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Netstreit (Netstreit) Piotroski F-Score

: 4 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Netstreit has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Netstreit's Piotroski F-Score or its related term are showing as below:

NTST' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 7
Current: 4

During the past 6 years, the highest Piotroski F-Score of Netstreit was 7. The lowest was 4. And the median was 6.


Netstreit Piotroski F-Score Historical Data

The historical data trend for Netstreit's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Netstreit Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Premium Member Only N/A 7.00 6.00 6.00 4.00

Netstreit Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 4.00 5.00 4.00

Competitive Comparison

For the REIT - Retail subindustry, Netstreit's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Netstreit Piotroski F-Score Distribution

For the REITs industry and Real Estate sector, Netstreit's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Netstreit's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 1.472 + -0.791 + 4.215 + 1.941 = $6.8 Mil.
Cash Flow from Operations was 14.806 + 19.589 + 17.117 + 28.643 = $80.2 Mil.
Revenue was 28.062 + 31.253 + 31.398 + 34.328 = $125.0 Mil.
Gross Profit was 24.538 + 28.1 + 27.834 + 29.557 = $110.0 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(1605.692 + 1627.382 + 1747.758 + 1862.843 + 1946.236) / 5 = $1757.9822 Mil.
Total Assets at the begining of this year (Dec22) was $1,605.7 Mil.
Long-Term Debt & Capital Lease Obligation was $560.3 Mil.
Total Current Assets was $217.9 Mil.
Total Current Liabilities was $110.4 Mil.
Net Income was 1.942 + 1.987 + 1.403 + 2.785 = $8.1 Mil.

Revenue was 20.638 + 22.34 + 23.895 + 26.216 = $93.1 Mil.
Gross Profit was 17.989 + 19.949 + 21.8 + 23.086 = $82.8 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(1068.441 + 1199.729 + 1369.586 + 1473.642 + 1605.692) / 5 = $1343.418 Mil.
Total Assets at the begining of last year (Dec21) was $1,068.4 Mil.
Long-Term Debt & Capital Lease Obligation was $416.8 Mil.
Total Current Assets was $157.2 Mil.
Total Current Liabilities was $128.3 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Netstreit's current Net Income (TTM) was 6.8. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Netstreit's current Cash Flow from Operations (TTM) was 80.2. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=6.837/1605.692
=0.00425798

ROA (Last Year)=Net Income/Total Assets (Dec21)
=8.117/1068.441
=0.00759705

Netstreit's return on assets of this year was 0.00425798. Netstreit's return on assets of last year was 0.00759705. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Netstreit's current Net Income (TTM) was 6.8. Netstreit's current Cash Flow from Operations (TTM) was 80.2. ==> 80.2 > 6.8 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=560.252/1757.9822
=0.31869037

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=416.787/1343.418
=0.31024372

Netstreit's gearing of this year was 0.31869037. Netstreit's gearing of last year was 0.31024372. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=217.904/110.397
=1.97382175

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=157.23/128.325
=1.22524839

Netstreit's current ratio of this year was 1.97382175. Netstreit's current ratio of last year was 1.22524839. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Netstreit's number of shares in issue this year was 69.968. Netstreit's number of shares in issue last year was 55.756. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=110.029/125.041
=0.87994338

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=82.824/93.089
=0.88972918

Netstreit's gross margin of this year was 0.87994338. Netstreit's gross margin of last year was 0.88972918. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=125.041/1605.692
=0.07787359

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=93.089/1068.441
=0.08712601

Netstreit's asset turnover of this year was 0.07787359. Netstreit's asset turnover of last year was 0.08712601. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+1+0+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Netstreit has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Netstreit  (NYSE:NTST) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Netstreit Piotroski F-Score Related Terms

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Netstreit (Netstreit) Business Description

Traded in Other Exchanges
Address
2021 McKinney Avenue, Suite 1150, Dallas, TX, USA, 75201
Netstreit Corp is structured as an umbrella partnership real estate investment trust. The company acquires, owns and manages commercial single-tenant lease properties, with the majority being long-term triple-net leases where the tenant is generally responsible for all improvements and contractually obligated to pay all operating costs (such as real estate taxes, utilities and repairs and maintenance costs).
Executives
Daniel P Donlan officer: CFO and Treasurer 2021 MCKINNEY AVENUE, SUITE 1150, DALLAS TX 75201
Mark Manheimer director, officer: President and CEO 14631 NORTH SCOTTSDALE RD, SUITE 200, SCOTTSDALE AZ 85254
Andrew P Blocher officer: CFO, Treasurer and Secretary 7600 WISCONSIN AVENUE, 11TH FLOOR, BETHESDA MD 20814
Heidi Everett director 5910 N. CENTRAL EXPRESSWAY, SUITE 1600, DALLAS TX 75206
Matthew A Troxell director TWO SEAPORT LANE, BOSTON MA 02110
Michael Christodolou director 2707 N 108TH STREET 102, C/O LINDSAY INTERNATIONAL, OMAHA NE 68164
Lori Wittman director 191 NORTH WACKER DRIVE, SUITE 1200, CHICAGO IL 60606
David Busker director 5910 N. CENTRAL EXPRESSWAY, SUITE 1600, DALLAS TX 75206
Murtaza Ali director 5910 N. CENTRAL EXPRESSWAY, SUITE 1600, DALLAS TX 75206
Todd Minnis director 5910 N. CENTRAL EXPRESSWAY, SUITE 1600, DALLAS TX 75206
Tilden Park Management I Llc 10 percent owner 452 FIFTH AVE., 28TH FLOOR, NEW YORK NY 10018
Long Pond Capital, Lp 10 percent owner 527 MADISON AVENUE, 15TH FLOOR, NEW YORK NY 10022
Long Pond Capital Gp, Llc 10 percent owner 527 MADISON AVENUE, 15TH FLOOR, NEW YORK NY 10022
John Khoury 10 percent owner 527 MADISON AVENUE, 15TH FLOOR, NEW YORK NY 10022
Robin Mcbride Zeigler director 44 SOUTH BAYLES AVENUE, PORT WASHINGTON NY 11050