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NREF

NexPoint Real Estate Finance NYSE:NREF Stock Report

Last Price

US$25.65

Market Cap

US$523.2m

7D

10.1%

1Y

30.7%

Updated

16 May, 2022

Data

Company Financials +
NREF fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance5/6
Financial Health2/6
Dividends4/6

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

Summary of all time highs, changes and price drops for NexPoint Real Estate Finance
Historical stock prices
Current Share PriceUS$25.65
52 Week HighUS$24.33
52 Week LowUS$17.96
Beta1.59
1 Month Change10.42%
3 Month Change27.99%
1 Year Change30.67%
3 Year Changen/a
5 Year Changen/a
Change since IPO36.44%

Recent News & Updates

Shareholder Returns

NREFUS Mortgage REITsUS Market
7D10.1%1.4%0.7%
1Y30.7%-18.9%-10.8%

Return vs Industry: NREF exceeded the US Mortgage REITs industry which returned -18.7% over the past year.

Return vs Market: NREF exceeded the US Market which returned -10.4% over the past year.

Price Volatility

Is NREF's price volatile compared to industry and market?
NREF volatility
NREF Average Weekly Movement3.9%
Mortgage REITs Industry Average Movement4.4%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

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$523.16m
Earnings (TTM)US$44.13m
Revenue (TTM)US$91.25m

12.6x

P/E Ratio

6.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NREF income statement (TTM)
RevenueUS$91.25m
Cost of RevenueUS$4.98m
Gross ProfitUS$86.26m
Other ExpensesUS$42.13m
EarningsUS$44.13m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.03
Gross Margin94.54%
Net Profit Margin48.36%
Debt/Equity Ratio1,474.2%

How did NREF perform over the long term?

See historical performance and comparison

Dividends

7.8%

Current Dividend Yield

38%

Payout Ratio

Does NREF pay a reliable dividends?

See NREF dividend history and benchmarks
When do you need to buy NREF by to receive an upcoming dividend?
NexPoint Real Estate Finance dividend dates
Ex Dividend DateJun 14 2022
Dividend Pay DateJun 30 2022
Days until Ex dividend28 days
Days until Dividend pay date44 days

Does NREF pay a reliable dividends?

See NREF dividend history and benchmarks

Valuation

Is NexPoint Real Estate Finance undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


26.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NREF ($25.65) is trading below our estimate of fair value ($34.87)

Significantly Below Fair Value: NREF is trading below fair value by more than 20%.


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 (11.8x).

PE vs Market: NREF is good value based on its PE Ratio (12.6x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: NREF is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: NREF is overvalued based on its PB Ratio (1.5x) compared to the US Mortgage REITs industry average (0.8x).


Future Growth

How is NexPoint Real Estate Finance forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NREF's forecast earnings growth (2.9% per year) is above the savings rate (1.9%).

Earnings vs Market: NREF's earnings (2.9% per year) are forecast to grow slower than the US market (12.6% per year).

High Growth Earnings: NREF's earnings are forecast to grow, but not significantly.

Revenue vs Market: NREF's revenue is expected to decline over the next 3 years (-22.6% per year).

High Growth Revenue: NREF's revenue is forecast to decline over the next 3 years (-22.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NREF's Return on Equity is forecast to be high in 3 years time


Past Performance

How has NexPoint Real Estate Finance performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


67.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NREF has high quality earnings.

Growing Profit Margin: NREF's current net profit margins (48.4%) are higher than last year (27.6%).


Past Earnings Growth Analysis

Earnings Trend: NREF's earnings have grown significantly by 67.9% per year over the past 5 years.

Accelerating Growth: NREF's earnings growth over the past year (70.9%) exceeds its 5-year average (67.9% per year).

Earnings vs Industry: NREF earnings growth over the past year (70.9%) exceeded the Mortgage REITs industry 5.4%.


Return on Equity

High ROE: NREF's Return on Equity (15.2%) is considered low.


Financial Health

How is NexPoint Real Estate Finance's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NREF's short term assets ($7.8B) exceed its short term liabilities ($311.2M).

Long Term Liabilities: NREF's short term assets ($7.8B) exceed its long term liabilities ($7.2B).


Debt to Equity History and Analysis

Debt Level: NREF's net debt to equity ratio (1467.3%) 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 (1%).

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?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


7.80%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 17 2022Ex Dividend DateJun 14 2022Dividend Pay DateJun 30 202216 days from Ex DividendBuy in the next 28 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: NREF's dividend (7.8%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: NREF's dividend (7.8%) is in the top 25% of dividend payers in the US market (4.05%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (38.4%), NREF's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (55.2%), NREF's dividend payments are covered by cash flows.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Jim Dondero (58 yo)

2.25yrs

Tenure

US$1,228,500

Compensation

Mr. James David Dondero, also known as Jim, C.F.A., C.M.A., C.P.A., serves as President at NexPoint Real Estate Advisors VII, L.P. Mr. Dondero served as a Director of Vinebrook Homes Trust, Inc. until Augu...


Leadership Team

Experienced Management: NREF's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: NREF's board of directors are not considered experienced ( 2.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.9%.


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$523.160m
  • Market Cap: US$351.267m
  • Shares outstanding: 21.73m
  • 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 Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.