NEXPOINT REAL ESTATE FINANCE (NREF) Fundamental Analysis & Valuation

NYSE:NREF • US65342V1017

Current stock price

12.93 USD
-0.37 (-2.78%)
Last:

This NREF fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. NREF Profitability Analysis

1.1 Basic Checks

  • In the past year NREF was profitable.
  • In the past year NREF had a positive cash flow from operations.
  • NREF had positive earnings in 4 of the past 5 years.
  • NREF had a positive operating cash flow in 4 of the past 5 years.
NREF Yearly Net Income VS EBIT VS OCF VS FCFNREF Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 50M -50M -100M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 1.37%, NREF belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
  • The Return On Equity of NREF (10.66%) is better than 77.94% of its industry peers.
  • NREF has a better Return On Invested Capital (1.75%) than 91.18% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for NREF is in line with the industry average of 1.30%.
  • The 3 year average ROIC (0.29%) for NREF is below the current ROIC(1.75%), indicating increased profibility in the last year.
Industry RankSector 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%
NREF Yearly ROA, ROE, ROICNREF Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • With an excellent Profit Margin value of 33.63%, NREF belongs to the best of the industry, outperforming 92.65% of the companies in the same industry.
  • NREF's Profit Margin has declined in the last couple of years.
  • NREF has a Operating Margin of 54.32%. This is amongst the best in the industry. NREF outperforms 94.12% of its industry peers.
  • NREF's Operating Margin has declined in the last couple of years.
  • NREF has a better Gross Margin (79.82%) than 94.12% of its industry peers.
  • In the last couple of years the Gross Margin of NREF has grown nicely.
Industry RankSector 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%
NREF Yearly Profit, Operating, Gross MarginsNREF Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. NREF Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NREF is creating some value.
  • NREF has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
NREF Yearly Shares OutstandingNREF Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 5M 10M 15M
NREF Yearly Total Debt VS Total AssetsNREF Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

  • NREF has an Altman-Z score of 0.08. This is a bad value and indicates that NREF is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.08, NREF is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
  • NREF has a debt to FCF ratio of 140.38. This is a negative value and a sign of low solvency as NREF would need 140.38 years to pay back of all of its debts.
  • The Debt to FCF ratio of NREF (140.38) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 6.61 is on the high side and indicates that NREF has dependencies on debt financing.
  • NREF has a Debt to Equity ratio (6.61) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 6.61
Debt/FCF 140.39
Altman-Z 0.08
ROIC/WACC1.46
WACC1.2%
NREF Yearly LT Debt VS Equity VS FCFNREF Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

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.
  • NREF has a Current ratio of 0.06. This is comparable to the rest of the industry: NREF outperforms 41.18% of its industry peers.
  • A Quick Ratio of 0.06 indicates that NREF may have some problems paying its short term obligations.
  • The Quick ratio of NREF (0.06) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.06
Quick Ratio 0.06
NREF Yearly Current Assets VS Current LiabilitesNREF Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. NREF Growth Analysis

3.1 Past

  • NREF shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.67%.
  • Measured over the past 5 years, NREF shows a small growth in Earnings Per Share. The EPS has been growing by 3.11% on average per year.
EPS 1Y (TTM)1.67%
EPS 3Y-12.8%
EPS 5Y3.11%
EPS Q2Q%-42.17%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-65.62%

3.2 Future

  • The Earnings Per Share is expected to grow by 4.65% on average over the next years.
  • Based on estimates for the next years, NREF will show a small growth in Revenue. The Revenue will grow by 2.59% on average per year.
EPS Next Y5.53%
EPS Next 2Y4.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.44%
Revenue Next 2Y2.59%
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.
NREF Yearly Revenue VS EstimatesNREF Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 20M 40M 60M 80M 100M
NREF Yearly EPS VS EstimatesNREF Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2 2.5

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8

4. NREF Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 7.07 indicates a rather cheap valuation of NREF.
  • 82.35% of the companies in the same industry are more expensive than NREF, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of NREF to the average of the S&P500 Index (25.51), we can say NREF is valued rather cheaply.
  • NREF is valuated cheaply with a Price/Forward Earnings ratio of 6.70.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of NREF indicates a rather cheap valuation: NREF is cheaper than 80.88% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.76. NREF is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 7.07
Fwd PE 6.7
NREF Price Earnings VS Forward Price EarningsNREF Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • 86.76% of the companies in the same industry are more expensive than NREF, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, NREF is valued cheaper than 82.35% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.19
EV/EBITDA 36.95
NREF Per share dataNREF EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • NREF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of NREF may justify a higher PE ratio.
PEG (NY)1.28
PEG (5Y)2.27
EPS Next 2Y4.65%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. NREF Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 14.95%, NREF is a good candidate for dividend investing.
  • NREF's Dividend Yield is rather good when compared to the industry average which is at 13.43. NREF pays more dividend than 80.88% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, NREF pays a better dividend.
Industry RankSector Rank
Dividend Yield 14.95%

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
NREF Yearly Dividends per shareNREF Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • NREF pays out 80.04% of its income as dividend. This is not a sustainable payout ratio.
DP80.04%
EPS Next 2Y4.65%
EPS Next 3YN/A
NREF Yearly Income VS Free CF VS DividendNREF Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2019 2020 2021 2022 2023 2024 0 50M -50M -100M
NREF Dividend Payout.NREF Dividend Payout, showing the Payout Ratio.NREF Dividend Payout.PayoutRetained Earnings

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NREF Fundamentals: All Metrics, Ratios and Statistics

NEXPOINT REAL ESTATE FINANCE

NYSE:NREF (4/2/2026, 10:19:35 AM)

12.93

-0.37 (-2.78%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)02-26
Earnings (Next)04-23
Inst Owners75.42%
Inst Owner Change7.09%
Ins Owners7.83%
Ins Owner Change10.68%
Market Cap229.12M
Revenue(TTM)N/A
Net Income(TTM)72.21M
Analysts48.89
Price Target14.79 (14.39%)
Short Float %3.26%
Short Ratio9.33
Dividend
Industry RankSector Rank
Dividend Yield 14.95%
Yearly Dividend2.67
Dividend Growth(5Y)N/A
DP80.04%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-13
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)0%
PT rev (3m)-1.69%
EPS NQ rev (1m)1.52%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)-1.04%
EPS NY rev (3m)-2.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.55%
Valuation
Industry RankSector Rank
PE 7.07
Fwd PE 6.7
P/S 1.07
P/FCF 7.19
P/OCF 7.2
P/B 0.34
P/tB 0.34
EV/EBITDA 36.95
EPS(TTM)1.83
EY14.15%
EPS(NY)1.93
Fwd EY14.94%
FCF(TTM)1.8
FCFY13.92%
OCF(TTM)1.8
OCFY13.88%
SpS12.12
BVpS38.24
TBVpS38.24
PEG (NY)1.28
PEG (5Y)2.27
Graham Number39.68
Profitability
Industry RankSector 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 RankSector 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
WACC1.2%
ROIC/WACC1.46
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)1.67%
EPS 3Y-12.8%
EPS 5Y3.11%
EPS Q2Q%-42.17%
EPS Next Y5.53%
EPS Next 2Y4.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-65.62%
Revenue Next Year-1.44%
Revenue Next 2Y2.59%
Revenue Next 3YN/A
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 Fundamental Analysis FAQ

What is the fundamental rating for NREF stock?

ChartMill assigns a fundamental rating of 5 / 10 to NREF.


What is the valuation status of NEXPOINT REAL ESTATE FINANCE (NREF) stock?

ChartMill assigns a valuation rating of 8 / 10 to NEXPOINT REAL ESTATE FINANCE (NREF). This can be considered as Undervalued.


Can you provide the profitability details for NEXPOINT REAL ESTATE FINANCE?

NEXPOINT REAL ESTATE FINANCE (NREF) has a profitability rating of 7 / 10.


What is the financial health of NEXPOINT REAL ESTATE FINANCE (NREF) stock?

The financial health rating of NEXPOINT REAL ESTATE FINANCE (NREF) is 2 / 10.


Can you provide the dividend sustainability for NREF stock?

The dividend rating of NEXPOINT REAL ESTATE FINANCE (NREF) is 5 / 10 and the dividend payout ratio is 80.04%.