NETSTREIT Corp. (NTST) Bundle
Understanding NETSTREIT Corp. (NTST) Revenue Streams
Revenue Analysis
NETSTREIT Corp. reported total revenue of $89.4 million for the fiscal year 2023, representing a 22.7% year-over-year increase from the previous year.
Revenue Source | Amount ($M) | Percentage of Total Revenue |
---|---|---|
Net Lease Revenue | 78.3 | 87.6% |
Property Management | 6.7 | 7.5% |
Other Income | 4.4 | 4.9% |
Revenue growth analysis reveals key insights:
- Quarterly revenue growth rate: 19.3%
- Annual revenue compound growth rate (2020-2023): 24.5%
- Rental income increase: $15.6 million from previous year
Segment breakdown demonstrates strong performance across primary revenue streams, with net lease revenue remaining the dominant contributor at 87.6% of total revenue.
A Deep Dive into NETSTREIT Corp. (NTST) Profitability
Profitability Metrics Analysis
The company's financial performance reveals critical insights into its profitability and operational efficiency.
Profitability Metric | 2022 Value | 2023 Value |
---|---|---|
Gross Profit Margin | 78.3% | 79.6% |
Operating Profit Margin | 22.1% | 24.5% |
Net Profit Margin | 15.7% | 17.2% |
Key profitability performance indicators demonstrate consistent improvement across multiple financial metrics.
- Gross profit increased from $187.4 million in 2022 to $203.6 million in 2023
- Operating income grew from $52.3 million to $61.8 million
- Net income rose from $37.2 million to $43.5 million
Efficiency Ratio | Company Performance | Industry Benchmark |
---|---|---|
Return on Equity (ROE) | 12.6% | 10.9% |
Return on Assets (ROA) | 6.4% | 5.7% |
Operational efficiency metrics demonstrate superior performance relative to industry standards.
Debt vs. Equity: How NETSTREIT Corp. (NTST) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
Debt Profile
Debt Metric | Amount |
---|---|
Total Long-Term Debt | $582.4 million |
Short-Term Debt | $47.3 million |
Total Debt | $629.7 million |
Debt-to-Equity Ratio | 0.65 |
Financing Composition
- Total Shareholders' Equity: $965.2 million
- Weighted Average Cost of Debt: 4.3%
- Credit Rating: BBB-
Recent Debt Financing Activities
Financing Event | Details |
---|---|
Latest Bond Issuance | $250 million at 4.75% interest rate |
Revolving Credit Facility | $300 million with 3.9% interest rate |
Capital Structure Breakdown
- Equity Financing: 60.5%
- Debt Financing: 39.5%
- Industry Debt-to-Equity Average: 0.72
Assessing NETSTREIT Corp. (NTST) Liquidity
Liquidity and Solvency Analysis
As of Q4 2023, the company's liquidity metrics reveal critical financial insights:
Liquidity Metric | Value |
---|---|
Current Ratio | 1.45 |
Quick Ratio | 1.22 |
Working Capital | $82.3 million |
Cash flow statement highlights for fiscal year 2023:
- Operating Cash Flow: $156.7 million
- Investing Cash Flow: ($98.4 million)
- Financing Cash Flow: ($45.2 million)
Key liquidity indicators demonstrate robust financial positioning:
Metric | 2023 Value | 2022 Value |
---|---|---|
Cash and Cash Equivalents | $124.6 million | $93.2 million |
Short-Term Investments | $45.8 million | $37.5 million |
Total Liquid Assets | $170.4 million | $130.7 million |
Debt-related liquidity metrics:
- Total Debt: $512.6 million
- Debt-to-Equity Ratio: 0.85
- Interest Coverage Ratio: 3.7x
Is NETSTREIT Corp. (NTST) Overvalued or Undervalued?
Valuation Analysis: Is the Company Overvalued or Undervalued?
The valuation analysis provides critical insights into the company's current market positioning and potential investment attractiveness.
Key Valuation Metrics
Metric | Current Value |
---|---|
Price-to-Earnings (P/E) Ratio | 12.5x |
Price-to-Book (P/B) Ratio | 1.3x |
Enterprise Value/EBITDA | 14.2x |
Dividend Yield | 4.2% |
Stock Price Performance
12-Month Stock Price Range:
- 52-Week Low: $14.75
- 52-Week High: $22.50
- Current Price: $18.25
Analyst Recommendations
Rating Category | Percentage |
---|---|
Buy | 45% |
Hold | 40% |
Sell | 15% |
Dividend Analysis
Dividend-related metrics:
- Annual Dividend Per Share: $0.76
- Payout Ratio: 65%
Key Risks Facing NETSTREIT Corp. (NTST)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives:
Industry and Market Risks
Risk Category | Potential Impact | Severity |
---|---|---|
Real Estate Market Volatility | Potential property value fluctuations | High |
Interest Rate Changes | Impact on borrowing costs | Medium |
Economic Recession Risks | Potential tenant default | High |
Operational Risks
- Potential property maintenance challenges
- Tenant occupancy rate fluctuations
- Geographic concentration risks
- Competitive market pressures
Financial Exposure
Key financial risk metrics include:
- Debt-to-Equity Ratio: 1.45
- Interest Coverage Ratio: 2.3x
- Net Leverage Ratio: 4.7x
Regulatory Compliance Risks
Compliance Area | Potential Regulatory Impact |
---|---|
Real Estate Investment Trust (REIT) Regulations | Potential tax structure challenges |
Environmental Compliance | Potential additional capital expenditures |
Strategic Risk Mitigation
Potential mitigation strategies include:
- Diversifying property portfolio
- Maintaining flexible lease structures
- Implementing robust financial hedging strategies
- Continuous market and economic monitoring
Future Growth Prospects for NETSTREIT Corp. (NTST)
Growth Opportunities
NETSTREIT Corp. demonstrates potential growth through strategic market positioning and targeted expansion strategies.
Market Expansion Potential
Growth Metric | Current Value | Projected Growth |
---|---|---|
Net Lease Portfolio | $1.2 billion | 8.5% annual growth |
Geographical Reach | 38 States | Potential expansion to 45 States |
Property Acquisition | 153 Properties | Target of 200 Properties by 2025 |
Strategic Growth Initiatives
- Targeted investment in net lease properties across retail and service sectors
- Focus on high-quality, recession-resistant tenant base
- Continuous portfolio optimization and strategic acquisitions
Financial Growth Projections
Financial Metric | 2023 Performance | 2024 Projection |
---|---|---|
Revenue | $102.6 million | $118-125 million |
Funds from Operations | $1.32 per share | $1.45-1.55 per share |
NETSTREIT Corp. (NTST) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.