INDEPENDENCE REALTY TRUST IN (IRT) Stock Fundamental Analysis
USA - NYSE:IRT - US45378A1060 - REIT
16.19 USD
-0.28 (-1.7%)
Taking everything into account, IRT scores 4 out of 10 in our fundamental rating. IRT was compared to 20 industry peers in the Residential REITs industry. Both the profitability and financial health of IRT have multiple concerns. While showing a medium growth rate, IRT is valued expensive at the moment.
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
With a Return On Assets value of 0.37%, IRT is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
IRT has a Return On Equity of 0.64%. This is in the lower half of the industry: IRT underperforms 60.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.64%, IRT is doing worse than 60.00% of the companies in the same industry.
IRT had an Average Return On Invested Capital over the past 3 years of 1.61%. This 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
Looking at the Profit Margin, with a value of 3.42%, IRT is doing worse than 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of IRT has declined.
The Operating Margin of IRT (18.80%) is comparable to the rest of the industry.
IRT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 59.03%, IRT is in line with its industry, outperforming 60.00% 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 | 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
The number of shares outstanding for IRT has been increased compared to 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 0.92, we must say that IRT is in the distress zone and has some risk of bankruptcy.
IRT has a Altman-Z score of 0.92. This is comparable to the rest of the industry: IRT outperforms 50.00% of its industry peers.
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.
The Debt to FCF ratio of IRT (18.13) is better 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
IRT has a Current Ratio of 0.72. 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 has a better Current ratio (0.72) than 70.00% of its industry peers.
A Quick Ratio of 0.13 indicates that IRT may have some problems paying its short term obligations.
With a Quick ratio value of 0.13, IRT is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
| 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.
Measured over the past years, IRT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.85% on average per year.
IRT shows a small growth in Revenue. In the last year, the Revenue has grown by 0.84%.
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)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
IRT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.18% yearly.
The Revenue is expected to grow by 4.82% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 269.83.
Compared to the rest of the industry, the Price/Earnings ratio of IRT indicates a slightly more expensive valuation: IRT is more expensive than 65.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of IRT to the average of the S&P500 Index (26.06), we can say IRT is valued expensively.
A Price/Forward Earnings ratio of 60.98 indicates a quite expensive valuation of IRT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IRT is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 32.73. IRT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 269.83 | ||
| Fwd PE | 60.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRT is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, IRT is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.89 | ||
| EV/EBITDA | 16.99 |
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 20.18% in the coming years.
PEG (NY)4.91
PEG (5Y)N/A
EPS Next 2Y22.82%
EPS Next 3Y20.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.26%, IRT is a good candidate for dividend investing.
IRT's Dividend Yield is comparable with the industry average which is at 7.39.
Compared to an average S&P500 Dividend Yield of 2.36, IRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
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%
NYSE:IRT (11/10/2025, 9:54:33 AM)
16.19
-0.28 (-1.7%)
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-0.97%
Ins Owners0.48%
Ins Owner Change1.66%
Market Cap3.79B
Revenue(TTM)651.53M
Net Income(TTM)22.29M
Analysts82.22
Price Target21.46 (32.55%)
Short Float %6.6%
Short Ratio6.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
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)-7.23%
EPS NQ rev (3m)49.15%
EPS NY rev (1m)1.07%
EPS NY rev (3m)15.51%
Revenue NQ rev (1m)-1.54%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 269.83 | ||
| Fwd PE | 60.98 | ||
| P/S | 5.81 | ||
| P/FCF | 29.89 | ||
| P/OCF | 13.26 | ||
| P/B | 1.09 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 16.99 |
EPS(TTM)0.06
EY0.37%
EPS(NY)0.27
Fwd EY1.64%
FCF(TTM)0.54
FCFY3.35%
OCF(TTM)1.22
OCFY7.54%
SpS2.79
BVpS14.91
TBVpS14.88
PEG (NY)4.91
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%.