NEXPOINT RESIDENTIAL (NXRT) Stock Fundamental Analysis
NYSE:NXRT - New York Stock Exchange, Inc. - US65341D1028 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to NXRT. 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 is valued expensive and it does not seem to be growing. 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
The Return On Assets of NXRT (-2.68%) is worse than 90.00% of its industry peers.
NXRT has a Return On Equity of -14.29%. This is amonst the worse of the industry: NXRT underperforms 85.00% of its industry peers.
With a Return On Invested Capital value of 1.22%, NXRT is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
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 2.62%.
| 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.
With a Operating Margin value of 11.11%, NXRT is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of NXRT has grown nicely.
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.
In the last couple of years the Gross Margin of NXRT has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NXRT is destroying value.
NXRT has less shares outstanding than it did 1 year ago.
NXRT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NXRT has a worse debt to assets ratio.
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.
With a Altman-Z score value of 0.44, NXRT is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
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.
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.
NXRT has a Debt/Equity ratio of 4.22. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of NXRT (4.22) is worse 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
WACC7.83%
2.3 Liquidity
A Current Ratio of 1.03 indicates that NXRT should not have too much problems paying its short term obligations.
NXRT's Current ratio of 1.03 is fine compared to the rest of the industry. NXRT outperforms 80.00% of its industry peers.
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.
With a decent Quick ratio value of 1.03, NXRT is doing good in 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%.
NXRT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -65.41% yearly.
The Revenue has decreased by -6.02% in the past year.
NXRT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.48% yearly.
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
Based on estimates for the next years, NXRT will show a very negative growth in Earnings Per Share. The EPS will decrease by -285.03% on average per year.
Based on estimates for the next years, NXRT will show a small growth in Revenue. The Revenue will grow by 2.48% on average per year.
EPS Next Y-6313.48%
EPS Next 2Y-682.05%
EPS Next 3Y-285.03%
EPS Next 5YN/A
Revenue Next Year-1.83%
Revenue Next 2Y1.67%
Revenue Next 3Y3.02%
Revenue Next 5Y2.48%
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.
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
Based on the Enterprise Value to EBITDA ratio, NXRT is valued a bit cheaper than 65.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NXRT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.61 | ||
| EV/EBITDA | 17.84 |
4.3 Compensation for Growth
A cheap valuation may be justified as NXRT's earnings are expected to decrease with -285.03% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-682.05%
EPS Next 3Y-285.03%
5. Dividend
5.1 Amount
NXRT has a Yearly Dividend Yield of 6.55%, which is a nice return.
Compared to an average industry Dividend Yield of 4.83, NXRT pays a better dividend. On top of this NXRT pays more dividend than 90.00% 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 | 6.55% |
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-104.31%
EPS Next 2Y-682.05%
EPS Next 3Y-285.03%
31.11
-0.02 (-0.06%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners77.34%
Inst Owner Change0.13%
Ins Owners13.35%
Ins Owner Change14.35%
Market Cap788.95M
Analysts72.86
Price Target38.67 (24.3%)
Short Float %1.61%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.55% |
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)-4.61%
PT rev (3m)-11.56%
EPS NQ rev (1m)-7.11%
EPS NQ rev (3m)-24.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.13%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 3.1 | ||
| P/FCF | 17.61 | ||
| P/OCF | 9.57 | ||
| P/B | 2.27 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 17.84 |
EPS(TTM)-1.93
EYN/A
EPS(NY)-1.18
Fwd EYN/A
FCF(TTM)1.77
FCFY5.68%
OCF(TTM)3.25
OCFY10.45%
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 | 0.44 |
F-Score4
WACC7.83%
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-6313.48%
EPS Next 2Y-682.05%
EPS Next 3Y-285.03%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.02%
Revenue growth 3Y5.81%
Revenue growth 5Y7.48%
Sales Q2Q%-17.9%
Revenue Next Year-1.83%
Revenue Next 2Y1.67%
Revenue Next 3Y3.02%
Revenue Next 5Y2.48%
EBIT growth 1Y-24.73%
EBIT growth 3Y19.26%
EBIT growth 5Y15.4%
EBIT Next Year18458.6%
EBIT Next 3Y496.24%
EBIT Next 5Y286.19%
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%