NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
USA - NYSE:NXRT - US65341D1028 - REIT
30.63 USD
-0.17 (-0.55%)
We assign a fundamental rating of 2 out of 10 to NXRT. NXRT was compared to 20 industry peers in the Residential REITs industry. Both the profitability and financial health of NXRT have multiple concerns. NXRT is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NXRT has reported negative net income.
NXRT had a positive operating cash flow in the past year.
NXRT had positive earnings in 4 of the past 5 years.
In the past 5 years NXRT always reported a positive cash flow from operatings.
1.2 Ratios
NXRT has a worse Return On Assets (-2.64%) than 90.00% of its industry peers.
NXRT has a worse Return On Equity (-15.06%) than 90.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.26%, NXRT is doing worse than 75.00% of the companies in the same industry.
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.
NXRT has a Operating Margin of 11.35%. This is in the lower half of the industry: NXRT underperforms 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.
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.
The number of shares outstanding for NXRT has been reduced compared to 1 year ago.
The number of shares outstanding for NXRT has been increased compared to 5 years ago.
NXRT has a worse debt/assets ratio than last year.
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.
NXRT has a worse Altman-Z score (0.41) than 65.00% 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.
Looking at the Debt to FCF ratio, with a value of 33.86, NXRT is in line with its industry, outperforming 60.00% of the companies in the same industry.
A Debt/Equity ratio of 4.55 is on the high side and indicates that NXRT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.55, NXRT is doing worse than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.55 | ||
| Debt/FCF | 33.86 | ||
| Altman-Z | 0.41 |
ROIC/WACC0.16
WACC7.69%
2.3 Liquidity
A Current Ratio of 0.72 indicates that NXRT may have some problems paying its short term obligations.
The Current ratio of NXRT (0.72) is better than 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.
NXRT has a Quick ratio of 0.72. This is in the better half of the industry: NXRT outperforms 70.00% of its industry peers.
| 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%.
Measured over the past years, NXRT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -65.41% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
NXRT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year NXRT is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| 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.
100.00% of the companies in the same industry are more expensive than NXRT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.92 | ||
| 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.
Compared to an average industry Dividend Yield of 7.21, NXRT pays a bit more dividend than its industry peers.
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%
NYSE:NXRT (11/19/2025, 2:55:26 PM)
30.63
-0.17 (-0.55%)
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 Cap776.78M
Revenue(TTM)252.99M
Net Income(TTM)-48.65M
Analysts72.86
Price Target36.04 (17.66%)
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 | 3.07 | ||
| P/FCF | 17.92 | ||
| P/OCF | 9.26 | ||
| P/B | 2.41 | ||
| P/tB | 2.41 | ||
| EV/EBITDA | 17.83 |
EPS(TTM)-1.89
EYN/A
EPS(NY)-1.25
Fwd EYN/A
FCF(TTM)1.71
FCFY5.58%
OCF(TTM)3.31
OCFY10.8%
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.