NexPoint Residential (NXRT) AI Stock Analysis

• Market Cap: $856.83M
• Dividend Yield: 6.04%
• Average Volume (3M): 162.54K
• Price to Earnings (P/E): 866.2
• Beta (1Y): 0.88
• Revenue Growth: -7.44%
• EPS Growth: -143.64%
• Country: US
• Employees: 2
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): -0.27
• Shares Outstanding: 25,284,700
• 10 Day Avg. Volume: 200,590
• 30 Day Avg. Volume: 162,538
• PEG Ratio: <0.01
• Price to Book (P/B): 2.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.36
• Enterprise Value/Market Cap: 2.68
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 23.54
• Enterprise Value/Ebitda: 2.93
• 1Y Price Target: $40.83
• Price Target Upside: 20.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 53 Neutral
• Price Target: $34.00 ▲(0.74%Upside)

NexPoint Residential's financial performance and technical indicators are the most significant factors driving the score. Despite some positive developments in core FFO and dividend yield, the company's high leverage, profitability challenges, and bearish technical outlook weigh heavily on its overall stock score.

Positive Factors

Debt Management

The company has no relevant debt maturing until 2031.

Financial Performance

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.

Market Focus

NexPoint Residential Trust, Inc. focuses on middle-income multifamily properties in prime locations within major cities and suburban areas in the Southeastern and Southwestern regions of the United States.

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 exhibits mixed financial health with stable cash flow but significant profitability challenges and high leverage. The company needs to improve margins and reduce debt for better stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	255.34M	259.70M	277.53M	263.95M	219.24M	204.80M
Gross Profit	97.40M	146.47M	167.13M	159.07M	131.02M	119.65M
EBITDA	134.16M	181.32M	250.01M	138.94M	151.30M	165.13M
Net Income	-32.09M	1.11M	44.26M	-9.26M	23.04M	44.02M
Balance Sheet
Total Assets	1.88B	1.91B	2.11B	2.23B	2.06B	1.83B
Cash, Cash Equivalents and Short-Term Investments	23.72M	23.15M	12.37M	127.84M	49.45M	24.46M
Total Debt	1.47B	1.46B	1.48B	1.60B	1.55B	1.35B
Total Liabilities	1.50B	1.49B	1.61B	1.70B	1.59B	1.42B
Stockholders Equity	379.91M	410.37M	494.62M	519.67M	469.85M	407.93M
Cash Flow
Free Cash Flow	82.21M	73.57M	96.58M	79.10M	73.27M	57.23M
Operating Cash Flow	82.21M	73.57M	96.58M	79.10M	73.27M	57.23M
Investing Cash Flow	27.57M	130.62M	51.92M	-162.30M	-235.91M	11.50M
Financing Cash Flow	-119.71M	-195.55M	-155.02M	46.31M	194.32M	-82.90M

NexPoint Residential Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 33.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXRT, the sentiment is Neutral. The current price of 33.75 is above the 20-day moving average (MA) of 33.51, below the 50-day MA of 34.74, and below the 200-day MA of 38.97, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 49.35 is Neutral, neither overbought nor oversold. The STOCH value of 59.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$1.08B	―	-1.55%	5.05%	-1.81%	-33.33%
BRT	64 Neutral	$303.20M	―	-4.28%	6.23%	2.39%	-407.57%
IRT	64 Neutral	$4.23B	133.36	0.87%	3.86%	-2.94%	―
CLPR	56 Neutral	$62.49M	―	46.22%	9.82%	8.64%	-213.95%
Sector *	53 Neutral	$1.20B	3.25	-0.13%	7.08%	-1.64%	-127.49%
NXRT	53 Neutral	$856.83M	866.19	-7.19%	6.04%	-7.44%	-143.64%
AIV	48 Neutral	$1.24B	―	-48.27%	6.84%	9.28%	34.42%

NexPoint Residential Corporate Events

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.