NexPoint Residential (NXRT) AI Stock Analysis

• Market Cap: $794.07M
• Dividend Yield: 6.47%
• Average Volume (3M): 175.66K
• Price to Earnings (P/E): 866.2
• Beta (1Y): 0.91
• Revenue Growth: -6.02%
• EPS Growth: -156.44%
• Country: US
• Employees: 2
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Residential
• EPS (TTM): -0.28
• Shares Outstanding: 25,364,470
• 10 Day Avg. Volume: 197,218
• 30 Day Avg. Volume: 175,655
• PEG Ratio: <0.01
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.21
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 14.66
• Enterprise Value/Ebitda: 4.15
• 1Y Price Target: $41.25
• Price Target Upside: 34.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 57 Neutral
• Price Target: $35.00 ▲(13.71%Upside)

NexPoint Residential's overall stock score is primarily influenced by its mixed financial performance and technical indicators. Despite stable cash flow and strong dividends, the company faces profitability challenges and high leverage. The technical analysis indicates a bearish trend, while the earnings call provides some positive highlights with effective expense management and strategic upgrades. However, these are countered by net losses and market supply pressures, leading to a moderate overall score.

Positive Factors

Financial Performance

The company reported a core FFO number that was three cents higher than consensus estimates.

Guidance Update

The company updated full year 2025 guidance with Core FFO per diluted share now expected between $2.61 and $2.89, up from $2.56-$2.83.

Liquidity Position

NXRT is in a strong liquidity position with approximately $23.7 million of cash and cash equivalents and $350 million free and clear under its credit facility.

Negative Factors

Growth Dependency

The company growth is dependent on internal growth, acquisitions and value enhancement to existing apartments.

NexPoint Residential Business Overview & Revenue Model

Company Description

NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol NXRT, primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with value-add potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., an SEC-registered investment advisor, which has extensive real estate experience.

How the Company Makes Money

NexPoint Residential Trust generates revenue primarily through rental income derived from its multifamily property portfolio. The company invests in middle-income housing, strategically located in growth markets, to attract a steady stream of tenants. By implementing value-add strategies such as renovations and property enhancements, NXRT can increase rental rates and occupancy levels, thus boosting its rental income. Additionally, the company's focus on operational efficiencies and cost management helps maximize its net operating income. NXRT may also engage in strategic property sales to realize capital gains, contributing to its overall earnings. These strategies are complemented by the company's expertise in asset management and market analysis, ensuring sustainable revenue growth.

NexPoint Residential Financial Statement Overview

Summary

NexPoint Residential has a mixed financial outlook with stable cash flow but challenges in profitability and high leverage. The negative net profit margin and high debt-to-equity ratio pose financial risks, requiring focus on margin improvement and debt reduction.

Income Statement

NexPoint Residential has experienced fluctuations in revenue and profitability. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 38.1% and a negative net profit margin of -12.6%, which indicates challenges in maintaining profitability. Revenue growth has been inconsistent, and the EBIT and EBITDA margins are moderate, reflecting mixed operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 3.86 in the TTM, which suggests significant leverage and potential financial risk. The equity ratio stands at 20.2%, indicating a low proportion of assets financed by equity. Return on equity is negative in the TTM, highlighting profitability challenges.

Cash Flow

Cash flow from operations is positive, with an operating cash flow to net income ratio of -2.56 in the TTM, which is concerning due to the negative net income. Free cash flow is stable, with a free cash flow to net income ratio of -2.56, suggesting reliance on cash flow for sustainability despite net losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	259.70M	277.53M	263.95M	219.24M	204.80M
Gross Profit	219.16M	167.13M	159.07M	131.02M	119.65M
EBITDA	127.67M	250.01M	138.94M	151.30M	165.13M
Net Income	1.11M	44.26M	-9.26M	23.04M	44.02M
Balance Sheet
Total Assets	1.91B	2.11B	2.23B	2.06B	1.83B
Cash, Cash Equivalents and Short-Term Investments	23.15M	12.37M	127.84M	49.45M	24.46M
Total Debt	1.46B	1.48B	1.60B	1.55B	1.35B
Total Liabilities	1.49B	1.61B	1.70B	1.59B	1.42B
Stockholders Equity	410.37M	494.62M	519.67M	469.85M	407.93M
Cash Flow
Free Cash Flow	73.57M	96.58M	79.10M	73.27M	57.23M
Operating Cash Flow	73.57M	96.58M	79.10M	73.27M	57.23M
Investing Cash Flow	130.62M	51.92M	-162.30M	-235.91M	11.50M
Financing Cash Flow	-195.55M	-155.02M	46.31M	194.32M	-82.90M

NexPoint Residential Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXRT, the sentiment is Negative. The current price of 30.78 is below the 20-day moving average (MA) of 33.62, below the 50-day MA of 33.56, and below the 200-day MA of 38.05, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 28.22 is Positive, neither overbought nor oversold. The STOCH value of 11.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NXRT.

NexPoint Residential Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSR	66 Neutral	$959.72M	―	-1.55%	5.59%	-1.81%	-33.33%
Sector *	63 Neutral	C$1.74B	1.48	-7.95%	5.21%	5.45%	-25.47%
IRT	62 Neutral	$4.02B	138.86	0.81%	3.88%	-1.54%	―
BRT	59 Neutral	$275.04M	―	-4.28%	6.87%	2.39%	-407.57%
NXRT	57 Neutral	$794.07M	866.19	-11.85%	6.47%	-6.02%	-156.44%
CLPR	57 Neutral	$55.54M	―	46.22%	11.05%	8.64%	-213.95%
AIV	45 Neutral	$1.19B	―	-48.27%	7.13%	9.28%	34.42%

NexPoint Residential Corporate Events

NexPoint Residential Retains Dondero Despite Withheld Votes

At the 2025 annual meeting of stockholders, James Dondero received more ‘withheld’ votes than ‘for’ votes for his re-election as a director of NexPoint Residential Trust, Inc. Despite this, the Board, following a recommendation from the Nominating and Corporate Governance Committee, decided to reject Mr. Dondero’s resignation due to his expertise in investment management, his experience, and his role as Chairman and President, among other factors. Consequently, Mr. Dondero will continue to serve on the Board until the 2026 annual meeting.

The most recent analyst rating on (NXRT) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on NexPoint Residential stock, see the NXRT Stock Forecast page.

NexPoint Residential Secures $200M Credit Facility

On July 11, 2025, NexPoint Residential Trust, Inc. entered into a $200 million corporate revolving credit facility with J.P. Morgan Chase Bank, which may be increased by an additional $200 million subject to lender agreement. This credit facility, maturing on June 30, 2028, is secured by the company’s equity offerings and capital events, and includes various financial covenants and interest rate options, potentially enhancing the company’s financial flexibility and operational capacity.

The most recent analyst rating on (NXRT) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on NexPoint Residential stock, see the NXRT Stock Forecast page.

NexPoint Residential Holds Annual Stockholders Meeting

On May 20, 2025, NexPoint Residential Trust, Inc. held its Annual Meeting of Stockholders where several key decisions were made. The stockholders approved the 2025 Long Term Incentive Plan aimed at attracting and retaining talent, elected directors for terms expiring in 2026, and ratified the appointment of KPMG LLP as the independent registered public accounting firm for 2025. Notably, James Dondero, a director, tendered his resignation after receiving more withheld votes than votes for his election, pending the board’s decision on acceptance.

The most recent analyst rating on (NXRT) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on NexPoint Residential stock, see the NXRT Stock Forecast page.