NEXPOINT REAL ESTATE FINANCE (NREF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NREF - US65342V1017 - REIT
14.59 USD
-0.2 (-1.35%)
14.59 USD
0 (0%)
Taking everything into account, NREF scores 6 out of 10 in our fundamental rating. NREF was compared to 69 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. An interesting combination arises when we look at growth and value: NREF is growing strongly while it also seems undervalued.
1. Profitability
1.1 Basic Checks
In the past year NREF was profitable.
In the past year NREF had a positive cash flow from operations.
Each year in the past 5 years NREF has been profitable.
Each year in the past 5 years NREF had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.99%, NREF belongs to the top of the industry, outperforming 81.16% of the companies in the same industry.
With an excellent Return On Equity value of 9.03%, NREF belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
The Return On Invested Capital of NREF (1.28%) is better than 85.51% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NREF is in line with the industry average of 1.23%.
The 3 year average ROIC (0.29%) for NREF is below the current ROIC(1.28%), indicating increased profibility in the last year.
| 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
NREF has a Profit Margin of 31.45%. This is amongst the best in the industry. NREF outperforms 92.75% of its industry peers.
In the last couple of years the Profit Margin of NREF has declined.
Looking at the Operating Margin, with a value of 51.43%, NREF belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
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 91.30% of its industry peers.
NREF's Gross Margin has improved in the last couple of years.
| 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
NREF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for NREF has been increased compared to 1 year ago.
Compared to 5 years ago, NREF has more shares outstanding
Compared to 1 year ago, NREF has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.04, we must say that NREF is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.04, NREF is doing good in the industry, outperforming 69.57% of the companies in the same industry.
The Debt to FCF ratio of NREF is 123.36, which is on the high side as it means it would take NREF, 123.36 years of fcf income to pay off all of its debts.
NREF's Debt to FCF ratio of 123.36 is fine compared to the rest of the industry. NREF outperforms 62.32% of its industry peers.
A Debt/Equity ratio of 7.95 is on the high side and indicates that NREF has dependencies on debt financing.
The Debt to Equity ratio of NREF (7.95) is worse than 71.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.95 | ||
| Debt/FCF | 123.36 | ||
| Altman-Z | 0.04 |
ROIC/WACC1.02
WACC1.25%
2.3 Liquidity
A Current Ratio of 0.03 indicates that NREF may have some problems paying its short term obligations.
With a Current ratio value of 0.03, NREF is not doing good in the industry: 85.51% of the companies in the same industry are doing better.
NREF has a Quick 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.
With a Quick ratio value of 0.03, NREF is not doing good in the industry: 85.51% of the companies in the same industry are doing better.
| 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 54.61%, 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.
Looking at the last year, NREF shows a quite strong growth in Revenue. The Revenue has grown by 19.18% in the last year.
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)54.61%
EPS 3Y-8.76%
EPS 5YN/A
EPS Q2Q%-32%
Revenue 1Y (TTM)19.18%
Revenue growth 3Y-2.84%
Revenue growth 5Y17.01%
Sales Q2Q%-3%
3.2 Future
NREF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.91% yearly.
The Revenue is expected to grow by 21.84% on average over the next years. This is a very strong growth
EPS Next Y7.67%
EPS Next 2Y5.25%
EPS Next 3Y3.91%
EPS Next 5YN/A
Revenue Next Year44.51%
Revenue Next 2Y23.42%
Revenue Next 3Y21.84%
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
A Price/Earnings ratio of 6.69 indicates a rather cheap valuation of NREF.
Based on the Price/Earnings ratio, NREF is valued cheaper than 89.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.41. NREF is valued rather cheaply when compared to this.
NREF is valuated cheaply with a Price/Forward Earnings ratio of 7.32.
76.81% of the companies in the same industry are more expensive than NREF, based on the Price/Forward Earnings ratio.
NREF is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 7.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NREF indicates a rather cheap valuation: NREF is cheaper than 86.96% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NREF indicates a rather cheap valuation: NREF is cheaper than 86.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.79 | ||
| EV/EBITDA | 51.48 |
4.3 Compensation for Growth
NREF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of NREF may justify a higher PE ratio.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y5.25%
EPS Next 3Y3.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.84%, NREF is a good candidate for dividend investing.
NREF's Dividend Yield is a higher than the industry average which is at 13.00.
Compared to an average S&P500 Dividend Yield of 2.32, NREF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.84% |
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 3Y3.91%
14.59
-0.2 (-1.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners68.7%
Inst Owner Change-2.66%
Ins Owners7.1%
Ins Owner Change0%
Market Cap258.53M
Revenue(TTM)116.74M
Net Income(TTM)53.30M
Analysts47.5
Price Target14.41 (-1.23%)
Short Float %1.75%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.84% |
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)-3.42%
PT rev (3m)-3.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 7.32 | ||
| P/S | 1.53 | ||
| P/FCF | 6.79 | ||
| P/OCF | 6.73 | ||
| P/B | 0.44 | ||
| P/tB | 0.44 | ||
| EV/EBITDA | 51.48 |
EPS(TTM)2.18
EY14.94%
EPS(NY)1.99
Fwd EY13.67%
FCF(TTM)2.15
FCFY14.72%
OCF(TTM)2.17
OCFY14.87%
SpS9.56
BVpS33.32
TBVpS33.32
PEG (NY)0.87
PEG (5Y)N/A
Graham Number40.43
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
WACC1.25%
ROIC/WACC1.02
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)54.61%
EPS 3Y-8.76%
EPS 5YN/A
EPS Q2Q%-32%
EPS Next Y7.67%
EPS Next 2Y5.25%
EPS Next 3Y3.91%
EPS Next 5YN/A
Revenue 1Y (TTM)19.18%
Revenue growth 3Y-2.84%
Revenue growth 5Y17.01%
Sales Q2Q%-3%
Revenue Next Year44.51%
Revenue Next 2Y23.42%
Revenue Next 3Y21.84%
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 6.69 and the Price/Book (PB) ratio is 0.44.
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%.