NexPoint Real Estate Finance, Inc.
NexPoint Real Estate Finance, Inc. Fundamental Analysis
NexPoint Real Estate Finance, Inc. (NREF-PA) shows moderate financial fundamentals with a PE ratio of 2.74, profit margin of 73.97%, and ROE of 19.50%. The company generates $0.1B in annual revenue with weak year-over-year growth of 1.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NREF-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakNREF-PA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNREF-PA trades at attractive valuation levels.
Growth Score
ModerateNREF-PA shows steady but slowing expansion.
Financial Health Score
WeakNREF-PA carries high financial risk with limited liquidity.
Profitability Score
ExcellentNREF-PA achieves industry-leading margins.
Key Financial Metrics
Is NREF-PA Expensive or Cheap?
P/E Ratio
NREF-PA trades at 2.74 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NREF-PA's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values NexPoint Real Estate Finance, Inc. at 0.70 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -26.00 times EBITDA. This is generally considered low.
How Well Does NREF-PA Make Money?
Net Profit Margin
For every $100 in sales, NexPoint Real Estate Finance, Inc. keeps $73.97 as profit after all expenses.
Operating Margin
Core operations generate 1.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.50 in profit for every $100 of shareholder equity.
ROA
NexPoint Real Estate Finance, Inc. generates $1.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NexPoint Real Estate Finance, Inc. produces operating cash flow of $31.60M, showing steady but balanced cash generation.
Free Cash Flow
NexPoint Real Estate Finance, Inc. generates strong free cash flow of $31.60M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.80 in free cash annually.
FCF Yield
NREF-PA converts 12.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
11.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How NREF-PA Stacks Against Its Sector Peers
| Metric | NREF-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.74 | 24.23 | Better (Cheaper) |
| ROE | 19.50% | 659.00% | Weak |
| Net Margin | 73.97% | 4497.00% | Weak |
| Debt/Equity | 11.92 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.00 | 13.87 | Weak Liquidity |
| ROA | 1.83% | -1390.00% (disorted) | Weak |
NREF-PA outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NexPoint Real Estate Finance, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
73.42%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
0.00%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
0.00%
Industry Style: Income, Inflation Hedge, REIT
Declining