NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
USA - NYSE:NXRT - US65341D1028 - REIT
31.45 USD
+0.74 (+2.41%)
31.45 USD
0 (0%)
NXRT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. NXRT has a bad profitability rating. Also its financial health evaluation is rather negative. NXRT has a expensive valuation and it also scores bad on growth. NXRT also has an excellent dividend rating.
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
With a Return On Assets value of -2.68%, NXRT is not doing good in the industry: 85.00% of the companies in the same industry are doing better.
With a Return On Equity value of -14.29%, NXRT is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 1.22%, NXRT is doing worse than 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NXRT is in line with the industry average of 2.61%.
| 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
In the last couple of years the Profit Margin of NXRT has declined.
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.
NXRT has a better Gross Margin (62.76%) than 80.00% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
NXRT has a worse debt/assets ratio than last year.
2.2 Solvency
NXRT has an Altman-Z score of 0.45. This is a bad value and indicates that NXRT is not financially healthy and even has some risk of bankruptcy.
NXRT has a worse Altman-Z score (0.45) 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.
The Debt to FCF ratio of NXRT (32.74) is comparable to the rest of the industry.
NXRT has a Debt/Equity ratio of 4.22. This is a high value indicating a heavy dependency on external 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 | 0.45 |
ROIC/WACC0.16
WACC7.67%
2.3 Liquidity
A Current Ratio of 1.03 indicates that NXRT should not have too much problems paying its short term obligations.
The Current ratio of NXRT (1.03) is better than 80.00% of its industry peers.
NXRT has a Quick 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.
The Quick ratio of NXRT (1.03) is better than 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 -209.25%.
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.
NXRT shows a decrease in Revenue. In the last year, the revenue decreased by -4.46%.
The Revenue has been growing slightly by 7.48% on average over the past years.
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
Based on estimates for the next years, NXRT will show a very negative growth in Earnings Per Share. The EPS will decrease by -287.31% on average per year.
NXRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.48% yearly.
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.
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
NXRT's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 17.81 | ||
| EV/EBITDA | 17.91 |
4.3 Compensation for Growth
A cheap valuation may be justified as NXRT's earnings are expected to decrease with -287.31% in the coming years.
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 6.90%, NXRT is a good candidate for dividend investing.
NXRT's Dividend Yield is rather good when compared to the industry average which is at 7.38. NXRT pays more dividend than 85.00% of the companies in the same industry.
NXRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.9% |
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-703.28%
EPS Next 3Y-287.31%
31.45
+0.74 (+2.41%)
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-0.29%
Ins Owners13.32%
Ins Owner Change1.53%
Market Cap797.57M
Revenue(TTM)252.99M
Net Income(TTM)-49.71M
Analysts72.86
Price Target36.04 (14.59%)
Short Float %2.42%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.9% |
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)-0.47%
PT rev (3m)-6.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.48%
EPS NY rev (1m)0.54%
EPS NY rev (3m)-1.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.57%
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 | 3.14 | ||
| P/FCF | 17.81 | ||
| P/OCF | 9.68 | ||
| P/B | 2.29 | ||
| P/tB | 2.29 | ||
| EV/EBITDA | 17.91 |
EPS(TTM)-1.89
EYN/A
EPS(NY)-1.25
Fwd EYN/A
FCF(TTM)1.77
FCFY5.62%
OCF(TTM)3.25
OCFY10.34%
SpS10.03
BVpS13.72
TBVpS13.72
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/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%
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 | 4.22 | ||
| 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 | 0.45 |
F-Score4
WACC7.67%
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-24.73%
EBIT growth 3Y19.26%
EBIT growth 5Y15.4%
EBIT Next Year18452.7%
EBIT Next 3Y497.35%
EBIT Next 5Y288.05%
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%
NEXPOINT RESIDENTIAL / NXRT FAQ
Can you provide the ChartMill fundamental rating for NEXPOINT RESIDENTIAL?
ChartMill assigns a fundamental rating of 3 / 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 3 / 10.