INNOVATIVE INDUSTRIAL PROPER (IIPR)
US45781V1017 - REIT
Taking everything into account, IIPR scores 7 out of 10 in our fundamental rating. IIPR was compared to 126 industry peers in the Diversified REITs industry. IIPR gets an excellent profitability rating and is at the same time showing great financial health properties. IIPR is not valued too expensively and it also shows a decent growth rate. With these ratings, IIPR could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year IIPR was profitable.
In the past year IIPR had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 6.82%, IIPR belongs to the top of the industry, outperforming 96.75% of the companies in the same industry.
IIPR's Return On Equity of 8.35% is amongst the best of the industry. IIPR outperforms 83.74% of its industry peers.
IIPR's Return On Invested Capital of 6.12% is amongst the best of the industry. IIPR outperforms 96.75% of its industry peers.
IIPR had an Average Return On Invested Capital over the past 3 years of 5.81%. This is above the industry average of 2.95%.
The last Return On Invested Capital (6.12%) for IIPR is above the 3 year average (5.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.82% | ||
| ROE | 8.35% | ||
| ROIC | 6.12% |
ROA(3y)6.18%
ROA(5y)5.01%
ROE(3y)7.71%
ROE(5y)6.25%
ROIC(3y)5.81%
ROIC(5y)4.73%
1.3 Margins
IIPR has a better Profit Margin (52.70%) than 95.94% of its industry peers.
In the last couple of years the Profit Margin of IIPR has grown nicely.
IIPR has a better Operating Margin (56.41%) than 95.94% of its industry peers.
IIPR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 91.95%, IIPR belongs to the top of the industry, outperforming 94.31% of the companies in the same industry.
IIPR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 56.41% | ||
| PM (TTM) | 52.7% | ||
| GM | 91.95% |
OM growth 3Y-1.83%
OM growth 5Y9.51%
PM growth 3Y-0.98%
PM growth 5Y7.38%
GM growth 3Y-1.33%
GM growth 5Y-0.98%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IIPR is destroying value.
Compared to 1 year ago, IIPR has more shares outstanding
Compared to 5 years ago, IIPR has more shares outstanding
IIPR has a worse debt/assets ratio than last year.
2.2 Solvency
IIPR has an Altman-Z score of 4.09. This indicates that IIPR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.09, IIPR belongs to the best of the industry, outperforming 99.19% of the companies in the same industry.
IIPR has a debt to FCF ratio of 4.26. This is a neutral value as IIPR would need 4.26 years to pay back of all of its debts.
IIPR has a Debt to FCF ratio of 4.26. This is amongst the best in the industry. IIPR outperforms 98.37% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that IIPR is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.15, IIPR belongs to the best of the industry, outperforming 98.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 4.26 | ||
| Altman-Z | 4.09 |
ROIC/WACC0.69
WACC8.84%
2.3 Liquidity
A Current Ratio of 1.24 indicates that IIPR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.24, IIPR perfoms like the industry average, outperforming 52.85% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that IIPR should not have too much problems paying its short term obligations.
IIPR's Quick ratio of 1.24 is in line compared to the rest of the industry. IIPR outperforms 56.91% 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 | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
IIPR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.53%.
IIPR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 52.05% yearly.
IIPR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.00%.
IIPR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 83.69% yearly.
EPS 1Y (TTM)4.53%
EPS 3Y21.46%
EPS 5Y52.05%
EPS growth Q2Q-0.68%
Revenue 1Y (TTM)12%
Revenue growth 3Y38.34%
Revenue growth 5Y83.69%
Revenue growth Q2Q12.34%
3.2 Future
The Earnings Per Share is expected to grow by 1.34% on average over the next years.
IIPR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.04% yearly.
EPS Next Y4.78%
EPS Next 2Y1.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.76%
Revenue Next 2Y4.04%
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 16.93, the valuation of IIPR can be described as correct.
86.99% of the companies in the same industry are more expensive than IIPR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.92. IIPR is valued slightly cheaper when compared to this.
IIPR is valuated correctly with a Price/Forward Earnings ratio of 16.16.
Based on the Price/Forward Earnings ratio, IIPR is valued cheaply inside the industry as 96.75% of the companies are valued more expensively.
IIPR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.93 | ||
| Fwd PE | 16.16 |
4.2 Price Multiples
68.29% of the companies in the same industry are more expensive than IIPR, based on the Enterprise Value to EBITDA ratio.
IIPR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.24 | ||
| EV/EBITDA | 12.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IIPR does not grow enough to justify the current Price/Earnings ratio.
IIPR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.54
PEG (5Y)0.33
EPS Next 2Y1.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
IIPR has a Yearly Dividend Yield of 7.75%, which is a nice return.
IIPR's Dividend Yield is a higher than the industry average which is at 6.12.
IIPR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.75% |
5.2 History
The dividend of IIPR is nicely growing with an annual growth rate of 35.88%!
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)35.88%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
IIPR pays out 125.10% of its income as dividend. This is not a sustainable payout ratio.
IIPR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP125.1%
EPS Next 2Y1.34%
EPS Next 3YN/A
INNOVATIVE INDUSTRIAL PROPER
NYSE:IIPR (4/26/2024, 7:04:00 PM)
After market: 97.71 0 (0%)97.71
-0.17 (-0.17%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.75% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.93 | ||
| Fwd PE | 16.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.54
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.82% | ||
| ROE | 8.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 56.41% | ||
| PM (TTM) | 52.7% | ||
| GM | 91.95% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)4.53%
EPS 3Y21.46%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12%
Revenue growth 3Y38.34%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y