NETSTREIT (NYSE:NTST) - Share price, News & Analysis

NTST fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	5/6
Past Performance	3/6
Financial Health	2/6
Dividends	2/6

NTST Stock Overview

NETSTREIT is an internally managed Real Estate Investment Trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide.

Rewards

Trading at 82.9% below our estimate of its fair value

Earnings are forecast to grow 28.61% per year

Earnings grew by 70.1% over the past year

Risk Analysis

Dividend of 3.85% is not well covered by earnings

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

NETSTREIT Competitors

Agree Realty

NYSE:ADC

US$5.3b

Acadia Realty Trust

NYSE:AKR

US$1.8b

Getty Realty

NYSE:GTY

US$1.3b

Whitestone REIT

NYSE:WSR

US$595.9m

Price History & Performance

Summary of all time highs, changes and price drops for NETSTREIT
Historical stock prices
Current Share Price	US$20.77
52 Week High	US$26.93
52 Week Low	US$19.56
Beta	0
1 Month Change	-10.13%
3 Month Change	-1.52%
1 Year Change	-6.82%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	17.01%

Recent News & Updates

Apr 09

Netstreit: A Compelling Buy For Long Term Investors

Netstreit continues to grow and improve their real estate portfolio and has reduced risk by lowering their tenant concentration. The valuation is attractive compared to the growth prospects, with a price/FFO just over 24x. The dividend yield is 3.5%, and I think investors are likely to see a dividend raise in the second half of 2022.

Shareholder Returns

	NTST	US REITs	US Market
7D	-2.0%	-0.7%	-4.0%
1Y	-6.8%	-1.3%	-13.2%

Return vs Industry: NTST underperformed the US REITs industry which returned -2.1% over the past year.

Return vs Market: NTST exceeded the US Market which returned -12.3% over the past year.

Price Volatility

Is NTST's price volatile compared to industry and market?
NTST volatility
NTST Average Weekly Movement	3.8%
REITs Industry Average Movement	4.4%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: NTST is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NTST's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	19	Mark Manheimer	https://www.netstreit.com

NETSTREIT is an internally managed Real Estate Investment Trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.

NETSTREIT Fundamentals Summary

How do NETSTREIT's earnings and revenue compare to its market cap?
NTST fundamental statistics
Market Cap	US$1.01b
Earnings (TTM)	US$4.29m
Revenue (TTM)	US$68.54m

232.2x

P/E Ratio

14.5x

P/S Ratio

Is NTST overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NTST income statement (TTM)
Revenue	US$68.54m
Cost of Revenue	US$8.50m
Gross Profit	US$60.04m
Other Expenses	US$55.75m
Earnings	US$4.29m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.089
Gross Margin	87.60%
Net Profit Margin	6.25%
Debt/Equity Ratio	34.0%

How did NTST perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

83%

Payout Ratio

Does NTST pay a reliable dividends?

See NTST dividend history and benchmarks

When do you need to buy NTST by to receive an upcoming dividend?
NETSTREIT dividend dates
Ex Dividend Date	May 31 2022
Dividend Pay Date	Jun 15 2022
Days until Ex dividend	5 days
Days until Dividend pay date	20 days

Does NTST pay a reliable dividends?

See NTST dividend history and benchmarks

Valuation

Is NETSTREIT 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

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NTST ($20.77) is trading below our estimate of fair value ($121.64)

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

Price To Earnings Ratio

PE vs Industry: NTST is poor value based on its Price-To-Earnings Ratio (232.2x) compared to the US REITs industry average (32.4x).

PE vs Market: NTST is poor value based on its Price-To-Earnings Ratio (232.2x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: NTST is poor value based on its PEG Ratio (8.1x)

Price to Book Ratio

PB vs Industry: NTST is good value based on its Price-To-Book Ratio (1.2x) compared to the US REITs industry average (1.6x).

Future Growth

How is NETSTREIT forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

28.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTST's forecast earnings growth (28.6% per year) is above the savings rate (1.9%).

Earnings vs Market: NTST's earnings (28.6% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NTST's revenue (27.8% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: NTST's revenue (27.8% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NTST's Return on Equity is forecast to be low in 3 years time (2.2%).

Past Performance

How has NETSTREIT performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

154.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NTST has high quality earnings.

Growing Profit Margin: NTST's current net profit margins (6.3%) are lower than last year (6.3%).

Past Earnings Growth Analysis

Earnings Trend: NTST has become profitable over the past 5 years, growing earnings by 154.2% per year.

Accelerating Growth: NTST's earnings growth over the past year (70.1%) is below its 5-year average (154.2% per year).

Earnings vs Industry: NTST earnings growth over the past year (70.1%) exceeded the REITs industry 69.5%.

Return on Equity

High ROE: NTST's Return on Equity (0.5%) is considered low.

Financial Health

How is NETSTREIT'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: NTST's short term assets ($34.3M) exceed its short term liabilities ($9.4M).

Long Term Liabilities: NTST's short term assets ($34.3M) do not cover its long term liabilities ($325.3M).

Debt to Equity History and Analysis

Debt Level: NTST's net debt to equity ratio (32.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if NTST's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NTST's debt is not well covered by operating cash flow (12.3%).

Interest Coverage: NTST's interest payments on its debt are not well covered by EBIT (2.1x coverage).

Balance Sheet

Dividend

What is NETSTREIT 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

3.85%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: NTST's dividend (3.85%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: NTST's dividend (3.85%) is low compared to 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, NTST has been paying a dividend for less than 10 years.

Growing Dividend: NTST has only been paying a dividend for 2 years, and since then payments have not increased.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (83.4%), NTST's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (111.3%), NTST's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

2.3yrs

Average management tenure

CEO

Mark Manheimer (45 yo)

2.58yrs

Tenure

US$3,879,550

Compensation

Mr. Mark L. Manheimer serves as President, Chief Executive Officer and Director at of Netstreit Corporation since October 2019. He serves as Head of Sale-Leaseback Acquisitions for Cole and Executive Vice...

CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD3.88M) is about average for companies of similar size in the US market ($USD3.85M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.

Leadership Team

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

Board Members

Experienced Board: NTST's board of directors are not considered experienced ( 2.4 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: NTST insiders have only sold shares 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 18.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31