NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
USA - NYSE:NXRT - US65341D1028 - REIT
30.89 USD
-0.61 (-1.94%)
30.89 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 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.
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
The Return On Assets of NXRT (-2.68%) is worse than 90.00% of its industry peers.
The Return On Equity of NXRT (-14.29%) is worse 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.
NXRT had an Average Return On Invested Capital over the past 3 years of 1.37%. This 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.
NXRT has a Operating Margin of 11.11%. This is in the lower half of the industry: NXRT underperforms 75.00% of its industry peers.
NXRT's Operating Margin has improved in the last couple of years.
NXRT has a better Gross Margin (62.76%) than 80.00% of its industry peers.
In the last couple of years the Gross Margin of NXRT has declined.
| 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
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
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
NXRT has an Altman-Z score of 0.44. 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 (0.44) is worse than 65.00% of its industry peers.
NXRT has a debt to FCF ratio of 32.74. This is a negative value and a sign of low solvency as NXRT would need 32.74 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 32.74, NXRT is doing good in the industry, outperforming 65.00% of the companies in the same industry.
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 | 0.44 |
ROIC/WACC0.16
WACC7.66%
2.3 Liquidity
NXRT has a Current Ratio of 1.03. This is a normal value and indicates that NXRT is financially healthy and should not expect problems in meeting its short term obligations.
NXRT's Current ratio of 1.03 is fine compared to the rest of the industry. NXRT outperforms 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.
NXRT's Quick ratio of 1.03 is fine compared to the rest of the industry. NXRT outperforms 80.00% of its industry peers.
| 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%.
The earnings per share for NXRT have been decreasing by -65.41% on average. This is quite bad
The Revenue has decreased by -6.02% 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)-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 -286.93% yearly.
The Revenue is expected to grow by 2.48% on average over the next years.
EPS Next Y-6440.98%
EPS Next 2Y-703.92%
EPS Next 3Y-286.93%
EPS Next 5YN/A
Revenue Next Year-2.56%
Revenue Next 2Y0.53%
Revenue Next 3Y1.89%
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.
NXRT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NXRT is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.49 | ||
| EV/EBITDA | 17.8 |
4.3 Compensation for Growth
A cheap valuation may be justified as NXRT's earnings are expected to decrease with -286.93% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-703.92%
EPS Next 3Y-286.93%
5. Dividend
5.1 Amount
NXRT has a Yearly Dividend Yield of 6.48%, which is a nice return.
NXRT's Dividend Yield is a higher than the industry average which is at 6.43.
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 | 6.48% |
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.
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
NXRT has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-104.31%
EPS Next 2Y-703.92%
EPS Next 3Y-286.93%
30.89
-0.61 (-1.94%)
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 Change-0.04%
Ins Owners13.32%
Ins Owner Change1.53%
Market Cap783.37M
Analysts72.86
Price Target36.21 (17.22%)
Short Float %3.16%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.48% |
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)0%
PT rev (3m)-10.69%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)-5.59%
EPS NY rev (1m)1.45%
EPS NY rev (3m)-2.05%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.08 | ||
| P/FCF | 17.49 | ||
| P/OCF | 9.5 | ||
| P/B | 2.25 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 17.8 |
EPS(TTM)-1.93
EYN/A
EPS(NY)-1.25
Fwd EYN/A
FCF(TTM)1.77
FCFY5.72%
OCF(TTM)3.25
OCFY10.52%
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 | 0.44 |
F-Score4
WACC7.66%
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)-212.21%
EPS 3Y-70.76%
EPS 5Y-65.41%
EPS Q2Q%-170%
EPS Next Y-6440.98%
EPS Next 2Y-703.92%
EPS Next 3Y-286.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.02%
Revenue growth 3Y5.81%
Revenue growth 5Y7.48%
Sales Q2Q%-17.9%
Revenue Next Year-2.56%
Revenue Next 2Y0.53%
Revenue Next 3Y1.89%
Revenue Next 5Y2.48%
EBIT growth 1Y-24.73%
EBIT growth 3Y19.26%
EBIT growth 5Y15.4%
EBIT Next Year18452.7%
EBIT Next 3Y497.35%
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%