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NexPoint Residential Trust (NexPoint Residential Trust) PE Ratio

: 18.97 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-04-19), NexPoint Residential Trust's share price is $31.87. NexPoint Residential Trust's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $1.68. Therefore, NexPoint Residential Trust's PE Ratio for today is 18.97.

Good Sign:

NexPoint Residential Trust Inc stock PE Ratio (=18.21) is close to 3-year low of 17.45


The historical rank and industry rank for NexPoint Residential Trust's PE Ratio or its related term are showing as below:

NXRT' s PE Ratio Range Over the Past 10 Years
Min: 4.15   Med: 24.31   Max: 153.35
Current: 18.97


During the past 11 years, the highest PE Ratio of NexPoint Residential Trust was 153.35. The lowest was 4.15. And the median was 24.31.


NXRT's PE Ratio is ranked worse than
55.81% of 559 companies
in the REITs industry
Industry Median: 16.56 vs NXRT: 18.97

NexPoint Residential Trust's Earnings per Share (Diluted) for the three months ended in Dec. 2023 was $0.70. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was $1.68.

As of today (2024-04-19), NexPoint Residential Trust's share price is $31.87. NexPoint Residential Trust's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $-1.46. Therefore, NexPoint Residential Trust's PE Ratio without NRI for today is At Loss.

During the past 11 years, NexPoint Residential Trust's highest PE Ratio without NRI was 141.30. The lowest was 0.00. And the median was 67.46.

NexPoint Residential Trust's EPS without NRI for the three months ended in Dec. 2023 was $-0.37. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $-1.46.

During the past 3 years, the average EPS without NRI Growth Rate was -141.90% per year.

During the past 11 years, NexPoint Residential Trust's highest 3-Year average EPS without NRI Growth Rate was 61.40% per year. The lowest was -141.90% per year. And the median was -11.45% per year.

NexPoint Residential Trust's EPS (Basic) for the three months ended in Dec. 2023 was $0.72. Its EPS (Basic) for the trailing twelve months (TTM) ended in Dec. 2023 was $1.73.


NexPoint Residential Trust PE Ratio Historical Data

The historical data trend for NexPoint Residential Trust's PE Ratio 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 Residential Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.17 24.32 94.19 At Loss 20.37

NexPoint Residential Trust Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PE Ratio 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 Premium Member Only Premium Member Only Premium Member Only At Loss At Loss At Loss 28.48 20.37

Competitive Comparison

For the REIT - Residential subindustry, NexPoint Residential Trust's PE Ratio, along with its competitors' market caps and PE Ratio 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 PE Ratio Distribution

For the REITs industry and Real Estate sector, NexPoint Residential Trust's PE Ratio distribution charts can be found below:

* The bar in red indicates where NexPoint Residential Trust's PE Ratio falls into.



NexPoint Residential Trust PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

NexPoint Residential Trust's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=31.87/1.680
=18.97

NexPoint Residential Trust's Share Price of today is $31.87.
NexPoint Residential Trust's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.68.

* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


NexPoint Residential Trust  (NYSE:NXRT) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


NexPoint Residential Trust PE Ratio Related Terms

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NexPoint Residential Trust (NexPoint Residential Trust) Business Description

Traded in Other Exchanges
N/A
Address
300 Crescent Court, Suite 700, Dallas, TX, USA, 75201
NexPoint Residential Trust Inc is an us-based real estate investment trust company. Its 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 stockholders. The company seeks to achieve these objectives through targeted management and a capex value-add program. It focuses on acquiring multifamily properties in markets with attractive job growth and household formation fundamentals primarily in the Southeastern and Southwestern United States. The company generates revenue from the rental of multifamily properties.
Executives
Brian Mitts director, officer: See Remarks 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
James D Dondero director, 10 percent owner, officer: President 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Sauter Dennis Charles Jr officer: General Counsel 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Arthur B Laffer director 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Carol Swain director C/O NEXPOINT RESIDENTIAL TRUST, INC., 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Catherine D Wood director 200 CENTRAL AVENUE, SUITE 1850, ST. PETERSBURG FL 33701
Matt Mcgraner officer: See Remarks 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Matthew Goetz officer: See Remarks 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Highland Capital Management Fund Advisors, L.p. 10 percent owner 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Edward N. Constantino director DLC REALTY TRUST, INC., 580 WHITE PLAINS ROAD, TARRYTOWN NY 10591
Scott F Kavanaugh director 25342 DERBYHILL DR., LAGUNA HILLS CA 92653
Nexpoint Advisors, L.p. 10 percent owner 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Scott Ellington officer: General Counsel and Secretary 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Nexpoint Diversified Real Estate Trust 10 percent owner 300 CRESCENT COURT, SUITE 700, DALLAS TX 75201
Highland Capital Management Lp 10 percent owner 100 CRESCENT COURT, SUITE 1850, DALLAS TX 75201