INTERRENT REAL ESTATE INVEST (IIP-UN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:IIP-UN - CA46071W2058 - REIT
13.4 CAD
+0.01 (+0.07%)
Taking everything into account, IIP-UN scores 3 out of 10 in our fundamental rating. IIP-UN was compared to 14 industry peers in the Residential REITs industry. There are concerns on the financial health of IIP-UN while its profitability can be described as average. IIP-UN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year IIP-UN was profitable.
- In the past year IIP-UN had a positive cash flow from operations.
- Of the past 5 years IIP-UN 4 years were profitable.
- In the past 5 years IIP-UN always reported a positive cash flow from operatings.
1.2 Ratios
- IIP-UN has a worse Return On Assets (-2.53%) than 78.57% of its industry peers.
- IIP-UN has a worse Return On Equity (-4.63%) than 78.57% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 2.51%, IIP-UN is in line with its industry, outperforming 50.00% of the companies in the same industry.
- IIP-UN had an Average Return On Invested Capital over the past 3 years of 2.32%. This is in line with the industry average of 3.07%.
- The last Return On Invested Capital (2.51%) for IIP-UN is above the 3 year average (2.32%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.53% | ||
| ROE | -4.63% | ||
| ROIC | 2.51% |
ROA(3y)0.26%
ROA(5y)2.89%
ROE(3y)0.42%
ROE(5y)4.76%
ROIC(3y)2.32%
ROIC(5y)2.18%
1.3 Margins
- Looking at the Operating Margin, with a value of 53.61%, IIP-UN is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
- In the last couple of years the Operating Margin of IIP-UN has remained more or less at the same level.
- The Gross Margin of IIP-UN (76.82%) is better than 92.86% of its industry peers.
- In the last couple of years the Gross Margin of IIP-UN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.61% | ||
| PM (TTM) | N/A | ||
| GM | 76.82% |
OM growth 3Y1.84%
OM growth 5Y0.57%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.93%
GM growth 5Y-0.18%
2. Health
2.1 Basic Checks
- IIP-UN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for IIP-UN has been increased compared to 1 year ago.
- The number of shares outstanding for IIP-UN has been increased compared to 5 years ago.
- IIP-UN has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.06, we must say that IIP-UN is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of IIP-UN (1.06) is better than 71.43% of its industry peers.
- The Debt to FCF ratio of IIP-UN is 18.48, which is on the high side as it means it would take IIP-UN, 18.48 years of fcf income to pay off all of its debts.
- IIP-UN has a Debt to FCF ratio of 18.48. This is in the lower half of the industry: IIP-UN underperforms 64.29% of its industry peers.
- IIP-UN has a Debt/Equity ratio of 0.65. This is a neutral value indicating IIP-UN is somewhat dependend on debt financing.
- The Debt to Equity ratio of IIP-UN (0.65) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 18.48 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.56
WACC4.49%
2.3 Liquidity
- IIP-UN has a Current Ratio of 0.05. This is a bad value and indicates that IIP-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.05, IIP-UN is doing worse than 92.86% of the companies in the same industry.
- IIP-UN has a Quick Ratio of 0.05. This is a bad value and indicates that IIP-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
- IIP-UN has a Quick ratio of 0.05. This is amonst the worse of the industry: IIP-UN underperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
- IIP-UN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.93%.
- The Revenue has been growing slightly by 1.55% in the past year.
- IIP-UN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.13% yearly.
EPS 1Y (TTM)-4.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0.86%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y9.97%
Revenue growth 5Y11.13%
Sales Q2Q%2.51%
3.2 Future
- The Earnings Per Share is expected to grow by 3.57% on average over the next years.
- IIP-UN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.89% yearly.
EPS Next Y-10.08%
EPS Next 2Y3.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.83%
Revenue Next 2Y1.83%
Revenue Next 3Y1.89%
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 22.71 indicates a rather expensive valuation of IIP-UN.
- Compared to the rest of the industry, the Price/Earnings ratio of IIP-UN is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, IIP-UN is valued at the same level.
- IIP-UN is valuated rather expensively with a Price/Forward Earnings ratio of 19.51.
- IIP-UN's Price/Forward Earnings is on the same level as the industry average.
- IIP-UN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.71 | ||
| Fwd PE | 19.51 |
4.2 Price Multiples
- 64.29% of the companies in the same industry are more expensive than IIP-UN, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of IIP-UN indicates a slightly more expensive valuation: IIP-UN is more expensive than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.94 | ||
| EV/EBITDA | 26.08 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- IIP-UN has a Yearly Dividend Yield of 2.66%.
- Compared to an average industry Dividend Yield of 4.73, IIP-UN's dividend is way lower than its industry peers. On top of this 85.71% of the companies listed in the same industry pay a better dividend than IIP-UN!
- IIP-UN's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
- The dividend of IIP-UN is nicely growing with an annual growth rate of 6.26%!
- IIP-UN has paid a dividend for at least 10 years, which is a reliable track record.
- IIP-UN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.26%
Div Incr Years13
Div Non Decr Years15
5.3 Sustainability
- IIP-UN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- IIP-UN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-48.46%
EPS Next 2Y3.57%
EPS Next 3YN/A
INTERRENT REAL ESTATE INVEST / IIP-UN.CA FAQ
What is the ChartMill fundamental rating of INTERRENT REAL ESTATE INVEST (IIP-UN.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to IIP-UN.CA.
Can you provide the valuation status for INTERRENT REAL ESTATE INVEST?
ChartMill assigns a valuation rating of 2 / 10 to INTERRENT REAL ESTATE INVEST (IIP-UN.CA). This can be considered as Overvalued.
How profitable is INTERRENT REAL ESTATE INVEST (IIP-UN.CA) stock?
INTERRENT REAL ESTATE INVEST (IIP-UN.CA) has a profitability rating of 5 / 10.
What are the PE and PB ratios of INTERRENT REAL ESTATE INVEST (IIP-UN.CA) stock?
The Price/Earnings (PE) ratio for INTERRENT REAL ESTATE INVEST (IIP-UN.CA) is 22.71 and the Price/Book (PB) ratio is 0.82.
What is the expected EPS growth for INTERRENT REAL ESTATE INVEST (IIP-UN.CA) stock?
The Earnings per Share (EPS) of INTERRENT REAL ESTATE INVEST (IIP-UN.CA) is expected to decline by -10.08% in the next year.