INDEPENDENCE REALTY TRUST IN (IRT) Stock Fundamental Analysis
NYSE:IRT - New York Stock Exchange, Inc. - US45378A1060 - REIT - Currency: USD
Overall IRT gets a fundamental rating of 4 out of 10. We evaluated IRT against 20 industry peers in the Residential REITs industry. IRT has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
Of the past 5 years IRT 4 years were profitable.
Each year in the past 5 years IRT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.50%, IRT is in line with its industry, outperforming 50.00% of the companies in the same industry.
IRT's Return On Equity of 0.87% is in line compared to the rest of the industry. IRT outperforms 45.00% of its industry peers.
IRT has a worse Return On Invested Capital (1.70%) 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 2.62%.
The 3 year average ROIC (1.61%) for IRT is below the current ROIC(1.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 0.87% | ||
| ROIC | 1.7% |
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
With a Profit Margin value of 4.69%, IRT perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
IRT's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 19.58%, IRT perfoms like the industry average, outperforming 60.00% 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 (58.62%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of IRT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.58% | ||
| PM (TTM) | 4.69% | ||
| GM | 58.62% |
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
IRT has more shares outstanding than it did 5 years ago.
IRT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that IRT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.02, IRT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
IRT has a debt to FCF ratio of 20.29. This is a negative value and a sign of low solvency as IRT would need 20.29 years to pay back of all of its debts.
IRT's Debt to FCF ratio of 20.29 is fine compared to the rest of the industry. IRT outperforms 70.00% of its industry peers.
IRT has a Debt/Equity ratio of 0.64. This is a neutral value indicating IRT is somewhat dependend on debt financing.
IRT has a better Debt to Equity ratio (0.64) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 20.29 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.26
WACC6.63%
2.3 Liquidity
A Current Ratio of 0.17 indicates that IRT may have some problems paying its short term obligations.
The Current ratio of IRT (0.17) is worse than 65.00% of its industry peers.
IRT has a Quick Ratio of 0.17. 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 0.17 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 | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
IRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 553.33%, 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.
IRT shows a decrease in Revenue. In the last year, the revenue decreased by -2.94%.
IRT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.79% yearly.
EPS 1Y (TTM)553.33%
EPS 3Y-22.63%
EPS 5Y-18.85%
EPS Q2Q%-50%
Revenue 1Y (TTM)-2.94%
Revenue growth 3Y36.75%
Revenue growth 5Y25.79%
Sales Q2Q%0.44%
3.2 Future
IRT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.51% yearly.
The Revenue is expected to grow by 5.65% on average over the next years.
EPS Next Y34.14%
EPS Next 2Y28.37%
EPS Next 3Y20.51%
EPS Next 5YN/A
Revenue Next Year4.01%
Revenue Next 2Y5.1%
Revenue Next 3Y4.82%
Revenue Next 5Y5.65%
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
The Price/Earnings ratio is 127.00, which means the current valuation is very expensive for IRT.
IRT's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.45, IRT is valued quite expensively.
The Price/Forward Earnings ratio is 61.31, which means the current valuation is very expensive for IRT.
IRT's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, IRT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 127 | ||
| Fwd PE | 61.31 |
4.2 Price Multiples
65.00% of the companies in the same industry are more expensive than IRT, based on the Enterprise Value to EBITDA ratio.
IRT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IRT is cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.42 | ||
| EV/EBITDA | 18.16 |
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 20.51% in the coming years.
PEG (NY)3.72
PEG (5Y)N/A
EPS Next 2Y28.37%
EPS Next 3Y20.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.80%, IRT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.72, IRT has a dividend in line with its industry peers.
IRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
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
482.40% of the earnings are spent on dividend by IRT. This is not a sustainable payout ratio.
DP482.4%
EPS Next 2Y28.37%
EPS Next 3Y20.51%
17.78
+0.15 (+0.85%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.82%
Inst Owner Change0.73%
Ins Owners0.49%
Ins Owner Change-2.36%
Market Cap4.16B
Analysts82.22
Price Target22.7 (27.67%)
Short Float %8.01%
Short Ratio9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
Yearly Dividend0.63
Dividend Growth(5Y)-2.5%
DP482.4%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-50.24%
Min EPS beat(2)-106.09%
Max EPS beat(2)5.61%
EPS beat(4)1
Avg EPS beat(4)-42.07%
Min EPS beat(4)-106.09%
Max EPS beat(4)5.61%
EPS beat(8)2
Avg EPS beat(8)-237.35%
EPS beat(12)5
Avg EPS beat(12)-169.56%
EPS beat(16)8
Avg EPS beat(16)-114.24%
Revenue beat(2)0
Avg Revenue beat(2)-2.53%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)-2.47%
Revenue beat(4)0
Avg Revenue beat(4)-2.25%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)-1.04%
Revenue beat(8)0
Avg Revenue beat(8)-1.62%
Revenue beat(12)1
Avg Revenue beat(12)-1.33%
Revenue beat(16)5
Avg Revenue beat(16)0.05%
PT rev (1m)0.65%
PT rev (3m)1.33%
EPS NQ rev (1m)-2.78%
EPS NQ rev (3m)-9.92%
EPS NY rev (1m)-2.09%
EPS NY rev (3m)-6.5%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 127 | ||
| Fwd PE | 61.31 | ||
| P/S | 6.49 | ||
| P/FCF | 37.42 | ||
| P/OCF | 15.06 | ||
| P/B | 1.2 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 18.16 |
EPS(TTM)0.14
EY0.79%
EPS(NY)0.29
Fwd EY1.63%
FCF(TTM)0.48
FCFY2.67%
OCF(TTM)1.18
OCFY6.64%
SpS2.74
BVpS14.78
TBVpS14.77
PEG (NY)3.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 0.87% | ||
| ROCE | 2.16% | ||
| ROIC | 1.7% | ||
| ROICexc | 1.71% | ||
| ROICexgc | 1.73% | ||
| OM | 19.58% | ||
| PM (TTM) | 4.69% | ||
| GM | 58.62% | ||
| FCFM | 17.34% |
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%
ROICexcg growth 3Y39.04%
ROICexcg 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-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 20.29 | ||
| Debt/EBITDA | 6.33 | ||
| Cap/Depr | 73.05% | ||
| Cap/Sales | 25.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.57% | ||
| Profit Quality | 369.41% | ||
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 1.02 |
F-Score6
WACC6.63%
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)553.33%
EPS 3Y-22.63%
EPS 5Y-18.85%
EPS Q2Q%-50%
EPS Next Y34.14%
EPS Next 2Y28.37%
EPS Next 3Y20.51%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.94%
Revenue growth 3Y36.75%
Revenue growth 5Y25.79%
Sales Q2Q%0.44%
Revenue Next Year4.01%
Revenue Next 2Y5.1%
Revenue Next 3Y4.82%
Revenue Next 5Y5.65%
EBIT growth 1Y-13.28%
EBIT growth 3Y35.52%
EBIT growth 5Y20.76%
EBIT Next Year187.53%
EBIT Next 3Y48.61%
EBIT Next 5Y35.91%
FCF growth 1Y25.8%
FCF growth 3Y108.82%
FCF growth 5Y23.57%
OCF growth 1Y7.92%
OCF growth 3Y70.62%
OCF growth 5Y28.2%