NEXPOINT REAL ESTATE FINANCE (NREF) Stock Fundamental Analysis
USA - NYSE:NREF - US65342V1017 - REIT
13.53 USD
+0.16 (+1.2%)
13.53 USD
0 (0%)
Taking everything into account, NREF scores 6 out of 10 in our fundamental rating. NREF was compared to 66 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. NREF has an excellent profitability rating, but there are concerns on its financial health. NREF is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
NREF had positive earnings in the past year.
NREF had a positive operating cash flow in the past year.
NREF had positive earnings in each of the past 5 years.
NREF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.99%, NREF belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
NREF's Return On Equity of 9.03% is amongst the best of the industry. NREF outperforms 95.45% of its industry peers.
The Return On Invested Capital of NREF (1.28%) is better than 84.85% of its industry peers.
NREF had an Average Return On Invested Capital over the past 3 years of 0.29%. This is in line with the industry average of 1.28%.
The last Return On Invested Capital (1.28%) for NREF is above the 3 year average (0.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 9.03% | ||
| ROIC | 1.28% |
ROA(3y)0.17%
ROA(5y)0.23%
ROE(3y)2.48%
ROE(5y)6.54%
ROIC(3y)0.29%
ROIC(5y)0.42%
1.3 Margins
With an excellent Profit Margin value of 31.45%, NREF belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
In the last couple of years the Profit Margin of NREF has declined.
NREF's Operating Margin of 51.43% is amongst the best of the industry. NREF outperforms 89.39% of its industry peers.
NREF's Operating Margin has declined in the last couple of years.
NREF's Gross Margin of 74.04% is amongst the best of the industry. NREF outperforms 90.91% of its industry peers.
In the last couple of years the Gross Margin of NREF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.43% | ||
| PM (TTM) | 31.45% | ||
| GM | 74.04% |
OM growth 3Y-21.92%
OM growth 5Y-10.46%
PM growth 3Y-21.3%
PM growth 5YN/A
GM growth 3Y-5.8%
GM growth 5Y2.25%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NREF is creating some value.
The number of shares outstanding for NREF has been increased compared to 1 year ago.
NREF has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NREF has been reduced compared to a year ago.
2.2 Solvency
NREF has an Altman-Z score of 0.04. This is a bad value and indicates that NREF is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.04, NREF is doing good in the industry, outperforming 68.18% of the companies in the same industry.
NREF has a debt to FCF ratio of 123.36. This is a negative value and a sign of low solvency as NREF would need 123.36 years to pay back of all of its debts.
With a Debt to FCF ratio value of 123.36, NREF perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
A Debt/Equity ratio of 7.95 is on the high side and indicates that NREF has dependencies on debt financing.
NREF has a worse Debt to Equity ratio (7.95) than 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.95 | ||
| Debt/FCF | 123.36 | ||
| Altman-Z | 0.04 |
ROIC/WACC1.07
WACC1.2%
2.3 Liquidity
NREF has a Current Ratio of 0.03. This is a bad value and indicates that NREF is not financially healthy enough and could expect problems in meeting its short term obligations.
NREF has a Current ratio of 0.03. This is amonst the worse of the industry: NREF underperforms 86.36% of its industry peers.
A Quick Ratio of 0.03 indicates that NREF may have some problems paying its short term obligations.
NREF's Quick ratio of 0.03 is on the low side compared to the rest of the industry. NREF is outperformed by 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 |
3. Growth
3.1 Past
NREF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 122.02%, which is quite impressive.
NREF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.76% yearly.
The Revenue has grown by 101.73% in the past year. This is a very strong growth!
Measured over the past years, NREF shows a quite strong growth in Revenue. The Revenue has been growing by 17.01% on average per year.
EPS 1Y (TTM)122.02%
EPS 3Y-8.76%
EPS 5YN/A
EPS Q2Q%-36.76%
Revenue 1Y (TTM)101.73%
Revenue growth 3Y-2.84%
Revenue growth 5Y17.01%
Sales Q2Q%25.26%
3.2 Future
NREF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.25% yearly.
NREF is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.12% yearly.
EPS Next Y7.67%
EPS Next 2Y5.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year43.83%
Revenue Next 2Y23.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NREF is valuated cheaply with a Price/Earnings ratio of 5.59.
Based on the Price/Earnings ratio, NREF is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
NREF is valuated cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.79 indicates a rather cheap valuation of NREF.
86.36% of the companies in the same industry are more expensive than NREF, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NREF to the average of the S&P500 Index (22.92), we can say NREF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.59 | ||
| Fwd PE | 6.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NREF is valued cheaper than 87.88% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NREF is valued cheaply inside the industry as 87.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.3 | ||
| EV/EBITDA | 51.21 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NREF has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.73
PEG (5Y)N/A
EPS Next 2Y5.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.12%, NREF is a good candidate for dividend investing.
NREF's Dividend Yield is a higher than the industry average which is at 12.94.
Compared to an average S&P500 Dividend Yield of 2.34, NREF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.12% |
5.2 History
NREF has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NREF pays out 98.44% of its income as dividend. This is not a sustainable payout ratio.
DP98.44%
EPS Next 2Y5.25%
EPS Next 3YN/A
13.53
+0.16 (+1.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners68.7%
Inst Owner Change0%
Ins Owners7.1%
Ins Owner Change0%
Market Cap239.75M
Revenue(TTM)169.45M
Net Income(TTM)53.30M
Analysts47.5
Price Target14.92 (10.27%)
Short Float %1.7%
Short Ratio5.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.12% |
Yearly Dividend2.67
Dividend Growth(5Y)N/A
DP98.44%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.49%
Min EPS beat(2)-17.97%
Max EPS beat(2)-9.01%
EPS beat(4)2
Avg EPS beat(4)8.41%
Min EPS beat(4)-17.97%
Max EPS beat(4)53.19%
EPS beat(8)3
Avg EPS beat(8)7.89%
EPS beat(12)6
Avg EPS beat(12)7.09%
EPS beat(16)9
Avg EPS beat(16)6.58%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-1.26%
Max Revenue beat(2)1.15%
Revenue beat(4)3
Avg Revenue beat(4)16.32%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)42.76%
Revenue beat(8)3
Avg Revenue beat(8)-0.38%
Revenue beat(12)4
Avg Revenue beat(12)-3.68%
Revenue beat(16)8
Avg Revenue beat(16)64.52%
PT rev (1m)0%
PT rev (3m)-4.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.59 | ||
| Fwd PE | 6.79 | ||
| P/S | 1.41 | ||
| P/FCF | 6.3 | ||
| P/OCF | 6.24 | ||
| P/B | 0.41 | ||
| P/tB | 0.41 | ||
| EV/EBITDA | 51.21 |
EPS(TTM)2.42
EY17.89%
EPS(NY)1.99
Fwd EY14.74%
FCF(TTM)2.15
FCFY15.88%
OCF(TTM)2.17
OCFY16.03%
SpS9.56
BVpS33.32
TBVpS33.32
PEG (NY)0.73
PEG (5Y)N/A
Graham Number42.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 9.03% | ||
| ROCE | 1.7% | ||
| ROIC | 1.28% | ||
| ROICexc | 1.28% | ||
| ROICexgc | 1.28% | ||
| OM | 51.43% | ||
| PM (TTM) | 31.45% | ||
| GM | 74.04% | ||
| FCFM | 22.47% |
ROA(3y)0.17%
ROA(5y)0.23%
ROE(3y)2.48%
ROE(5y)6.54%
ROIC(3y)0.29%
ROIC(5y)0.42%
ROICexc(3y)0.29%
ROICexc(5y)0.42%
ROICexgc(3y)0.29%
ROICexgc(5y)0.42%
ROCE(3y)0.39%
ROCE(5y)0.55%
ROICexgc growth 3Y-11.77%
ROICexgc growth 5YN/A
ROICexc growth 3Y-11.78%
ROICexc growth 5YN/A
OM growth 3Y-21.92%
OM growth 5Y-10.46%
PM growth 3Y-21.3%
PM growth 5YN/A
GM growth 3Y-5.8%
GM growth 5Y2.25%
F-Score7
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.95 | ||
| Debt/FCF | 123.36 | ||
| Debt/EBITDA | 51.57 | ||
| Cap/Depr | 9.34% | ||
| Cap/Sales | 0.22% | ||
| Interest Coverage | 2.16 | ||
| Cash Conversion | 42.21% | ||
| Profit Quality | 71.43% | ||
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 | ||
| Altman-Z | 0.04 |
F-Score7
WACC1.2%
ROIC/WACC1.07
Cap/Depr(3y)2124.95%
Cap/Depr(5y)N/A
Cap/Sales(3y)76.13%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)122.02%
EPS 3Y-8.76%
EPS 5YN/A
EPS Q2Q%-36.76%
EPS Next Y7.67%
EPS Next 2Y5.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)101.73%
Revenue growth 3Y-2.84%
Revenue growth 5Y17.01%
Sales Q2Q%25.26%
Revenue Next Year43.83%
Revenue Next 2Y23.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6077.57%
EBIT growth 3Y-24.13%
EBIT growth 5Y4.77%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1.3%
FCF growth 3Y14.5%
FCF growth 5YN/A
OCF growth 1Y2.27%
OCF growth 3Y-15.94%
OCF growth 5YN/A
NEXPOINT REAL ESTATE FINANCE / NREF FAQ
What is the fundamental rating for NREF stock?
ChartMill assigns a fundamental rating of 6 / 10 to NREF.
What is the valuation status for NREF stock?
ChartMill assigns a valuation rating of 9 / 10 to NEXPOINT REAL ESTATE FINANCE (NREF). This can be considered as Undervalued.
How profitable is NEXPOINT REAL ESTATE FINANCE (NREF) stock?
NEXPOINT REAL ESTATE FINANCE (NREF) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for NREF stock?
The Price/Earnings (PE) ratio for NEXPOINT REAL ESTATE FINANCE (NREF) is 5.59 and the Price/Book (PB) ratio is 0.41.
How sustainable is the dividend of NEXPOINT REAL ESTATE FINANCE (NREF) stock?
The dividend rating of NEXPOINT REAL ESTATE FINANCE (NREF) is 4 / 10 and the dividend payout ratio is 98.44%.