INNOVATIVE INDUSTRIAL PROPER (IIPR) Stock Fundamental Analysis
NYSE:IIPR - New York Stock Exchange, Inc. - US45781V1017 - REIT - Currency: USD
Overall IIPR gets a fundamental rating of 6 out of 10. We evaluated IIPR against 130 industry peers in the Diversified REITs industry. IIPR scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on IIPR. These ratings would make IIPR suitable for value investing!
1. Profitability
1.1 Basic Checks
IIPR had positive earnings in the past year.
IIPR had a positive operating cash flow in the past year.
IIPR had positive earnings in each of the past 5 years.
IIPR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 6.32%, IIPR belongs to the best of the industry, outperforming 98.46% of the companies in the same industry.
IIPR has a better Return On Equity (7.73%) than 81.54% of its industry peers.
The Return On Invested Capital of IIPR (5.98%) is better than 96.15% of its industry peers.
IIPR had an Average Return On Invested Capital over the past 3 years of 6.00%. This is above the industry average of 3.15%.
| 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
The Profit Margin of IIPR (48.76%) is better than 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's Gross Margin of 90.44% is amongst the best of the industry. IIPR outperforms 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.
The number of shares outstanding for IIPR has been increased compared to 1 year ago.
Compared to 5 years ago, IIPR has more shares outstanding
The debt/assets ratio for IIPR has been reduced compared to a year ago.
2.2 Solvency
IIPR has an Altman-Z score of 2.01. 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.
IIPR's Altman-Z score of 2.01 is amongst the best of the industry. IIPR outperforms 96.15% of its industry peers.
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.
IIPR has a better Debt to FCF ratio (1.82) 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 | 2.01 |
ROIC/WACC0.75
WACC8.03%
2.3 Liquidity
A Current Ratio of 0.98 indicates that IIPR may have some problems paying its short term obligations.
IIPR has a Current ratio of 0.98. This is comparable to the rest of the industry: IIPR outperforms 50.77% of its industry peers.
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.
With a Quick ratio value of 0.98, IIPR perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
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 has been growing slightly by 0.36% over the past year.
The Earnings Per Share has been growing by 22.61% on average over the past years. This is a very strong growth
The Revenue has decreased by -0.32% in the past year.
The Revenue has been growing by 47.16% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)0.36%
EPS 3Y5.99%
EPS 5Y22.61%
EPS Q2Q%27.61%
Revenue 1Y (TTM)-0.32%
Revenue growth 3Y14.67%
Revenue growth 5Y47.16%
Sales Q2Q%-21.18%
3.2 Future
The Earnings Per Share is expected to decrease by -3.52% on average over the next years.
IIPR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.27% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.15, the valuation of IIPR can be described as reasonable.
IIPR's Price/Earnings ratio is rather cheap when compared to the industry. IIPR is cheaper than 96.92% of the companies in the same industry.
IIPR is valuated cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.07, the valuation of IIPR can be described as very reasonable.
100.00% of the companies in the same industry are more expensive than IIPR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.04. IIPR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 9.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IIPR is valued cheaply inside the industry as 99.23% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IIPR is valued cheaply inside the industry as 93.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.07 | ||
| EV/EBITDA | 6.01 |
4.3 Compensation for Growth
IIPR has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as IIPR's earnings are expected to decrease with -3.52% in the coming years.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-3.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
IIPR has a Yearly Dividend Yield of 16.49%, which is a nice return.
Compared to an average industry Dividend Yield of 6.72, IIPR pays a better dividend. On top of this IIPR pays more dividend than 98.46% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, IIPR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.49% |
5.2 History
On average, the dividend of IIPR grows each year by 28.79%, which is quite nice.
IIPR has been paying a dividend for over 5 years, so it has already some track record.
IIPR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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
45.83
-0.27 (-0.59%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners73.9%
Inst Owner Change-1.83%
Ins Owners1.54%
Ins Owner Change8.4%
Market Cap1.28B
Analysts47.27
Price Target66.56 (45.23%)
Short Float %6.43%
Short Ratio7.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.49% |
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)-0.53%
PT rev (3m)-2.61%
EPS NQ rev (1m)-4.97%
EPS NQ rev (3m)1.82%
EPS NY rev (1m)0%
EPS NY rev (3m)5.03%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)-6.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 9.07 | ||
| P/S | 4.21 | ||
| P/FCF | 8.07 | ||
| P/OCF | 5.32 | ||
| P/B | 0.67 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | 6.01 |
EPS(TTM)5.62
EY12.26%
EPS(NY)5.05
Fwd EY11.03%
FCF(TTM)5.68
FCFY12.38%
OCF(TTM)8.61
OCFY18.78%
SpS10.88
BVpS68.62
TBVpS68.34
PEG (NY)N/A
PEG (5Y)0.36
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 | 2.01 |
F-Score5
WACC8.03%
ROIC/WACC0.75
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)0.36%
EPS 3Y5.99%
EPS 5Y22.61%
EPS Q2Q%27.61%
EPS Next Y-15.66%
EPS Next 2Y-3.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.32%
Revenue growth 3Y14.67%
Revenue growth 5Y47.16%
Sales Q2Q%-21.18%
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 Year19.97%
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%