NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
USA - NYSE:NXRT - US65341D1028 - REIT
31.62 USD
-0.13 (-0.41%)
31.62 USD
0 (0%)
Taking everything into account, NXRT scores 3 out of 10 in our fundamental rating. NXRT was compared to 20 industry peers in the Residential REITs industry. NXRT may be in some trouble as it scores bad on both profitability and health. 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
NXRT had negative earnings in the past year.
In the past year NXRT had a positive cash flow from operations.
NXRT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years NXRT had a positive operating cash flow.
1.2 Ratios
NXRT has a worse Return On Assets (-2.68%) than 90.00% of its industry peers.
The Return On Equity of NXRT (-14.29%) is worse than 85.00% of its industry peers.
The Return On Invested Capital of NXRT (1.22%) is worse than 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 2.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.68% | ||
| ROE | -14.29% | ||
| ROIC | 1.22% |
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
In the last couple of years the Profit Margin of NXRT has declined.
Looking at the Operating Margin, with a value of 11.11%, 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.
With a decent Gross Margin value of 62.76%, NXRT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
NXRT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.11% | ||
| PM (TTM) | N/A | ||
| GM | 62.76% |
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
NXRT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.45, we must say that NXRT is in the distress zone and has some risk of bankruptcy.
NXRT has a worse Altman-Z score (0.45) than 65.00% of its industry peers.
NXRT has a debt to FCF ratio of 32.74. This is a negative value and a sign of low solvency as NXRT would need 32.74 years to pay back of all of its debts.
NXRT's Debt to FCF ratio of 32.74 is fine compared to the rest of the industry. NXRT outperforms 65.00% of its industry peers.
A Debt/Equity ratio of 4.22 is on the high side and indicates that NXRT has dependencies on debt financing.
NXRT's Debt to Equity ratio of 4.22 is on the low side compared to the rest of the industry. NXRT is outperformed by 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.22 | ||
| Debt/FCF | 32.74 | ||
| Altman-Z | 0.45 |
ROIC/WACC0.16
WACC7.78%
2.3 Liquidity
A Current Ratio of 1.03 indicates that NXRT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.03, NXRT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
NXRT has a Quick Ratio of 1.03. This is a normal value and indicates that NXRT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.03, NXRT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
NXRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -212.21%.
The earnings per share for NXRT have been decreasing by -65.41% on average. This is quite bad
The Revenue has decreased by -6.02% in the past year.
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)-212.21%
EPS 3Y-70.76%
EPS 5Y-65.41%
EPS Q2Q%-170%
Revenue 1Y (TTM)-6.02%
Revenue growth 3Y5.81%
Revenue growth 5Y7.48%
Sales Q2Q%-17.9%
3.2 Future
The Earnings Per Share is expected to decrease by -286.93% on average over the next years. This is quite bad
The Revenue is expected to grow by 2.48% on average over the next years.
EPS Next Y-6440.98%
EPS Next 2Y-703.92%
EPS Next 3Y-286.93%
EPS Next 5YN/A
Revenue Next Year-2.56%
Revenue Next 2Y0.53%
Revenue Next 3Y1.89%
Revenue Next 5Y2.48%
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.
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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NXRT is on the same level as its industry peers.
100.00% 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 | 17.9 | ||
| EV/EBITDA | 17.95 |
4.3 Compensation for Growth
A cheap valuation may be justified as NXRT's earnings are expected to decrease with -286.93% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-703.92%
EPS Next 3Y-286.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.43%, NXRT is a good candidate for dividend investing.
NXRT's Dividend Yield is rather good when compared to the industry average which is at 6.34. NXRT pays more dividend than 85.00% of the companies in the same industry.
NXRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.43% |
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.
As NXRT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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-104.31%
EPS Next 2Y-703.92%
EPS Next 3Y-286.93%
31.62
-0.13 (-0.41%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners75.78%
Inst Owner Change0%
Ins Owners13.32%
Ins Owner Change2.01%
Market Cap801.88M
Analysts72.86
Price Target36.21 (14.52%)
Short Float %3.16%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.43% |
Yearly Dividend1.93
Dividend Growth(5Y)10.88%
DP-104.31%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.59%
Min EPS beat(2)8.72%
Max EPS beat(2)18.46%
EPS beat(4)2
Avg EPS beat(4)-44.01%
Min EPS beat(4)-176.12%
Max EPS beat(4)18.46%
EPS beat(8)5
Avg EPS beat(8)52.88%
EPS beat(12)6
Avg EPS beat(12)9.02%
EPS beat(16)9
Avg EPS beat(16)54.93%
Revenue beat(2)0
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)-1.59%
Revenue beat(4)0
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-1.94%
Max Revenue beat(4)-1.36%
Revenue beat(8)2
Avg Revenue beat(8)3.22%
Revenue beat(12)3
Avg Revenue beat(12)1.86%
Revenue beat(16)6
Avg Revenue beat(16)1.46%
PT rev (1m)0%
PT rev (3m)-10.69%
EPS NQ rev (1m)0.95%
EPS NQ rev (3m)-5.59%
EPS NY rev (1m)1.45%
EPS NY rev (3m)-2.05%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.15 | ||
| P/FCF | 17.9 | ||
| P/OCF | 9.73 | ||
| P/B | 2.3 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 17.95 |
EPS(TTM)-1.93
EYN/A
EPS(NY)-1.25
Fwd EYN/A
FCF(TTM)1.77
FCFY5.59%
OCF(TTM)3.25
OCFY10.28%
SpS10.03
BVpS13.72
TBVpS13.72
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.68% | ||
| ROE | -14.29% | ||
| ROCE | 1.55% | ||
| ROIC | 1.22% | ||
| ROICexc | 1.23% | ||
| ROICexgc | 1.25% | ||
| OM | 11.11% | ||
| PM (TTM) | N/A | ||
| GM | 62.76% | ||
| FCFM | 17.62% |
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 3Y-12.32%
GM growth 5Y-7.43%
F-Score4
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.22 | ||
| Debt/FCF | 32.74 | ||
| Debt/EBITDA | 11.67 | ||
| Cap/Depr | 38.64% | ||
| Cap/Sales | 14.8% | ||
| Interest Coverage | 0.3 | ||
| Cash Conversion | 65.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 0.45 |
F-Score4
WACC7.78%
ROIC/WACC0.16
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)-212.21%
EPS 3Y-70.76%
EPS 5Y-65.41%
EPS Q2Q%-170%
EPS Next Y-6440.98%
EPS Next 2Y-703.92%
EPS Next 3Y-286.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.02%
Revenue growth 3Y5.81%
Revenue growth 5Y7.48%
Sales Q2Q%-17.9%
Revenue Next Year-2.56%
Revenue Next 2Y0.53%
Revenue Next 3Y1.89%
Revenue Next 5Y2.48%
EBIT growth 1Y-24.73%
EBIT growth 3Y19.26%
EBIT growth 5Y15.4%
EBIT Next Year18452.7%
EBIT Next 3Y497.35%
EBIT Next 5Y287.99%
FCF growth 1Y183.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.62%
OCF growth 3Y0.14%
OCF growth 5Y7.45%