROICexc growth 5Y14.79%
OM growth 3Y12.71%
OM growth 5Y7.38%
PM growth 3Y-65.59%
PM growth 5Y-62.11%
GM growth 3Y-12.32%
GM growth 5Y-7.43%
F-Score4
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.55 | ||
| Debt/FCF | 33.86 | ||
| Debt/EBITDA | 11.72 | ||
| Cap/Depr | 42.01% | ||
| Cap/Sales | 16.04% | ||
| Interest Coverage | 0.32 | ||
| Cash Conversion | 66.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 0.41 |
F-Score4
WACC7.69%
ROIC/WACC0.16
Cap/Depr(3y)106.97%
Cap/Depr(5y)173.62%
Cap/Sales(3y)38.98%
Cap/Sales(5y)66.96%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-209.25%
EPS 3Y-70.76%
EPS 5Y-65.41%
EPS Q2Q%11.43%
EPS Next Y-6407.02%
EPS Next 2Y-703.28%
EPS Next 3Y-287.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y5.81%
Revenue growth 5Y7.48%
Sales Q2Q%-1.98%
Revenue Next Year-2.51%
Revenue Next 2Y0.18%
Revenue Next 3Y1.61%
Revenue Next 5Y2.48%
EBIT growth 1Y-15.85%
EBIT growth 3Y19.26%
EBIT growth 5Y15.4%
EBIT Next Year18452.7%
EBIT Next 3Y497.35%
EBIT Next 5Y288.05%
FCF growth 1Y206.61%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-8.06%
OCF growth 3Y0.14%
OCF growth 5Y7.45%
NEXPOINT RESIDENTIAL / NXRT FAQ
Can you provide the ChartMill fundamental rating for NEXPOINT RESIDENTIAL?
ChartMill assigns a fundamental rating of 2 / 10 to NXRT.
What is the valuation status of NEXPOINT RESIDENTIAL (NXRT) stock?
ChartMill assigns a valuation rating of 2 / 10 to NEXPOINT RESIDENTIAL (NXRT). This can be considered as Overvalued.
What is the profitability of NXRT stock?
NEXPOINT RESIDENTIAL (NXRT) has a profitability rating of 3 / 10.
How financially healthy is NEXPOINT RESIDENTIAL?
The financial health rating of NEXPOINT RESIDENTIAL (NXRT) is 2 / 10.