3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
NexPoint Residential Trust's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 1.26%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for NexPoint Residential Trust's 3-Year ROIIC % or its related term are showing as below:
NXRT's 3-Year ROIIC % is ranked worse than 64.03% of 695
companies
in the REITs industry
Industry Median: 3.52
vs NXRT: 1.26
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
NexPoint Residential Trust 3-Year ROIIC % Related Terms
NexPoint Residential Trust 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs REITs Industry
For the REITs industry and Real Estate sector, NexPoint Residential Trust's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where NexPoint Residential Trust's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 27.932 (Dec. 2025) - 31.569 (Dec. 2022) )
/
( 1921.452 (Dec. 2025) - 2209.469 (Dec. 2022) )
=
-3.637
/
-288.017
=
1.26%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
NexPoint Residential Trust (NXRT) has a 3-Year ROIIC % of 1.26 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on NexPoint Residential Trust and its competitors. This is near median its historical median of 1.26. According to the industry distribution chart, NexPoint Residential Trust ranks #445 out of 695 companies in the REITs industry, placing it in the top 64%.
Is NexPoint Residential Trust's 3-Year ROIIC % too high?
NexPoint Residential Trust's current 3-Year ROIIC % of 1.26 is near median its 10-year median of 1.26. The REITs industry median 3-Year ROIIC % is 3.52. NexPoint Residential Trust's value of 1.26 is 64.2% below this industry median. Based on the distribution chart, NexPoint Residential Trust ranks #445 out of 695 companies in the REITs industry, which is below the industry midpoint. Overall, NexPoint Residential Trust has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NexPoint Residential Trust's 3-Year ROIIC % compare to CSR and AIV?
According to the REITs industry distribution chart, NexPoint Residential Trust ranks #445 out of 695 companies for 3-Year ROIIC %. This places NexPoint Residential Trust in the lower half of its industry. The industry median 3-Year ROIIC % is 3.52. NexPoint Residential Trust's value of 1.26 is 64.2% below this benchmark. While the company's 10-year median is 1.26 vs. the industry median of 3.52, 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 3-Year ROIIC % for a REITs company?
The median 3-Year ROIIC % among REITs companies is 3.52, based on 695 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NexPoint Residential Trust's current 3-Year ROIIC % of 1.26 is 64.2% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on NexPoint Residential Trust and its competitors. For the REITs industry, the median 3-Year ROIIC % is 3.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NexPoint Residential Trust's current 3-Year ROIIC % is 1.26, which is near median its own 10-year median of 1.26. 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 $33.92, compared to a current price of $27.31 — trading 19.5% below its estimated fair value. The current 3-Year ROIIC % is 1.26, which is near median its 10-year median of 1.26 and 64.2% below the REITs industry median of 3.52. NexPoint Residential Trust's overall GF Score™ is 68/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For NexPoint Residential Trust (NXRT), the current 3-Year ROIIC % is 1.26 as of Dec. 2025. 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 $27.31 is trading 19.5% below its estimated GF Value™ of $33.92.
GuruFocus considers NexPoint Residential Trust to be Modestly Undervalued.
Key valuation signals for NXRT:
3-Year ROIIC %: 1.26 (near median its 10-year median of 1.26)
GF Value™: $33.92 vs. price of $27.31 (19.5% below fair value)
Industry Position: 64.2% below the REITs median (#445 of 695)
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.
68GF Score
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