INDEPENDENCE REALTY TRUST IN (IRT) Stock Fundamental Analysis
USA - NYSE:IRT - US45378A1060 - REIT
16.36 USD
-0.01 (-0.06%)
16.36 USD
0 (0%)
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 has a bad profitability rating. Also its financial health evaluation is rather negative. IRT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
IRT had positive earnings in the past year.
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
The Return On Assets of IRT (0.37%) is worse than 65.00% of its industry peers.
With a Return On Equity value of 0.64%, IRT is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
The Return On Invested Capital of IRT (1.64%) is worse 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 2.60%.
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
The Profit Margin of IRT (3.42%) is worse than 60.00% of its industry peers.
IRT's Profit Margin has declined in the last couple of years.
IRT has a Operating Margin (18.80%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of IRT has declined.
IRT has a Gross Margin (59.03%) which 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
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
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
IRT has an Altman-Z score of 0.92. This is a bad value and indicates that IRT is not financially healthy and even has some risk of bankruptcy.
IRT has a Altman-Z score (0.92) which is in line with 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.
IRT has a Debt/Equity ratio of 0.66. This is a neutral value indicating IRT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.66, IRT belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 18.13 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.26
WACC6.37%
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 75.00% of its industry peers.
A Quick Ratio of 0.13 indicates that IRT may have some problems paying its short term obligations.
IRT has a Quick ratio of 0.13. This is in the lower half of the industry: IRT underperforms 65.00% of its industry peers.
| 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.
IRT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.85% yearly.
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 20.18% on average over the next years. This is a very strong growth
Based on estimates for the next years, IRT will show a small growth in Revenue. The Revenue will grow by 4.82% on average per year.
EPS Next Y54.94%
EPS Next 2Y22.82%
EPS Next 3Y20.18%
EPS Next 5YN/A
Revenue Next Year2.98%
Revenue Next 2Y3.85%
Revenue Next 3Y4.45%
Revenue Next 5Y4.82%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
IRT is valuated quite expensively with a Price/Earnings ratio of 272.67.
Based on the Price/Earnings ratio, IRT is valued a bit more expensive than 65.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.51. IRT is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 61.62, IRT can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as IRT.
The average S&P500 Price/Forward Earnings ratio is at 34.98. IRT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 272.67 | ||
| Fwd PE | 61.62 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than IRT, based on the Enterprise Value to EBITDA ratio.
75.00% of the companies in the same industry are more expensive than IRT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.21 | ||
| EV/EBITDA | 16.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as IRT's earnings are expected to grow with 20.18% in the coming years.
PEG (NY)4.96
PEG (5Y)N/A
EPS Next 2Y22.82%
EPS Next 3Y20.18%
5. Dividend
5.1 Amount
IRT has a Yearly Dividend Yield of 4.13%, which is a nice return.
IRT's Dividend Yield is comparable with the industry average which is at 7.25.
IRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
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
671.86% of the earnings are spent on dividend by IRT. This is not a sustainable payout ratio.
DP671.86%
EPS Next 2Y22.82%
EPS Next 3Y20.18%
16.36
-0.01 (-0.06%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners102.76%
Inst Owner Change0.75%
Ins Owners0.48%
Ins Owner Change-0.23%
Market Cap3.83B
Revenue(TTM)651.53M
Net Income(TTM)22.29M
Analysts82.22
Price Target21.46 (31.17%)
Short Float %5.85%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
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)0.78%
PT rev (3m)-2.95%
EPS NQ rev (1m)-9.28%
EPS NQ rev (3m)23.94%
EPS NY rev (1m)1.07%
EPS NY rev (3m)15.51%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)-1.48%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 272.67 | ||
| Fwd PE | 61.62 | ||
| P/S | 5.87 | ||
| P/FCF | 30.21 | ||
| P/OCF | 13.4 | ||
| P/B | 1.1 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 16.92 |
EPS(TTM)0.06
EY0.37%
EPS(NY)0.27
Fwd EY1.62%
FCF(TTM)0.54
FCFY3.31%
OCF(TTM)1.22
OCFY7.46%
SpS2.79
BVpS14.91
TBVpS14.88
PEG (NY)4.96
PEG (5Y)N/A
Graham Number4.49
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 | 0.92 |
F-Score7
WACC6.37%
ROIC/WACC0.26
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 Y54.94%
EPS Next 2Y22.82%
EPS Next 3Y20.18%
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 5Y4.82%
EBIT growth 1Y-7.47%
EBIT growth 3Y35.52%
EBIT growth 5Y20.76%
EBIT Next Year184.21%
EBIT Next 3Y48.01%
EBIT Next 5Y35.04%
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 54.94% 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 4 / 10 and the dividend payout ratio is 671.86%.