NETSTREIT (NTST) AI Stock Analysis

• Market Cap: $1.32B
• Dividend Yield: 5.19%
• Average Volume (3M): 834.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: 21.91%
• EPS Growth: -257.05%
• Country: US
• Employees: 22
• Sector: Real Estate
• Sector Strength: 67
• Industry: REIT - Retail
• EPS (TTM): 0.02
• Shares Outstanding: 81,706,090
• 10 Day Avg. Volume: 635,614
• 30 Day Avg. Volume: 834,879
• PEG Ratio: -18.68
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.46
• Enterprise Value/Market Cap: 1.70
• Enterprise Value/Revenue: 3.78
• Enterprise Value/Gross Profit: 15.13
• Enterprise Value/Ebitda: 5.48
• 1Y Price Target: $18.06
• Price Target Upside: 12.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 70 Outperform
• Price Target: $17.50 ▲(8.70%Upside)

NETSTREIT's overall score is driven by strong cash flow management and positive earnings call guidance, despite current profitability challenges. The technical indicators show a positive trend, and while the valuation is impacted by a negative P/E ratio, the dividend yield remains appealing. Overall, the company's strategic focus on diversification and careful portfolio management bolsters its position in a challenging market.

Positive Factors

Earnings

The company's adjusted funds from operations per share slightly exceeded consensus expectations.

Financial Performance

Netstreit Corp. has a high concentration of investment-grade assets, which strengthens its financial stability.

Valuation

NTST trades below the private market value of its portfolio, indicating potential for positive valuation adjustments.

Negative Factors

Guidance

NTST’s investment activity guidance was lower than expected but considered reasonable due to the recent decline in share price.

Investment Activity

NTST's high WACC (>8% ICR) / tighter investment spreads (<100bps) have limited its ability to raise and deploy capital.

Tenant Risk

Investor concern exists around negative headlines affecting some of NTST's key tenants, impacting the stock.

NETSTREIT Business Overview & Revenue Model

Company Description

NETSTREIT Corp. (NTST) is a real estate investment trust (REIT) specializing in the acquisition, financing, and management of single-tenant, net-leased retail properties across the United States. The company focuses on properties leased on a long-term basis to high-credit-quality tenants operating in sectors such as essential retail, discount retail, and e-commerce resistant industries. NETSTREIT aims to provide stable and growing cash flows through its diversified and strategically curated portfolio.

How the Company Makes Money

NETSTREIT generates revenue primarily through rental income from its portfolio of single-tenant, net-leased retail properties. The company's business model involves acquiring properties that are leased to tenants on a net lease basis, meaning tenants are responsible for paying most or all of the operating expenses, including taxes, maintenance, and insurance, in addition to rent. This structure provides NETSTREIT with predictable cash flows and reduces the financial burden of property ownership. Key revenue streams include rental payments from tenants in essential and resilient retail sectors. The company's earnings are further supported by strategic acquisitions and portfolio management aimed at enhancing the quality and stability of its income. Significant partnerships with high-credit-quality tenants and a focus on sectors less susceptible to economic downturns contribute to NETSTREIT's financial performance.

NETSTREIT Financial Statement Overview

Summary

NETSTREIT demonstrates solid revenue growth and operational improvements, particularly in EBIT and EBITDA margins. Despite these strengths, the company faces challenges with profitability, as seen in the negative net income. The balance sheet is stable, supported by a reasonable debt level, though there is a slight decline in equity ratio. Cash flows are a strong point, with consistent operating cash flow and free cash flow generation, supporting future growth investments. Overall, while there are profitability concerns, the company's financial position remains sound.

Income Statement

The company shows consistent revenue growth, with a notable increase in total revenue from previous years. However, the net profit margin is negative in the TTM period, indicating current profitability challenges. The EBIT and EBITDA margins show improvement, suggesting operational efficiencies despite the net income loss.

Balance Sheet

The balance sheet reflects a strong equity base with a stable debt-to-equity ratio, indicating moderate leverage. However, the equity ratio has decreased slightly over the years, suggesting increased liabilities relative to assets. Return on equity is low due to negative net income, which is a concern for investors.

Cash Flow

The cash flow statement highlights positive operating cash flows with a significant increase over the years, indicating strong cash generation capabilities. Free cash flow remains robust, although growth has varied. The operating cash flow to net income ratio is strong, reflecting efficient cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
161.01M	150.00M	123.12M	96.28M	59.14M	33.73M
	Gross Profit
148.58M	133.80M	106.25M	84.58M	53.34M	31.16M
	EBIT
41.31M	37.21M	24.10M	15.59M	8.15M	4.35M
	EBITDA
108.79M	98.24M	95.65M	65.66M	38.96M	19.81M
	Net Income Common Stockholders
-11.29M	-11.94M	6.84M	8.12M	3.05M	-4.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.33M	14.32M	18.43M	70.54M	7.60M	92.64M
	Total Assets
2.03B	2.26B	1.95B	1.61B	1.07B	725.82M
	Total Debt
734.01M	894.28M	640.25M	524.32M	261.65M	191.03M
	Net Debt
711.67M	879.96M	621.82M	453.78M	254.04M	98.39M
	Total Liabilities
756.39M	921.21M	672.80M	547.27M	278.63M	197.74M
	Stockholders Equity
1.26B	1.33B	1.26B	1.05B	779.17M	494.10M
Cash Flow		Free Cash Flow
75.57M	90.16M	80.12M	49.44M	30.75M	12.70M
	Operating Cash Flow
100.60M	90.16M	80.16M	50.65M	31.48M	12.75M
	Investing Cash Flow
-383.98M	-432.88M	-451.95M	-468.36M	-430.13M	-362.13M
	Financing Cash Flow
275.25M	327.10M	331.18M	480.65M	313.61M	272.71M

NETSTREIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTST, the sentiment is Positive. The current price of 16.1 is above the 20-day moving average (MA) of 15.86, above the 50-day MA of 15.74, and above the 200-day MA of 15.25, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 56.17 is Neutral, neither overbought nor oversold. The STOCH value of 80.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTST.

NETSTREIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTY	71 Outperform	$1.62B	24.22	7.23%	6.29%	7.80%	4.15%
NTST	70 Outperform	$1.32B	―	-0.88%	5.19%	21.91%	-257.05%
WSR	70 Outperform	$1.25B	20.37	7.33%	4.11%	4.39%	24.45%
IVT	69 Neutral	$2.18B	123.96	1.07%	3.26%	7.45%	119.81%
BFS	67 Neutral	$815.58M	22.85	13.86%	7.01%	5.00%	-14.72%
Sector *	61 Neutral	$2.81B	10.77	0.50%	8507.81%	5.71%	-20.80%
PINE	59 Neutral	$218.57M	166.34	0.47%	7.31%	14.71%	―

NETSTREIT Corporate Events

NETSTREIT Holds Annual Stockholders Meeting on May 15

On May 15, 2025, NETSTREIT Corp. held its annual meeting of stockholders where several key proposals were voted on. The election of directors saw Mark Manheimer, Lori Wittman, Michael Christodolou, Heidi Everett, Todd Minnis, Matthew Troxell, and Robin Zeigler receiving varying levels of support. Additionally, the amendment and restatement of the 2019 Omnibus Incentive Compensation Plan was approved, and the appointment of an independent registered public accounting firm was ratified. The advisory vote on executive officer compensation also took place.

The most recent analyst rating on (NTST) stock is a Buy with a $19.50 price target. To see the full list of analyst forecasts on NETSTREIT stock, see the NTST Stock Forecast page.

NETSTREIT Reports Q1 2025 Financial Results

On April 28, 2025, NETSTREIT Corp. announced its financial and operating results for the first quarter ending March 31, 2025. The company reported a net income of $0.02 and adjusted funds from operations (AFFO) of $0.32 per diluted share. During the quarter, NETSTREIT completed $90.7 million in gross investment activity with a 7.7% blended cash yield and closed $275 million in additional financing commitments. The company also increased its 2025 AFFO per share guidance to a new range of $1.28 to $1.30, reflecting its strategic focus on capital recycling and portfolio diversification.