INTERRENT REAL ESTATE INVEST (IIP-UN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:IIP-UN - CA46071W2058 - REIT
13.42 CAD
+0.03 (+0.22%)
We assign a fundamental rating of 3 out of 10 to IIP-UN. IIP-UN was compared to 15 industry peers in the Residential REITs industry. IIP-UN has a medium profitability rating, but doesn't score so well on its financial health evaluation. IIP-UN is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year IIP-UN was profitable.
- IIP-UN had a positive operating cash flow in the past year.
- IIP-UN had positive earnings in 4 of the past 5 years.
- IIP-UN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- IIP-UN's Return On Assets of -2.53% is on the low side compared to the rest of the industry. IIP-UN is outperformed by 73.33% of its industry peers.
- IIP-UN has a Return On Equity of -4.63%. This is in the lower half of the industry: IIP-UN underperforms 73.33% of its industry peers.
- IIP-UN has a Return On Invested Capital (2.51%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for IIP-UN is in line with the industry average of 2.87%.
- The last Return On Invested Capital (2.51%) for IIP-UN is above the 3 year average (2.32%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.53% | ||
| ROE | -4.63% | ||
| ROIC | 2.51% |
ROA(3y)0.26%
ROA(5y)2.89%
ROE(3y)0.42%
ROE(5y)4.76%
ROIC(3y)2.32%
ROIC(5y)2.18%
1.3 Margins
- IIP-UN has a Operating Margin of 53.61%. This is in the better half of the industry: IIP-UN outperforms 66.67% of its industry peers.
- In the last couple of years the Operating Margin of IIP-UN has remained more or less at the same level.
- IIP-UN has a better Gross Margin (76.82%) than 93.33% of its industry peers.
- In the last couple of years the Gross Margin of IIP-UN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 53.61% | ||
| PM (TTM) | N/A | ||
| GM | 76.82% |
OM growth 3Y1.84%
OM growth 5Y0.57%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.93%
GM growth 5Y-0.18%
2. Health
2.1 Basic Checks
- IIP-UN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for IIP-UN has been increased compared to 1 year ago.
- IIP-UN has more shares outstanding than it did 5 years ago.
- IIP-UN has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.06, we must say that IIP-UN is in the distress zone and has some risk of bankruptcy.
- IIP-UN has a Altman-Z score of 1.06. This is in the better half of the industry: IIP-UN outperforms 73.33% of its industry peers.
- IIP-UN has a debt to FCF ratio of 18.48. This is a negative value and a sign of low solvency as IIP-UN would need 18.48 years to pay back of all of its debts.
- IIP-UN has a worse Debt to FCF ratio (18.48) than 60.00% of its industry peers.
- A Debt/Equity ratio of 0.65 indicates that IIP-UN is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.65, IIP-UN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 18.48 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.57
WACC4.42%
2.3 Liquidity
- IIP-UN has a Current Ratio of 0.05. This is a bad value and indicates that IIP-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
- IIP-UN has a Current ratio of 0.05. This is amonst the worse of the industry: IIP-UN underperforms 93.33% of its industry peers.
- IIP-UN has a Quick Ratio of 0.05. This is a bad value and indicates that IIP-UN is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of IIP-UN (0.05) is worse than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.05 | ||
| Quick Ratio | 0.05 |
3. Growth
3.1 Past
- IIP-UN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.93%.
- The Revenue has been growing slightly by 1.55% in the past year.
- IIP-UN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.13% yearly.
EPS 1Y (TTM)-4.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0.86%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y9.97%
Revenue growth 5Y11.13%
Sales Q2Q%2.51%
3.2 Future
- The Earnings Per Share is expected to grow by 3.57% on average over the next years.
- The Revenue is expected to grow by 1.89% on average over the next years.
EPS Next Y-10.08%
EPS Next 2Y3.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.83%
Revenue Next 2Y1.83%
Revenue Next 3Y1.89%
Revenue Next 5YN/A
3.3 Evolution
- 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
- IIP-UN is valuated rather expensively with a Price/Earnings ratio of 22.75.
- The rest of the industry has a similar Price/Earnings ratio as IIP-UN.
- When comparing the Price/Earnings ratio of IIP-UN to the average of the S&P500 Index (28.82), we can say IIP-UN is valued slightly cheaper.
- The Price/Forward Earnings ratio is 19.54, which indicates a rather expensive current valuation of IIP-UN.
- IIP-UN's Price/Forward Earnings is on the same level as the industry average.
- IIP-UN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 19.54 |
4.2 Price Multiples
- IIP-UN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IIP-UN is cheaper than 66.67% of the companies in the same industry.
- IIP-UN's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. IIP-UN is more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.97 | ||
| EV/EBITDA | 26.1 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- IIP-UN has a Yearly Dividend Yield of 2.66%. Purely for dividend investing, there may be better candidates out there.
- With a Dividend Yield of 2.66, IIP-UN pays less dividend than the industry average, which is at 4.85. 86.67% of the companies listed in the same industry pay a better dividend than IIP-UN!
- IIP-UN's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
- On average, the dividend of IIP-UN grows each year by 6.26%, which is quite nice.
- IIP-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
- IIP-UN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.26%
Div Incr Years13
Div Non Decr Years15
5.3 Sustainability
- The earnings of IIP-UN are negative and hence is the payout ratio. IIP-UN will probably not be able to sustain this dividend level.
- IIP-UN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-48.46%
EPS Next 2Y3.57%
EPS Next 3YN/A
INTERRENT REAL ESTATE INVEST / IIP-UN.CA FAQ
What is the ChartMill fundamental rating of INTERRENT REAL ESTATE INVEST (IIP-UN.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to IIP-UN.CA.
Can you provide the valuation status for INTERRENT REAL ESTATE INVEST?
ChartMill assigns a valuation rating of 2 / 10 to INTERRENT REAL ESTATE INVEST (IIP-UN.CA). This can be considered as Overvalued.
How profitable is INTERRENT REAL ESTATE INVEST (IIP-UN.CA) stock?
INTERRENT REAL ESTATE INVEST (IIP-UN.CA) has a profitability rating of 5 / 10.
What are the PE and PB ratios of INTERRENT REAL ESTATE INVEST (IIP-UN.CA) stock?
The Price/Earnings (PE) ratio for INTERRENT REAL ESTATE INVEST (IIP-UN.CA) is 22.75 and the Price/Book (PB) ratio is 0.83.
What is the expected EPS growth for INTERRENT REAL ESTATE INVEST (IIP-UN.CA) stock?
The Earnings per Share (EPS) of INTERRENT REAL ESTATE INVEST (IIP-UN.CA) is expected to decline by -10.08% in the next year.