NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
USA - NYSE:NXRT - US65341D1028 - REIT
31.56 USD
+0.23 (+0.73%)
31.56 USD
0 (0%)
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 has a expensive valuation and it also scores bad on growth.
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 85.00% of its industry peers.
With a Return On Equity value of -15.06%, NXRT is not doing good in the industry: 85.00% of the companies in the same industry are doing better.
NXRT's Return On Invested Capital of 1.26% is on the low side compared to the rest of the industry. NXRT is outperformed by 75.00% 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 2.60%.
| 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.
Looking at the Operating Margin, with a value of 11.35%, NXRT is doing worse than 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NXRT has grown nicely.
The Gross Margin of NXRT (63.29%) is better 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NXRT is destroying value.
Compared to 1 year ago, NXRT has less shares outstanding
Compared to 5 years ago, NXRT has more shares outstanding
Compared to 1 year ago, NXRT has a worse debt to assets ratio.
2.2 Solvency
NXRT has an Altman-Z score of 0.42. 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 (0.42) than 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.
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.
NXRT has a Debt/Equity ratio of 4.55. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.55, NXRT is not doing good in the industry: 85.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.55 | ||
| Debt/FCF | 33.86 | ||
| Altman-Z | 0.42 |
ROIC/WACC0.16
WACC7.64%
2.3 Liquidity
A Current Ratio of 0.72 indicates that NXRT may have some problems paying its short term obligations.
Looking at the Current 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.
A Quick Ratio of 0.72 indicates that NXRT may have some problems paying its short term obligations.
NXRT's Quick ratio of 0.72 is fine compared to the rest of the industry. NXRT outperforms 75.00% 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%.
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
NXRT is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -287.31% yearly.
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
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
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NXRT.
Based on the Price/Free Cash Flow ratio, NXRT is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.46 | ||
| EV/EBITDA | 18.02 |
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
With a Yearly Dividend Yield of 6.77%, NXRT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.22, NXRT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, NXRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.77% |
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-703.28%
EPS Next 3Y-287.31%
31.56
+0.23 (+0.73%)
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 Cap800.36M
Revenue(TTM)252.99M
Net Income(TTM)-48.65M
Analysts72.86
Price Target36.04 (14.2%)
Short Float %2.42%
Short Ratio2.89
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 | 3.16 | ||
| P/FCF | 18.46 | ||
| P/OCF | 9.54 | ||
| P/B | 2.48 | ||
| P/tB | 2.48 | ||
| EV/EBITDA | 18.02 |
EPS(TTM)-1.89
EYN/A
EPS(NY)-1.25
Fwd EYN/A
FCF(TTM)1.71
FCFY5.42%
OCF(TTM)3.31
OCFY10.49%
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 | 0.42 |
F-Score4
WACC7.64%
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 3 / 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 3 / 10.