INDEPENDENCE REALTY TRUST IN (IRT) Stock Fundamental Analysis
USA - NYSE:IRT - US45378A1060 - REIT
16.25 USD
-0.11 (-0.67%)
16.25 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. IRT has a medium profitability rating, but doesn't score so well on its financial health evaluation. IRT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year IRT was profitable.
In the past year IRT had a positive cash flow from operations.
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 Return On Assets (0.47%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 0.81%, IRT is in line with its industry, outperforming 45.00% of the companies in the same industry.
IRT has a Return On Invested Capital of 1.69%. This is in the lower half of the industry: IRT underperforms 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 (1.69%) for IRT is above the 3 year average (1.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 0.81% | ||
| ROIC | 1.69% |
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's Profit Margin of 4.31% is in line compared to the rest of the industry. IRT outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of IRT has declined.
With a Operating Margin value of 19.20%, 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.
Looking at the Gross Margin, with a value of 58.85%, IRT is in line with its industry, outperforming 55.00% of the companies in the same 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 | 19.2% | ||
| PM (TTM) | 4.31% | ||
| GM | 58.85% |
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.
IRT has more shares outstanding than it did 1 year ago.
IRT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, IRT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that IRT is in the distress zone and has some risk of bankruptcy.
IRT has a Altman-Z score (0.95) which is in line with its industry peers.
The Debt to FCF ratio of IRT is 19.25, which is on the high side as it means it would take IRT, 19.25 years of fcf income to pay off all of its debts.
IRT has a Debt to FCF ratio of 19.25. This is in the better half of the industry: IRT outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that IRT is somewhat dependend on debt financing.
IRT has a Debt to Equity ratio of 0.65. This is amongst the best in the industry. IRT outperforms 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 19.25 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.27
WACC6.31%
2.3 Liquidity
IRT has a Current Ratio of 0.84. This is a bad value and indicates that IRT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of IRT (0.84) is better than 70.00% of its industry peers.
A Quick Ratio of 0.12 indicates that IRT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.12, IRT is doing worse than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.12 |
3. Growth
3.1 Past
IRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 486.67%, 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 -1.54%.
Measured over the past years, IRT shows a very strong growth in Revenue. The Revenue has been growing by 25.79% on average per year.
EPS 1Y (TTM)486.67%
EPS 3Y-22.63%
EPS 5Y-18.85%
EPS Q2Q%-40%
Revenue 1Y (TTM)-1.54%
Revenue growth 3Y36.75%
Revenue growth 5Y25.79%
Sales Q2Q%2.4%
3.2 Future
IRT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.17% yearly.
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 Y53.3%
EPS Next 2Y21.76%
EPS Next 3Y21.17%
EPS Next 5YN/A
Revenue Next Year3.34%
Revenue Next 2Y4.13%
Revenue Next 3Y4.4%
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.
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
With a Price/Earnings ratio of 135.42, IRT can be considered very expensive at the moment.
IRT's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.49. IRT is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 62.28, IRT can be considered very expensive at the moment.
IRT's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.99. IRT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 135.42 | ||
| Fwd PE | 62.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRT is valued a bit cheaper than 70.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IRT indicates a somewhat cheap valuation: IRT is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.51 | ||
| EV/EBITDA | 16.97 |
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.
IRT's earnings are expected to grow with 21.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.54
PEG (5Y)N/A
EPS Next 2Y21.76%
EPS Next 3Y21.17%
5. Dividend
5.1 Amount
IRT has a Yearly Dividend Yield of 4.20%, which is a nice return.
Compared to an average industry Dividend Yield of 6.43, 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 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
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
526.01% of the earnings are spent on dividend by IRT. This is not a sustainable payout ratio.
DP526.01%
EPS Next 2Y21.76%
EPS Next 3Y21.17%
16.25
-0.11 (-0.67%)
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 Change-0.02%
Ins Owners0.48%
Ins Owner Change1.74%
Market Cap3.80B
Analysts82.22
Price Target21.29 (31.02%)
Short Float %9.49%
Short Ratio8.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
Yearly Dividend0.63
Dividend Growth(5Y)-2.5%
DP526.01%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-12.25%
Min EPS beat(2)-30.11%
Max EPS beat(2)5.61%
EPS beat(4)1
Avg EPS beat(4)-43.64%
Min EPS beat(4)-106.09%
Max EPS beat(4)5.61%
EPS beat(8)1
Avg EPS beat(8)-241.64%
EPS beat(12)5
Avg EPS beat(12)-81.39%
EPS beat(16)7
Avg EPS beat(16)-116.62%
Revenue beat(2)0
Avg Revenue beat(2)-2.71%
Min Revenue beat(2)-2.83%
Max Revenue beat(2)-2.58%
Revenue beat(4)0
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-2.83%
Max Revenue beat(4)-1.04%
Revenue beat(8)0
Avg Revenue beat(8)-1.77%
Revenue beat(12)0
Avg Revenue beat(12)-1.61%
Revenue beat(16)4
Avg Revenue beat(16)-0.37%
PT rev (1m)-2.09%
PT rev (3m)-6.18%
EPS NQ rev (1m)-3.57%
EPS NQ rev (3m)-2.04%
EPS NY rev (1m)14.28%
EPS NY rev (3m)14.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 135.42 | ||
| Fwd PE | 62.28 | ||
| P/S | 5.9 | ||
| P/FCF | 32.51 | ||
| P/OCF | 13.8 | ||
| P/B | 1.11 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 16.97 |
EPS(TTM)0.12
EY0.74%
EPS(NY)0.26
Fwd EY1.61%
FCF(TTM)0.5
FCFY3.08%
OCF(TTM)1.18
OCFY7.25%
SpS2.76
BVpS14.63
TBVpS14.62
PEG (NY)2.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 0.81% | ||
| ROCE | 2.14% | ||
| ROIC | 1.69% | ||
| ROICexc | 1.69% | ||
| ROICexgc | 1.71% | ||
| OM | 19.2% | ||
| PM (TTM) | 4.31% | ||
| GM | 58.85% | ||
| FCFM | 18.14% |
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-Score7
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 19.25 | ||
| Debt/EBITDA | 6.3 | ||
| Cap/Depr | 68.42% | ||
| Cap/Sales | 24.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.48% | ||
| Profit Quality | 421.03% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.12 | ||
| Altman-Z | 0.95 |
F-Score7
WACC6.31%
ROIC/WACC0.27
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)486.67%
EPS 3Y-22.63%
EPS 5Y-18.85%
EPS Q2Q%-40%
EPS Next Y53.3%
EPS Next 2Y21.76%
EPS Next 3Y21.17%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.54%
Revenue growth 3Y36.75%
Revenue growth 5Y25.79%
Sales Q2Q%2.4%
Revenue Next Year3.34%
Revenue Next 2Y4.13%
Revenue Next 3Y4.4%
Revenue Next 5Y4.82%
EBIT growth 1Y-10.95%
EBIT growth 3Y35.52%
EBIT growth 5Y20.76%
EBIT Next Year184.21%
EBIT Next 3Y48.01%
EBIT Next 5Y35.04%
FCF growth 1Y63.48%
FCF growth 3Y108.82%
FCF growth 5Y23.57%
OCF growth 1Y3.84%
OCF growth 3Y70.62%
OCF growth 5Y28.2%