NEXPOINT RESIDENTIAL (NXRT)
US65341D1028 - REIT
We assign a fundamental rating of 4 out of 10 to NXRT. NXRT was compared to 21 industry peers in the Residential REITs industry. NXRT has a medium profitability rating, but doesn't score so well on its financial health evaluation. NXRT is quite expensive at the moment. It does show a decent growth rate. Finally NXRT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NXRT was profitable.
In the past year NXRT had a positive cash flow from operations.
Of the past 5 years NXRT 4 years were profitable.
NXRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NXRT (2.10%) is comparable to the rest of the industry.
NXRT has a better Return On Equity (8.95%) than 80.95% of its industry peers.
The Return On Invested Capital of NXRT (1.64%) is worse than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NXRT is in line with the industry average of 2.57%.
The 3 year average ROIC (1.17%) for NXRT is below the current ROIC(1.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 8.95% | ||
| ROIC | 1.64% |
ROA(3y)0.93%
ROA(5y)2.1%
ROE(3y)4.02%
ROE(5y)9.22%
ROIC(3y)1.17%
ROIC(5y)0.96%
1.3 Margins
With a Profit Margin value of 15.95%, NXRT perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
NXRT's Profit Margin has declined in the last couple of years.
NXRT has a Operating Margin of 15.51%. This is in the lower half of the industry: NXRT underperforms 66.67% of its industry peers.
NXRT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 94.33%, NXRT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NXRT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.51% | ||
| PM (TTM) | 15.95% | ||
| GM | 94.33% |
OM growth 3Y28.7%
OM growth 5Y6.24%
PM growth 3Y-9.45%
PM growth 5YN/A
GM growth 3Y0.35%
GM growth 5Y0.53%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NXRT is destroying value.
NXRT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NXRT has been increased compared to 5 years ago.
NXRT has a better debt/assets ratio than last year.
2.2 Solvency
NXRT has an Altman-Z score of 0.55. This is a bad value and indicates that NXRT is not financially healthy and even has some risk of bankruptcy.
NXRT has a Altman-Z score of 0.55. This is in the lower half of the industry: NXRT underperforms 66.67% of its industry peers.
The Debt to FCF ratio of NXRT is 62.19, which is on the high side as it means it would take NXRT, 62.19 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NXRT (62.19) is comparable to the rest of the industry.
A Debt/Equity ratio of 3.16 is on the high side and indicates that NXRT has dependencies on debt financing.
NXRT's Debt to Equity ratio of 3.16 is on the low side compared to the rest of the industry. NXRT is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.16 | ||
| Debt/FCF | 62.19 | ||
| Altman-Z | 0.55 |
ROIC/WACC0.22
WACC7.45%
2.3 Liquidity
A Current Ratio of 0.94 indicates that NXRT may have some problems paying its short term obligations.
NXRT has a Current ratio (0.94) which is comparable to the rest of the industry.
NXRT has a Quick Ratio of 0.94. This is a bad value and indicates that NXRT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.94, NXRT is doing good in the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
NXRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 105.71%, which is quite impressive.
The earnings per share for NXRT have been decreasing by -77.12% on average. This is quite bad
Looking at the last year, NXRT shows a small growth in Revenue. The Revenue has grown by 5.14% in the last year.
The Revenue has been growing by 13.61% on average over the past years. This is quite good.
EPS 1Y (TTM)105.71%
EPS 3Y-77.12%
EPS 5YN/A
EPS growth Q2Q353.33%
Revenue 1Y (TTM)5.14%
Revenue growth 3Y10.66%
Revenue growth 5Y13.61%
Revenue growth Q2Q-0.66%
3.2 Future
Based on estimates for the next years, NXRT will show a very negative growth in Earnings Per Share. The EPS will decrease by -234.81% on average per year.
NXRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.21% yearly.
EPS Next Y-1353.12%
EPS Next 2Y-520.61%
EPS Next 3Y-234.81%
EPS Next 5YN/A
Revenue Next Year-5.31%
Revenue Next 2Y-2.03%
Revenue Next 3Y0.68%
Revenue Next 5Y2.21%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 1818.00 indicates a quite expensive valuation of NXRT.
71.43% of the companies in the same industry are cheaper than NXRT, based on the Price/Earnings ratio.
NXRT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.83.
The Forward Price/Earnings Ratio is negative for NXRT. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1818 | ||
| Fwd PE | N/A |
4.2 Price Multiples
NXRT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NXRT is cheaper than 76.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NXRT is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.23 | ||
| EV/EBITDA | 18.02 |
4.3 Compensation for Growth
The decent profitability rating of NXRT may justify a higher PE ratio.
NXRT's earnings are expected to decrease with -234.81% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-520.61%
EPS Next 3Y-234.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.17%, NXRT is a good candidate for dividend investing.
NXRT's Dividend Yield is rather good when compared to the industry average which is at 4.31. NXRT pays more dividend than 80.95% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, NXRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.17% |
5.2 History
On average, the dividend of NXRT grows each year by 11.83%, which is quite nice.
NXRT has paid a dividend for at least 10 years, which is a reliable track record.
NXRT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)11.83%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
NXRT pays out 101.20% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of NXRT has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP101.2%
EPS Next 2Y-520.61%
EPS Next 3Y-234.81%
NEXPOINT RESIDENTIAL
NYSE:NXRT (5/16/2024, 5:30:00 PM)
After market: 36.36 0 (0%)36.36
-0.04 (-0.11%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap937.00M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.17% |
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)
Max EPS beat(4)
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)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 1818 | ||
| Fwd PE | N/A | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 8.95% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.51% | ||
| PM (TTM) | 15.95% | ||
| GM | 94.33% | ||
| 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 Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| 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)105.71%
EPS 3Y-77.12%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1353.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.14%
Revenue growth 3Y10.66%
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