INDEPENDENCE REALTY TRUST IN (IRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IRT - US45378A1060 - REIT
16.84 USD
+0.03 (+0.18%)
16.84 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 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.
- In the past year IRT had a positive cash flow from operations.
- Of the past 5 years IRT 4 years were profitable.
- Each year in the past 5 years IRT had a positive operating cash flow.
1.2 Ratios
- IRT has a Return On Assets of 0.37%. This is in the lower half of the industry: IRT underperforms 70.00% of its industry peers.
- IRT's Return On Equity of 0.64% is on the low side compared to the rest of the industry. IRT is outperformed by 70.00% of its industry peers.
- IRT's Return On Invested Capital of 1.64% 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 3 year average ROIC (1.61%) for IRT is below the current ROIC(1.64%), indicating increased profibility in the last year.
| 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
- IRT has a Profit Margin of 3.42%. This is in the lower half of the industry: IRT underperforms 65.00% of its industry peers.
- In the last couple of years the Profit Margin of IRT has declined.
- IRT's Operating Margin of 18.80% is in line compared to the rest of the industry. IRT outperforms 55.00% of its industry peers.
- IRT's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 59.03%, IRT perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- IRT's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IRT is destroying value.
- IRT has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, IRT has more shares outstanding
- Compared to 1 year ago, IRT has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.96, we must say that IRT is in the distress zone and has some risk of bankruptcy.
- IRT has a Altman-Z score of 0.96. This is comparable to the rest of the industry: IRT outperforms 50.00% of its industry peers.
- The Debt to FCF ratio of IRT is 18.13, which is on the high side as it means it would take IRT, 18.13 years of fcf income to pay off all of its debts.
- IRT has a better Debt to FCF ratio (18.13) than 75.00% of its industry peers.
- A Debt/Equity ratio of 0.66 indicates that IRT is somewhat dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.66, IRT belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 18.13 | ||
| Altman-Z | 0.96 |
ROIC/WACC0.25
WACC6.51%
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.
- IRT's Current ratio of 0.72 is fine compared to the rest of the industry. IRT outperforms 70.00% of its industry peers.
- A Quick Ratio of 0.13 indicates that IRT may have some problems paying its short term obligations.
- The Quick ratio of IRT (0.13) is worse than 65.00% of its industry peers.
| 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.
- IRT shows a small growth in Revenue. In the last year, the Revenue has grown by 0.84%.
- IRT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.79% yearly.
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
- The Earnings Per Share is expected to grow by 21.49% on average over the next years. This is a very strong growth
- IRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.01% yearly.
EPS Next Y22.97%
EPS Next 2Y18.98%
EPS Next 3Y21.49%
EPS Next 5YN/A
Revenue Next Year2.89%
Revenue Next 2Y3.32%
Revenue Next 3Y3.74%
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.
- 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
- The Price/Earnings ratio is 280.67, which means the current valuation is very expensive for IRT.
- Compared to the rest of the industry, the Price/Earnings ratio of IRT indicates a slightly more expensive valuation: IRT is more expensive than 65.00% of the companies listed in the same industry.
- IRT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- IRT is valuated quite expensively with a Price/Forward Earnings ratio of 67.59.
- The rest of the industry has a similar Price/Forward Earnings ratio as IRT.
- IRT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 280.67 | ||
| Fwd PE | 67.59 |
4.2 Price Multiples
- IRT's Enterprise Value to EBITDA ratio is in line with the industry average.
- IRT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IRT is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.8 | ||
| EV/EBITDA | 17.48 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IRT does not grow enough to justify the current Price/Earnings ratio.
- A more expensive valuation may be justified as IRT's earnings are expected to grow with 21.49% in the coming years.
PEG (NY)12.22
PEG (5Y)N/A
EPS Next 2Y18.98%
EPS Next 3Y21.49%
5. Dividend
5.1 Amount
- IRT has a Yearly Dividend Yield of 4.05%, which is a nice return.
- Compared to an average industry Dividend Yield of 32.02, IRT is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.81, IRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
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.
- The dividend of IRT decreased 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 2Y18.98%
EPS Next 3Y21.49%
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 280.67 and the Price/Book (PB) ratio is 1.16.
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.