NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
NYSE:NXRT - New York Stock Exchange, Inc. - US65341D1028 - REIT - Currency: USD
NXRT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. The financial health of NXRT is average, but there are quite some concerns on its profitability. NXRT does not seem to be growing, but still is valued expensively. NXRT also has an excellent dividend rating.
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.
NXRT had positive earnings in 4 of the past 5 years.
In the past 5 years NXRT always reported a positive cash flow from operatings.
1.2 Ratios
NXRT has a Return On Assets of -1.71%. This is amonst the worse of the industry: NXRT underperforms 90.00% of its industry peers.
The Return On Equity of NXRT (-8.45%) is worse than 85.00% of its industry peers.
NXRT's Return On Invested Capital of 1.20% is on the low side compared to the rest of the industry. NXRT is outperformed by 70.00% of its industry peers.
NXRT had an Average Return On Invested Capital over the past 3 years of 1.37%. This is in line with the industry average of 2.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.71% | ||
| ROE | -8.45% | ||
| ROIC | 1.2% |
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.
Looking at the Operating Margin, with a value of 11.03%, NXRT is doing worse than 75.00% of the companies in the same industry.
NXRT's Operating Margin has improved in the last couple of years.
The Gross Margin of NXRT (94.44%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of NXRT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.03% | ||
| PM (TTM) | N/A | ||
| GM | 94.44% |
OM growth 3Y12.71%
OM growth 5Y7.38%
PM growth 3Y-65.59%
PM growth 5Y-62.11%
GM growth 3Y0.28%
GM growth 5Y0.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NXRT is destroying value.
NXRT has less shares outstanding than it did 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
NXRT has an Altman-Z score of 0.52. This is a bad value and indicates that NXRT is not financially healthy and even has some risk of bankruptcy.
NXRT has a worse Altman-Z score (0.52) than 65.00% of its industry peers.
NXRT has a debt to FCF ratio of 32.10. This is a negative value and a sign of low solvency as NXRT would need 32.10 years to pay back of all of its debts.
NXRT has a Debt to FCF ratio of 32.10. This is in the better half of the industry: NXRT outperforms 65.00% of its industry peers.
A Debt/Equity ratio of 3.86 is on the high side and indicates that NXRT has dependencies on debt financing.
With a Debt to Equity ratio value of 3.86, NXRT is not doing good in the industry: 85.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 32.1 | ||
| Altman-Z | 0.52 |
ROIC/WACC0.15
WACC7.87%
2.3 Liquidity
A Current Ratio of 1.45 indicates that NXRT should not have too much problems paying its short term obligations.
NXRT has a Current ratio of 1.45. This is amongst the best in the industry. NXRT outperforms 95.00% of its industry peers.
NXRT has a Quick Ratio of 1.45. This is a normal value and indicates that NXRT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NXRT (1.45) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
NXRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -206.84%.
The earnings per share for NXRT have been decreasing by -65.41% on average. This is quite bad
NXRT shows a decrease in Revenue. In the last year, the revenue decreased by -7.44%.
Measured over the past years, NXRT shows a small growth in Revenue. The Revenue has been growing by 7.48% on average per year.
EPS 1Y (TTM)-206.84%
EPS 3Y-70.76%
EPS 5Y-65.41%
EPS Q2Q%-127%
Revenue 1Y (TTM)-7.44%
Revenue growth 3Y5.81%
Revenue growth 5Y7.48%
Sales Q2Q%-22.08%
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 -276.83% on average per year.
Based on estimates for the next years, NXRT will show a small growth in Revenue. The Revenue will grow by 3.23% on average per year.
EPS Next Y-5954.8%
EPS Next 2Y-671.38%
EPS Next 3Y-276.83%
EPS Next 5YN/A
Revenue Next Year-1.54%
Revenue Next 2Y1.87%
Revenue Next 3Y3.14%
Revenue Next 5Y3.23%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
NXRT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for NXRT. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than NXRT, based on the Enterprise Value to EBITDA ratio.
90.00% of the companies in the same industry are more expensive than NXRT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.38 | ||
| EV/EBITDA | 18.76 |
4.3 Compensation for Growth
NXRT's earnings are expected to decrease with -276.83% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-671.38%
EPS Next 3Y-276.83%
5. Dividend
5.1 Amount
NXRT has a Yearly Dividend Yield of 5.59%, which is a nice return.
Compared to an average industry Dividend Yield of 4.43, NXRT pays a better dividend. On top of this NXRT pays more dividend than 85.00% of the companies listed in the same industry.
NXRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
5.2 History
On average, the dividend of NXRT grows each year by 10.88%, which is quite nice.
NXRT has been paying a dividend for at least 10 years, so it has 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
NXRT has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-157.7%
EPS Next 2Y-671.38%
EPS Next 3Y-276.83%
NYSE:NXRT (5/21/2025, 3:21:45 PM)
34.6
-1.44 (-4%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners79.85%
Inst Owner Change-1.77%
Ins Owners12.19%
Ins Owner Change13.91%
Market Cap884.72M
Analysts78.46
Price Target43.73 (26.39%)
Short Float %1.54%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.59% |
Yearly Dividend1.93
Dividend Growth(5Y)10.88%
DP-157.7%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-83.7%
Min EPS beat(2)-176.12%
Max EPS beat(2)8.72%
EPS beat(4)2
Avg EPS beat(4)42.47%
Min EPS beat(4)-176.12%
Max EPS beat(4)364.38%
EPS beat(8)4
Avg EPS beat(8)34.81%
EPS beat(12)5
Avg EPS beat(12)5.61%
EPS beat(16)9
Avg EPS beat(16)54.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)-1.36%
Revenue beat(4)1
Avg Revenue beat(4)2.9%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)16.56%
Revenue beat(8)2
Avg Revenue beat(8)3.13%
Revenue beat(12)4
Avg Revenue beat(12)2.07%
Revenue beat(16)6
Avg Revenue beat(16)1.31%
PT rev (1m)-3.65%
PT rev (3m)-6.54%
EPS NQ rev (1m)-4.14%
EPS NQ rev (3m)-10.49%
EPS NY rev (1m)-2.5%
EPS NY rev (3m)-7.43%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.46 | ||
| P/FCF | 19.38 | ||
| P/OCF | 10.76 | ||
| P/B | 2.33 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 18.76 |
EPS(TTM)-1.25
EYN/A
EPS(NY)-1.15
Fwd EYN/A
FCF(TTM)1.78
FCFY5.16%
OCF(TTM)3.22
OCFY9.29%
SpS9.99
BVpS14.86
TBVpS14.86
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.71% | ||
| ROE | -8.45% | ||
| ROCE | 1.52% | ||
| ROIC | 1.2% | ||
| ROICexc | 1.21% | ||
| ROICexgc | 1.24% | ||
| OM | 11.03% | ||
| PM (TTM) | N/A | ||
| GM | 94.44% | ||
| FCFM | 17.87% |
ROA(3y)0.58%
ROA(5y)1.05%
ROE(3y)2.48%
ROE(5y)4.62%
ROIC(3y)1.37%
ROIC(5y)1.09%
ROICexc(3y)1.38%
ROICexc(5y)1.1%
ROICexgc(3y)1.43%
ROICexgc(5y)1.13%
ROCE(3y)1.73%
ROCE(5y)1.38%
ROICexcg growth 3Y22.72%
ROICexcg growth 5Y15.26%
ROICexc growth 3Y21.87%
ROICexc growth 5Y14.79%
OM growth 3Y12.71%
OM growth 5Y7.38%
PM growth 3Y-65.59%
PM growth 5Y-62.11%
GM growth 3Y0.28%
GM growth 5Y0.34%
F-Score4
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.86 | ||
| Debt/FCF | 32.1 | ||
| Debt/EBITDA | 11.63 | ||
| Cap/Depr | 37.39% | ||
| Cap/Sales | 14.32% | ||
| Interest Coverage | 0.28 | ||
| Cash Conversion | 65.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 0.52 |
F-Score4
WACC7.87%
ROIC/WACC0.15
Cap/Depr(3y)106.97%
Cap/Depr(5y)173.62%
Cap/Sales(3y)38.98%
Cap/Sales(5y)66.96%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-206.84%
EPS 3Y-70.76%
EPS 5Y-65.41%
EPS Q2Q%-127%
EPS Next Y-5954.8%
EPS Next 2Y-671.38%
EPS Next 3Y-276.83%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.44%
Revenue growth 3Y5.81%
Revenue growth 5Y7.48%
Sales Q2Q%-22.08%
Revenue Next Year-1.54%
Revenue Next 2Y1.87%
Revenue Next 3Y3.14%
Revenue Next 5Y3.23%
EBIT growth 1Y-31.21%
EBIT growth 3Y19.26%
EBIT growth 5Y15.4%
EBIT Next Year18732.6%
EBIT Next 3Y502.75%
EBIT Next 5Y289.52%
FCF growth 1Y140.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-16.4%
OCF growth 3Y0.14%
OCF growth 5Y7.45%