INDEPENDENCE REALTY TRUST IN (IRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IRT - US45378A1060 - REIT
16.83 USD
+0.07 (+0.42%)
16.84 USD
+0.01 (+0.06%)
IRT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. IRT may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, IRT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year IRT was profitable.
- IRT had a positive operating cash flow in the past year.
- IRT had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years IRT had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of IRT (0.37%) is worse than 70.00% of its industry peers.
- With a Return On Equity value of 0.64%, IRT is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
- Looking at the Return On Invested Capital, with a value of 1.64%, IRT is doing worse than 60.00% of the companies in the same industry.
- IRT had an Average Return On Invested Capital over the past 3 years of 1.61%. This is in line with the industry average of 2.59%.
- The last Return On Invested Capital (1.64%) for IRT is above the 3 year average (1.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 0.64% | ||
| ROIC | 1.64% |
ROA(3y)0.72%
ROA(5y)0.74%
ROE(3y)1.3%
ROE(5y)1.45%
ROIC(3y)1.61%
ROIC(5y)1.53%
1.3 Margins
- IRT has a Profit Margin of 3.42%. This is in the lower half of the industry: IRT underperforms 65.00% of its industry peers.
- In the last couple of years the Profit Margin of IRT has declined.
- Looking at the Operating Margin, with a value of 18.80%, IRT is in line with its industry, outperforming 55.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of IRT has declined.
- The Gross Margin of IRT (59.03%) is comparable to the rest of the industry.
- IRT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.8% | ||
| PM (TTM) | 3.42% | ||
| GM | 59.03% |
OM growth 3Y-0.9%
OM growth 5Y-4%
PM growth 3Y-29.9%
PM growth 5Y-22.94%
GM growth 3Y-0.23%
GM growth 5Y0.51%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IRT is destroying value.
- IRT has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, IRT has more shares outstanding
- The debt/assets ratio for IRT has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.96, we must say that IRT is in the distress zone and has some risk of bankruptcy.
- IRT has a Altman-Z score (0.96) which is comparable to the rest of the industry.
- The Debt to FCF ratio of IRT is 18.13, which is on the high side as it means it would take IRT, 18.13 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 18.13, IRT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.66 indicates that IRT is somewhat dependend on debt financing.
- IRT's Debt to Equity ratio of 0.66 is amongst the best of the industry. IRT outperforms 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 18.13 | ||
| Altman-Z | 0.96 |
ROIC/WACC0.25
WACC6.5%
2.3 Liquidity
- IRT has a Current Ratio of 0.72. This is a bad value and indicates that IRT is not financially healthy enough and could expect problems in meeting its short term obligations.
- IRT's Current ratio of 0.72 is fine compared to the rest of the industry. IRT outperforms 70.00% of its industry peers.
- IRT has a Quick Ratio of 0.72. This is a bad value and indicates that IRT is not financially healthy enough and could expect problems in meeting its short term obligations.
- IRT's Quick ratio of 0.13 is on the low side compared to the rest of the industry. IRT is outperformed by 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 351.43% over the past year.
- The earnings per share for IRT have been decreasing by -18.85% on average. This is quite bad
- The Revenue has been growing slightly by 0.84% in the past year.
- The Revenue has been growing by 25.79% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)351.43%
EPS 3Y-22.63%
EPS 5Y-18.85%
EPS Q2Q%-120%
Revenue 1Y (TTM)0.84%
Revenue growth 3Y36.75%
Revenue growth 5Y25.79%
Sales Q2Q%4.4%
3.2 Future
- The Earnings Per Share is expected to grow by 21.49% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 5.01% on average over the next years.
EPS Next Y22.97%
EPS Next 2Y18.98%
EPS Next 3Y21.49%
EPS Next 5YN/A
Revenue Next Year2.89%
Revenue Next 2Y3.32%
Revenue Next 3Y3.74%
Revenue Next 5Y5.01%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- A Price/Earnings ratio of 280.50 indicates a quite expensive valuation of IRT.
- Based on the Price/Earnings ratio, IRT is valued a bit more expensive than the industry average as 65.00% of the companies are valued more cheaply.
- IRT is valuated expensively when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 67.55, the valuation of IRT can be described as expensive.
- IRT's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. IRT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 280.5 | ||
| Fwd PE | 67.55 |
4.2 Price Multiples
- IRT's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, IRT is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.78 | ||
| EV/EBITDA | 17.47 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IRT does not grow enough to justify the current Price/Earnings ratio.
- IRT's earnings are expected to grow with 21.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)12.21
PEG (5Y)N/A
EPS Next 2Y18.98%
EPS Next 3Y21.49%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.05%, IRT is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 32.02, IRT is paying slightly less dividend.
- IRT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
5.2 History
- The dividend of IRT decreases each year by -2.50%.
- IRT has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of IRT decreased recently.
Dividend Growth(5Y)-2.5%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- IRT pays out 671.86% of its income as dividend. This is not a sustainable payout ratio.
DP671.86%
EPS Next 2Y18.98%
EPS Next 3Y21.49%
INDEPENDENCE REALTY TRUST IN / IRT FAQ
What is the fundamental rating for IRT stock?
ChartMill assigns a fundamental rating of 4 / 10 to IRT.
What is the valuation status for IRT stock?
ChartMill assigns a valuation rating of 2 / 10 to INDEPENDENCE REALTY TRUST IN (IRT). This can be considered as Overvalued.
Can you provide the profitability details for INDEPENDENCE REALTY TRUST IN?
INDEPENDENCE REALTY TRUST IN (IRT) has a profitability rating of 3 / 10.
What is the valuation of INDEPENDENCE REALTY TRUST IN based on its PE and PB ratios?
The Price/Earnings (PE) ratio for INDEPENDENCE REALTY TRUST IN (IRT) is 280.5 and the Price/Book (PB) ratio is 1.15.
What is the financial health of INDEPENDENCE REALTY TRUST IN (IRT) stock?
The financial health rating of INDEPENDENCE REALTY TRUST IN (IRT) is 3 / 10.