NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NXRT - US65341D1028 - REIT
30.25 USD
+0.04 (+0.13%)
30.25 USD
0 (0%)
We assign a fundamental rating of 2 out of 10 to NXRT. NXRT was compared to 20 industry peers in the Residential REITs industry. NXRT has a bad profitability rating. Also its financial health evaluation is rather negative. NXRT has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year NXRT has reported negative net income.
- In the past year NXRT had a positive cash flow from operations.
- Of the past 5 years NXRT 4 years were profitable.
- Each year in the past 5 years NXRT had a positive operating cash flow.
1.2 Ratios
- NXRT has a worse Return On Assets (-2.64%) than 90.00% of its industry peers.
- NXRT has a Return On Equity of -15.06%. This is amonst the worse of the industry: NXRT underperforms 90.00% of its industry peers.
- NXRT has a worse Return On Invested Capital (1.26%) than 70.00% 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 2.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.64% | ||
| ROE | -15.06% | ||
| ROIC | 1.26% |
ROA(3y)0.58%
ROA(5y)1.05%
ROE(3y)2.48%
ROE(5y)4.62%
ROIC(3y)1.37%
ROIC(5y)1.09%
1.3 Margins
- NXRT's Profit Margin has declined in the last couple of years.
- NXRT has a worse Operating Margin (11.35%) than 70.00% of its industry peers.
- In the last couple of years the Operating Margin of NXRT has grown nicely.
- Looking at the Gross Margin, with a value of 63.29%, NXRT belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
- In the last couple of years the Gross Margin of NXRT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.35% | ||
| PM (TTM) | N/A | ||
| GM | 63.29% |
OM growth 3Y12.71%
OM growth 5Y7.38%
PM growth 3Y-65.59%
PM growth 5Y-62.11%
GM growth 3Y-12.32%
GM growth 5Y-7.43%
2. Health
2.1 Basic Checks
- NXRT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for NXRT has been reduced compared to 1 year ago.
- Compared to 5 years ago, NXRT has more shares outstanding
- Compared to 1 year ago, NXRT has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.41, we must say that NXRT is in the distress zone and has some risk of bankruptcy.
- NXRT has a worse Altman-Z score (0.41) than 60.00% of its industry peers.
- NXRT has a debt to FCF ratio of 33.86. This is a negative value and a sign of low solvency as NXRT would need 33.86 years to pay back of all of its debts.
- NXRT has a Debt to FCF ratio of 33.86. This is comparable to the rest of the industry: NXRT outperforms 60.00% of its industry peers.
- A Debt/Equity ratio of 4.55 is on the high side and indicates that NXRT has dependencies on debt financing.
- NXRT has a Debt to Equity ratio of 4.55. This is amonst the worse of the industry: NXRT underperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.55 | ||
| Debt/FCF | 33.86 | ||
| Altman-Z | 0.41 |
ROIC/WACC0.16
WACC7.71%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that NXRT may have some problems paying its short term obligations.
- NXRT's Current ratio of 0.72 is fine compared to the rest of the industry. NXRT outperforms 65.00% of its industry peers.
- A Quick Ratio of 0.72 indicates that NXRT may have some problems paying its short term obligations.
- With a decent Quick ratio value of 0.72, NXRT is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- The earnings per share for NXRT have decreased strongly by -209.25% in the last year.
- Measured over the past years, NXRT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -65.41% on average per year.
- Looking at the last year, NXRT shows a decrease in Revenue. The Revenue has decreased by -4.46% in the last year.
- The Revenue has been growing slightly by 7.48% on average over the past years.
EPS 1Y (TTM)-209.25%
EPS 3Y-70.76%
EPS 5Y-65.41%
EPS Q2Q%11.43%
Revenue 1Y (TTM)-4.46%
Revenue growth 3Y5.81%
Revenue growth 5Y7.48%
Sales Q2Q%-1.98%
3.2 Future
- The Earnings Per Share is expected to decrease by -301.87% on average over the next years. This is quite bad
- The Revenue is expected to grow by 1.23% on average over the next years.
EPS Next Y-6279.52%
EPS Next 2Y-740.21%
EPS Next 3Y-301.87%
EPS Next 5YN/A
Revenue Next Year-2.87%
Revenue Next 2Y-0.36%
Revenue Next 3Y1.32%
Revenue Next 5Y1.23%
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 decreasing.
- 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
- NXRT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Also next year NXRT is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- NXRT's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NXRT indicates a rather cheap valuation: NXRT is cheaper than 95.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.69 | ||
| EV/EBITDA | 17.75 |
4.3 Compensation for Growth
- A cheap valuation may be justified as NXRT's earnings are expected to decrease with -301.87% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-740.21%
EPS Next 3Y-301.87%
5. Dividend
5.1 Amount
- NXRT has a Yearly Dividend Yield of 6.96%, which is a nice return.
- NXRT's Dividend Yield is a higher than the industry average which is at 32.02.
- Compared to an average S&P500 Dividend Yield of 1.82, NXRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.96% |
5.2 History
- On average, the dividend of NXRT grows each year by 10.88%, 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)10.88%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
- The earnings of NXRT are negative and hence is the payout ratio. NXRT will probably not be able to sustain this dividend level.
DP-109.03%
EPS Next 2Y-740.21%
EPS Next 3Y-301.87%
NEXPOINT RESIDENTIAL / NXRT FAQ
What is the ChartMill fundamental rating of NEXPOINT RESIDENTIAL (NXRT) stock?
ChartMill assigns a fundamental rating of 2 / 10 to NXRT.
Can you provide the valuation status for NEXPOINT RESIDENTIAL?
ChartMill assigns a valuation rating of 2 / 10 to NEXPOINT RESIDENTIAL (NXRT). This can be considered as Overvalued.
What is the profitability of NXRT stock?
NEXPOINT RESIDENTIAL (NXRT) has a profitability rating of 3 / 10.
What is the financial health of NEXPOINT RESIDENTIAL (NXRT) stock?
The financial health rating of NEXPOINT RESIDENTIAL (NXRT) is 2 / 10.
What is the expected EPS growth for NEXPOINT RESIDENTIAL (NXRT) stock?
The Earnings per Share (EPS) of NEXPOINT RESIDENTIAL (NXRT) is expected to decline by -6279.52% in the next year.