NEXPOINT REAL ESTATE FINANCE (NREF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NREF - US65342V1017 - REIT
14 USD
+0.07 (+0.5%)
14 USD
0 (0%)
Taking everything into account, NREF scores 6 out of 10 in our fundamental rating. NREF was compared to 68 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. While NREF belongs to the best of the industry regarding profitability, there are concerns on its financial health. NREF is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
NREF had positive earnings in the past year.
In the past year NREF had a positive cash flow from operations.
Each year in the past 5 years NREF has been profitable.
NREF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NREF has a Return On Assets of 1.37%. This is amongst the best in the industry. NREF outperforms 91.18% of its industry peers.
Looking at the Return On Equity, with a value of 10.66%, NREF belongs to the top of the industry, outperforming 97.06% of the companies in the same industry.
NREF's Return On Invested Capital of 1.75% is amongst the best of the industry. NREF outperforms 88.24% 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 (1.75%) for NREF is above the 3 year average (0.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 10.66% | ||
| ROIC | 1.75% |
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
Looking at the Profit Margin, with a value of 33.63%, NREF belongs to the top of the industry, outperforming 92.65% of the companies in the same industry.
In the last couple of years the Profit Margin of NREF has declined.
NREF has a better Operating Margin (54.32%) than 92.65% of its industry peers.
NREF's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 79.82%, NREF belongs to the top of the industry, outperforming 92.65% of the companies in the same industry.
NREF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 54.32% | ||
| PM (TTM) | 33.63% | ||
| GM | 79.82% |
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.
NREF has more shares outstanding than it did 1 year ago.
NREF has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NREF has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.08, we must say that NREF is in the distress zone and has some risk of bankruptcy.
NREF has a better Altman-Z score (0.08) than 73.53% of its industry peers.
The Debt to FCF ratio of NREF is 140.38, which is on the high side as it means it would take NREF, 140.38 years of fcf income to pay off all of its debts.
NREF has a Debt to FCF ratio (140.38) which is in line with its industry peers.
NREF has a Debt/Equity ratio of 6.61. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 6.61, NREF is in line with its industry, outperforming 42.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.61 | ||
| Debt/FCF | 140.39 | ||
| Altman-Z | 0.08 |
ROIC/WACC1.43
WACC1.23%
2.3 Liquidity
NREF has a Current Ratio of 0.06. This is a bad value and indicates that NREF is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.06, NREF is doing worse than 67.65% of the companies in the same industry.
NREF has a Quick Ratio of 0.06. 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's Quick ratio of 0.06 is on the low side compared to the rest of the industry. NREF is outperformed by 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 |
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.
The Earnings Per Share has been decreasing by -8.76% on average over the past years.
The Revenue has grown by 83.00% in the past year. This is a very strong growth!
The Revenue has been growing by 17.01% on average over the past years. This is quite good.
EPS 1Y (TTM)54.61%
EPS 3Y-8.76%
EPS 5YN/A
EPS Q2Q%-32%
Revenue 1Y (TTM)83%
Revenue growth 3Y-2.84%
Revenue growth 5Y17.01%
Sales Q2Q%-3%
3.2 Future
The Earnings Per Share is expected to grow by 3.65% on average over the next years.
The Revenue is expected to grow by 14.03% on average over the next years. This is quite good.
EPS Next Y11.07%
EPS Next 2Y4.58%
EPS Next 3Y3.65%
EPS Next 5YN/A
Revenue Next Year40.09%
Revenue Next 2Y16.29%
Revenue Next 3Y14.03%
Revenue Next 5YN/A
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.42, which indicates a rather cheap valuation of NREF.
Based on the Price/Earnings ratio, NREF is valued cheaply inside the industry as 89.71% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.59. NREF is valued rather cheaply when compared to this.
NREF is valuated cheaply with a Price/Forward Earnings ratio of 7.11.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NREF indicates a rather cheap valuation: NREF is cheaper than 85.29% of the companies listed in the same industry.
NREF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.42 | ||
| Fwd PE | 7.11 |
4.2 Price Multiples
NREF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NREF is cheaper than 92.65% of the companies 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 86.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.78 | ||
| EV/EBITDA | 37.05 |
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)0.58
PEG (5Y)N/A
EPS Next 2Y4.58%
EPS Next 3Y3.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.83%, NREF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.23, NREF's dividend is way lower than its industry peers. On top of this 83.82% of the companies listed in the same industry pay a better dividend than NREF!
Compared to an average S&P500 Dividend Yield of 1.87, NREF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.83% |
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 80.04% of its income as dividend. This is not a sustainable payout ratio.
DP80.04%
EPS Next 2Y4.58%
EPS Next 3Y3.65%
14
+0.07 (+0.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners69.12%
Inst Owner Change-2.66%
Ins Owners7.11%
Ins Owner Change0%
Market Cap248.08M
Revenue(TTM)214.73M
Net Income(TTM)72.21M
Analysts47.5
Price Target14.41 (2.93%)
Short Float %1.66%
Short Ratio4.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.83% |
Yearly Dividend2.67
Dividend Growth(5Y)N/A
DP80.04%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.32%
Min EPS beat(2)-9.01%
Max EPS beat(2)6.38%
EPS beat(4)2
Avg EPS beat(4)-3.29%
Min EPS beat(4)-17.97%
Max EPS beat(4)7.42%
EPS beat(8)4
Avg EPS beat(8)10.04%
EPS beat(12)6
Avg EPS beat(12)6.15%
EPS beat(16)9
Avg EPS beat(16)6.14%
Revenue beat(2)0
Avg Revenue beat(2)-2.29%
Min Revenue beat(2)-3.33%
Max Revenue beat(2)-1.26%
Revenue beat(4)2
Avg Revenue beat(4)9.83%
Min Revenue beat(4)-3.33%
Max Revenue beat(4)42.76%
Revenue beat(8)3
Avg Revenue beat(8)4.56%
Revenue beat(12)4
Avg Revenue beat(12)1.69%
Revenue beat(16)7
Avg Revenue beat(16)44.78%
PT rev (1m)-3.42%
PT rev (3m)-3.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.67%
EPS NY rev (1m)3.16%
EPS NY rev (3m)3.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.99%
Revenue NY rev (1m)-3.06%
Revenue NY rev (3m)-2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.42 | ||
| Fwd PE | 7.11 | ||
| P/S | 1.16 | ||
| P/FCF | 7.78 | ||
| P/OCF | 7.8 | ||
| P/B | 0.37 | ||
| P/tB | 0.37 | ||
| EV/EBITDA | 37.05 |
EPS(TTM)2.18
EY15.57%
EPS(NY)1.97
Fwd EY14.06%
FCF(TTM)1.8
FCFY12.85%
OCF(TTM)1.8
OCFY12.82%
SpS12.12
BVpS38.24
TBVpS38.24
PEG (NY)0.58
PEG (5Y)N/A
Graham Number43.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 10.66% | ||
| ROCE | 2.34% | ||
| ROIC | 1.75% | ||
| ROICexc | 1.76% | ||
| ROICexgc | 1.76% | ||
| OM | 54.32% | ||
| PM (TTM) | 33.63% | ||
| GM | 79.82% | ||
| FCFM | 14.85% |
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-Score6
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.61 | ||
| Debt/FCF | 140.39 | ||
| Debt/EBITDA | 37.28 | ||
| Cap/Depr | 2.1% | ||
| Cap/Sales | 0.03% | ||
| Interest Coverage | 3.08 | ||
| Cash Conversion | 26.5% | ||
| Profit Quality | 44.15% | ||
| Current Ratio | 0.06 | ||
| Quick Ratio | 0.06 | ||
| Altman-Z | 0.08 |
F-Score6
WACC1.23%
ROIC/WACC1.43
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 Y11.07%
EPS Next 2Y4.58%
EPS Next 3Y3.65%
EPS Next 5YN/A
Revenue 1Y (TTM)83%
Revenue growth 3Y-2.84%
Revenue growth 5Y17.01%
Sales Q2Q%-3%
Revenue Next Year40.09%
Revenue Next 2Y16.29%
Revenue Next 3Y14.03%
Revenue Next 5YN/A
EBIT growth 1Y198.29%
EBIT growth 3Y-24.13%
EBIT growth 5Y4.77%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-10.02%
FCF growth 3Y14.5%
FCF growth 5YN/A
OCF growth 1Y-10.22%
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 6.42 and the Price/Book (PB) ratio is 0.37.
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 80.04%.