NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NXRT - US65341D1028 - REIT
30.68 USD
+0.01 (+0.03%)
30.68 USD
0 (0%)
NXRT gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. NXRT may be in some trouble as it scores bad on both profitability and health. NXRT does not seem to be growing, but still is valued expensively. Finally NXRT also has an excellent dividend rating.
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
The Return On Assets of NXRT (-2.64%) is worse than 90.00% of its industry peers.
NXRT has a worse Return On Equity (-15.06%) than 90.00% of its industry peers.
NXRT has a Return On Invested Capital of 1.26%. This is in the lower half of the industry: NXRT underperforms 70.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
In the last couple of years the Profit Margin of NXRT has declined.
With a Operating Margin value of 11.35%, NXRT is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of NXRT has grown nicely.
NXRT has a better Gross Margin (63.29%) than 90.00% of its industry peers.
NXRT's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, NXRT has less shares outstanding
NXRT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NXRT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.41, we must say that NXRT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NXRT (0.41) is worse than 60.00% of its industry peers.
The Debt to FCF ratio of NXRT is 33.86, which is on the high side as it means it would take NXRT, 33.86 years of fcf income to pay off 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.
NXRT's Debt to Equity ratio of 4.55 is on the low side compared to the rest of the industry. NXRT is outperformed by 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
WACC7.72%
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.
NXRT has a Quick 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.
With a decent Quick ratio value of 0.72, NXRT is doing good in 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%.
The earnings per share for NXRT have been decreasing by -65.41% on average. This is quite bad
The Revenue has decreased by -4.46% in the past year.
Measured over the past years, NXRT shows a small growth in Revenue. The Revenue has been growing by 7.48% on average per year.
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 -301.87% on average over the next years. This is quite bad
The Revenue is expected to grow by 1.23% on average over the next years.
EPS Next Y-6291.4%
EPS Next 2Y-726.44%
EPS Next 3Y-301.87%
EPS Next 5YN/A
Revenue Next Year-2.72%
Revenue Next 2Y-0.17%
Revenue Next 3Y1.47%
Revenue Next 5Y1.23%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NXRT is on the same level as its industry peers.
NXRT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NXRT is cheaper than 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.95 | ||
| EV/EBITDA | 17.84 |
4.3 Compensation for Growth
A cheap valuation may be justified as NXRT's earnings are expected to decrease with -301.87% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-726.44%
EPS Next 3Y-301.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.91%, NXRT is a good candidate for dividend investing.
NXRT's Dividend Yield is rather good when compared to the industry average which is at 11.09. NXRT pays more dividend than 85.00% of the companies in the same industry.
NXRT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
5.2 History
On average, the dividend of NXRT grows each year by 10.88%, which is quite nice.
NXRT has paid a dividend for at least 10 years, which is a reliable track record.
NXRT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)10.88%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
The earnings of NXRT are negative and hence is the payout ratio. NXRT will probably not be able to sustain this dividend level.
DP-109.03%
EPS Next 2Y-726.44%
EPS Next 3Y-301.87%
30.68
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners76.86%
Inst Owner Change0%
Ins Owners13.26%
Ins Owner Change-1.14%
Market Cap778.04M
Revenue(TTM)252.99M
Net Income(TTM)-48.65M
Analysts72.86
Price Target34.34 (11.93%)
Short Float %2.8%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
Yearly Dividend1.93
Dividend Growth(5Y)10.88%
DP-109.03%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
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)-2.42%
PT rev (3m)-5.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.62%
EPS NY rev (1m)0%
EPS NY rev (3m)2.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.08 | ||
| P/FCF | 17.95 | ||
| P/OCF | 9.27 | ||
| P/B | 2.41 | ||
| P/tB | 2.41 | ||
| EV/EBITDA | 17.84 |
EPS(TTM)-1.89
EYN/A
EPS(NY)-1.33
Fwd EYN/A
FCF(TTM)1.71
FCFY5.57%
OCF(TTM)3.31
OCFY10.79%
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
WACC7.72%
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-6291.4%
EPS Next 2Y-726.44%
EPS Next 3Y-301.87%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y5.81%
Revenue growth 5Y7.48%
Sales Q2Q%-1.98%
Revenue Next Year-2.72%
Revenue Next 2Y-0.17%
Revenue Next 3Y1.47%
Revenue Next 5Y1.23%
EBIT growth 1Y-15.85%
EBIT growth 3Y19.26%
EBIT growth 5Y15.4%
EBIT Next Year18718%
EBIT Next 3Y489.77%
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
What is the ChartMill fundamental rating of NEXPOINT RESIDENTIAL (NXRT) stock?
ChartMill assigns a fundamental rating of 2 / 10 to NXRT.
Can you provide the valuation status for NEXPOINT RESIDENTIAL?
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.
What is the financial health of NEXPOINT RESIDENTIAL (NXRT) stock?
The financial health rating of NEXPOINT RESIDENTIAL (NXRT) is 2 / 10.
What is the expected EPS growth for NEXPOINT RESIDENTIAL (NXRT) stock?
The Earnings per Share (EPS) of NEXPOINT RESIDENTIAL (NXRT) is expected to decline by -6291.4% in the next year.