NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
NYSE:NXRT - New York Stock Exchange, Inc. - US65341D1028 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to NXRT. NXRT was compared to 20 industry peers in the Residential REITs industry. NXRT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
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
NXRT has a Return On Assets of -1.71%. This is amonst the worse of the industry: NXRT underperforms 90.00% of its industry peers.
The Return On Equity of NXRT (-8.45%) is worse than 85.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.20%, NXRT is doing worse than 70.00% of the companies in the same industry.
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 2.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.71% | ||
| ROE | -8.45% | ||
| ROIC | 1.2% |
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's Operating Margin of 11.03% is on the low side compared to the rest of the industry. NXRT is outperformed by 75.00% of its industry peers.
In the last couple of years the Operating Margin of NXRT has grown nicely.
NXRT's Gross Margin of 94.44% is amongst the best of the industry. NXRT outperforms 100.00% of its industry peers.
NXRT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.03% | ||
| PM (TTM) | N/A | ||
| GM | 94.44% |
OM growth 3Y12.71%
OM growth 5Y7.38%
PM growth 3Y-65.59%
PM growth 5Y-62.11%
GM growth 3Y0.28%
GM growth 5Y0.34%
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
Based on the Altman-Z score of 0.50, we must say that NXRT is in the distress zone and has some risk of bankruptcy.
NXRT has a worse Altman-Z score (0.50) than 65.00% of its industry peers.
The Debt to FCF ratio of NXRT is 32.10, which is on the high side as it means it would take NXRT, 32.10 years of fcf income to pay off all of its debts.
NXRT's Debt to FCF ratio of 32.10 is fine compared to the rest of the industry. NXRT outperforms 65.00% of its industry peers.
NXRT has a Debt/Equity ratio of 3.86. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.86, NXRT is doing worse than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 32.1 | ||
| Altman-Z | 0.5 |
ROIC/WACC0.15
WACC7.84%
2.3 Liquidity
NXRT has a Current Ratio of 1.45. This is a normal value and indicates that NXRT is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.45, NXRT belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
NXRT has a Quick Ratio of 1.45. This is a normal value and indicates that NXRT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NXRT (1.45) is better than 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The earnings per share for NXRT have decreased strongly by -206.84% in the last year.
NXRT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -65.41% yearly.
The Revenue has decreased by -7.44% 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)-206.84%
EPS 3Y-70.76%
EPS 5Y-65.41%
EPS Q2Q%-127%
Revenue 1Y (TTM)-7.44%
Revenue growth 3Y5.81%
Revenue growth 5Y7.48%
Sales Q2Q%-22.08%
3.2 Future
The Earnings Per Share is expected to decrease by -285.03% 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 2.85% yearly.
EPS Next Y-6313.48%
EPS Next 2Y-682.05%
EPS Next 3Y-285.03%
EPS Next 5YN/A
Revenue Next Year-1.83%
Revenue Next 2Y1.67%
Revenue Next 3Y3.02%
Revenue Next 5Y2.85%
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
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NXRT.
95.00% of the companies in the same industry are more expensive than NXRT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.69 | ||
| EV/EBITDA | 18.32 |
4.3 Compensation for Growth
NXRT's earnings are expected to decrease with -285.03% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-682.05%
EPS Next 3Y-285.03%
5. Dividend
5.1 Amount
NXRT has a Yearly Dividend Yield of 5.98%, which is a nice return.
Compared to an average industry Dividend Yield of 4.70, NXRT pays a bit more dividend than its industry peers.
NXRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
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
The earnings of NXRT are negative and hence is the payout ratio. NXRT will probably not be able to sustain this dividend level.
DP-157.7%
EPS Next 2Y-682.05%
EPS Next 3Y-285.03%
33.74
-0.51 (-1.49%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners78.2%
Inst Owner Change0%
Ins Owners13.37%
Ins Owner Change14.35%
Market Cap852.95M
Analysts72.86
Price Target40.55 (20.18%)
Short Float %1.5%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
Yearly Dividend1.93
Dividend Growth(5Y)10.88%
DP-157.7%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-83.7%
Min EPS beat(2)-176.12%
Max EPS beat(2)8.72%
EPS beat(4)2
Avg EPS beat(4)42.47%
Min EPS beat(4)-176.12%
Max EPS beat(4)364.38%
EPS beat(8)4
Avg EPS beat(8)34.81%
EPS beat(12)5
Avg EPS beat(12)5.61%
EPS beat(16)9
Avg EPS beat(16)54.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)-1.36%
Revenue beat(4)1
Avg Revenue beat(4)2.9%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)16.56%
Revenue beat(8)2
Avg Revenue beat(8)3.13%
Revenue beat(12)4
Avg Revenue beat(12)2.07%
Revenue beat(16)6
Avg Revenue beat(16)1.31%
PT rev (1m)0%
PT rev (3m)-10.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.64%
EPS NY rev (1m)-6.13%
EPS NY rev (3m)-8.78%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.34 | ||
| P/FCF | 18.69 | ||
| P/OCF | 10.38 | ||
| P/B | 2.25 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 18.32 |
EPS(TTM)-1.25
EYN/A
EPS(NY)-1.18
Fwd EYN/A
FCF(TTM)1.81
FCFY5.35%
OCF(TTM)3.25
OCFY9.64%
SpS10.1
BVpS15.03
TBVpS15.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.71% | ||
| ROE | -8.45% | ||
| ROCE | 1.52% | ||
| ROIC | 1.2% | ||
| ROICexc | 1.21% | ||
| ROICexgc | 1.24% | ||
| OM | 11.03% | ||
| PM (TTM) | N/A | ||
| GM | 94.44% | ||
| FCFM | 17.87% |
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 3Y0.28%
GM growth 5Y0.34%
F-Score4
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 32.1 | ||
| Debt/EBITDA | 11.63 | ||
| Cap/Depr | 37.39% | ||
| Cap/Sales | 14.32% | ||
| Interest Coverage | 0.28 | ||
| Cash Conversion | 65.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 0.5 |
F-Score4
WACC7.84%
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)-206.84%
EPS 3Y-70.76%
EPS 5Y-65.41%
EPS Q2Q%-127%
EPS Next Y-6313.48%
EPS Next 2Y-682.05%
EPS Next 3Y-285.03%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.44%
Revenue growth 3Y5.81%
Revenue growth 5Y7.48%
Sales Q2Q%-22.08%
Revenue Next Year-1.83%
Revenue Next 2Y1.67%
Revenue Next 3Y3.02%
Revenue Next 5Y2.85%
EBIT growth 1Y-31.21%
EBIT growth 3Y19.26%
EBIT growth 5Y15.4%
EBIT Next Year18457.1%
EBIT Next 3Y498.54%
EBIT Next 5Y289.64%
FCF growth 1Y140.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-16.4%
OCF growth 3Y0.14%
OCF growth 5Y7.45%