INNOVATIVE INDUSTRIAL PROPER (IIPR) Stock Fundamental Analysis
NYSE:IIPR - New York Stock Exchange, Inc. - US45781V1017 - REIT - Currency: USD
Taking everything into account, IIPR scores 6 out of 10 in our fundamental rating. IIPR was compared to 129 industry peers in the Diversified REITs industry. IIPR has an excellent profitability rating, but there are some minor concerns on its financial health. IIPR is valued quite cheap, but it does not seem to be growing. 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.
Each year in the past 5 years IIPR has been profitable.
Each year in the past 5 years IIPR had a positive operating cash flow.
1.2 Ratios
IIPR's Return On Assets of 6.32% is amongst the best of the industry. IIPR outperforms 98.45% of its industry peers.
IIPR has a Return On Equity of 7.73%. This is amongst the best in the industry. IIPR outperforms 83.72% of its industry peers.
The Return On Invested Capital of IIPR (5.98%) is better than 95.35% 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
Looking at the Profit Margin, with a value of 48.76%, IIPR belongs to the top of the industry, outperforming 96.90% of the companies in the same industry.
IIPR's Profit Margin has been stable in the last couple of years.
The Operating Margin of IIPR (55.22%) is better than 94.57% of its industry peers.
In the last couple of years the Operating Margin of IIPR has remained more or less at the same level.
With an excellent Gross Margin value of 90.44%, IIPR belongs to the best of the industry, outperforming 93.02% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IIPR is destroying value.
IIPR has more shares outstanding than it did 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 2.48 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 2.48, IIPR belongs to the best of the industry, outperforming 96.12% 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.
With an excellent Debt to FCF ratio value of 1.82, IIPR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 99.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.68
WACC8.74%
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.
IIPR's Current ratio of 0.98 is in line compared to the rest of the industry. IIPR outperforms 51.16% of its industry peers.
A Quick Ratio of 0.98 indicates that IIPR may have some problems paying its short term obligations.
The Quick ratio of IIPR (0.98) 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 | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
IIPR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.89%.
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.
Looking at the last year, IIPR shows a decrease in Revenue. The Revenue has decreased by -1.33% in the last year.
Measured over the past years, IIPR shows a very strong growth in Revenue. The Revenue has been growing by 47.16% on average per year.
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
The Earnings Per Share is expected to decrease by -8.96% on average over the next years.
The Revenue is expected to decrease by -4.57% on average over the next years.
EPS Next Y-19.7%
EPS Next 2Y-8.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-12.01%
Revenue Next 2Y-4.57%
Revenue Next 3YN/A
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
IIPR is valuated reasonably with a Price/Earnings ratio of 11.06.
Based on the Price/Earnings ratio, IIPR is valued cheaper than 93.02% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, IIPR is valued rather cheaply.
A Price/Forward Earnings ratio of 12.90 indicates a correct valuation of IIPR.
97.67% of the companies in the same industry are more expensive than IIPR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of IIPR to the average of the S&P500 Index (22.19), we can say IIPR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.06 | ||
| Fwd PE | 12.9 |
4.2 Price Multiples
IIPR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IIPR is cheaper than 98.45% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IIPR is valued cheaper than 91.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.23 | ||
| EV/EBITDA | 7.42 |
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 -8.96% in the coming years.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y-8.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
IIPR has a Yearly Dividend Yield of 13.13%, which is a nice return.
IIPR's Dividend Yield is rather good when compared to the industry average which is at 6.68. IIPR pays more dividend than 96.12% of the companies in the same industry.
IIPR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.13% |
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
145.70% of the earnings are spent on dividend by IIPR. 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-8.96%
EPS Next 3YN/A
58.04
+0.15 (+0.26%)
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 Change-0.46%
Ins Owners1.52%
Ins Owner Change6.73%
Market Cap1.63B
Analysts50.91
Price Target66.91 (15.28%)
Short Float %6.23%
Short Ratio5.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.13% |
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)-2.09%
PT rev (3m)-23.18%
EPS NQ rev (1m)5.58%
EPS NQ rev (3m)-10.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.91%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-12.03%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-8.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.06 | ||
| Fwd PE | 12.9 | ||
| P/S | 5.33 | ||
| P/FCF | 10.23 | ||
| P/OCF | 6.74 | ||
| P/B | 0.85 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 7.42 |
EPS(TTM)5.25
EY9.05%
EPS(NY)4.5
Fwd EY7.75%
FCF(TTM)5.68
FCFY9.78%
OCF(TTM)8.61
OCFY14.83%
SpS10.88
BVpS68.62
TBVpS68.34
PEG (NY)N/A
PEG (5Y)0.49
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 | 2.48 |
F-Score5
WACC8.74%
ROIC/WACC0.68
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-19.7%
EPS Next 2Y-8.96%
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-12.01%
Revenue Next 2Y-4.57%
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%