NexPoint Residential Trust, Inc. Fundamental Analysis (NYSE: NXRT)
NexPoint Residential Trust, Inc. Fundamental Analysis (NYSE: NXRT)
NexPoint Residential Trust, Inc. (NYSE: NXRT) shows weak financial fundamentals with a PE ratio of -10.86, profit margin of -14.48%, and ROE of -14.29%. The company generates $0.3B in annual revenue with weak year-over-year growth of -3.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -15.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NXRT's fundamental strength across five key dimensions:
Efficiency Score
WeakNXRT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNXRT trades at attractive valuation levels.
Growth Score
WeakNXRT faces weak or negative growth trends.
Financial Health Score
ModerateNXRT shows balanced financial health with some risks.
Profitability Score
WeakNXRT struggles to sustain strong margins.
Key Financial Metrics
Is NXRT Expensive or Cheap?
P/E Ratio
NXRT trades at -10.86 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NXRT's PEG of -0.71 indicates potential undervaluation.
Price to Book
The market values NexPoint Residential Trust, Inc. at 1.79 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.94 times EBITDA. This is generally considered low.
How Well Does NXRT Make Money?
Net Profit Margin
For every $100 in sales, NexPoint Residential Trust, Inc. keeps $-14.48 as profit after all expenses.
Operating Margin
Core operations generate 10.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-14.29 in profit for every $100 of shareholder equity.
ROA
NexPoint Residential Trust, Inc. generates $-2.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NexPoint Residential Trust, Inc. generates strong operating cash flow of $74.39M, reflecting robust business health.
Free Cash Flow
NexPoint Residential Trust, Inc. generates strong free cash flow of $57.72M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.26 in free cash annually.
FCF Yield
NXRT converts 14.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-10.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
7.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.14
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How NXRT Stacks Against Its Sector Peers
| Metric | NXRT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -10.86 | 25.31 | Better (Cheaper) |
| ROE | -14.29% | 699.00% | Weak |
| Net Margin | -14.48% | 2278.00% | Weak |
| Debt/Equity | 7.10 | -37.86 (disorted) | Distorted |
| Current Ratio | 2.08 | 91.23 | Strong Liquidity |
| ROA | -2.00% | 272.00% | Weak |
NXRT outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NexPoint Residential Trust, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
19.43%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-170.82%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
42.18%
Industry Style: Income, Inflation Hedge, REIT
High Growth