INDEPENDENCE REALTY TRUST IN (IRT) Stock Fundamental Analysis
NYSE:IRT - New York Stock Exchange, Inc. - US45378A1060 - REIT - Currency: USD
Overall IRT gets a fundamental rating of 3 out of 10. We evaluated IRT against 20 industry peers in the Residential REITs industry. IRT has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
IRT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: IRT reported negative net income in multiple years.
Of the past 5 years IRT 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.00%, IRT perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
IRT has a Return On Equity of -0.01%. This is comparable to the rest of the industry: IRT outperforms 45.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.81%, IRT is doing worse than 60.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IRT is in line with the industry average of 2.61%.
The 3 year average ROIC (1.24%) for IRT is below the current ROIC(1.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0% | ||
| ROE | -0.01% | ||
| ROIC | 1.81% |
ROA(3y)0.74%
ROA(5y)1.16%
ROE(3y)1.35%
ROE(5y)2.72%
ROIC(3y)1.24%
ROIC(5y)1.68%
1.3 Margins
IRT has a Operating Margin (20.49%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of IRT has declined.
Looking at the Gross Margin, with a value of 58.17%, IRT is in line with its industry, outperforming 50.00% 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 | 20.49% | ||
| PM (TTM) | N/A | ||
| GM | 58.17% |
OM growth 3Y1.44%
OM growth 5Y-3.76%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.09%
GM growth 5Y0.87%
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 1.11, we must say that IRT is in the distress zone and has some risk of bankruptcy.
IRT's Altman-Z score of 1.11 is in line compared to the rest of the industry. IRT outperforms 55.00% of its industry peers.
The Debt to FCF ratio of IRT is 33.10, which is on the high side as it means it would take IRT, 33.10 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of IRT (33.10) is better than 65.00% of its industry peers.
IRT has a Debt/Equity ratio of 0.68. This is a neutral value indicating IRT is somewhat dependend on debt financing.
The Debt to Equity ratio of IRT (0.68) is better than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 33.1 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.26
WACC6.85%
2.3 Liquidity
A Current Ratio of 0.10 indicates that IRT may have some problems paying its short term obligations.
The Current ratio of IRT (0.10) is worse than 75.00% of its industry peers.
IRT has a Quick Ratio of 0.10. 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 0.10, IRT is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
IRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 351.43%, which is quite impressive.
The earnings per share for IRT have been decreasing by -18.85% on average. This is quite bad
EPS 1Y (TTM)351.43%
EPS 3Y-22.63%
EPS 5Y-18.85%
EPS Q2Q%97.78%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.64%
3.2 Future
IRT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.00% yearly.
Based on estimates for the next years, IRT will show a small growth in Revenue. The Revenue will grow by 6.04% on average per year.
EPS Next Y56.85%
EPS Next 2Y40.2%
EPS Next 3Y33%
EPS Next 5YN/A
Revenue Next Year4.73%
Revenue Next 2Y4.83%
Revenue Next 3Y6.04%
Revenue Next 5YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 113.33, the valuation of IRT can be described as expensive.
IRT's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.63, IRT is valued quite expensively.
Based on the Price/Forward Earnings ratio of 73.90, the valuation of IRT can be described as expensive.
IRT's Price/Forward Earnings ratio is in line with the industry average.
IRT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 113.33 | ||
| Fwd PE | 73.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IRT is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IRT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.47 | ||
| EV/EBITDA | 19.53 |
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 33.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.99
PEG (5Y)N/A
EPS Next 2Y40.2%
EPS Next 3Y33%
5. Dividend
5.1 Amount
IRT has a Yearly Dividend Yield of 3.08%.
Compared to an average industry Dividend Yield of 4.25, IRT's dividend is way lower than its industry peers. On top of this 80.00% of the companies listed in the same industry pay a better dividend than IRT!
Compared to an average S&P500 Dividend Yield of 2.27, IRT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
The dividend of IRT decreases each year by -0.09%.
IRT has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-0.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
IRT has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-65724.2%
EPS Next 2Y40.2%
EPS Next 3Y33%
20.4
-0.35 (-1.69%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners102.04%
Inst Owner Change-82%
Ins Owners0.48%
Ins Owner Change-2.88%
Market Cap4.59B
Analysts80
Price Target22.14 (8.53%)
Short Float %9.78%
Short Ratio13.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend0.6
Dividend Growth(5Y)-0.09%
DP-65724.2%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-33.9%
Min EPS beat(2)-43.95%
Max EPS beat(2)-23.84%
EPS beat(4)0
Avg EPS beat(4)-432.23%
Min EPS beat(4)-1627.15%
Max EPS beat(4)-23.84%
EPS beat(8)3
Avg EPS beat(8)-201.56%
EPS beat(12)5
Avg EPS beat(12)-149.25%
EPS beat(16)8
Avg EPS beat(16)-92.61%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)-1.04%
Revenue beat(4)0
Avg Revenue beat(4)-1.51%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)-0.8%
Revenue beat(8)0
Avg Revenue beat(8)-1.34%
Revenue beat(12)3
Avg Revenue beat(12)-0.07%
Revenue beat(16)6
Avg Revenue beat(16)0.53%
PT rev (1m)1.4%
PT rev (3m)1.83%
EPS NQ rev (1m)-17.02%
EPS NQ rev (3m)-17.02%
EPS NY rev (1m)-7.6%
EPS NY rev (3m)-7.6%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 113.33 | ||
| Fwd PE | 73.9 | ||
| P/S | 7.11 | ||
| P/FCF | 66.47 | ||
| P/OCF | 17.97 | ||
| P/B | 1.37 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 19.53 |
EPS(TTM)0.18
EY0.88%
EPS(NY)0.28
Fwd EY1.35%
FCF(TTM)0.31
FCFY1.5%
OCF(TTM)1.14
OCFY5.56%
SpS2.87
BVpS14.91
TBVpS14.9
PEG (NY)1.99
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0% | ||
| ROE | -0.01% | ||
| ROCE | 2.29% | ||
| ROIC | 1.81% | ||
| ROICexc | 1.82% | ||
| ROICexgc | 1.84% | ||
| OM | 20.49% | ||
| PM (TTM) | N/A | ||
| GM | 58.17% | ||
| FCFM | 10.69% |
ROA(3y)0.74%
ROA(5y)1.16%
ROE(3y)1.35%
ROE(5y)2.72%
ROIC(3y)1.24%
ROIC(5y)1.68%
ROICexc(3y)1.25%
ROICexc(5y)1.68%
ROICexgc(3y)1.26%
ROICexgc(5y)1.7%
ROCE(3y)1.57%
ROCE(5y)2.12%
ROICexcg growth 3Y-4.08%
ROICexcg growth 5Y-5.19%
ROICexc growth 3Y-4.23%
ROICexc growth 5Y-5.3%
OM growth 3Y1.44%
OM growth 5Y-3.76%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.09%
GM growth 5Y0.87%
F-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 33.1 | ||
| Debt/EBITDA | 6.47 | ||
| Cap/Depr | 85.12% | ||
| Cap/Sales | 28.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.72% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 | ||
| Altman-Z | 1.11 |
F-Score5
WACC6.85%
ROIC/WACC0.26
Cap/Depr(3y)70.25%
Cap/Depr(5y)71.75%
Cap/Sales(3y)24.19%
Cap/Sales(5y)22.52%
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%97.78%
EPS Next Y56.85%
EPS Next 2Y40.2%
EPS Next 3Y33%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.64%
Revenue Next Year4.73%
Revenue Next 2Y4.83%
Revenue Next 3Y6.04%
Revenue Next 5YN/A
EBIT growth 1Y-11.1%
EBIT growth 3Y48%
EBIT growth 5Y23.34%
EBIT Next Year141.73%
EBIT Next 3Y39.78%
EBIT Next 5YN/A
FCF growth 1Y9.83%
FCF growth 3Y9.46%
FCF growth 5Y11.91%
OCF growth 1Y50.46%
OCF growth 3Y51.77%
OCF growth 5Y30.79%