NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NXRT - US65341D1028 - REIT
31.53 USD
+0.47 (+1.51%)
31.53 USD
0 (0%)
Overall NXRT gets a fundamental rating of 2 out of 10. We evaluated NXRT 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
- NXRT had negative earnings in the past year.
- NXRT had a positive operating cash flow in the past year.
- Of the past 5 years NXRT 4 years were profitable.
- Each year in the past 5 years NXRT had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of -2.64%, NXRT is doing worse than 90.00% of the companies in the same industry.
- The Return On Equity of NXRT (-15.06%) is worse than 90.00% of its industry peers.
- 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 70.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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 70.00% of its industry peers.
- In the last couple of years the Operating Margin of NXRT has grown nicely.
- Looking at the Gross Margin, with a value of 63.29%, NXRT belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
- 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.
- The number of shares outstanding for NXRT has been reduced compared to 1 year ago.
- NXRT has more shares outstanding than it did 5 years ago.
- NXRT has a worse debt/assets ratio than last year.
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's Altman-Z score of 0.42 is on the low side compared to the rest of the industry. NXRT is outperformed by 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.
- NXRT has a Debt to FCF ratio (33.86) which is in line with its industry peers.
- NXRT has a Debt/Equity ratio of 4.55. This is a high value indicating a heavy dependency on external 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 | 0.42 |
ROIC/WACC0.16
WACC7.7%
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 better Current ratio (0.72) than 65.00% of its industry peers.
- A Quick Ratio of 0.72 indicates that NXRT may have some problems paying 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
- The earnings per share for NXRT have decreased strongly by -209.25% in the last year.
- 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.
- NXRT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.48% yearly.
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
- 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
- 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
- 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
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as NXRT.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NXRT indicates a rather cheap valuation: NXRT is cheaper than 95.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.44 | ||
| EV/EBITDA | 18.01 |
4.3 Compensation for Growth
- NXRT's earnings are expected to decrease with -301.87% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-726.44%
EPS Next 3Y-301.87%
5. Dividend
5.1 Amount
- NXRT has a Yearly Dividend Yield of 6.91%, which is a nice return.
- NXRT's Dividend Yield is a higher than the industry average which is at 32.52.
- Compared to an average S&P500 Dividend Yield of 1.92, NXRT pays a better dividend.
| 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 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%
31.53
+0.47 (+1.51%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)02-23 2026-02-23/amc
Inst Owners76.86%
Inst Owner Change-0.01%
Ins Owners13.26%
Ins Owner Change-1.14%
Market Cap799.60M
Revenue(TTM)252.99M
Net Income(TTM)-48.65M
Analysts72.86
Price Target34.34 (8.91%)
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)-0.98%
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 | 3.16 | ||
| P/FCF | 18.44 | ||
| P/OCF | 9.53 | ||
| P/B | 2.48 | ||
| P/tB | 2.48 | ||
| EV/EBITDA | 18.01 |
EPS(TTM)-1.89
EYN/A
EPS(NY)-1.33
Fwd EYN/A
FCF(TTM)1.71
FCFY5.42%
OCF(TTM)3.31
OCFY10.5%
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
WACC7.7%
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.