INDEPENDENCE REALTY TRUST IN (IRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IRT - US45378A1060 - REIT
17.32 USD
+0.02 (+0.12%)
17.32 USD
0 (0%)
Overall IRT gets a fundamental rating of 4 out of 10. We evaluated IRT against 20 industry peers in the Residential REITs industry. Both the profitability and financial health of IRT have multiple concerns. IRT is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years IRT always reported a positive cash flow from operatings.
1.2 Ratios
IRT has a worse Return On Assets (0.37%) than 70.00% of its industry peers.
IRT's Return On Equity of 0.64% is on the low side compared to the rest of the industry. IRT is outperformed by 70.00% of its industry peers.
IRT has a worse Return On Invested Capital (1.64%) than 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IRT is in line with the industry average of 2.59%.
The 3 year average ROIC (1.61%) for IRT is below the current ROIC(1.64%), indicating increased profibility in the last year.
| 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.
With a Operating Margin value of 18.80%, IRT perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
In the last couple of years the Operating Margin of IRT has declined.
Looking at the Gross Margin, with a value of 59.03%, IRT is in line with its industry, outperforming 60.00% of the companies in the same 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IRT is destroying value.
Compared to 1 year ago, IRT has more shares outstanding
IRT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for IRT has been reduced compared to a year ago.
2.2 Solvency
IRT has an Altman-Z score of 0.99. This is a bad value and indicates that IRT is not financially healthy and even has some risk of bankruptcy.
IRT's Altman-Z score of 0.99 is in line compared to the rest of the industry. IRT outperforms 50.00% of its industry peers.
IRT has a debt to FCF ratio of 18.13. This is a negative value and a sign of low solvency as IRT would need 18.13 years to pay back of all of its debts.
IRT has a better Debt to FCF ratio (18.13) than 75.00% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that IRT is somewhat dependend on debt financing.
IRT has a better Debt to Equity ratio (0.66) than 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 18.13 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.25
WACC6.56%
2.3 Liquidity
A Current Ratio of 0.72 indicates that IRT may have some problems paying its short term obligations.
The Current ratio of IRT (0.72) is better than 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.
With a Quick ratio value of 0.13, IRT is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.13 |
3. Growth
3.1 Past
IRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 351.43%, which is quite impressive.
Measured over the past years, IRT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.85% on average per year.
Looking at the last year, IRT shows a small growth in Revenue. The Revenue has grown by 0.84% in the last 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
Based on estimates for the next years, IRT will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.47% on average per year.
IRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.01% yearly.
EPS Next Y34.86%
EPS Next 2Y20.08%
EPS Next 3Y17.47%
EPS Next 5YN/A
Revenue Next Year2.98%
Revenue Next 2Y3.85%
Revenue Next 3Y4.45%
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.
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 288.67, the valuation of IRT can be described as expensive.
IRT's Price/Earnings ratio is a bit more expensive when compared to the industry. IRT is more expensive than 65.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, IRT is valued quite expensively.
With a Price/Forward Earnings ratio of 68.25, IRT can be considered very expensive at the moment.
IRT's Price/Forward Earnings is on the same level as the industry average.
IRT is valuated expensively when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 288.67 | ||
| Fwd PE | 68.25 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as IRT.
Based on the Price/Free Cash Flow ratio, IRT is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.7 | ||
| EV/EBITDA | 17.78 |
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.
A more expensive valuation may be justified as IRT's earnings are expected to grow with 17.47% in the coming years.
PEG (NY)8.28
PEG (5Y)N/A
EPS Next 2Y20.08%
EPS Next 3Y17.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.99%, IRT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 11.45, IRT is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.87, IRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
5.2 History
The dividend of IRT decreases each year by -2.50%.
IRT has been paying a dividend for at least 10 years, so it has 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 2Y20.08%
EPS Next 3Y17.47%
17.32
+0.02 (+0.12%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.1%
Inst Owner Change0.77%
Ins Owners0.47%
Ins Owner Change-0.22%
Market Cap4.14B
Revenue(TTM)651.53M
Net Income(TTM)22.29M
Analysts82.22
Price TargetN/A
Short Float %6.13%
Short Ratio4.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
Yearly Dividend0.63
Dividend Growth(5Y)-2.5%
DP671.86%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-71.44%
Min EPS beat(2)-112.77%
Max EPS beat(2)-30.11%
EPS beat(4)1
Avg EPS beat(4)-60.84%
Min EPS beat(4)-112.77%
Max EPS beat(4)5.61%
EPS beat(8)1
Avg EPS beat(8)-246.54%
EPS beat(12)4
Avg EPS beat(12)-154.65%
EPS beat(16)6
Avg EPS beat(16)-127.15%
Revenue beat(2)0
Avg Revenue beat(2)-2.61%
Min Revenue beat(2)-2.83%
Max Revenue beat(2)-2.4%
Revenue beat(4)0
Avg Revenue beat(4)-2.57%
Min Revenue beat(4)-2.83%
Max Revenue beat(4)-2.4%
Revenue beat(8)0
Avg Revenue beat(8)-2.04%
Revenue beat(12)0
Avg Revenue beat(12)-1.75%
Revenue beat(16)3
Avg Revenue beat(16)-0.7%
PT rev (1m)-2.74%
PT rev (3m)-1.98%
EPS NQ rev (1m)-12.79%
EPS NQ rev (3m)-25.99%
EPS NY rev (1m)-12.96%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 288.67 | ||
| Fwd PE | 68.25 | ||
| P/S | 6.36 | ||
| P/FCF | 32.7 | ||
| P/OCF | 14.51 | ||
| P/B | 1.19 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 17.78 |
EPS(TTM)0.06
EY0.35%
EPS(NY)0.25
Fwd EY1.47%
FCF(TTM)0.53
FCFY3.06%
OCF(TTM)1.19
OCFY6.89%
SpS2.72
BVpS14.58
TBVpS14.55
PEG (NY)8.28
PEG (5Y)N/A
Graham Number4.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 0.64% | ||
| ROCE | 2.07% | ||
| ROIC | 1.64% | ||
| ROICexc | 1.64% | ||
| ROICexgc | 1.66% | ||
| OM | 18.8% | ||
| PM (TTM) | 3.42% | ||
| GM | 59.03% | ||
| FCFM | 19.44% |
ROA(3y)0.72%
ROA(5y)0.74%
ROE(3y)1.3%
ROE(5y)1.45%
ROIC(3y)1.61%
ROIC(5y)1.53%
ROICexc(3y)1.61%
ROICexc(5y)1.54%
ROICexgc(3y)1.63%
ROICexgc(5y)1.56%
ROCE(3y)2.04%
ROCE(5y)1.94%
ROICexgc growth 3Y39.04%
ROICexgc growth 5Y-6.61%
ROICexc growth 3Y39.15%
ROICexc growth 5Y-6.73%
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%
F-Score7
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 18.13 | ||
| Debt/EBITDA | 6.35 | ||
| Cap/Depr | 66.7% | ||
| Cap/Sales | 24.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.17% | ||
| Profit Quality | 568.13% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.13 | ||
| Altman-Z | 0.99 |
F-Score7
WACC6.56%
ROIC/WACC0.25
Cap/Depr(3y)78.04%
Cap/Depr(5y)70.33%
Cap/Sales(3y)27.58%
Cap/Sales(5y)23.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)351.43%
EPS 3Y-22.63%
EPS 5Y-18.85%
EPS Q2Q%-120%
EPS Next Y34.86%
EPS Next 2Y20.08%
EPS Next 3Y17.47%
EPS Next 5YN/A
Revenue 1Y (TTM)0.84%
Revenue growth 3Y36.75%
Revenue growth 5Y25.79%
Sales Q2Q%4.4%
Revenue Next Year2.98%
Revenue Next 2Y3.85%
Revenue Next 3Y4.45%
Revenue Next 5Y5.01%
EBIT growth 1Y-7.47%
EBIT growth 3Y35.52%
EBIT growth 5Y20.76%
EBIT Next Year182.69%
EBIT Next 3Y46.83%
EBIT Next 5Y35.12%
FCF growth 1Y148.8%
FCF growth 3Y108.82%
FCF growth 5Y23.57%
OCF growth 1Y9.22%
OCF growth 3Y70.62%
OCF growth 5Y28.2%
INDEPENDENCE REALTY TRUST IN / IRT FAQ
What is the fundamental rating for IRT stock?
ChartMill assigns a fundamental rating of 4 / 10 to IRT.
Can you provide the valuation status for INDEPENDENCE REALTY TRUST IN?
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.
Can you provide the expected EPS growth for IRT stock?
The Earnings per Share (EPS) of INDEPENDENCE REALTY TRUST IN (IRT) is expected to grow by 34.86% in the next year.
How sustainable is the dividend of INDEPENDENCE REALTY TRUST IN (IRT) stock?
The dividend rating of INDEPENDENCE REALTY TRUST IN (IRT) is 3 / 10 and the dividend payout ratio is 671.86%.