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 |
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