INNOVATIVE INDUSTRIAL PROPER (IIPR) Stock Fundamental Analysis
USA - NYSE:IIPR - US45781V1017 - REIT
52.75 USD
-0.63 (-1.18%)
53.29 USD
+0.54 (+1.02%)
Taking everything into account, IIPR scores 6 out of 10 in our fundamental rating. IIPR was compared to 127 industry peers in the Diversified REITs industry. IIPR scores excellent on profitability, but there are some minor concerns on its financial health. IIPR has a bad growth rate and is valued cheaply. This makes IIPR very considerable for value investing!
1. Profitability
1.1 Basic Checks
IIPR had positive earnings in the past year.
In the past year IIPR had a positive cash flow from operations.
IIPR had positive earnings in each of the past 5 years.
Each year in the past 5 years IIPR had a positive operating cash flow.
1.2 Ratios
IIPR's Return On Assets of 5.72% is amongst the best of the industry. IIPR outperforms 97.64% of its industry peers.
IIPR has a Return On Equity of 7.01%. This is amongst the best in the industry. IIPR outperforms 80.31% of its industry peers.
With an excellent Return On Invested Capital value of 5.49%, IIPR belongs to the best of the industry, outperforming 95.28% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IIPR is above the industry average of 3.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.72% | ||
| ROE | 7.01% | ||
| ROIC | 5.49% |
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 has a better Profit Margin (45.82%) than 96.06% of its industry peers.
In the last couple of years the Profit Margin of IIPR has remained more or less at the same level.
Looking at the Operating Margin, with a value of 52.68%, IIPR belongs to the top of the industry, outperforming 93.70% of the companies in the same industry.
IIPR's Operating Margin has been stable in the last couple of years.
IIPR has a Gross Margin of 89.88%. This is amongst the best in the industry. IIPR outperforms 92.91% 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 | 52.68% | ||
| PM (TTM) | 45.82% | ||
| GM | 89.88% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
IIPR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.29 indicates that IIPR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.29, IIPR belongs to the best of the industry, outperforming 96.06% of the companies in the same industry.
IIPR has a debt to FCF ratio of 1.71. This is a very positive value and a sign of high solvency as it would only need 1.71 years to pay back of all of its debts.
The Debt to FCF ratio of IIPR (1.71) 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.
IIPR has a Debt to Equity ratio of 0.15. This is amongst the best in the industry. IIPR outperforms 99.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 2.29 |
ROIC/WACC0.7
WACC7.87%
2.3 Liquidity
A Current Ratio of 1.00 indicates that IIPR may have some problems paying its short term obligations.
With a Current ratio value of 1.00, IIPR perfoms like the industry average, outperforming 51.97% of the companies in the same industry.
IIPR has a Quick Ratio of 1.00. This is a bad value and indicates that IIPR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of IIPR (1.00) is comparable to the rest of the industry.
The current and quick ratio evaluation for IIPR is rather negative, while it does have 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 | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
IIPR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.82%.
Measured over the past years, IIPR shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.61% on average per year.
The Revenue has decreased by -7.80% in the past year.
IIPR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 47.16% yearly.
EPS 1Y (TTM)-14.82%
EPS 3Y5.99%
EPS 5Y22.61%
EPS Q2Q%-35.82%
Revenue 1Y (TTM)-7.8%
Revenue growth 3Y14.67%
Revenue growth 5Y47.16%
Sales Q2Q%-21.18%
3.2 Future
The Earnings Per Share is expected to decrease by -14.96% on average over the next years. This is quite bad
Based on estimates for the next years, IIPR will show a decrease in Revenue. The Revenue will decrease by -4.86% on average per year.
EPS Next Y-30.5%
EPS Next 2Y-14.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.18%
Revenue Next 2Y-7.4%
Revenue Next 3Y-4.86%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 11.06, which indicates a very decent 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 94.49% of the companies listed in the same industry.
IIPR is valuated cheaply when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.43, the valuation of IIPR can be described as correct.
96.85% of the companies in the same industry are more expensive than IIPR, based on the Price/Forward Earnings ratio.
IIPR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.06 | ||
| Fwd PE | 13.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IIPR is valued cheaper than 98.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IIPR is valued cheaply inside the industry as 91.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.73 | ||
| EV/EBITDA | 7.5 |
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 -14.96% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y-14.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.15%, IIPR is a good candidate for dividend investing.
IIPR's Dividend Yield is rather good when compared to the industry average which is at 6.23. IIPR pays more dividend than 99.21% of the companies 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 | 14.15% |
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.
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 166.38% 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.
DP166.38%
EPS Next 2Y-14.96%
EPS Next 3YN/A
52.75
-0.63 (-1.18%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners71.39%
Inst Owner Change-0.23%
Ins Owners1.54%
Ins Owner Change1.47%
Market Cap1.48B
Revenue(TTM)287.88M
Net Income(TTM)131.91M
Analysts47.27
Price Target58.14 (10.22%)
Short Float %6.72%
Short Ratio5.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.15% |
Yearly Dividend7.56
Dividend Growth(5Y)28.79%
DP166.38%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.31%
Min EPS beat(2)-22.17%
Max EPS beat(2)-2.46%
EPS beat(4)0
Avg EPS beat(4)-8.44%
Min EPS beat(4)-22.17%
Max EPS beat(4)-1.96%
EPS beat(8)3
Avg EPS beat(8)-4.82%
EPS beat(12)6
Avg EPS beat(12)-1.64%
EPS beat(16)8
Avg EPS beat(16)-1.95%
Revenue beat(2)0
Avg Revenue beat(2)-2.48%
Min Revenue beat(2)-3.46%
Max Revenue beat(2)-1.51%
Revenue beat(4)0
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-1.51%
Revenue beat(8)2
Avg Revenue beat(8)-1.73%
Revenue beat(12)6
Avg Revenue beat(12)-0.51%
Revenue beat(16)9
Avg Revenue beat(16)-0.34%
PT rev (1m)0%
PT rev (3m)-15.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.31%
EPS NY rev (1m)-4.15%
EPS NY rev (3m)-17.59%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.06 | ||
| Fwd PE | 13.43 | ||
| P/S | 5.13 | ||
| P/FCF | 8.73 | ||
| P/OCF | 6.56 | ||
| P/B | 0.79 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | 7.5 |
EPS(TTM)4.77
EY9.04%
EPS(NY)3.93
Fwd EY7.44%
FCF(TTM)6.04
FCFY11.45%
OCF(TTM)8.04
OCFY15.25%
SpS10.27
BVpS67.11
TBVpS66.84
PEG (NY)N/A
PEG (5Y)0.49
Graham Number84.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.72% | ||
| ROE | 7.01% | ||
| ROCE | 6.95% | ||
| ROIC | 5.49% | ||
| ROICexc | 5.75% | ||
| ROICexgc | 5.84% | ||
| OM | 52.68% | ||
| PM (TTM) | 45.82% | ||
| GM | 89.88% | ||
| FCFM | 58.78% |
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%
ROICexgc growth 3Y4.5%
ROICexgc 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-Score4
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.71 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 76.83% | ||
| Cap/Sales | 19.5% | ||
| Interest Coverage | 9.38 | ||
| Cash Conversion | 100.29% | ||
| Profit Quality | 128.29% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.29 |
F-Score4
WACC7.87%
ROIC/WACC0.7
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)-14.82%
EPS 3Y5.99%
EPS 5Y22.61%
EPS Q2Q%-35.82%
EPS Next Y-30.5%
EPS Next 2Y-14.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.8%
Revenue growth 3Y14.67%
Revenue growth 5Y47.16%
Sales Q2Q%-21.18%
Revenue Next Year-14.18%
Revenue Next 2Y-7.4%
Revenue Next 3Y-4.86%
Revenue Next 5YN/A
EBIT growth 1Y-13.81%
EBIT growth 3Y8.42%
EBIT growth 5Y47.29%
EBIT Next Year18.56%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1652.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.51%
OCF growth 3Y11.05%
OCF growth 5Y41.91%