INNOVATIVE INDUSTRIAL PROPER (IIPR) Stock Fundamental Analysis
NYSE:IIPR - New York Stock Exchange, Inc. - US45781V1017 - REIT - Currency: USD
We assign a fundamental rating of 6 out of 10 to IIPR. IIPR was compared to 130 industry peers in the Diversified REITs industry. While IIPR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. IIPR is cheap, but on the other hand it scores bad on growth. These ratings could make IIPR a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year IIPR was profitable.
IIPR had a positive operating cash flow in the past year.
In the past 5 years IIPR has always been profitable.
IIPR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IIPR has a Return On Assets of 6.32%. This is amongst the best in the industry. IIPR outperforms 98.46% of its industry peers.
The Return On Equity of IIPR (7.73%) is better than 83.85% of its industry peers.
IIPR has a Return On Invested Capital of 5.98%. This is amongst the best in the industry. IIPR outperforms 95.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IIPR is above the industry average of 3.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 7.73% | ||
| ROIC | 5.98% |
ROA(3y)6.58%
ROA(5y)5.75%
ROE(3y)8.08%
ROE(5y)7.08%
ROIC(3y)6%
ROIC(5y)5.36%
1.3 Margins
IIPR's Profit Margin of 48.76% is amongst the best of the industry. IIPR outperforms 96.92% of its industry peers.
In the last couple of years the Profit Margin of IIPR has remained more or less at the same level.
IIPR has a Operating Margin of 55.22%. This is amongst the best in the industry. IIPR outperforms 94.62% of its industry peers.
In the last couple of years the Operating Margin of IIPR has remained more or less at the same level.
IIPR has a better Gross Margin (90.44%) than 93.08% of its industry peers.
In the last couple of years the Gross Margin of IIPR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 55.22% | ||
| PM (TTM) | 48.76% | ||
| GM | 90.44% |
OM growth 3Y-5.45%
OM growth 5Y0.08%
PM growth 3Y-2.31%
PM growth 5Y1.02%
GM growth 3Y-2.46%
GM growth 5Y-1.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IIPR is destroying value.
IIPR has more shares outstanding than it did 1 year ago.
IIPR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, IIPR has an improved debt to assets ratio.
2.2 Solvency
IIPR has an Altman-Z score of 2.42. This is not the best score and indicates that IIPR is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.42, IIPR belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
IIPR has a debt to FCF ratio of 1.82. This is a very positive value and a sign of high solvency as it would only need 1.82 years to pay back of all of its debts.
The Debt to FCF ratio of IIPR (1.82) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that IIPR is not too dependend on debt financing.
The Debt to Equity ratio of IIPR (0.15) is better than 99.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.72
WACC8.27%
2.3 Liquidity
IIPR has a Current Ratio of 0.98. This is a bad value and indicates that IIPR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.98, IIPR is in line with its industry, outperforming 50.77% of the companies in the same industry.
IIPR has a Quick Ratio of 0.98. This is a bad value and indicates that IIPR is not financially healthy enough and could expect problems in meeting its short term obligations.
IIPR's Quick ratio of 0.98 is in line compared to the rest of the industry. IIPR outperforms 52.31% of its industry peers.
IIPR does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The earnings per share for IIPR have decreased by -7.89% in the last year.
The Earnings Per Share has been growing by 22.61% on average over the past years. This is a very strong growth
IIPR shows a decrease in Revenue. In the last year, the revenue decreased by -1.33%.
IIPR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 47.16% yearly.
EPS 1Y (TTM)-7.89%
EPS 3Y5.99%
EPS 5Y22.61%
EPS Q2Q%-13.24%
Revenue 1Y (TTM)-1.33%
Revenue growth 3Y14.67%
Revenue growth 5Y47.16%
Sales Q2Q%-4.95%
3.2 Future
Based on estimates for the next years, IIPR will show a decrease in Earnings Per Share. The EPS will decrease by -3.52% on average per year.
The Revenue is expected to decrease by -5.27% on average over the next years.
EPS Next Y-15.66%
EPS Next 2Y-3.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-11.1%
Revenue Next 2Y-5.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 10.28 indicates a reasonable valuation of IIPR.
Compared to the rest of the industry, the Price/Earnings ratio of IIPR indicates a rather cheap valuation: IIPR is cheaper than 93.85% of the companies listed in the same industry.
IIPR is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.68, which indicates a very decent valuation of IIPR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IIPR indicates a rather cheap valuation: IIPR is cheaper than 98.46% of the companies listed in the same industry.
IIPR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.28 | ||
| Fwd PE | 10.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IIPR indicates a rather cheap valuation: IIPR is cheaper than 98.46% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IIPR indicates a rather cheap valuation: IIPR is cheaper than 90.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.51 | ||
| EV/EBITDA | 7.22 |
4.3 Compensation for Growth
The excellent profitability rating of IIPR may justify a higher PE ratio.
IIPR's earnings are expected to decrease with -3.52% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y-3.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.56%, IIPR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.44, IIPR pays a better dividend. On top of this IIPR pays more dividend than 96.92% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, IIPR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.56% |
5.2 History
The dividend of IIPR is nicely growing with an annual growth rate of 28.79%!
IIPR has been paying a dividend for over 5 years, so it has already some track record.
As IIPR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)28.79%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
IIPR pays out 145.70% of its income as dividend. This is not a sustainable payout ratio.
IIPR's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP145.7%
EPS Next 2Y-3.52%
EPS Next 3YN/A
53.99
-2.24 (-3.98%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners73.13%
Inst Owner Change0.09%
Ins Owners1.52%
Ins Owner Change8.4%
Market Cap1.51B
Analysts50.91
Price Target66.91 (23.93%)
Short Float %6.54%
Short Ratio7.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.56% |
Yearly Dividend7.56
Dividend Growth(5Y)28.79%
DP145.7%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.21%
Min EPS beat(2)-2.46%
Max EPS beat(2)-1.96%
EPS beat(4)1
Avg EPS beat(4)-2.68%
Min EPS beat(4)-7.16%
Max EPS beat(4)0.86%
EPS beat(8)4
Avg EPS beat(8)-1.92%
EPS beat(12)7
Avg EPS beat(12)0.38%
EPS beat(16)9
Avg EPS beat(16)-0.37%
Revenue beat(2)0
Avg Revenue beat(2)-1.54%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)-1.51%
Revenue beat(4)1
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)0.66%
Revenue beat(8)3
Avg Revenue beat(8)-1.17%
Revenue beat(12)7
Avg Revenue beat(12)-0.21%
Revenue beat(16)10
Avg Revenue beat(16)0.15%
PT rev (1m)0%
PT rev (3m)-11.35%
EPS NQ rev (1m)1.48%
EPS NQ rev (3m)7.14%
EPS NY rev (1m)5.03%
EPS NY rev (3m)-9.69%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-5.87%
Revenue NY rev (1m)1.03%
Revenue NY rev (3m)-2.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.28 | ||
| Fwd PE | 10.68 | ||
| P/S | 4.96 | ||
| P/FCF | 9.51 | ||
| P/OCF | 6.27 | ||
| P/B | 0.79 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | 7.22 |
EPS(TTM)5.25
EY9.72%
EPS(NY)5.05
Fwd EY9.36%
FCF(TTM)5.68
FCFY10.51%
OCF(TTM)8.61
OCFY15.94%
SpS10.88
BVpS68.62
TBVpS68.34
PEG (NY)N/A
PEG (5Y)0.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 7.73% | ||
| ROCE | 7.58% | ||
| ROIC | 5.98% | ||
| ROICexc | 6.35% | ||
| ROICexgc | 6.45% | ||
| OM | 55.22% | ||
| PM (TTM) | 48.76% | ||
| GM | 90.44% | ||
| FCFM | 52.16% |
ROA(3y)6.58%
ROA(5y)5.75%
ROE(3y)8.08%
ROE(5y)7.08%
ROIC(3y)6%
ROIC(5y)5.36%
ROICexc(3y)6.35%
ROICexc(5y)5.68%
ROICexgc(3y)6.4%
ROICexgc(5y)5.72%
ROCE(3y)7.59%
ROCE(5y)6.79%
ROICexcg growth 3Y4.5%
ROICexcg growth 5Y15.06%
ROICexc growth 3Y4.1%
ROICexc growth 5Y14.68%
OM growth 3Y-5.45%
OM growth 5Y0.08%
PM growth 3Y-2.31%
PM growth 5Y1.02%
GM growth 3Y-2.46%
GM growth 5Y-1.34%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 114.01% | ||
| Cap/Sales | 26.95% | ||
| Interest Coverage | 10.48 | ||
| Cash Conversion | 100.32% | ||
| Profit Quality | 106.98% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 2.42 |
F-Score5
WACC8.27%
ROIC/WACC0.72
Cap/Depr(3y)415.19%
Cap/Depr(5y)944.48%
Cap/Sales(3y)91.95%
Cap/Sales(5y)210.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.89%
EPS 3Y5.99%
EPS 5Y22.61%
EPS Q2Q%-13.24%
EPS Next Y-15.66%
EPS Next 2Y-3.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.33%
Revenue growth 3Y14.67%
Revenue growth 5Y47.16%
Sales Q2Q%-4.95%
Revenue Next Year-11.1%
Revenue Next 2Y-5.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-2.94%
EBIT growth 3Y8.42%
EBIT growth 5Y47.29%
EBIT Next Year19.23%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y176.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.97%
OCF growth 3Y11.05%
OCF growth 5Y41.91%