MeritValue

NETSTREIT Corp.

NTSTdata completeness 88%7 fiscal years on file

Data notes: no data for concept 'capex'

The thesis, from the filings

NETSTREIT Corp. earns about 1% on invested capital, but has diluted owners by 118% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $0.85 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$59.1M1$96.3M2$131.9M3$162.8M3$195M3
Net income$3.15M4$8.21M5$6.89M6−$12M6$6.94M6
Operating cash flow$31.5M7$50.6M8$80.2M9$90.2M9$109.5M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$237.5M10$491.5M11$607.9M12$868.3M13$1.1B13
Cash & equivalents$7.6M14$70.5M15$29.9M15$14.3M15$14.5M15
Diluted shares38.7M50.4M64.7M76.5M84.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$171.73
your share of equity
Profit it earned you last year
$0.82
Free cash flow it threw off
—
Debt you’d be carrying
$130.1

10 shares is a claim on $171.73 of net worth that earned you $0.82 last year, against $130.1 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
1% avg · 5y
FY21 1%FY22 1%FY23 1%FY24 1%FY25 2%

It earned an average 1% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+118% shares · 5y

Share count is up 118% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 361% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$0.85
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$6.89M
  • growthAssumed0.0%
Graham Number
$5.56
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001798100-24-000011 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001798100-25-000039 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001628280-26-006901 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0001798100-24-000011 (ProfitLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001798100-25-000039 (ProfitLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001628280-26-006901 (ProfitLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001798100-24-000011 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001798100-25-000039 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001628280-26-006901 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001798100-23-000008 (LongTermDebt)
  11. 10-K · period ending 2022-12-31 · accession 0001798100-24-000011 (LongTermDebt)
  12. 10-K · period ending 2023-12-31 · accession 0001798100-25-000039 (LongTermDebt)
  13. 10-K · period ending 2024-12-31 · accession 0001628280-26-006901 (LongTermDebt)
  14. 10-K · period ending 2021-12-31 · accession 0001798100-25-000039 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  15. 10-K · period ending 2022-12-31 · accession 0001628280-26-006901 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)