INDEPENDENCE REALTY TRUST IN (IRT) Stock Fundamental Analysis
USA - NYSE:IRT - US45378A1060 - REIT
16.26 USD
-0.05 (-0.31%)
16.26 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. There are concerns on the financial health of IRT while its profitability can be described as average. IRT is quite expensive at the moment. 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.
IRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IRT's Return On Assets of 0.47% is in line compared to the rest of the industry. IRT outperforms 45.00% of its industry peers.
With a Return On Equity value of 0.81%, IRT perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
IRT's Return On Invested Capital of 1.69% is on the low side compared to the rest of the industry. IRT is outperformed by 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 2.59%.
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
The Profit Margin of IRT (4.31%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of IRT has declined.
IRT has a Operating Margin of 19.20%. This is comparable to the rest of the industry: IRT outperforms 60.00% of its industry peers.
IRT's Operating Margin has declined in the last couple of years.
IRT has a Gross Margin (58.85%) which 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 | 19.2% | ||
| 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
IRT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
IRT has a better debt/assets ratio than last year.
2.2 Solvency
IRT has an Altman-Z score of 0.95. This is a bad value and indicates that IRT is not financially healthy and even has some risk of bankruptcy.
IRT has a Altman-Z score of 0.95. This is comparable to the rest of the industry: IRT outperforms 50.00% of its industry peers.
IRT has a debt to FCF ratio of 19.25. This is a negative value and a sign of low solvency as IRT would need 19.25 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 19.25, IRT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that IRT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, IRT belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 19.25 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.27
WACC6.31%
2.3 Liquidity
A Current Ratio of 0.84 indicates that IRT may have some problems paying its short term obligations.
IRT has a Current ratio of 0.84. This is in the better half of the industry: IRT outperforms 70.00% of its industry peers.
A Quick Ratio of 0.12 indicates that IRT may have some problems paying its short term obligations.
The Quick ratio of IRT (0.12) is worse than 65.00% of its industry peers.
| 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.
The earnings per share for IRT have been decreasing by -18.85% on average. This is quite bad
IRT shows a decrease in Revenue. In the last year, the revenue decreased by -1.54%.
The Revenue has been growing by 25.79% on average over the past years. This is a very strong growth!
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 20.18% 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 Y54.94%
EPS Next 2Y22.82%
EPS Next 3Y20.18%
EPS Next 5YN/A
Revenue Next Year3.34%
Revenue Next 2Y4.13%
Revenue Next 3Y4.4%
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
A Price/Earnings ratio of 135.50 indicates a quite expensive valuation of IRT.
IRT's Price/Earnings ratio is a bit more expensive when compared to the industry. IRT is more expensive than 60.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.89. IRT is valued rather expensively when compared to this.
IRT is valuated quite expensively with a Price/Forward Earnings ratio of 61.25.
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 | 135.5 | ||
| Fwd PE | 61.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRT is valued a bit cheaper than the industry average as 75.00% 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 | 32.53 | ||
| EV/EBITDA | 16.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
IRT's earnings are expected to grow with 20.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.47
PEG (5Y)N/A
EPS Next 2Y22.82%
EPS Next 3Y20.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.17%, IRT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.05, IRT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, IRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
5.2 History
The dividend of IRT decreases each year by -2.50%.
IRT has paid a dividend for at least 10 years, which is 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
526.01% of the earnings are spent on dividend by IRT. This is not a sustainable payout ratio.
DP526.01%
EPS Next 2Y22.82%
EPS Next 3Y20.18%
16.26
-0.05 (-0.31%)
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 Change0.09%
Ins Owners0.48%
Ins Owner Change1.74%
Market Cap3.80B
Revenue(TTM)644.53M
Net Income(TTM)27.76M
Analysts82.22
Price Target21.29 (30.93%)
Short Float %7.55%
Short Ratio6.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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)0%
PT rev (3m)-4.34%
EPS NQ rev (1m)-3.12%
EPS NQ rev (3m)-1.59%
EPS NY rev (1m)1.07%
EPS NY rev (3m)15.51%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-0.48%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 135.5 | ||
| Fwd PE | 61.25 | ||
| P/S | 5.9 | ||
| P/FCF | 32.53 | ||
| P/OCF | 13.81 | ||
| P/B | 1.11 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 16.98 |
EPS(TTM)0.12
EY0.74%
EPS(NY)0.27
Fwd EY1.63%
FCF(TTM)0.5
FCFY3.07%
OCF(TTM)1.18
OCFY7.24%
SpS2.76
BVpS14.63
TBVpS14.62
PEG (NY)2.47
PEG (5Y)N/A
Graham Number6.28
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%
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 | 0.65 | ||
| 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 Y54.94%
EPS Next 2Y22.82%
EPS Next 3Y20.18%
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%
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 4 / 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 526.01%.