NexPoint Residential TrustNXRT +4.83%70 Gross Margin % is 58.67% as of Mar. 2026, which is 12% above its 10-year median of 52.58. GuruFocus rates NXRT with a GF Score™ of 70/100 and a GF Value™ of $33.89 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 680 REITs companies, NexPoint Residential Trust ranks worse than 78.24% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
NexPoint Residential Trust had a gross margin of 58.67% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
NexPoint Residential Trust Gross Margin % Related Terms
NexPoint Residential Trust Gross Margin % Historical Data
* 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.
For the REIT - Residential subindustry, NexPoint Residential Trust's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Residential Trust Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, NexPoint Residential Trust's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NexPoint Residential Trust's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
NexPoint Residential Trust (NXRT) has a Gross Margin % of 58.67% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on NexPoint Residential Trust and its competitors. This is 12% above median its historical median of 52.58. Over the past decade, NexPoint Residential Trust's Gross Margin % has ranged from 46.59 to 56.78. According to the industry distribution chart, NexPoint Residential Trust ranks #532 out of 680 companies in the REITs industry, placing it in the top 78.2%.
Is NexPoint Residential Trust's Gross Margin % too high?
NexPoint Residential Trust's current Gross Margin % of 58.67% is 12% above median its 10-year median of 52.58. Over the past 10 years, this metric has ranged from a low of 46.59 to a high of 56.78. The REITs industry median Gross Margin % is 69.71. NexPoint Residential Trust's value of 58.67% is 15.8% below this industry median. Based on the distribution chart, NexPoint Residential Trust ranks #532 out of 680 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, NexPoint Residential Trust has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NexPoint Residential Trust's Gross Margin % compare to AIV and CSR?
According to the REITs industry distribution chart, NexPoint Residential Trust ranks #532 out of 680 companies for Gross Margin %. This places NexPoint Residential Trust in the lower half of its industry. The industry median Gross Margin % is 69.71. NexPoint Residential Trust's value of 58.67% is 15.8% below this benchmark. Historically, NexPoint Residential Trust's own Gross Margin % has ranged from 46.59 to 56.78 over the past decade. While the company's 10-year median is 52.58 vs. the industry median of 69.71, NexPoint Residential Trust has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a REITs company?
The median Gross Margin % among REITs companies is 69.71, based on 680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NexPoint Residential Trust's current Gross Margin % of 58.67% is 15.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on NexPoint Residential Trust and its competitors. For the REITs industry, the median Gross Margin % is 69.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NexPoint Residential Trust's current Gross Margin % is 58.67%, which is 12% above median its own 10-year median of 52.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NexPoint Residential Trust stock overvalued right now?
Based on GuruFocus' analysis, NexPoint Residential Trust (NXRT) is currently considered Modestly Undervalued. The stock's GF Value™ is $33.89, compared to a current price of $28.63 — trading 15.5% below its estimated fair value. The current Gross Margin % is 58.67%, which is 12% above median its 10-year median of 52.58 and 15.8% below the REITs industry median of 69.71. NexPoint Residential Trust's overall GF Score™ is 70/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For NexPoint Residential Trust (NXRT), the current Gross Margin % is 58.67% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NexPoint Residential Trust (NXRT) Overvalued in 2026?
Based on GuruFocus' analysis, NexPoint Residential Trust stock appears to be undervalued.
The current stock price of $28.63 is trading 15.5% below its estimated GF Value™ of $33.89.
GuruFocus considers NexPoint Residential Trust to be Modestly Undervalued.
Key valuation signals for NXRT:
Gross Margin %: 58.67% (12% above median its 10-year median of 52.58)
GF Value™: $33.89 vs. price of $28.63 (15.5% below fair value)
Industry Position: 15.8% below the REITs median (#532 of 680)
No single metric tells the full story. See the NXRT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NexPoint Residential Trust Inc is a real estate investment trust company. The trust's 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 stockholders. It focuses on acquiring multifamily properties in markets with attractive job growth and household formation fundamentals predominantly in the Southeastern and Southwestern United States. The company generates revenue from the rental of multifamily properties.
70GF Score
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