NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
NYSE:NXRT - New York Stock Exchange, Inc. - US65341D1028 - REIT
NXRT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. While NXRT is still in line with the averages on profitability rating, there are concerns on its financial health. NXRT is valued correctly, but it does not seem to be growing. Finally NXRT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NXRT had positive earnings in the past year.
In the past year NXRT had a positive cash flow from operations.
Of the past 5 years NXRT 4 years were profitable.
NXRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NXRT (2.38%) is better than 65.00% of its industry peers.
NXRT's Return On Equity of 10.38% is amongst the best of the industry. NXRT outperforms 95.00% of its industry peers.
The Return On Invested Capital of NXRT (1.41%) is worse than 70.00% of its industry peers.
NXRT had an Average Return On Invested Capital over the past 3 years of 1.17%. This is in line with the industry average of 2.61%.
The last Return On Invested Capital (1.41%) for NXRT is above the 3 year average (1.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 10.38% | ||
| ROIC | 1.41% |
ROA(3y)0.93%
ROA(5y)2.1%
ROE(3y)4.02%
ROE(5y)9.22%
ROIC(3y)1.17%
ROIC(5y)0.96%
1.3 Margins
NXRT has a Profit Margin of 17.52%. This is in the better half of the industry: NXRT outperforms 65.00% of its industry peers.
NXRT's Profit Margin has declined in the last couple of years.
NXRT's Operating Margin of 12.89% is on the low side compared to the rest of the industry. NXRT is outperformed by 70.00% of its industry peers.
NXRT's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 94.45%, NXRT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of NXRT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.89% | ||
| PM (TTM) | 17.52% | ||
| GM | 94.45% |
OM growth 3Y28.7%
OM growth 5Y6.24%
PM growth 3Y-9.45%
PM growth 5YN/A
GM growth 3Y0.35%
GM growth 5Y0.53%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NXRT is destroying value.
Compared to 1 year ago, NXRT has more shares outstanding
The number of shares outstanding for NXRT has been increased compared to 5 years ago.
Compared to 1 year ago, NXRT has an improved debt to assets ratio.
2.2 Solvency
NXRT has an Altman-Z score of 0.59. This is a bad value and indicates that NXRT is not financially healthy and even has some risk of bankruptcy.
NXRT has a worse Altman-Z score (0.59) than 65.00% of its industry peers.
NXRT has a debt to FCF ratio of 37.22. This is a negative value and a sign of low solvency as NXRT would need 37.22 years to pay back of all of its debts.
NXRT has a Debt to FCF ratio of 37.22. This is in the better half of the industry: NXRT outperforms 65.00% of its industry peers.
A Debt/Equity ratio of 3.25 is on the high side and indicates that NXRT has dependencies on debt financing.
NXRT has a Debt to Equity ratio of 3.25. This is amonst the worse of the industry: NXRT underperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.25 | ||
| Debt/FCF | 37.22 | ||
| Altman-Z | 0.59 |
ROIC/WACC0.2
WACC7.04%
2.3 Liquidity
A Current Ratio of 0.96 indicates that NXRT may have some problems paying its short term obligations.
NXRT has a Current ratio of 0.96. This is in the better half of the industry: NXRT outperforms 75.00% of its industry peers.
NXRT has a Quick Ratio of 0.96. 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 0.96, NXRT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
NXRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 439.22%, which is quite impressive.
Measured over the past years, NXRT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -77.12% on average per year.
The Revenue has decreased by -4.74% in the past year.
NXRT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.61% yearly.
EPS 1Y (TTM)439.22%
EPS 3Y-77.12%
EPS 5YN/A
EPS Q2Q%2.78%
Revenue 1Y (TTM)-4.74%
Revenue growth 3Y10.66%
Revenue growth 5Y13.61%
Sales Q2Q%-8.22%
3.2 Future
The Earnings Per Share is expected to decrease by -253.46% 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 1.03% on average per year.
EPS Next Y4408.4%
EPS Next 2Y-627.01%
EPS Next 3Y-253.46%
EPS Next 5YN/A
Revenue Next Year-6.54%
Revenue Next 2Y-3.25%
Revenue Next 3Y-0.34%
Revenue Next 5Y1.03%
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
A Price/Earnings ratio of 22.86 indicates a rather expensive valuation of NXRT.
NXRT's Price/Earnings ratio is rather cheap when compared to the industry. NXRT is cheaper than 95.00% of the companies in the same industry.
NXRT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
NXRT is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NXRT is valued a bit cheaper than 70.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NXRT indicates a rather cheap valuation: NXRT is cheaper than 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.7 | ||
| EV/EBITDA | 18.53 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NXRT has a very decent profitability rating, which may justify a higher PE ratio.
NXRT's earnings are expected to decrease with -253.46% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y-627.01%
EPS Next 3Y-253.46%
5. Dividend
5.1 Amount
NXRT has a Yearly Dividend Yield of 5.15%, which is a nice return.
Compared to an average industry Dividend Yield of 4.29, NXRT pays a better dividend. On top of this NXRT pays more dividend than 85.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, NXRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
5.2 History
The dividend of NXRT is nicely growing with an annual growth rate of 11.83%!
NXRT has been paying a dividend for at least 10 years, so it has 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)11.83%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
103.92% of the earnings are spent on dividend by NXRT. This is not a sustainable payout ratio.
The Dividend Rate of NXRT has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP103.92%
EPS Next 2Y-627.01%
EPS Next 3Y-253.46%
NEXPOINT RESIDENTIAL
NYSE:NXRT (1/21/2025, 8:18:03 PM)
After market: 39.54 0 (0%)39.54
+0.29 (+0.74%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners78.34%
Inst Owner Change0.01%
Ins Owners12.15%
Ins Owner Change0%
Market Cap1.00B
Analysts77.33
Price Target48.2 (21.9%)
Short Float %1.57%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
Yearly Dividend1.75
Dividend Growth(5Y)11.83%
DP103.92%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)168.65%
Min EPS beat(2)-27.09%
Max EPS beat(2)364.38%
EPS beat(4)3
Avg EPS beat(4)162.12%
Min EPS beat(4)-27.09%
Max EPS beat(4)364.38%
EPS beat(8)4
Avg EPS beat(8)45.31%
EPS beat(12)6
Avg EPS beat(12)83.09%
EPS beat(16)10
Avg EPS beat(16)66.95%
Revenue beat(2)1
Avg Revenue beat(2)7.31%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)16.56%
Revenue beat(4)2
Avg Revenue beat(4)8.2%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)19.44%
Revenue beat(8)3
Avg Revenue beat(8)3.44%
Revenue beat(12)5
Avg Revenue beat(12)2.31%
Revenue beat(16)6
Avg Revenue beat(16)1.16%
PT rev (1m)0.27%
PT rev (3m)-0.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.86 | ||
| Fwd PE | N/A | ||
| P/S | 3.79 | ||
| P/FCF | 25.7 | ||
| P/OCF | 12.25 | ||
| P/B | 2.25 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 18.53 |
EPS(TTM)1.73
EY4.38%
EPS(NY)-1.02
Fwd EYN/A
FCF(TTM)1.54
FCFY3.89%
OCF(TTM)3.23
OCFY8.16%
SpS10.43
BVpS17.6
TBVpS17.6
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 10.38% | ||
| ROCE | 1.78% | ||
| ROIC | 1.41% | ||
| ROICexc | 1.42% | ||
| ROICexgc | 1.45% | ||
| OM | 12.89% | ||
| PM (TTM) | 17.52% | ||
| GM | 94.45% | ||
| FCFM | 14.76% |
ROA(3y)0.93%
ROA(5y)2.1%
ROE(3y)4.02%
ROE(5y)9.22%
ROIC(3y)1.17%
ROIC(5y)0.96%
ROICexc(3y)1.18%
ROICexc(5y)0.97%
ROICexgc(3y)1.22%
ROICexgc(5y)1%
ROCE(3y)1.48%
ROCE(5y)1.22%
ROICexcg growth 3Y37.29%
ROICexcg growth 5Y7.28%
ROICexc growth 3Y35.69%
ROICexc growth 5Y6.88%
OM growth 3Y28.7%
OM growth 5Y6.24%
PM growth 3Y-9.45%
PM growth 5YN/A
GM growth 3Y0.35%
GM growth 5Y0.53%
F-Score8
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.25 | ||
| Debt/FCF | 37.22 | ||
| Debt/EBITDA | 11.04 | ||
| Cap/Depr | 43.93% | ||
| Cap/Sales | 16.19% | ||
| Interest Coverage | 0.31 | ||
| Cash Conversion | 62.21% | ||
| Profit Quality | 84.25% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 0.59 |
F-Score8
WACC7.04%
ROIC/WACC0.2
Cap/Depr(3y)222.16%
Cap/Depr(5y)409.6%
Cap/Sales(3y)84.89%
Cap/Sales(5y)157.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)439.22%
EPS 3Y-77.12%
EPS 5YN/A
EPS Q2Q%2.78%
EPS Next Y4408.4%
EPS Next 2Y-627.01%
EPS Next 3Y-253.46%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.74%
Revenue growth 3Y10.66%
Revenue growth 5Y13.61%
Sales Q2Q%-8.22%
Revenue Next Year-6.54%
Revenue Next 2Y-3.25%
Revenue Next 3Y-0.34%
Revenue Next 5Y1.03%
EBIT growth 1Y-21.37%
EBIT growth 3Y42.41%
EBIT growth 5Y20.7%
EBIT Next Year182.38%
EBIT Next 3Y44.37%
EBIT Next 5YN/A
FCF growth 1Y119.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.5%
OCF growth 3Y19.06%
OCF growth 5Y18.27%