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 129 industry peers in the Diversified REITs industry. IIPR scores excellent on profitability, but there are some minor concerns on its financial health. IIPR is cheap, but on the other hand it scores bad on growth. These ratings would make IIPR suitable 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.
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
Looking at the Return On Assets, with a value of 6.32%, IIPR belongs to the top of the industry, outperforming 98.45% of the companies in the same industry.
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.
Looking at the Return On Invested Capital, with a value of 5.98%, IIPR belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IIPR 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
IIPR's Profit Margin of 48.76% is amongst the best of the industry. IIPR outperforms 96.90% 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's Operating Margin of 55.22% is amongst the best of the industry. IIPR outperforms 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.
Looking at the Gross Margin, with a value of 90.44%, IIPR belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
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
IIPR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for IIPR has been increased compared to 1 year ago.
IIPR has more shares outstanding than it did 5 years ago.
IIPR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.40 indicates that IIPR is not a great score, but indicates only limited risk for bankruptcy at the moment.
IIPR's Altman-Z score of 2.40 is amongst the best of the industry. IIPR outperforms 96.12% of its industry peers.
The Debt to FCF ratio of IIPR is 1.82, which is an excellent value as it means it would take IIPR, only 1.82 years of fcf income to pay off all of its debts.
IIPR has a Debt to FCF ratio of 1.82. This is amongst the best in the industry. IIPR outperforms 100.00% of its industry peers.
IIPR has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.15, IIPR belongs to the top 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 | 2.4 |
ROIC/WACC0.72
WACC8.27%
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 (0.98) which is comparable to the rest of the 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.
The Quick ratio of IIPR (0.98) is comparable to the rest of the 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 for IIPR have decreased by -7.89% in the last year.
IIPR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.61% yearly.
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
The Earnings Per Share is expected to decrease by -8.96% on average over the next years.
The Revenue is expected to decrease by -4.94% 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-11.61%
Revenue Next 2Y-4.94%
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.
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 10.52, the valuation of IIPR can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of IIPR indicates a rather cheap valuation: IIPR is cheaper than 94.57% of the companies listed in the same industry.
IIPR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.25.
With a Price/Forward Earnings ratio of 12.27, IIPR is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IIPR indicates a rather cheap valuation: IIPR is cheaper than 97.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of IIPR to the average of the S&P500 Index (22.15), we can say IIPR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.52 | ||
| Fwd PE | 12.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IIPR is valued cheaply inside the industry as 98.45% of the companies are valued more expensively.
IIPR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. IIPR is cheaper than 90.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.73 | ||
| EV/EBITDA | 7.16 |
4.3 Compensation for Growth
The excellent profitability rating of IIPR 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)0.47
EPS Next 2Y-8.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
IIPR has a Yearly Dividend Yield of 13.66%, which is a nice return.
In the last 3 months the price of IIPR has falen by -23.25%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
IIPR's Dividend Yield is rather good when compared to the industry average which is at 6.78. IIPR pays more dividend than 93.80% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, IIPR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.66% |
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.
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 Years6
Div Non Decr Years6
5.3 Sustainability
145.70% of the earnings are spent on dividend by IIPR. This is not a sustainable payout ratio.
The Dividend Rate of IIPR has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP145.7%
EPS Next 2Y-8.96%
EPS Next 3YN/A
55.22
-0.42 (-0.75%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners73.25%
Inst Owner Change-0.4%
Ins Owners1.41%
Ins Owner Change5.25%
Market Cap1.55B
Analysts52.31
Price Target68.34 (23.76%)
Short Float %6.57%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.66% |
Yearly Dividend7.56
Dividend Growth(5Y)28.79%
DP145.7%
Div Incr Years6
Div Non Decr Years6
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)-9.46%
PT rev (3m)-29.92%
EPS NQ rev (1m)5.58%
EPS NQ rev (3m)-15.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.91%
Revenue NQ rev (1m)-6.38%
Revenue NQ rev (3m)-13.91%
Revenue NY rev (1m)-1.02%
Revenue NY rev (3m)-9.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.52 | ||
| Fwd PE | 12.27 | ||
| P/S | 5.07 | ||
| P/FCF | 9.73 | ||
| P/OCF | 6.41 | ||
| P/B | 0.8 | ||
| P/tB | 0.81 | ||
| EV/EBITDA | 7.16 |
EPS(TTM)5.25
EY9.51%
EPS(NY)4.5
Fwd EY8.15%
FCF(TTM)5.68
FCFY10.28%
OCF(TTM)8.61
OCFY15.59%
SpS10.88
BVpS68.62
TBVpS68.34
PEG (NY)N/A
PEG (5Y)0.47
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 | 2.4 |
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-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-11.61%
Revenue Next 2Y-4.94%
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%