NetSTREIT Corp. Common Stock (NTST)

FairStock Score: 50/100 — MIXED

Key Financials

Strengths

• Generates $141 million in annual free cash flow (6.9% yield on market cap)
• Revenue growth of 26.5% demonstrates strong top-line momentum
• Attractive 4.2% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($6) with negative 222% margin of safety—limited downside protection
• Altman Z-Score of 0.9 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

NetSTREIT Corp. Common Stock is a small-cap real estate company valued at $2.0 billion. The business generates $206 million in annual revenue with a 2.8% net margin and $141 million in free cash flow. From a quality standpoint, NetSTREIT shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.9 warrants caution. On valuation, the stock is commanding a steep 172.9x multiple, with trades far above its Graham Number ($6) with no margin of safety. Growth dynamics show revenue growing at 26.5% and profit growth of 236.3%. The 4.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

NetSTREIT's 27% revenue growth trajectory could accelerate as it captures additional market share in the real estate sector. With $141 million in annual free cash flow (6.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 173x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer