NETSTREIT (NTST) AI Stock Analysis

• Market Cap: $1.72B
• Dividend Yield: 4.74%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 21.31%
• EPS Growth: -199.59%
• Country: US
• Employees: 22
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.04
• Shares Outstanding: 95,887,900
• 10 Day Avg. Volume: 1,404,411
• 30 Day Avg. Volume: 1,112,872
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 13.53
• Enterprise Value/Gross Profit: 14.26
• Enterprise Value/Ebitda: 19.09
• 1Y Price Target: $19.90
• Price Target Upside: 11.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 66 Neutral
• Price Target: $19.50 ▲(9.43% Upside)

NETSTREIT's overall stock score reflects strong financial performance and positive earnings call highlights, such as increased AFFO guidance and record cash yields. However, technical indicators suggest potential short-term weakness, and valuation concerns persist due to negative earnings. The attractive dividend yield provides some support.

Positive Factors

Revenue Growth

Consistent revenue growth and efficient cash flow management indicate a robust business model and operational efficiency, supporting long-term financial stability.

High-Quality Tenant Base

A high percentage of investment-grade tenants ensures stable rental income and reduces risk, enhancing the company's resilience against economic downturns.

Occupancy Rate

A near-perfect occupancy rate reflects strong demand for properties and effective portfolio management, ensuring steady cash flows and financial health.

Negative Factors

Profitability Challenges

Challenges in achieving profitability, as indicated by negative net income, can hinder long-term growth and shareholder value creation.

Future Cash Yield Decline

Expected decline in cash yields may impact future income generation, potentially affecting the company's ability to maintain or grow distributions.

Increased G&A Expenses

Rising G&A expenses could pressure margins and reduce operational efficiency, impacting long-term profitability and cash flow.

NETSTREIT Business Overview & Revenue Model

Company Description

NETSTREIT is an internally managed Real Estate Investment Trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT's strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.

How the Company Makes Money

NETSTREIT generates revenue primarily through rental income from its portfolio of single-tenant, net-leased retail properties. The company's business model involves acquiring properties that are leased to tenants on a net lease basis, meaning tenants are responsible for paying most or all of the operating expenses, including taxes, maintenance, and insurance, in addition to rent. This structure provides NETSTREIT with predictable cash flows and reduces the financial burden of property ownership. Key revenue streams include rental payments from tenants in essential and resilient retail sectors. The company's earnings are further supported by strategic acquisitions and portfolio management aimed at enhancing the quality and stability of its income. Significant partnerships with high-credit-quality tenants and a focus on sectors less susceptible to economic downturns contribute to NETSTREIT's financial performance.

NETSTREIT Financial Statement Overview

Summary

NETSTREIT demonstrates strong revenue growth and effective cash flow management. However, challenges in achieving net profitability, as indicated by negative net income and return on equity, slightly dampen the financial outlook.

Income Statement

NETSTREIT has shown consistent revenue growth, with a TTM growth rate of 7.27%. The gross profit margin is strong at 94.90%, indicating effective cost management. However, the company is currently experiencing negative net profit margins, reflecting challenges in achieving profitability. The EBIT and EBITDA margins are healthy, suggesting operational efficiency, but the negative net income is a concern.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.72, indicating a balanced approach to leverage. The equity ratio is stable, showing a solid equity base. However, the return on equity is negative, highlighting profitability challenges. Overall, the balance sheet reflects financial stability but with room for improvement in profitability.

Cash Flow

NETSTREIT exhibits strong free cash flow growth at 29.51% TTM, demonstrating effective cash management. The operating cash flow to net income ratio is positive, indicating good cash generation relative to earnings. The free cash flow to net income ratio is also strong, suggesting efficient conversion of earnings into cash. Despite negative net income, cash flow metrics are robust.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	172.72M	150.00M	131.91M	96.82M	59.14M	33.73M
Gross Profit	163.91M	133.80M	115.04M	84.58M	53.34M	31.16M
EBITDA	122.46M	98.24M	94.86M	65.23M	37.95M	16.65M
Net Income	-5.73M	-11.94M	6.84M	8.12M	3.05M	730.00K
Balance Sheet
Total Assets	2.31B	2.26B	1.95B	1.61B	1.07B	725.82M
Cash, Cash Equivalents and Short-Term Investments	19.74M	14.32M	18.43M	89.91M	7.60M	92.64M
Total Debt	953.51M	894.28M	640.25M	529.79M	267.09M	191.03M
Total Liabilities	988.17M	921.21M	672.80M	547.27M	278.63M	197.74M
Stockholders Equity	1.32B	1.33B	1.26B	1.05B	779.17M	494.10M
Cash Flow
Free Cash Flow	97.87M	90.16M	80.12M	49.44M	30.75M	12.70M
Operating Cash Flow	105.87M	90.16M	80.16M	50.65M	31.48M	12.75M
Investing Cash Flow	-325.66M	-432.88M	-451.95M	-468.36M	-430.13M	-362.13M
Financing Cash Flow	225.80M	327.10M	331.18M	480.65M	313.61M	272.71M

NETSTREIT Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.82
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTST, the sentiment is Neutral. The current price of 17.82 is below the 20-day moving average (MA) of 18.10, below the 50-day MA of 18.12, and above the 200-day MA of 15.72, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 41.28 is Neutral, neither overbought nor oversold. The STOCH value of 31.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NTST.

NETSTREIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IVT	78 Outperform	2.28B	20.78	6.15%	3.15%	8.63%	1412.68%
GTY	77 Outperform	1.54B	23.84	6.76%	6.84%	6.62%	-3.87%
WSR	74 Outperform	1.30B	19.54	7.89%	4.13%	4.04%	107.96%
NTST	66 Neutral	$1.72B	―	-0.43%	4.74%	21.31%	-199.59%
BFS	65 Neutral	776.08M	24.09	13.37%	7.41%	5.17%	-25.96%
PINE	60 Neutral	201.61M	-370.83	-0.30%	7.97%	17.14%	3.27%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

NETSTREIT Corporate Events

NETSTREIT Highlights Strong Metrics in Investor Presentation

On September 8, 2025, NETSTREIT Corp. released an investor presentation highlighting its strong operational metrics and strategic initiatives. The company reported a 99.9% occupancy rate and emphasized its focus on maintaining a well-capitalized balance sheet with low leverage and no immediate-term debt maturities. NETSTREIT’s portfolio is characterized by high credit quality and resilience, with 88% of its tenants being necessity, discount, and service-oriented businesses. The company has proven its ability to source attractive investment opportunities, completing $208 million in gross investments in the first half of 2025, and maintaining a low annual credit loss rate of 4 basis points over 5.5 years.

NETSTREIT Completes Public Offering of Common Stock

On July 28, 2025, NETSTREIT Corp. completed a public offering of 12,420,000 shares of its common stock at $17.70 per share, including shares sold through the underwriters’ option. The company entered into forward sale agreements with Bank of America and Wells Fargo, allowing for future settlement and potential proceeds, although initially, it will not receive any proceeds from the sale. The company anticipates settling these agreements by July 24, 2026, with options for cash or net share settlement.

NETSTREIT Announces Q2 2025 Financial Results

On July 23, 2025, NETSTREIT Corp. announced its financial and operating results for the second quarter of 2025, highlighting a net income of $0.04 and adjusted funds from operations (AFFO) of $0.33 per diluted share. The company completed $117.1 million in gross investment activity at a 7.8% blended cash yield and raised $46.1 million in common equity. As a result of strong performance, NETSTREIT increased its 2025 AFFO per share guidance to $1.29 to $1.31 and its net investment guidance to $125.0 million to $175.0 million, alongside a 2.4% increase in the quarterly dividend to $0.215 per share.

NETSTREIT Highlights Strong Financial Position and Growth

On June 18, 2025, NETSTREIT Corp. released an investor presentation highlighting its strong financial position and strategic focus on growth through high-quality tenant investments. The company reported a 99.9% occupancy rate and emphasized its robust liquidity and low leverage, which positions it well for future investments. NETSTREIT’s strategic management of lease expirations and minimal credit loss history underscore its resilience in the retail real estate market.