NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
USA - NYSE:NXRT - US65341D1028 - REIT
30.67 USD
+0.06 (+0.2%)
30.67 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 has a expensive valuation and it also scores bad on growth. NXRT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year NXRT has reported negative net income.
NXRT had a positive operating cash flow in the past year.
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's Return On Assets of -2.68% is on the low side compared to the rest of the industry. NXRT is outperformed by 90.00% of its industry peers.
Looking at the Return On Equity, with a value of -14.29%, NXRT is doing worse than 85.00% of the companies in the same industry.
NXRT's Return On Invested Capital of 1.22% is on the low side compared to the rest of the industry. NXRT is outperformed by 75.00% 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 2.60%.
| 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
NXRT's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 11.11%, NXRT is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
NXRT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 62.76%, NXRT is in the better half of 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NXRT is destroying value.
The number of shares outstanding for NXRT has been reduced compared to 1 year ago.
NXRT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NXRT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.44, we must say that NXRT is in the distress zone and has some risk of bankruptcy.
NXRT has a worse Altman-Z score (0.44) than 65.00% of its industry peers.
The Debt to FCF ratio of NXRT is 32.74, which is on the high side as it means it would take NXRT, 32.74 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NXRT (32.74) is better than 65.00% of its industry peers.
NXRT has a Debt/Equity ratio of 4.22. This is a high value indicating a heavy dependency on external financing.
NXRT has a worse Debt to Equity ratio (4.22) than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.22 | ||
| Debt/FCF | 32.74 | ||
| Altman-Z | 0.44 |
ROIC/WACC0.16
WACC7.66%
2.3 Liquidity
NXRT has a Current 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.
With a decent Current ratio value of 1.03, NXRT is doing good in 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.
The Quick ratio of NXRT (1.03) is better than 80.00% of its industry peers.
| 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 -145.09%.
NXRT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -65.41% yearly.
Looking at the last year, NXRT shows a decrease in Revenue. The Revenue has decreased by -6.42% in the last 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)-145.09%
EPS 3Y-70.76%
EPS 5Y-65.41%
EPS Q2Q%328.57%
Revenue 1Y (TTM)-6.42%
Revenue growth 3Y5.81%
Revenue growth 5Y7.48%
Sales Q2Q%-1.97%
3.2 Future
The Earnings Per Share is expected to decrease by -286.93% on average over the next years. This is quite bad
NXRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.48% yearly.
EPS Next Y-6364.48%
EPS Next 2Y-702.65%
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.
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
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NXRT.
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 | 17.37 | ||
| EV/EBITDA | 17.74 |
4.3 Compensation for Growth
NXRT's earnings are expected to decrease with -286.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-702.65%
EPS Next 3Y-286.93%
5. Dividend
5.1 Amount
NXRT has a Yearly Dividend Yield of 7.02%, which is a nice return.
NXRT's Dividend Yield is rather good when compared to the industry average which is at 7.12. 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 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
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-104.31%
EPS Next 2Y-702.65%
EPS Next 3Y-286.93%
30.67
+0.06 (+0.2%)
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 Change-0.53%
Ins Owners13.32%
Ins Owner Change1.53%
Market Cap777.79M
Revenue(TTM)259.70M
Net Income(TTM)-49714000
Analysts72.86
Price Target36.04 (17.51%)
Short Float %2.42%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.02% |
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)-9.55%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)-5.59%
EPS NY rev (1m)1.21%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.06 | ||
| P/FCF | 17.37 | ||
| P/OCF | 9.44 | ||
| P/B | 2.24 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 17.74 |
EPS(TTM)-0.78
EYN/A
EPS(NY)-1.25
Fwd EYN/A
FCF(TTM)1.77
FCFY5.76%
OCF(TTM)3.25
OCFY10.6%
SpS10.03
BVpS13.72
TBVpS13.72
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/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%
ROICexgc growth 3Y22.72%
ROICexgc 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 | 0.44 |
F-Score4
WACC7.66%
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)-145.09%
EPS 3Y-70.76%
EPS 5Y-65.41%
EPS Q2Q%328.57%
EPS Next Y-6364.48%
EPS Next 2Y-702.65%
EPS Next 3Y-286.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.42%
Revenue growth 3Y5.81%
Revenue growth 5Y7.48%
Sales Q2Q%-1.97%
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%
NEXPOINT RESIDENTIAL / NXRT FAQ
Can you provide the ChartMill fundamental rating for NEXPOINT RESIDENTIAL?
ChartMill assigns a fundamental rating of 3 / 10 to NXRT.
What is the valuation status of NEXPOINT RESIDENTIAL (NXRT) stock?
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.
How financially healthy is NEXPOINT RESIDENTIAL?
The financial health rating of NEXPOINT RESIDENTIAL (NXRT) is 3 / 10.