NETSTREIT (NTST) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: 5.28%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 21.91%
• EPS Growth: -257.05%
• Country: US
• Employees: 22
• Sector: Real Estate
• Sector Strength: 66
• Industry: REIT - Retail
• EPS (TTM): 0.02
• Shares Outstanding: 81,706,090
• 10 Day Avg. Volume: 964,583
• 30 Day Avg. Volume: 1,074,156
• 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: 1.73
• Enterprise Value/Revenue: 3.78
• Enterprise Value/Gross Profit: 15.13
• Enterprise Value/Ebitda: 5.48
• 1Y Price Target: $18.06
• Price Target Upside: 16.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

NETSTREIT's overall score of 71 reflects its solid financial foundation with strong cash flow generation and operational improvements. The positive momentum in technical indicators and attractive dividend yield are strengths. However, challenges with profitability and a high P/E ratio weigh on the valuation. Positive earnings call sentiment and strategic execution provide a favorable outlook, despite market uncertainties.

Positive Factors

Asset Quality

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

Financial Performance

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

Portfolio Management

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

Negative Factors

Capital Constraints

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

Investment Activity

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

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) focused on acquiring, owning, and managing single-tenant, net lease retail commercial properties across the United States. The company primarily invests in properties leased to high-quality tenants with established national or regional retail brands. NETSTREIT aims to provide its shareholders with stable and growing dividends through strategic acquisitions and property management.

How the Company Makes Money

NETSTREIT makes money by acquiring and leasing out single-tenant retail properties under net lease agreements. These leases often require tenants to pay a significant portion of the property's operating expenses, such as maintenance, insurance, and taxes, in addition to the base rent. This structure allows NETSTREIT to generate stable and predictable rental income while minimizing its exposure to property-related expenses. The company's revenue streams are primarily derived from these rental payments. Additionally, NETSTREIT's growth strategy involves acquiring properties with strong tenants and favorable lease terms, which can enhance its income and asset value over time.

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: Neutral
• Last Price: 15.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTST, the sentiment is Neutral. The current price of 15.54 is below the 20-day moving average (MA) of 16.02, above the 50-day MA of 15.54, and above the 200-day MA of 15.23, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 44.67 is Neutral, neither overbought nor oversold. The STOCH value of 39.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NTST.

NETSTREIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTY	74 Outperform	$1.58B	23.61	7.23%	6.45%	7.80%	4.15%
IVT	73 Outperform	$2.24B	127.36	1.07%	3.18%	7.45%	119.81%
NTST	71 Outperform	$1.30B	―	-0.88%	5.28%	21.91%	-257.05%
WSR	70 Outperform	$1.29B	21.05	7.33%	3.98%	4.39%	24.45%
BFS	63 Neutral	$809.77M	22.69	13.86%	7.14%	5.00%	-14.72%
Sector *	60 Neutral	$2.83B	10.92	0.21%	8543.15%	5.98%	-17.76%
PINE	59 Neutral	$217.71M	165.69	0.47%	7.34%	14.71%	―

NETSTREIT Corporate Events

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.

Spark’s Take on NTST Stock

According to Spark, TipRanks’ AI Analyst, NTST is a Outperform.

NTST’s strong revenue growth, no debt, and positive operating cash flow are key strengths. However, challenges in profitability and tenant issues present risks. The technical indicators suggest positive momentum, while valuation metrics offer mixed signals due to high P/E and a good dividend yield. Strategic corporate actions and earnings call insights add to the outlook, but profitability issues weigh on the score.

To see Spark’s full report on NTST stock, click here.

NETSTREIT Reports Q4 2024 Results and 2025 Outlook

On February 24, 2025, NETSTREIT Corp. reported its financial and operating results for the fourth quarter and full year ending December 31, 2024. The company achieved a record gross investment activity of $195.1 million at a 7.4% cash yield during the fourth quarter and introduced a 2025 AFFO per share guidance of $1.27 to $1.30. Despite reporting a net loss of $0.07 per diluted share for the fourth quarter, NETSTREIT completed significant capital recycling and closed $275 million in additional financing commitments in January 2025, positioning itself for future growth with a focus on enhancing tenant diversity and internal growth.