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.
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?
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%.
Top Shareholders
Company Information
NETSTREIT Corp.'s employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
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
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.