INDEPENDENCE REALTY TRUST IN (IRT)
US45378A1060 - REIT
We assign a fundamental rating of 3 out of 10 to IRT. IRT was compared to 21 industry peers in the Residential REITs industry. Both the profitability and financial health of IRT have multiple concerns. IRT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
IRT had negative earnings in the past year.
In the past year IRT had a positive cash flow from operations.
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
With a Return On Assets value of -0.28%, IRT is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
IRT's Return On Equity of -0.50% is on the low side compared to the rest of the industry. IRT is outperformed by 61.90% of its industry peers.
IRT has a worse Return On Invested Capital (1.93%) than 61.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IRT is in line with the industry average of 2.53%.
The last Return On Invested Capital (1.93%) for IRT is above the 3 year average (1.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.28% | ||
| ROE | -0.5% | ||
| ROIC | 1.93% |
ROA(3y)0.74%
ROA(5y)1.16%
ROE(3y)1.35%
ROE(5y)2.72%
ROIC(3y)1.24%
ROIC(5y)1.68%
1.3 Margins
With a decent Operating Margin value of 22.36%, IRT is doing good in the industry, outperforming 61.90% of the companies in the same industry.
In the last couple of years the Operating Margin of IRT has declined.
With a Gross Margin value of 58.93%, IRT perfoms like the industry average, outperforming 47.62% 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 | 22.36% | ||
| PM (TTM) | N/A | ||
| GM | 58.93% |
OM growth 3Y1.44%
OM growth 5Y-3.76%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.09%
GM growth 5Y0.87%
2. Health
2.1 Basic Checks
IRT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, IRT has more shares outstanding
The number of shares outstanding for IRT has been increased compared to 5 years ago.
IRT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that IRT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IRT (0.89) is comparable to the rest of the industry.
IRT has a debt to FCF ratio of 51.69. This is a negative value and a sign of low solvency as IRT would need 51.69 years to pay back of all of its debts.
The Debt to FCF ratio of IRT (51.69) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.72 indicates that IRT is somewhat dependend on debt financing.
IRT has a better Debt to Equity ratio (0.72) than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 51.69 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.29
WACC6.62%
2.3 Liquidity
A Current Ratio of 1.43 indicates that IRT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.43, IRT is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
IRT has a Quick Ratio of 1.43. 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 0.10 is on the low side compared to the rest of the industry. IRT is outperformed by 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
IRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -113.21%.
IRT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.16%.
IRT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.16% yearly.
EPS 1Y (TTM)-113.21%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-220%
Revenue 1Y (TTM)5.16%
Revenue growth 3Y45.91%
Revenue growth 5Y28.16%
Revenue growth Q2Q2.61%
3.2 Future
Based on estimates for the next years, IRT will show a very strong growth in Earnings Per Share. The EPS will grow by 95.59% on average per year.
The Revenue is expected to grow by 1.87% on average over the next years.
EPS Next Y615.82%
EPS Next 2Y153.71%
EPS Next 3Y95.59%
EPS Next 5YN/A
Revenue Next Year-0.92%
Revenue Next 2Y-0.71%
Revenue Next 3Y1.87%
Revenue Next 5YN/A
3.3 Evolution
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
IRT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 45.23, the valuation of IRT can be described as expensive.
76.19% of the companies in the same industry are more expensive than IRT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.88. IRT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 45.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRT is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
IRT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.53 | ||
| EV/EBITDA | 16.75 |
4.3 Compensation for Growth
IRT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as IRT's earnings are expected to grow with 95.59% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y153.71%
EPS Next 3Y95.59%
5. Dividend
5.1 Amount
IRT has a Yearly Dividend Yield of 3.98%. Purely for dividend investing, there may be better candidates out there.
IRT's Dividend Yield is comparable with the industry average which is at 4.45.
Compared to an average S&P500 Dividend Yield of 2.41, IRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
The dividend of IRT decreases each year by -0.09%.
IRT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
IRT has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-778.93%
EPS Next 2Y153.71%
EPS Next 3Y95.59%
INDEPENDENCE REALTY TRUST IN
NYSE:IRT (5/3/2024, 7:04:00 PM)
After market: 16.16 -0.17 (-1.04%)16.33
+0.26 (+1.62%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | N/A | ||
| Fwd PE | 45.23 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.28% | ||
| ROE | -0.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.36% | ||
| PM (TTM) | N/A | ||
| GM | 58.93% | ||
| 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 Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.1 | ||
| 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)-113.21%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y615.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.16%
Revenue growth 3Y45.91%
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