NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NXRT - US65341D1028 - REIT
28.25 USD
-0.13 (-0.46%)
28.25 USD
0 (0%)
Taking everything into account, NXRT scores 2 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 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NXRT has reported negative net income.
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 (-2.64%) is worse than 90.00% of its industry peers.
With a Return On Equity value of -15.06%, NXRT is not doing good in the industry: 90.00% of the companies in the same industry are doing better.
NXRT has a worse Return On Invested Capital (1.26%) than 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
NXRT's Profit Margin has declined in the last couple of years.
NXRT has a worse Operating Margin (11.35%) than 70.00% of its industry peers.
NXRT's Operating Margin has improved in the last couple of years.
The Gross Margin of NXRT (63.29%) is better than 90.00% of its industry peers.
NXRT's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, NXRT has less shares outstanding
The number of shares outstanding for NXRT has been increased compared to 5 years ago.
Compared to 1 year ago, NXRT has a worse debt to assets ratio.
2.2 Solvency
NXRT has an Altman-Z score of 0.39. This is a bad value and indicates that NXRT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NXRT (0.39) is worse than 65.00% 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.
The Debt to FCF ratio of NXRT (33.86) 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.
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 | 0.39 |
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.
A Quick Ratio of 0.72 indicates that NXRT may have some problems paying its short term obligations.
Looking at the Quick 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.
| 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.
Looking at the last year, NXRT shows a decrease in Revenue. The Revenue has decreased by -4.46% in the last 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
NXRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.23% yearly.
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.
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
The Price/Earnings Ratio is negative for NXRT. In the last year negative earnings were reported.
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
65.00% of the companies in the same industry are more expensive than NXRT, based on the Enterprise Value to EBITDA ratio.
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 | 16.52 | ||
| EV/EBITDA | 17.35 |
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 7.47%, NXRT is a good candidate for dividend investing.
NXRT's Dividend Yield is a higher than the industry average which is at 11.45.
Compared to an average S&P500 Dividend Yield of 1.87, NXRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.47% |
5.2 History
The dividend of NXRT is nicely growing with an annual growth rate of 10.88%!
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-726.44%
EPS Next 3Y-301.87%
28.25
-0.13 (-0.46%)
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 Change0%
Market Cap716.42M
Revenue(TTM)252.99M
Net Income(TTM)-48.65M
Analysts72.86
Price Target34.68 (22.76%)
Short Float %2.68%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.47% |
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)-3.77%
PT rev (3m)-4.23%
EPS NQ rev (1m)4.9%
EPS NQ rev (3m)-5.7%
EPS NY rev (1m)1.83%
EPS NY rev (3m)3.78%
Revenue NQ rev (1m)-0.09%
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 | 2.83 | ||
| P/FCF | 16.52 | ||
| P/OCF | 8.54 | ||
| P/B | 2.22 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 17.35 |
EPS(TTM)-1.89
EYN/A
EPS(NY)-1.33
Fwd EYN/A
FCF(TTM)1.71
FCFY6.05%
OCF(TTM)3.31
OCFY11.71%
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 | 0.39 |
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 Year18688.7%
EBIT Next 3Y492.34%
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.