NEXPOINT REAL ESTATE FINANCE (NREF) Stock Fundamental Analysis
NYSE:NREF - US65342V1017 - REIT
15.27 USD
-0.07 (-0.46%)
15.27 USD
0 (0%)
NREF gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 67 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 has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
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.
In the past 5 years NREF has always been profitable.
NREF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NREF (0.99%) is better than 83.58% of its industry peers.
Looking at the Return On Equity, with a value of 9.03%, NREF belongs to the top of the industry, outperforming 94.03% of the companies in the same industry.
NREF's Return On Invested Capital of 1.28% is amongst the best of the industry. NREF outperforms 85.07% 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 1.32%.
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's Profit Margin of 31.45% is amongst the best of the industry. NREF outperforms 92.54% of its industry peers.
In the last couple of years the Profit Margin of NREF has declined.
NREF has a Operating Margin of 51.43%. This is amongst the best in the industry. NREF outperforms 89.55% of its industry peers.
NREF's Operating Margin has declined in the last couple of years.
The Gross Margin of NREF (74.04%) is better than 91.04% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NREF is destroying 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.
NREF has a better debt/assets ratio than last year.
2.2 Solvency
NREF has an Altman-Z score of 0.05. This is a bad value and indicates that NREF is not financially healthy and even has some risk of bankruptcy.
NREF has a better Altman-Z score (0.05) than 67.16% of its industry peers.
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.
NREF has a Debt to FCF ratio of 123.36. This is comparable to the rest of the industry: NREF outperforms 58.21% of its industry peers.
NREF has a Debt/Equity ratio of 7.95. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NREF (7.95) is worse than 77.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.95 | ||
| Debt/FCF | 123.36 | ||
| Altman-Z | 0.05 |
ROIC/WACC0.99
WACC1.29%
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 worse Current ratio (0.03) than 86.57% of its industry peers.
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.
The Quick ratio of NREF (0.03) is worse than 86.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.03 | ||
| Quick Ratio | 0.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 122.02% over the past year.
The Earnings Per Share has been decreasing by -8.76% on average over the past years.
Looking at the last year, NREF shows a very strong growth in Revenue. The Revenue has grown by 101.73%.
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.
Based on estimates for the next years, NREF will show a very strong growth in Revenue. The Revenue will grow by 23.12% on average per year.
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
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.
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
Based on the Price/Earnings ratio of 6.31, the valuation of NREF can be described as very cheap.
NREF's Price/Earnings ratio is rather cheap when compared to the industry. NREF is cheaper than 92.54% of the companies in the same industry.
NREF is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.66, the valuation of NREF can be described as very cheap.
Based on the Price/Forward Earnings ratio, NREF is valued a bit cheaper than 77.61% of the companies in the same industry.
NREF is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 7.66 |
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 88.06% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NREF is valued cheaper than 83.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.11 | ||
| EV/EBITDA | 51.59 |
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)0.82
PEG (5Y)N/A
EPS Next 2Y5.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.45%, NREF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.25, NREF pays a bit more dividend than its industry peers.
NREF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.45% |
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
98.44% of the earnings are spent on dividend by NREF. This is not a sustainable payout ratio.
DP98.44%
EPS Next 2Y5.25%
EPS Next 3YN/A
15.27
-0.07 (-0.46%)
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-1.45%
Ins Owners7.1%
Ins Owner Change15.98%
Market Cap270.58M
Analysts47.5
Price Target14.92 (-2.29%)
Short Float %1.31%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.45% |
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)-4.1%
PT rev (3m)-5.65%
EPS NQ rev (1m)-9.03%
EPS NQ rev (3m)-17.9%
EPS NY rev (1m)-3.88%
EPS NY rev (3m)-6.4%
Revenue NQ rev (1m)1.72%
Revenue NQ rev (3m)10.11%
Revenue NY rev (1m)1.67%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 7.66 | ||
| P/S | 1.6 | ||
| P/FCF | 7.11 | ||
| P/OCF | 7.04 | ||
| P/B | 0.46 | ||
| P/tB | 0.46 | ||
| EV/EBITDA | 51.59 |
EPS(TTM)2.42
EY15.85%
EPS(NY)1.99
Fwd EY13.06%
FCF(TTM)2.15
FCFY14.07%
OCF(TTM)2.17
OCFY14.2%
SpS9.56
BVpS33.32
TBVpS33.32
PEG (NY)0.82
PEG (5Y)N/A
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%
ROICexcg growth 3Y-11.77%
ROICexcg 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 | 0.05 |
F-Score7
WACC1.29%
ROIC/WACC0.99
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