NexPoint Residential (NXRT) AI Stock Analysis

• Market Cap: $769.62M
• Dividend Yield: 7.06%
• Average Volume (3M): 151.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -4.46%
• EPS Growth: -206.19%
• Country: US
• Employees: 2
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): -0.31
• Shares Outstanding: 25,364,470
• 10 Day Avg. Volume: 125,398
• 30 Day Avg. Volume: 151,158
• PEG Ratio: -9.84
• Price to Book (P/B): 2.60
• Price to Sales (P/S): 4.10
• P/FCF Ratio: 14.48
• Enterprise Value/Market Cap: 2.89
• Enterprise Value/Revenue: 8.86
• Enterprise Value/Gross Profit: 13.78
• Enterprise Value/Ebitda: 11.11
• 1Y Price Target: $29.85
• Price Target Upside: -0.40% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $31.00 ▲(3.44% Upside)

NexPoint Residential's overall stock score reflects significant financial challenges, including declining revenue and high leverage, which are partially offset by strong cash flow generation and a high dividend yield. Technical indicators suggest bearish momentum, while the earnings call provides cautious optimism with operational improvements and strategic growth plans.

Positive Factors

Cash Flow Generation

Strong cash flow growth indicates efficient operations and provides a buffer against operational losses, supporting long-term stability.

Dividend Growth

Consistent dividend growth reflects robust cash generation and management's commitment to returning value to shareholders, enhancing investor confidence.

Successful Unit Upgrades

Unit upgrades with a 26% ROI enhance property value and rental income, indicating effective asset management and potential for revenue growth.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Declining Revenue

Declining revenue suggests challenges in maintaining market position and could pressure margins, affecting long-term profitability.

Negative Profit Margins

Negative profit margins indicate operational inefficiencies and financial challenges, potentially hindering the company's ability to sustain growth.

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 generates revenue primarily through rental income derived from leasing its multifamily properties to tenants. The company's revenue model is built on long-term leases, which provide predictable cash flows, while also engaging in short-term leases that can capture market rates. Key revenue streams include base rent, ancillary income from services such as parking fees, pet fees, and laundry facilities, as well as income from property management services. Additionally, NexPoint Residential may engage in property renovations and improvements to increase the value of its properties, thereby enhancing rental rates and occupancy levels. Strategic partnerships with property management firms and local real estate brokers also contribute to optimizing property performance and maximizing rental income.

NexPoint Residential Financial Statement Overview

Summary

NexPoint Residential faces significant financial challenges, with declining revenue and profitability, as evidenced by negative net income and shrinking margins. High leverage poses financial risk, although strong cash flow generation provides some buffer against operational losses.

Income Statement

NexPoint Residential's income statement shows a declining revenue trend with a significant drop in revenue growth rate of -42.6% TTM. The gross profit margin has decreased from 84.39% to 62.49% TTM, indicating reduced efficiency in generating profit from revenue. The net profit margin is negative at -19.55% TTM, reflecting a loss-making position. The EBIT and EBITDA margins have also declined, suggesting reduced operational profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 4.22 TTM, indicating significant leverage and potential financial risk. Return on equity is negative at -12.54% TTM, reflecting poor profitability relative to shareholder equity. The equity ratio stands at 18.73% TTM, showing a low proportion of equity financing relative to total assets, which could be a concern for stability.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 26.9% TTM, indicating improved cash generation. The operating cash flow to net income ratio is strong at 6.27 TTM, suggesting efficient cash conversion from operations. However, the free cash flow to net income ratio is 1.0, indicating that all free cash flow is being used to cover net income losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	251.07M	259.70M	277.53M	263.95M	219.24M	204.80M
Gross Profit	161.41M	146.47M	157.58M	143.89M	117.05M	106.01M
EBITDA	200.18M	202.99M	250.01M	138.94M	137.39M	159.11M
Net Income	-48.65M	1.11M	44.26M	-9.26M	23.04M	44.02M
Balance Sheet
Total Assets	1.84B	1.91B	2.11B	2.23B	2.06B	1.83B
Cash, Cash Equivalents and Short-Term Investments	10.83M	23.15M	12.37M	127.84M	53.24M	24.46M
Total Debt	1.47B	1.46B	1.48B	1.60B	1.55B	1.35B
Total Liabilities	1.51B	1.49B	1.61B	1.70B	1.59B	1.42B
Stockholders Equity	322.94M	410.37M	494.62M	519.67M	469.85M	407.93M
Cash Flow
Free Cash Flow	54.63M	73.57M	96.58M	79.10M	73.27M	57.23M
Operating Cash Flow	54.63M	73.57M	96.58M	79.10M	73.27M	57.23M
Investing Cash Flow	-2.74M	130.62M	51.92M	-162.30M	-235.91M	11.50M
Financing Cash Flow	-64.61M	-195.55M	-155.02M	46.31M	194.32M	-82.90M

NexPoint Residential Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 29.97 is below the 20-day moving average (MA) of 30.43, below the 50-day MA of 30.00, and below the 200-day MA of 31.71, indicating a bearish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 47.54 is Neutral, neither overbought nor oversold. The STOCH value of 14.52 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
UMH	71 Outperform	$1.33B	204.59	3.02%	5.66%	8.91%	-39.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
VRE	63 Neutral	$1.42B	23.24	5.33%	2.17%	3.37%	―
CSR	59 Neutral	$1.14B	48.60	4.30%	4.58%	36.82%	―
BRT	52 Neutral	$279.41M	-27.85	-4.89%	6.98%	1.62%	11.38%
NXRT	51 Neutral	$769.62M	-15.78	-12.63%	7.06%	-4.46%	-206.19%
AIV	49 Neutral	$847.16M	-5.87	171.00%	7.42%	-4.63%	42.39%