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NXDTPA.PFD (NexPoint Diversified Real Estate Trust) Piotroski F-Score : 4 (As of Dec. 13, 2024)


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What is NexPoint Diversified Real Estate Trust Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

NexPoint Diversified Real Estate Trust has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for NexPoint Diversified Real Estate Trust's Piotroski F-Score or its related term are showing as below:

NXDTpA.PFD' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 4   Max: 8
Current: 4

During the past 7 years, the highest Piotroski F-Score of NexPoint Diversified Real Estate Trust was 8. The lowest was 2. And the median was 4.


NexPoint Diversified Real Estate Trust Piotroski F-Score Historical Data

The historical data trend for NexPoint Diversified Real Estate Trust's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

NexPoint Diversified Real Estate Trust Piotroski F-Score Chart

NexPoint Diversified Real Estate Trust Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial N/A N/A 3.00 7.00 2.00

NexPoint Diversified Real Estate Trust Quarterly Data
Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 2.00 N/A 4.00 4.00

Competitive Comparison of NexPoint Diversified Real Estate Trust's Piotroski F-Score

For the REIT - Diversified subindustry, NexPoint Diversified Real Estate Trust's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


NexPoint Diversified Real Estate Trust's Piotroski F-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, NexPoint Diversified Real Estate Trust's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where NexPoint Diversified Real Estate Trust's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was -15.895 + -21.548 + -8.628 + -8.882 = $-54.95 Mil.
Cash Flow from Operations was -5.792 + -2.555 + -5.492 + 0.497 = $-13.34 Mil.
Revenue was -5.387 + -11.884 + 7.834 + 2.668 = $-6.77 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(1101.035 + 1098.336 + 1074.55 + 1249.733 + 1240.714) / 5 = $1152.8736 Mil.
Total Assets at the begining of this year (Sep23) was $1,101.04 Mil.
Long-Term Debt & Capital Lease Obligation was $362.16 Mil.
Total Assets was $1,240.71 Mil.
Total Liabilities was $397.80 Mil.
Net Income was -22.586 + -19.521 + -13.867 + -67.958 = $-123.93 Mil.

Revenue was -16.112 + -9.926 + -1.557 + -58.403 = $-86.00 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(1254.879 + 1222.902 + 1191.237 + 1173.542 + 1101.035) / 5 = $1188.719 Mil.
Total Assets at the begining of last year (Sep22) was $1,254.88 Mil.
Long-Term Debt & Capital Lease Obligation was $184.23 Mil.
Total Assets was $1,101.04 Mil.
Total Liabilities was $199.41 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

NexPoint Diversified Real Estate Trust's current Net Income (TTM) was -54.95. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

NexPoint Diversified Real Estate Trust's current Cash Flow from Operations (TTM) was -13.34. ==> Negative ==> Score 0.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=-54.953/1101.035
=-0.04991031

ROA (Last Year)=Net Income/Total Assets (Sep22)
=-123.932/1254.879
=-0.09876012

NexPoint Diversified Real Estate Trust's return on assets of this year was -0.04991031. NexPoint Diversified Real Estate Trust's return on assets of last year was -0.09876012. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

NexPoint Diversified Real Estate Trust's current Net Income (TTM) was -54.95. NexPoint Diversified Real Estate Trust's current Cash Flow from Operations (TTM) was -13.34. ==> -13.34 > -54.95 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=362.155/1152.8736
=0.31413244

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=184.234/1188.719
=0.15498532

NexPoint Diversified Real Estate Trust's gearing of this year was 0.31413244. NexPoint Diversified Real Estate Trust's gearing of last year was 0.15498532. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Sep24)=Total Assets/Total Liabilities
=1240.714/397.8
=3.11893917

Current Ratio (Last Year: Sep23)=Total Assets/Total Liabilities
=1101.035/199.405
=5.52160177

NexPoint Diversified Real Estate Trust's current ratio of this year was 3.11893917. NexPoint Diversified Real Estate Trust's current ratio of last year was 5.52160177. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

NexPoint Diversified Real Estate Trust's number of shares in issue this year was 0. NexPoint Diversified Real Estate Trust's number of shares in issue last year was 0. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=-54.953/-6.769
=8.11833358

Net Margin (Last Year: TTM)=Net Income/Revenue
=-123.932/-85.998
=1.44110328

NexPoint Diversified Real Estate Trust's net margin of this year was 8.11833358. NexPoint Diversified Real Estate Trust's net margin of last year was 1.44110328. ==> This year's net margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=-6.769/1101.035
=-0.00614785

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=-85.998/1254.879
=-0.06853091

NexPoint Diversified Real Estate Trust's asset turnover of this year was -0.00614785. NexPoint Diversified Real Estate Trust's asset turnover of last year was -0.06853091. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+0+1+1+0+0+1+1+1
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

NexPoint Diversified Real Estate Trust has an F-score of 5 indicating the company's financial situation is typical for a stable company.

NexPoint Diversified Real Estate Trust  (NYSE:NXDTpA.PFD) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


NexPoint Diversified Real Estate Trust Piotroski F-Score Related Terms

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NexPoint Diversified Real Estate Trust Business Description

Traded in Other Exchanges
Address
300 Crescent Court, Suite 700, Dallas, TX, USA, 75201
NexPoint Diversified Real Estate Trust is a publicly traded REIT focused on opportunistic real estate investments in the United States. Their portfolio includes diverse commercial properties and investments across various real estate sectors and capital structures. Revenue sources include rental income from office and retail properties, interest income from debt investments, dividend income from equity investments, and other ancillary income from tenants. The company operates primarily through its operating partnership and wholly owned subsidiaries.