NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
USA - NYSE:NXRT - US65341D1028 - REIT
32.51 USD
-1.32 (-3.9%)
32.51 USD
0 (0%)
Taking everything into account, NXRT scores 3 out of 10 in our fundamental rating. NXRT was compared to 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.
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
NXRT has a worse Return On Assets (-2.68%) than 90.00% of its industry peers.
NXRT has a worse Return On Equity (-14.29%) than 85.00% of its industry peers.
With a Return On Invested Capital value of 1.22%, NXRT is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
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 | -2.68% | ||
| ROE | -14.29% | ||
| ROIC | 1.22% |
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 11.11%, 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.
With a decent Gross Margin value of 62.76%, NXRT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
NXRT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.11% | ||
| PM (TTM) | N/A | ||
| GM | 62.76% |
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
NXRT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for NXRT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.47, we must say that NXRT is in the distress zone and has some risk of bankruptcy.
NXRT has a worse Altman-Z score (0.47) than 65.00% of its industry peers.
The Debt to FCF ratio of NXRT is 32.74, which is on the high side as it means it would take NXRT, 32.74 years of fcf income to pay off all of its debts.
NXRT has a Debt to FCF ratio of 32.74. This is in the better half of the industry: NXRT outperforms 65.00% of its industry peers.
A Debt/Equity ratio of 4.22 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 4.22, NXRT is doing worse than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.22 | ||
| Debt/FCF | 32.74 | ||
| Altman-Z | 0.47 |
ROIC/WACC0.15
WACC7.89%
2.3 Liquidity
A Current Ratio of 1.03 indicates that NXRT should not have too much problems paying its short term obligations.
NXRT has a better Current ratio (1.03) than 80.00% of its industry peers.
A Quick Ratio of 1.03 indicates that NXRT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.03, NXRT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
NXRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -212.21%.
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.
Looking at the last year, NXRT shows a decrease in Revenue. The Revenue has decreased by -6.02% in the last year.
The Revenue has been growing slightly by 7.48% on average over the past years.
EPS 1Y (TTM)-212.21%
EPS 3Y-70.76%
EPS 5Y-65.41%
EPS Q2Q%-170%
Revenue 1Y (TTM)-6.02%
Revenue growth 3Y5.81%
Revenue growth 5Y7.48%
Sales Q2Q%-17.9%
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 -291.42% yearly.
The Revenue is expected to grow by 2.48% on average over the next years.
EPS Next Y-6534.52%
EPS Next 2Y-702.01%
EPS Next 3Y-291.42%
EPS Next 5YN/A
Revenue Next Year-2.52%
Revenue Next 2Y0.69%
Revenue Next 3Y1.89%
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.
Based on the Price/Free Cash Flow ratio, NXRT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.41 | ||
| EV/EBITDA | 18.39 |
4.3 Compensation for Growth
A cheap valuation may be justified as NXRT's earnings are expected to decrease with -291.42% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-702.01%
EPS Next 3Y-291.42%
5. Dividend
5.1 Amount
NXRT has a Yearly Dividend Yield of 5.95%, which is a nice return.
NXRT's Dividend Yield is a higher than the industry average which is at 4.68.
NXRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.95% |
5.2 History
The dividend of NXRT is nicely growing with an annual growth rate of 10.88%!
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)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-104.31%
EPS Next 2Y-702.01%
EPS Next 3Y-291.42%
32.51
-1.32 (-3.9%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners77.34%
Inst Owner Change-2.21%
Ins Owners13.35%
Ins Owner Change4.51%
Market Cap824.45M
Analysts72.86
Price Target36.21 (11.38%)
Short Float %1.83%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.95% |
Yearly Dividend1.93
Dividend Growth(5Y)10.88%
DP-104.31%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.59%
Min EPS beat(2)8.72%
Max EPS beat(2)18.46%
EPS beat(4)2
Avg EPS beat(4)-44.01%
Min EPS beat(4)-176.12%
Max EPS beat(4)18.46%
EPS beat(8)5
Avg EPS beat(8)52.88%
EPS beat(12)6
Avg EPS beat(12)9.02%
EPS beat(16)9
Avg EPS beat(16)54.93%
Revenue beat(2)0
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)-1.59%
Revenue beat(4)0
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)-1.36%
Revenue beat(8)2
Avg Revenue beat(8)3.22%
Revenue beat(12)3
Avg Revenue beat(12)1.86%
Revenue beat(16)6
Avg Revenue beat(16)1.46%
PT rev (1m)-6.37%
PT rev (3m)-10.69%
EPS NQ rev (1m)0.95%
EPS NQ rev (3m)-6.09%
EPS NY rev (1m)-3.56%
EPS NY rev (3m)-9.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.24 | ||
| P/FCF | 18.41 | ||
| P/OCF | 10 | ||
| P/B | 2.37 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 18.39 |
EPS(TTM)-1.93
EYN/A
EPS(NY)-1.25
Fwd EYN/A
FCF(TTM)1.77
FCFY5.43%
OCF(TTM)3.25
OCFY10%
SpS10.03
BVpS13.72
TBVpS13.72
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.68% | ||
| ROE | -14.29% | ||
| ROCE | 1.55% | ||
| ROIC | 1.22% | ||
| ROICexc | 1.23% | ||
| ROICexgc | 1.25% | ||
| OM | 11.11% | ||
| PM (TTM) | N/A | ||
| GM | 62.76% | ||
| FCFM | 17.62% |
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%
ROICexcg growth 3Y22.72%
ROICexcg 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 | 4.22 | ||
| Debt/FCF | 32.74 | ||
| Debt/EBITDA | 11.67 | ||
| Cap/Depr | 38.64% | ||
| Cap/Sales | 14.8% | ||
| Interest Coverage | 0.3 | ||
| Cash Conversion | 65.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 0.47 |
F-Score4
WACC7.89%
ROIC/WACC0.15
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)-212.21%
EPS 3Y-70.76%
EPS 5Y-65.41%
EPS Q2Q%-170%
EPS Next Y-6534.52%
EPS Next 2Y-702.01%
EPS Next 3Y-291.42%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.02%
Revenue growth 3Y5.81%
Revenue growth 5Y7.48%
Sales Q2Q%-17.9%
Revenue Next Year-2.52%
Revenue Next 2Y0.69%
Revenue Next 3Y1.89%
Revenue Next 5Y2.48%
EBIT growth 1Y-24.73%
EBIT growth 3Y19.26%
EBIT growth 5Y15.4%
EBIT Next Year18458.6%
EBIT Next 3Y496.24%
EBIT Next 5Y287.99%
FCF growth 1Y183.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.62%
OCF growth 3Y0.14%
OCF growth 5Y7.45%