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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2945
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Trading
$175M
James D. Dondero
NexPoint Diversified Real Estate Trust is a closed ended balanced mutual fund launched by Highland Capital Management, L.P. The fund invests in the fixed income markets of the United States. It invests in companies across broadly diversified sectors to construct its portfolio.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = NXDT ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$NXDT NEXPOINT DIVERSIFIED REAL ESTATE TRUST | 44 | 38 | 35 | 50 | - | 56.9x | -14.5% | -9.7% | 100.0% | -7.1% | -116.1% | -21.6% | 16.3% | 48.0x | $175M | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
NEXPOINT DIVERSIFIED REAL ESTATE TRUST (NXDT) receives a "Reduce" rating with a composite score of 44.1/100. It ranks #2945 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Expensive relative to fundamentals — limited margin of safety
Average quality profile
High volatility — wider range of outcomes increases timing risk
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for NXDT.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 38 | 71 | -33DRAG |
| MOMENTUM | 50 | 53 | -3NEUTRAL |
| VALUATION | 35 | 33 | +2NEUTRAL |
| INVESTMENT | 35 | 61 | -26DRAG |
| STABILITY | 22 | 12 | +10ALPHA |
| SHORT INT | 43 | 41 | +2NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC -0.9% vs WACC 5.2% (spread -6.0%)
GM 100% vs sector 78%, OM -7% vs sector 18%
Capital turnover 0.06x
Rev growth -22%, 3yr history
Interest coverage -0.5x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate NEXPOINT DIVERSIFIED REAL ESTATE TRUST (NXDT) as a Reduce with a composite score of 44.1/100 at a current price of $4.67. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
NEXPOINT DIVERSIFIED REAL ESTATE TRUST holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 44.1/100 places it at rank #2945 in our full universe.
No Moat
High
Poor
Fair Value
Gross margins of 100% signal strong pricing power.
Stable competitive position in a defensive sector.
Vulnerability to macroeconomic shocks and interest rate volatility.
NEXPOINT DIVERSIFIED REAL ESTATE TRUST represents a reduce based on multi-factor quantitative performance.
NEXPOINT DIVERSIFIED REAL ESTATE TRUST receives a Reduce rating from our analysis, with a composite score of 44.1/100 and 2 out of 5 stars, ranking #2945 out of 7,333 stocks. NXDT's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
NXDT's quality score of 38/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -14.5% (sector avg: 9.0%), gross margins of 100.0% (sector avg: 77.7%), net margins of -116.1% (sector avg: 21.9%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 35/100, NXDT appears somewhat expensive relative to its fundamentals. Key valuation metrics include an EV/EBITDA of 56.86x, a P/B ratio of 0.31x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
NEXPOINT DIVERSIFIED REAL ESTATE TRUST's investment score of 35/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of -21.6% vs. a sector average of 10.7% and a return on assets of -9.7% (sector: 1.3%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
NXDT demonstrates moderate momentum with a score of 50/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at -21.6% year-over-year, while a beta of 0.87 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
NEXPOINT DIVERSIFIED REAL ESTATE TRUST registers a low stability score of 22/100, indicating high volatility and potentially stressed financial conditions. Key stability metrics include a beta of 0.87 and a debt-to-equity ratio of 48.00x (sector avg: 0.5x). Stocks at this level carry elevated capital loss risk and may be unsuitable for conservative portfolios without careful risk management.
The short interest score of 43/100 for NXDT suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 48.00x), micro-cap liquidity risk. With a $175M market cap (micro-cap), NEXPOINT DIVERSIFIED REAL ESTATE TRUST may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
NEXPOINT DIVERSIFIED REAL ESTATE TRUST offers an attractive dividend yield of 16.3%, placing it among the higher-yielding stocks in its peer group. This compares to a sector average dividend yield of 2.0%. A yield this high can provide meaningful income, but investors should verify the payout is sustainable by examining the payout ratio, free cash flow coverage, and any history of dividend cuts.
NEXPOINT DIVERSIFIED REAL ESTATE TRUST is a micro-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #2945 of 7,333 overall (60th percentile). Key comparisons include ROE of -14.5% trailing the 9.0% sector median and operating margins of -7.1% below the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While NXDT currently exhibits a REDUCE profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Finance, Insurance, And Real Estate Alpha →Quant Factor Profile
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Improvement in Stability (22) would have the largest impact on the composite score.
EV/EBITDA 632% ABOVE SECTOR MEDIAN
ROE 261% BELOW SECTOR MEDIAN
Gross Margin 29% ABOVE SECTOR MEDIAN (FAVORABLE)
Although US stocks closed lower on Thursday, there were a few notable insider trades. When insiders purchase shares, it indicates their confidence in the company's prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision. Below is a look at a few recent notable insider purchases. For more, check out Benzinga's insider transactions platform. HighPeak Energy The Trade: HighPeak Energy, Inc. (NASDAQ: HPK) CEO Jack Hightower acquired ...
The most oversold stocks in the real estate sector presents an opportunity to buy into undervalued companies. The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30. Here’s the latest list of major oversold players in this sector, having an RSI near or below 30. Altisource Asset Management Corporation (NYSE: AAMC) Altisource Asset Management announced departure of CEO Jason Kopcak. "We remain committed to the mortgage space," said Chairman of the Board Ricardo Byrd. "As the Board considers potential replacements, we have appointed Danya Sawyer, Chief Operating Officer of Alternative Lending Group, the Company's principal operating ...
Highland Opportunities and Income Fund trades at a 53% discount to NAV. Find out my recommendation on HFRO fund.
NexPoint Diversified Real Estate Trust (NXDT) declares a $0.15 quarterly dividend (12.77% forward yield).
NexPoint Diversified Real Estate Trust ("NXDT") (NYSE: NXDT) announced today that its board of trustees has declared a quarterly distribution of $0.15 per common share of NXDT, consisting of a combination of cash and common shares of NXDT. The distribution will be payable on March 31, 2026, to shareholders of record on February 20, 2026.
Above 50MA
37.18%
Net New Highs
+51081