INDEPENDENCE REALTY TRUST IN (IRT) Stock Fundamental Analysis
NYSE:IRT - New York Stock Exchange, Inc. - US45378A1060 - REIT
Taking everything into account, IRT scores 3 out of 10 in our fundamental rating. IRT was compared to 20 industry peers in the Residential REITs industry. While IRT is still in line with the averages on profitability rating, there are concerns on its financial health. IRT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
IRT had negative earnings in the past year.
In the past year IRT had a positive cash flow from operations.
Of the past 5 years IRT 4 years were profitable.
In the past 5 years IRT always reported a positive cash flow from operatings.
1.2 Ratios
IRT has a Return On Assets of 0.00%. This is comparable to the rest of the industry: IRT outperforms 45.00% of its industry peers.
The Return On Equity of IRT (-0.01%) is comparable to the rest of the industry.
The Return On Invested Capital of IRT (1.81%) is worse than 60.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IRT is in line with the industry average of 2.61%.
The last Return On Invested Capital (1.81%) for IRT is above the 3 year average (1.24%), which is a sign of increasing profitability.
| 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 in line with its industry peers.
IRT's Operating Margin has declined in the last couple of years.
IRT's Gross Margin of 58.17% is in line compared to the rest of the industry. IRT outperforms 50.00% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IRT is destroying value.
The number of shares outstanding for IRT has been increased compared to 1 year ago.
The number of shares outstanding for IRT has been increased compared to 5 years ago.
Compared to 1 year ago, IRT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that IRT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.05, IRT is in line with its industry, outperforming 50.00% of the companies in the same industry.
IRT has a debt to FCF ratio of 33.10. This is a negative value and a sign of low solvency as IRT would need 33.10 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 33.10, IRT is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
IRT has a Debt/Equity ratio of 0.68. This is a neutral value indicating IRT is somewhat dependend on debt financing.
IRT's Debt to Equity ratio of 0.68 is amongst the best of the industry. IRT outperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 33.1 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.26
WACC6.88%
2.3 Liquidity
IRT has a Current 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.
IRT has a Current ratio of 0.10. This is in the lower half of the industry: IRT underperforms 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.
IRT's Quick ratio of 0.10 is on the low side compared to the rest of the industry. IRT is outperformed by 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.1 | ||
| Quick Ratio | 0.1 |
3. Growth
3.1 Past
IRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -100.00%.
The Revenue has decreased by -1.63% in the past year.
The Revenue has been growing by 28.16% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-100%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y45.91%
Revenue growth 5Y28.16%
Sales Q2Q%-5.19%
3.2 Future
The Earnings Per Share is expected to grow by 93.90% on average over the next years. This is a very strong growth
Based on estimates for the next years, IRT will show a small growth in Revenue. The Revenue will grow by 1.92% on average per year.
EPS Next Y479.95%
EPS Next 2Y143.31%
EPS Next 3Y93.9%
EPS Next 5YN/A
Revenue Next Year-2.85%
Revenue Next 2Y0.99%
Revenue Next 3Y1.92%
Revenue Next 5YN/A
3.3 Evolution
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/Forward Earnings ratio of 69.83 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, IRT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 69.83 |
4.2 Price Multiples
65.00% of the companies in the same industry are more expensive than IRT, based on the Enterprise Value to EBITDA ratio.
IRT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.43 | ||
| EV/EBITDA | 18.73 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IRT's earnings are expected to grow with 93.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y143.31%
EPS Next 3Y93.9%
5. Dividend
5.1 Amount
IRT has a Yearly Dividend Yield of 3.36%.
Compared to an average industry Dividend Yield of 4.29, IRT is paying slightly less dividend.
IRT's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
5.2 History
The dividend of IRT decreases each year by -0.09%.
IRT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of IRT are negative and hence is the payout ratio. IRT will probably not be able to sustain this dividend level.
DP-65724.2%
EPS Next 2Y143.31%
EPS Next 3Y93.9%
INDEPENDENCE REALTY TRUST IN
NYSE:IRT (1/21/2025, 8:08:08 PM)
After market: 19.16 0 (0%)19.16
+0.16 (+0.84%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.29%
Inst Owner Change0.06%
Ins Owners0.45%
Ins Owner Change-2.88%
Market Cap4.31B
Analysts81.33
Price Target21.84 (13.99%)
Short Float %10%
Short Ratio11.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
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)0.43%
PT rev (3m)2.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.07%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.73%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 69.83 | ||
| P/S | 6.68 | ||
| P/FCF | 62.43 | ||
| P/OCF | 16.88 | ||
| P/B | 1.29 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 18.73 |
EPS(TTM)0
EYN/A
EPS(NY)0.27
Fwd EY1.43%
FCF(TTM)0.31
FCFY1.6%
OCF(TTM)1.14
OCFY5.92%
SpS2.87
BVpS14.91
TBVpS14.9
PEG (NY)N/A
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 | 1.05 |
F-Score5
WACC6.88%
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)-100%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%150%
EPS Next Y479.95%
EPS Next 2Y143.31%
EPS Next 3Y93.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y45.91%
Revenue growth 5Y28.16%
Sales Q2Q%-5.19%
Revenue Next Year-2.85%
Revenue Next 2Y0.99%
Revenue Next 3Y1.92%
Revenue Next 5YN/A
EBIT growth 1Y-11.1%
EBIT growth 3Y48%
EBIT growth 5Y23.34%
EBIT Next Year141.87%
EBIT Next 3Y40.08%
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%