INNOVATIVE INDUSTRIAL PROPER (IIPR)
US45781V1017 - REIT
IIPR gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 126 industry peers in the Diversified REITs industry. IIPR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. IIPR has a decent growth rate and is not valued too expensively. With these ratings, IIPR could be worth investigating further for quality 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.
Each year in the past 5 years IIPR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of IIPR (6.82%) is better than 96.75% of its industry peers.
The Return On Equity of IIPR (8.35%) is better than 83.74% of its industry peers.
IIPR has a better Return On Invested Capital (6.12%) than 96.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IIPR is above the industry average of 2.95%.
The 3 year average ROIC (5.81%) for IIPR is below the current ROIC(6.12%), indicating increased profibility in the last year.
| 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 Profit Margin of 52.70%. This is amongst the best in the industry. IIPR outperforms 95.94% of its industry peers.
IIPR's Profit Margin has improved in the last couple of years.
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.
IIPR has a better Gross Margin (91.95%) than 94.31% of its industry peers.
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
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.
The number of shares outstanding for IIPR has been increased compared to 5 years ago.
IIPR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.12 indicates that IIPR is not in any danger for bankruptcy at the moment.
The Altman-Z score of IIPR (4.12) is better than 99.19% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 4.26, IIPR belongs to the top of the industry, outperforming 98.37% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that IIPR is not too dependend on debt financing.
IIPR has a better Debt to Equity ratio (0.15) than 98.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 4.26 | ||
| Altman-Z | 4.12 |
ROIC/WACC0.7
WACC8.76%
2.3 Liquidity
A Current Ratio of 1.24 indicates that IIPR should not have too much problems paying its short term obligations.
The Current ratio of IIPR (1.24) is comparable to the rest of the industry.
IIPR has a Quick Ratio of 1.24. This is a normal value and indicates that IIPR is financially healthy and should not expect problems in meeting its short term obligations.
IIPR has a Quick ratio of 1.24. This is comparable to the rest of the industry: IIPR outperforms 56.91% of its industry peers.
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 | 1.24 | ||
| 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.
Looking at the last year, IIPR shows a quite strong growth in Revenue. The Revenue has grown by 12.00% in the last year.
Measured over the past years, IIPR shows a very strong growth in Revenue. The Revenue has been growing by 83.69% on average per year.
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
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
The Price/Earnings ratio is 16.87, which indicates a correct valuation of IIPR.
Based on the Price/Earnings ratio, IIPR is valued cheaper than 86.99% of the companies in the same industry.
IIPR is valuated rather cheaply when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.10 indicates a correct valuation of IIPR.
Based on the Price/Forward Earnings ratio, IIPR is valued cheaper than 96.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, IIPR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.87 | ||
| Fwd PE | 16.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IIPR is valued a bit cheaper than 67.48% of the companies in the same industry.
IIPR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.08 | ||
| EV/EBITDA | 12.23 |
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.
The excellent profitability rating of IIPR may justify a higher PE ratio.
PEG (NY)3.53
PEG (5Y)0.32
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 6.13.
IIPR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.75% |
5.2 History
On average, the dividend of IIPR grows each year by 35.88%, 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)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.
The dividend of IIPR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP125.1%
EPS Next 2Y1.34%
EPS Next 3YN/A
INNOVATIVE INDUSTRIAL PROPER
NYSE:IIPR (4/25/2024, 10:24:16 AM)
97.33
-1.36 (-1.38%)
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 Cap2.76B
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 | 16.87 | ||
| Fwd PE | 16.1 | ||
| 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)3.53
PEG (5Y)0.32
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