NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
USA - NYSE:NXRT - US65341D1028 - REIT
31.55 USD
+0.99 (+3.24%)
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 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.
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
NXRT has a worse Return On Assets (-2.64%) than 90.00% of its industry peers.
The Return On Equity of NXRT (-15.06%) is worse than 90.00% of its industry peers.
The Return On Invested Capital of NXRT (1.26%) is worse than 75.00% 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.
With a Operating Margin value of 11.35%, NXRT is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
NXRT's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 63.29%, NXRT belongs to the best 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.
NXRT has less shares outstanding than it did 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
Based on the Altman-Z score of 0.41, we must say that NXRT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.41, NXRT is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
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 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 | 0.41 |
ROIC/WACC0.16
WACC7.69%
2.3 Liquidity
A Current Ratio of 0.72 indicates that NXRT may have some problems paying its short term obligations.
The Current ratio of NXRT (0.72) is better than 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 better Quick ratio (0.72) than 70.00% 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%.
The earnings per share for NXRT have been decreasing by -65.41% on average. This is quite bad
The Revenue has decreased by -4.46% in the past year.
Measured over the past years, NXRT shows a small growth in Revenue. The Revenue has been growing by 7.48% on average per year.
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 -287.31% 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 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.
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
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 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.45 | ||
| EV/EBITDA | 17.81 |
4.3 Compensation for Growth
NXRT's earnings are expected to decrease with -287.31% in the coming years. This may justify a cheaper valuation.
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
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-703.28%
EPS Next 3Y-287.31%
NYSE:NXRT (11/21/2025, 2:16:41 PM)
31.55
+0.99 (+3.24%)
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 Cap800.11M
Revenue(TTM)252.99M
Net Income(TTM)-48.65M
Analysts72.86
Price Target36.04 (14.23%)
Short Float %2.43%
Short Ratio3.21
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 | 18.45 | ||
| P/OCF | 9.53 | ||
| P/B | 2.48 | ||
| P/tB | 2.48 | ||
| EV/EBITDA | 17.81 |
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 | 0.41 |
F-Score4
WACC7.69%
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 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.