INDEPENDENCE REALTY TRUST IN (IRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IRT - US45378A1060 - REIT
17.48 USD
-0.29 (-1.63%)
17.48 USD
0 (0%)
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. IRT may be in some trouble as it scores bad on both profitability and health. 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.
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
Looking at the Return On Assets, with a value of 0.37%, IRT is doing worse than 70.00% of the companies in the same industry.
The Return On Equity of IRT (0.64%) is worse than 70.00% of its industry peers.
The Return On Invested Capital of IRT (1.64%) is worse than 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 (1.64%) 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.
IRT's Profit Margin has declined in the last couple of years.
IRT has a Operating Margin of 18.80%. This is comparable 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.
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 | 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.
IRT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, IRT has more shares outstanding
The debt/assets ratio for IRT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.00, we must say that IRT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IRT (1.00) is comparable to the rest of the industry.
IRT has a debt to FCF ratio of 18.13. This is a negative value and a sign of low solvency as IRT would need 18.13 years to pay back of 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's Debt to Equity ratio of 0.66 is amongst the best of the industry. IRT outperforms 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 18.13 | ||
| Altman-Z | 1 |
ROIC/WACC0.25
WACC6.5%
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.
The Current ratio of IRT (0.72) is better than 70.00% of its industry peers.
IRT has a Quick 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.
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.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.85% yearly.
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 Y21.23%
EPS Next 2Y18.05%
EPS Next 3Y19.85%
EPS Next 5YN/A
Revenue Next Year3%
Revenue Next 2Y3.89%
Revenue Next 3Y4.47%
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
The Price/Earnings ratio is 291.33, which means the current valuation is very expensive for IRT.
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.
IRT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.51.
A Price/Forward Earnings ratio of 71.26 indicates a quite expensive valuation of IRT.
IRT's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.13. IRT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 291.33 | ||
| Fwd PE | 71.26 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as IRT.
Based on the Price/Free Cash Flow ratio, IRT is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33 | ||
| EV/EBITDA | 17.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as IRT's earnings are expected to grow with 19.85% in the coming years.
PEG (NY)13.72
PEG (5Y)N/A
EPS Next 2Y18.05%
EPS Next 3Y19.85%
5. Dividend
5.1 Amount
IRT has a Yearly Dividend Yield of 3.93%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 11.48, IRT is paying slightly less dividend.
IRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
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 2Y18.05%
EPS Next 3Y19.85%
17.48
-0.29 (-1.63%)
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 Cap4.18B
Revenue(TTM)651.53M
Net Income(TTM)22.29M
Analysts82.22
Price Target20.79 (18.94%)
Short Float %5.85%
Short Ratio4.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
Yearly Dividend0.63
Dividend Growth(5Y)-2.5%
DP671.86%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-0.93%
PT rev (3m)-2.35%
EPS NQ rev (1m)-12.79%
EPS NQ rev (3m)-25.99%
EPS NY rev (1m)-21.76%
EPS NY rev (3m)-20.92%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 291.33 | ||
| Fwd PE | 71.26 | ||
| P/S | 6.42 | ||
| P/FCF | 33 | ||
| P/OCF | 14.65 | ||
| P/B | 1.2 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 17.9 |
EPS(TTM)0.06
EY0.34%
EPS(NY)0.25
Fwd EY1.4%
FCF(TTM)0.53
FCFY3.03%
OCF(TTM)1.19
OCFY6.83%
SpS2.72
BVpS14.58
TBVpS14.55
PEG (NY)13.72
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 | 1 |
F-Score7
WACC6.5%
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 Y21.23%
EPS Next 2Y18.05%
EPS Next 3Y19.85%
EPS Next 5YN/A
Revenue 1Y (TTM)0.84%
Revenue growth 3Y36.75%
Revenue growth 5Y25.79%
Sales Q2Q%4.4%
Revenue Next Year3%
Revenue Next 2Y3.89%
Revenue Next 3Y4.47%
Revenue Next 5Y5.01%
EBIT growth 1Y-7.47%
EBIT growth 3Y35.52%
EBIT growth 5Y20.76%
EBIT Next Year182.69%
EBIT Next 3Y46.75%
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.
What is the valuation status for IRT stock?
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.
What is the valuation of INDEPENDENCE REALTY TRUST IN based on its PE and PB ratios?
The Price/Earnings (PE) ratio for INDEPENDENCE REALTY TRUST IN (IRT) is 291.33 and the Price/Book (PB) ratio is 1.2.
What is the financial health of INDEPENDENCE REALTY TRUST IN (IRT) stock?
The financial health rating of INDEPENDENCE REALTY TRUST IN (IRT) is 3 / 10.