INDEPENDENCE REALTY TRUST IN (IRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IRT - US45378A1060 - REIT
17.01 USD
+0.21 (+1.25%)
17.01 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to IRT. IRT was compared to 20 industry peers in the Residential REITs industry. IRT has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, IRT is valued expensive at the moment.
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.
Each year in the past 5 years IRT had a positive operating cash flow.
1.2 Ratios
IRT has a worse Return On Assets (0.37%) 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.
IRT has a worse Return On Invested Capital (1.64%) than 60.00% 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 2.59%.
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
The Profit Margin of IRT (3.42%) is worse than 65.00% of its industry peers.
In the last couple of years the Profit Margin of IRT has declined.
IRT's Operating Margin of 18.80% is in line compared to the rest of the industry. IRT outperforms 55.00% of its industry peers.
In the last couple of years the Operating Margin of IRT has declined.
IRT's Gross Margin of 59.03% is in line compared to the rest of the industry. IRT outperforms 60.00% of its industry peers.
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.
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.
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.
IRT has a Debt to FCF ratio of 18.13. This is in the better half of the industry: IRT outperforms 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 Debt to Equity ratio of 0.66. This is amongst the best in 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
WACC6.48%
2.3 Liquidity
A Current Ratio of 0.72 indicates that IRT may have some problems paying its short term obligations.
IRT has a Current ratio of 0.72. This is in the better half of the industry: IRT outperforms 70.00% of its industry peers.
A Quick Ratio of 0.13 indicates that IRT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.13, IRT is doing worse than 65.00% of the companies in the same industry.
| 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.
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.
IRT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.79% yearly.
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 17.47% on average over the next years. This is quite good.
Based on estimates for the next years, IRT will show a small growth in Revenue. The Revenue will grow by 5.01% on average per year.
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
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 283.50.
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.
The average S&P500 Price/Earnings ratio is at 26.76. IRT is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 67.03, the valuation of IRT can be described as expensive.
IRT's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.96, IRT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 283.5 | ||
| Fwd PE | 67.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IRT is on the same level as its industry peers.
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 | 32.12 | ||
| EV/EBITDA | 17.45 |
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)8.13
PEG (5Y)N/A
EPS Next 2Y20.08%
EPS Next 3Y17.47%
5. Dividend
5.1 Amount
IRT has a Yearly Dividend Yield of 4.06%, which is a nice return.
IRT's Dividend Yield is slightly below the industry average, which is at 7.26.
IRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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.
IRT has decreased its dividend 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 2Y20.08%
EPS Next 3Y17.47%
17.01
+0.21 (+1.25%)
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 Cap4.07B
Revenue(TTM)651.53M
Net Income(TTM)22.29M
Analysts82.22
Price Target20.87 (22.69%)
Short Float %6.13%
Short Ratio4.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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)-4.03%
EPS NQ rev (1m)-14.77%
EPS NQ rev (3m)-21.87%
EPS NY rev (1m)-12.96%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 283.5 | ||
| Fwd PE | 67.03 | ||
| P/S | 6.24 | ||
| P/FCF | 32.12 | ||
| P/OCF | 14.25 | ||
| P/B | 1.17 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 17.45 |
EPS(TTM)0.06
EY0.35%
EPS(NY)0.25
Fwd EY1.49%
FCF(TTM)0.53
FCFY3.11%
OCF(TTM)1.19
OCFY7.02%
SpS2.72
BVpS14.58
TBVpS14.55
PEG (NY)8.13
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 | 0.96 |
F-Score7
WACC6.48%
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 4 / 10 and the dividend payout ratio is 671.86%.