| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 3/6 |
| Financial Health | 2/6 |
| Dividends | 3/6 |
NREF Stock Overview
NexPoint Real Estate Finance, Inc. operates as a real estate finance company in the United States.
NexPoint Real Estate Finance Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$20.86 |
| 52 Week High | US$23.97 |
| 52 Week Low | US$15.61 |
| Beta | 0 |
| 1 Month Change | 11.25% |
| 3 Month Change | -2.16% |
| 1 Year Change | 23.07% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | 10.96% |
Recent News & Updates
NexPoint Real Estate Finance: Common Stock Is Still Better Than Preferred
NexPoint Real Estate Finance continues to generate attractive and growing financial performance on the bottom line. The company's fundamental condition is better than it was previously and its portfolio is expanding nicely. For investors who are bullish, the common units are still much more appealing than the preferred.
Shareholder Returns
| NREF | US Mortgage REITs | US Market | |
|---|---|---|---|
| 7D | 5.8% | 0.09% | -0.5% |
| 1Y | 23.1% | 8.4% | 13.7% |
Return vs Industry: NREF exceeded the US Mortgage REITs industry which returned 8.4% over the past year.
Return vs Market: NREF exceeded the US Market which returned 13.7% over the past year.
Price Volatility
| NREF volatility | |
|---|---|
| NREF Average Weekly Movement | 3.7% |
| Mortgage REITs Industry Average Movement | 3.5% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: NREF is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: NREF's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2019 | 1 | Jim Dondero | https://www.nexpointfinance.com |
NexPoint Real Estate Finance, Inc. operates as a real estate finance company in the United States. It focuses on originating, structuring, and investing in first mortgage loans, mezzanine loans, preferred equity, and preferred stock, as well as multifamily commercial mortgage backed securities securitizations. The company intends to qualify as a real estate investment trust for U.S. federal income tax purposes.
NexPoint Real Estate Finance Fundamentals Summary
| NREF fundamental statistics | |
|---|---|
| Market Cap | US$458.98m |
| Earnings (TTM) | US$36.46m |
| Revenue (TTM) | US$101.85m |
12.6x
P/E Ratio4.5x
P/S RatioIs NREF overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| NREF income statement (TTM) | |
|---|---|
| Revenue | US$101.85m |
| Cost of Revenue | US$5.17m |
| Gross Profit | US$96.68m |
| Expenses | US$60.22m |
| Earnings | US$36.46m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 17, 2022
| Earnings per share (EPS) | 1.66 |
| Gross Margin | 94.93% |
| Net Profit Margin | 35.80% |
| Debt/Equity Ratio | 1,568.7% |
How did NREF perform over the long term?
See historical performance and comparisonDividends
9.1%
Current Dividend Yield28%
Payout RatioValuation
Is NexPoint Real Estate Finance undervalued compared to its fair value and its price relative to the market?
12.59x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NREF ($20.86) is trading above our estimate of fair value ($16.25)
Significantly Below Fair Value: NREF is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NREF is poor value based on its PE Ratio (12.6x) compared to the US Mortgage REITs industry average (10.2x).
PE vs Market: NREF is good value based on its PE Ratio (12.6x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: NREF is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: NREF is overvalued based on its PB Ratio (1.9x) compared to the US Mortgage REITs industry average (0.9x).
Future Growth
How is NexPoint Real Estate Finance forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
16.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NREF's forecast earnings growth (16% per year) is above the savings rate (2%).
Earnings vs Market: NREF's earnings (16% per year) are forecast to grow faster than the US market (13% per year).
High Growth Earnings: NREF's earnings are forecast to grow, but not significantly.
Revenue vs Market: NREF's revenue (10.4% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: NREF's revenue (10.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NREF's Return on Equity is forecast to be low in 3 years time (8.5%).
Past Performance
How has NexPoint Real Estate Finance performed over the past 5 years?
1,949.6%
Last years earnings growth
Earnings and Revenue History
Quality Earnings: NREF has high quality earnings.
Growing Profit Margin: NREF's current net profit margins (35.8%) are higher than last year (8.2%).
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if NREF's year-on-year earnings growth rate was positive over the past 5 years.
Accelerating Growth: Insufficient data to compare NREF's past year earnings growth to its 5-year average.
Earnings vs Industry: NREF earnings growth over the past year (1949.6%) exceeded the Mortgage REITs industry 46.7%.
Return on Equity
High ROE: NREF's Return on Equity (17.9%) is considered low.
Financial Health
How is NexPoint Real Estate Finance's financial position?
Financial Position Analysis
Short Term Liabilities: NREF's short term assets ($8.2B) exceed its short term liabilities ($233.8M).
Long Term Liabilities: NREF's short term assets ($8.2B) exceed its long term liabilities ($7.6B).
Debt to Equity History and Analysis
Debt Level: NREF's net debt to equity ratio (1564.3%) is considered high.
Reducing Debt: Insufficient data to determine if NREF's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: NREF's debt is not well covered by operating cash flow (0.6%).
Interest Coverage: Insufficient data to determine if NREF's interest payments on its debt are well covered by EBIT.
Balance Sheet
Dividend
What is NexPoint Real Estate Finance current dividend yield, its reliability and sustainability?
9.11%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NREF's dividend (9.11%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: NREF's dividend (9.11%) is in the top 25% of dividend payers in the US market (3.44%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, NREF has been paying a dividend for less than 10 years.
Growing Dividend: NREF's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (27.9%), NREF's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NREF's dividends in 3 years are not forecast to be well covered by earnings (95.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
Jim Dondero (58 yo)
1.92yrs
Tenure
US$1,153,193
Compensation
Mr. James David Dondero, also known as Jim, CFA, CMA, CPA, served as a Director of Vinebrook Homes Trust, Inc. until August 22, 2021 and had been its Chief Executive Officer and President since February 20...
Leadership Team
Experienced Management: NREF's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
Experienced Board: NREF's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.4%.
Top Shareholders
Company Information
NexPoint Real Estate Finance, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: NexPoint Real Estate Finance, Inc.
- Ticker: NREF
- Exchange: NYSE
- Founded: 2019
- Industry: Mortgage REITs
- Sector: Diversified Financials
- Implied Market Cap: US$458.978m
- Market Cap: US$301.831m
- Shares outstanding: 22.00m
- Website: https://www.nexpointfinance.com
Number of Employees
Location
- NexPoint Real Estate Finance, Inc.
- 300 Crescent Court
- Suite 700
- Dallas
- Texas
- 75201
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 23:19 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.