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NREF

NexPoint Real Estate FinanceNYSE:NREF Stock Report

Last Price

US$20.86

Market Cap

US$459.0m

7D

5.8%

1Y

23.1%

Updated

16 Jan, 2022

Data

Company Financials +
NREF fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance3/6
Financial Health2/6
Dividends3/6

NREF Stock Overview

NexPoint Real Estate Finance, Inc. operates as a real estate finance company in the United States.

NexPoint Real Estate Finance Competitors

Annaly Capital Management

NYSE:NLY

US$11.5b

AGNC Investment

NasdaqGS:AGNC

US$8.0b

Starwood Property Trust

NYSE:STWD

US$7.8b

Blackstone Mortgage Trust

NYSE:BXMT

US$5.4b

Price History & Performance

Summary of all time highs, changes and price drops for NexPoint Real Estate Finance
Historical stock prices
Current Share PriceUS$20.86
52 Week HighUS$23.97
52 Week LowUS$15.61
Beta0
1 Month Change11.25%
3 Month Change-2.16%
1 Year Change23.07%
3 Year Changen/a
5 Year Changen/a
Change since IPO10.96%

Recent News & Updates

Oct 05

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

NREFUS Mortgage REITsUS Market
7D5.8%0.09%-0.5%
1Y23.1%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

Is NREF's price volatile compared to industry and market?
NREF volatility
NREF Average Weekly Movement3.7%
Mortgage REITs Industry Average Movement3.5%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
20191Jim Donderohttps://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

How do NexPoint Real Estate Finance's earnings and revenue compare to its market cap?
NREF fundamental statistics
Market CapUS$458.98m
Earnings (TTM)US$36.46m
Revenue (TTM)US$101.85m

12.6x

P/E Ratio

4.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NREF income statement (TTM)
RevenueUS$101.85m
Cost of RevenueUS$5.17m
Gross ProfitUS$96.68m
ExpensesUS$60.22m
EarningsUS$36.46m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 17, 2022

Earnings per share (EPS)1.66
Gross Margin94.93%
Net Profit Margin35.80%
Debt/Equity Ratio1,568.7%

How did NREF perform over the long term?

See historical performance and comparison

Dividends

9.1%

Current Dividend Yield

28%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 23:19
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.