NexPoint Residential Trust Inc (NXRT) Stock Analysis

AI analysis of NexPoint Residential Trust Inc (NXRT)

Hold

NexPoint Residential Trust Inc is not a strong buy at the current price of $18.04 due to significant financial challenges, including a forward P/E ratio of 88.50 indicating high valuation relative to expected earnings, and a year-to-date change of -38.99%. The company also faces risks from high debt levels, with net debt/EBITDA near 12 times and 86% of its debt unhedged at floating rates, which could lead to further declines if interest rates rise. However, the recent declaration of a $0.53 dividend per share may provide some support to investors looking for income.

Analyst Ratings (5)

+147.75% upside

Buy

4 Buy

1 Hold

0 Sell

Current: 16.48

Low

38.00

Average

40.83

High

42.50

Truist

Hold

$18

2026-09-29

Truist

2026-09-29

Price Target

$18

Hold

Deutsche Bank

Hold

$23

2026-09-09

Deutsche Bank

2026-09-09

Price Target

$23

Hold

Deutsche Bank

Hold

$18

2026-07-20

Deutsche Bank

2026-07-20

Price Target

$18

Hold

Truist

Hold

$26

2026-06-30

Truist

2026-06-30

Price Target

$26

Hold

Deutsche Bank

Hold

$27

2026-04-22

Deutsche Bank

2026-04-22

Price Target

$27

Hold

See All Ratings

Valuation Metrics

The current forward P/E ratio for NexPoint Residential Trust Inc (NXRT) is 88.50, compared to its 5-year average forward P/E of 17.96.

Forward P/E

Overvalued

5Y Average P/E

17.96

Current P/E

88.50

Overvalued

75.94

Undervalued

-40.02

Forward EV/EBITDA

Fair

5Y Average EV/EBITDA

20.89

Current EV/EBITDA

20.05

Overvalued

24.82

Undervalued

16.96

Forward P/S

Fair

5Y Average P/S

4.67

Current P/S

3.54

Overvalued

6.41

Undervalued

2.93

Alphio AI Price Scenarios for NXRT

Scenario prices are the last monthly forecast band of the current year. Probabilities are fixed model weights (25 / 50 / 25), not guarantees.

B

Bull

Bull · 25%NXRT

$39.09

Scenario price

B

Base

Base · 50%NXRT

$32.90

Scenario price

B

Bear

Bear · 25%NXRT

$27.08

Scenario price

Whales holding NXRT

L

Long Pond Capital, LP

+ HoldingNXRT

-2.96%

3M Return

NXRT FAQ — answered by Alphio AI

NexPoint Residential Trust, Inc. is a real estate investment trust (REIT). The Company is primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with value-add potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. The Company's investment objectives are to maximize the cash flow and value of properties owned, acquire properties with cash flow growth potential, provide quarterly cash distributions and achieve long-term capital appreciation for its stockholders through targeted management and a value-add program. The Company may allocate up to 30% of the portfolio to investments in real estate-related debt and securities with the potential for high current income or total returns. These allocations may include first and second mortgages and subordinated, bridge, mezzanine, construction and other loans. It is externally managed by NexPoint Real Estate Advisors, L.P. It operates in the Real Estate sector (REAL ESTATE INVESTMENT TRUSTS industry).

NexPoint Residential Trust Inc is not a strong buy at the current price of $18.04 due to significant financial challenges, including a forward P/E ratio of 88.50 indicating high valuation relative to expected earnings, and a year-to-date change of -38.99%. The company also faces risks from high debt levels, with net debt/EBITDA near 12 times and 86% of its debt unhedged at floating rates, which could lead to further declines if interest rates rise. However, the recent declaration of a $0.53 dividend per share may provide some support to investors looking for income.

5 analysts cover NXRT: 4 rate it Buy, 1 Hold and 0 Sell. The average price target is 40.83.