NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NXRT - US65341D1028 - REIT
29.27 USD
+0.32 (+1.11%)
29.27 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. Both the profitability and financial health of NXRT have multiple concerns. NXRT does not seem to be growing, but still is valued expensively.
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.
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.
Looking at the Return On Equity, with a value of -15.06%, NXRT is doing worse than 90.00% of the companies in the same industry.
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.
NXRT had an Average Return On Invested Capital over the past 3 years of 1.37%. This 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.
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.
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
Based on the Altman-Z score of 0.40, we must say that NXRT is in the distress zone and has some risk of bankruptcy.
NXRT's Altman-Z score of 0.40 is on the low side compared to the rest of the industry. NXRT is outperformed by 65.00% of its industry peers.
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.
NXRT has a Debt to FCF ratio (33.86) which 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 | 0.4 |
ROIC/WACC0.16
WACC7.76%
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.
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
The earnings per share for NXRT have decreased strongly by -209.25% in the last year.
The earnings per share for NXRT have been decreasing by -65.41% on average. This is quite bad
Looking at the last year, NXRT shows a decrease in Revenue. The Revenue has decreased by -4.46% in the last 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
Based on estimates for the next years, NXRT will show a very negative growth in Earnings Per Share. The EPS will decrease by -301.87% on average per year.
Based on estimates for the next years, NXRT will show a small growth in Revenue. The Revenue will grow by 1.23% on average per year.
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
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 indicates a somewhat cheap valuation: NXRT is cheaper than 65.00% of the companies listed 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 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.12 | ||
| EV/EBITDA | 17.49 |
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 7.28%, NXRT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.48, NXRT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, NXRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.28% |
5.2 History
On average, the dividend of NXRT grows each year by 10.88%, which is quite nice.
NXRT has been paying a dividend for at least 10 years, so it has 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
NXRT has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-109.03%
EPS Next 2Y-726.44%
EPS Next 3Y-301.87%
29.27
+0.32 (+1.11%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners76.9%
Inst Owner Change2.46%
Ins Owners13.3%
Ins Owner Change-1.14%
Market Cap742.29M
Revenue(TTM)252.99M
Net Income(TTM)-48.65M
Analysts72.86
Price Target34.34 (17.32%)
Short Float %2.68%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.28% |
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)-2.42%
PT rev (3m)-5.16%
EPS NQ rev (1m)4.9%
EPS NQ rev (3m)-5.7%
EPS NY rev (1m)1.83%
EPS NY rev (3m)2.36%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.93 | ||
| P/FCF | 17.12 | ||
| P/OCF | 8.84 | ||
| P/B | 2.3 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 17.49 |
EPS(TTM)-1.89
EYN/A
EPS(NY)-1.33
Fwd EYN/A
FCF(TTM)1.71
FCFY5.84%
OCF(TTM)3.31
OCFY11.31%
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 | 0.4 |
F-Score4
WACC7.76%
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
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.