📊 NXRT Key Takeaways
Is NexPoint Residential Trust, Inc. (NXRT) a Good Investment?
NexPoint faces severe financial distress with an interest coverage ratio of 0.5x, indicating inability to cover debt service from operating income. While operating cash flow of $83.6M is positive, the company reported a $32M net loss and declining revenue (-3.2% YoY), suggesting significant property impairments and deteriorating fundamentals. The 5.39x debt-to-equity ratio combined with minimal cash reserves ($13.7M) creates substantial refinancing and insolvency risk.
Why Buy NexPoint Residential Trust, Inc. Stock? NXRT Key Strengths
- Positive operating cash flow of $83.6M demonstrates core rental operations remain cash-generative
- Positive operating margin of 11.1% indicates property-level operations are profitable before financing costs
- Free cash flow margin of 33.3% suggests underlying rental business economics are healthy
NXRT Stock Risks: NexPoint Residential Trust, Inc. Investment Risks
- Critical interest coverage of 0.5x indicates company cannot service debt from operating income; unsustainable trajectory requiring asset sales or restructuring
- Excessive leverage at 5.39x debt-to-equity with $1.6B long-term debt against only $13.7M cash reserves creates acute refinancing risk
- Negative net income of -$32M and declining revenue (-3.2% YoY) indicate property value deterioration and potential covenant violations
- Negative ROE of -10.8% and ROA of -1.7% show destruction of shareholder value and poor asset utilization
Key Metrics to Watch
- Interest coverage ratio trend and debt refinancing activity (critical watch for covenant compliance)
- Revenue stabilization and occupancy rates by property
- Property fair value adjustments and impairment charges in next reporting period
- Cash balance and available liquidity given debt service obligations
NexPoint Residential Trust, Inc. (NXRT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 33.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
NXRT Profit Margin, ROE & Profitability Analysis
NXRT vs Real Estate Sector: How NexPoint Residential Trust, Inc. Compares
How NexPoint Residential Trust, Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NexPoint Residential Trust, Inc. Stock Overvalued? NXRT Valuation Analysis 2026
Based on fundamental analysis, NexPoint Residential Trust, Inc. shows some fundamental concerns relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
NexPoint Residential Trust, Inc. Balance Sheet: NXRT Debt, Cash & Liquidity
NXRT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: NexPoint Residential Trust, Inc.'s revenue has grown significantly by 27% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.69 reflects profitable operations.
NXRT Revenue Growth, EPS Growth & YoY Performance
NXRT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $62.8M | -$7.8M | $-0.31 |
| Q2 2025 | $63.1M | -$7.0M | $-0.28 |
| Q1 2025 | $63.2M | -$6.9M | $-0.27 |
| Q3 2024 | $64.1M | -$8.9M | $-0.35 |
| Q2 2024 | $64.2M | -$4.0M | $-0.15 |
| Q1 2024 | $67.6M | -$3.9M | $-0.15 |
| Q3 2023 | $68.1M | -$597.0K | $-0.02 |
| Q2 2023 | $65.8M | -$4.0M | $-0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NexPoint Residential Trust, Inc. Dividends, Buybacks & Capital Allocation
NXRT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for NexPoint Residential Trust, Inc. (CIK: 0001620393)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NXRT
What is the AI rating for NXRT?
NexPoint Residential Trust, Inc. (NXRT) has an AI rating of STRONG SELL with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are NXRT's key strengths?
Claude: Positive operating cash flow of $83.6M demonstrates core rental operations remain cash-generative. Positive operating margin of 11.1% indicates property-level operations are profitable before financing costs.
What are the risks of investing in NXRT?
Claude: Critical interest coverage of 0.5x indicates company cannot service debt from operating income; unsustainable trajectory requiring asset sales or restructuring. Excessive leverage at 5.39x debt-to-equity with $1.6B long-term debt against only $13.7M cash reserves creates acute refinancing risk.
What is NXRT's revenue and growth?
NexPoint Residential Trust, Inc. reported revenue of $251.3M.
Does NXRT pay dividends?
NexPoint Residential Trust, Inc. pays dividends, with $53.5M distributed to shareholders in the trailing twelve months.
Where can I find NXRT SEC filings?
Official SEC filings for NexPoint Residential Trust, Inc. (CIK: 0001620393) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NXRT's EPS?
NexPoint Residential Trust, Inc. has a diluted EPS of $-1.26.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NXRT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NexPoint Residential Trust, Inc. has a STRONG SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NXRT stock overvalued or undervalued?
Valuation metrics for NXRT: ROE of -10.8% (sector avg: 8%), net margin of -12.7% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy NXRT stock in 2026?
Our dual AI analysis gives NexPoint Residential Trust, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NXRT's free cash flow?
NexPoint Residential Trust, Inc.'s operating cash flow is $83.6M, with capital expenditures of N/A. FCF margin is 33.3%.
How does NXRT compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin -12.7% (avg: 20%), ROE -10.8% (avg: 8%), current ratio N/A (avg: 1.5).
Is NexPoint Residential Trust, Inc. carrying too much debt?
NXRT has a debt-to-equity ratio of 5.39x, which is above the Real Estate sector average of 1.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.