NETSTREIT CORP (NTST)
US64119V3033 - REIT
Taking everything into account, NTST scores 5 out of 10 in our fundamental rating. NTST was compared to 126 industry peers in the Diversified REITs industry. Both the profitability and the financial health of NTST get a neutral evaluation. Nothing too spectacular is happening here. NTST is valued quite expensive, but it does show an excellent growth. These ratings would make NTST suitable for growth investing!
1. Profitability
1.1 Basic Checks
NTST had positive earnings in the past year.
In the past year NTST had a positive cash flow from operations.
NTST had positive earnings in 4 of the past 5 years.
In the past 5 years NTST always reported a positive cash flow from operatings.
1.2 Ratios
NTST has a Return On Assets (0.35%) which is in line with its industry peers.
NTST has a Return On Equity of 0.54%. This is comparable to the rest of the industry: NTST outperforms 43.09% of its industry peers.
The Return On Invested Capital of NTST (1.30%) is worse than 78.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NTST is below the industry average of 2.95%.
The 3 year average ROIC (0.88%) for NTST is below the current ROIC(1.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 0.54% | ||
| ROIC | 1.3% |
ROA(3y)0.38%
ROA(5y)-0.12%
ROE(3y)0.57%
ROE(5y)-0.61%
ROIC(3y)0.88%
ROIC(5y)0.79%
1.3 Margins
NTST has a Profit Margin (5.19%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of NTST has grown nicely.
NTST's Operating Margin of 23.98% is in line compared to the rest of the industry. NTST outperforms 56.91% of its industry peers.
NTST's Operating Margin has been stable in the last couple of years.
The Gross Margin of NTST (87.56%) is better than 91.87% of its industry peers.
NTST's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.98% | ||
| PM (TTM) | 5.19% | ||
| GM | 87.56% |
OM growth 3Y22.88%
OM growth 5Y1.07%
PM growth 3Y36.33%
PM growth 5YN/A
GM growth 3Y-1.77%
GM growth 5Y-1.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NTST is destroying value.
NTST has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NTST has more shares outstanding
The debt/assets ratio for NTST is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.21, we must say that NTST is in the distress zone and has some risk of bankruptcy.
NTST has a better Altman-Z score (1.21) than 82.11% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that NTST is not too dependend on debt financing.
NTST has a better Debt to Equity ratio (0.48) than 90.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.21 |
ROIC/WACC0.18
WACC7.22%
2.3 Liquidity
A Current Ratio of 6.78 indicates that NTST has no problem at all paying its short term obligations.
The Current ratio of NTST (6.78) is better than 98.37% of its industry peers.
NTST has a Quick Ratio of 6.78. This indicates that NTST is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of NTST (6.78) is better than 98.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.78 | ||
| Quick Ratio | 6.78 |
3. Growth
3.1 Past
NTST shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.25%.
The Earnings Per Share has been growing by 74.20% on average over the past years. This is a very strong growth
The Revenue has grown by 37.01% in the past year. This is a very strong growth!
Measured over the past years, NTST shows a very strong growth in Revenue. The Revenue has been growing by 40.81% on average per year.
EPS 1Y (TTM)-31.25%
EPS 3Y74.2%
EPS 5YN/A
EPS growth Q2Q-40%
Revenue 1Y (TTM)37.01%
Revenue growth 3Y57.55%
Revenue growth 5Y40.81%
Revenue growth Q2Q35.03%
3.2 Future
NTST is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.53% yearly.
The Revenue is expected to grow by 13.31% on average over the next years. This is quite good.
EPS Next Y150.36%
EPS Next 2Y66.79%
EPS Next 3Y48.06%
EPS Next 5Y9.53%
Revenue Next Year25.26%
Revenue Next 2Y20.01%
Revenue Next 3Y17.54%
Revenue Next 5Y13.31%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 154.59, the valuation of NTST can be described as expensive.
Based on the Price/Earnings ratio, NTST is valued a bit more expensive than the industry average as 61.79% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 24.67. NTST is valued rather expensively when compared to this.
NTST is valuated quite expensively with a Price/Forward Earnings ratio of 61.75.
NTST's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.02. NTST is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 154.59 | ||
| Fwd PE | 61.75 |
4.2 Price Multiples
NTST's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. NTST is more expensive than 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.05 |
4.3 Compensation for Growth
NTST's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NTST's earnings are expected to grow with 48.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y66.79%
EPS Next 3Y48.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.75%, NTST is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.03, NTST has a dividend in line with its industry peers.
NTST's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
5.2 History
NTST 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
NTST pays out 755.37% of its income as dividend. This is not a sustainable payout ratio.
DP755.37%
EPS Next 2Y66.79%
EPS Next 3Y48.06%
NETSTREIT CORP
NYSE:NTST (5/1/2024, 12:00:04 PM)
17.005
+0.15 (+0.92%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.25B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 154.59 | ||
| Fwd PE | 61.75 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 0.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.98% | ||
| PM (TTM) | 5.19% | ||
| GM | 87.56% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.78 | ||
| Quick Ratio | 6.78 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-31.25%
EPS 3Y74.2%
EPS 5Y
EPS growth Q2Q
EPS Next Y150.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)37.01%
Revenue growth 3Y57.55%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y