INDEPENDENCE REALTY TRUST IN (IRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IRT - US45378A1060 - REIT
16.45 USD
-0.08 (-0.48%)
16.45 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. 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
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.
Each year in the past 5 years IRT had a positive operating cash flow.
1.2 Ratios
IRT has a worse Return On Assets (0.37%) than 70.00% of its industry peers.
With a Return On Equity value of 0.64%, IRT is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 1.64%, IRT is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital 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
IRT has a worse Profit Margin (3.42%) than 65.00% of its industry peers.
IRT's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 18.80%, IRT is in line with its industry, outperforming 55.00% of the companies in the same industry.
IRT's Operating Margin has declined in the last couple of years.
IRT has a Gross Margin (59.03%) 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IRT is destroying value.
IRT has more shares outstanding than it did 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 an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that IRT is in the distress zone and 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.
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.
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 | 0.95 |
ROIC/WACC0.25
WACC6.47%
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 has a better Current ratio (0.72) 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.
IRT's Quick ratio of 0.13 is on the low side compared to the rest of the industry. IRT is outperformed by 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.
Measured over the past years, IRT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.85% on average per year.
The Revenue has been growing slightly by 0.84% in the past year.
The Revenue has been growing by 25.79% on average over the past years. This is a very strong growth!
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 17.47% on average over the next years. This is quite good.
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 Y34.86%
EPS Next 2Y20.08%
EPS Next 3Y17.47%
EPS Next 5YN/A
Revenue Next Year2.98%
Revenue Next 2Y3.85%
Revenue Next 3Y4.45%
Revenue Next 5Y5.01%
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
The Price/Earnings ratio is 274.17, which means the current valuation is very expensive for IRT.
Based on the Price/Earnings ratio, IRT is valued a bit more expensive than the industry average as 65.00% of the companies are valued more cheaply.
IRT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.34.
The Price/Forward Earnings ratio is 64.82, which means the current valuation is very expensive for IRT.
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 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 274.17 | ||
| Fwd PE | 64.82 |
4.2 Price Multiples
IRT's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 31.06 | ||
| EV/EBITDA | 17.27 |
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 17.47% in the coming years.
PEG (NY)7.87
PEG (5Y)N/A
EPS Next 2Y20.08%
EPS Next 3Y17.47%
5. Dividend
5.1 Amount
IRT has a Yearly Dividend Yield of 4.06%, which is a nice return.
IRT's Dividend Yield is slightly below the industry average, which is at 7.26.
IRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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
IRT pays out 671.86% of its income as dividend. This is not a sustainable payout ratio.
DP671.86%
EPS Next 2Y20.08%
EPS Next 3Y17.47%
16.45
-0.08 (-0.48%)
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 Cap3.93B
Revenue(TTM)651.53M
Net Income(TTM)22.29M
Analysts82.22
Price Target20.87 (26.87%)
Short Float %6.13%
Short Ratio4.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
Yearly Dividend0.63
Dividend Growth(5Y)-2.5%
DP671.86%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-2.74%
PT rev (3m)-4.03%
EPS NQ rev (1m)-14.77%
EPS NQ rev (3m)-21.87%
EPS NY rev (1m)-12.96%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-1.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 274.17 | ||
| Fwd PE | 64.82 | ||
| P/S | 6.04 | ||
| P/FCF | 31.06 | ||
| P/OCF | 13.78 | ||
| P/B | 1.13 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 17.27 |
EPS(TTM)0.06
EY0.36%
EPS(NY)0.25
Fwd EY1.54%
FCF(TTM)0.53
FCFY3.22%
OCF(TTM)1.19
OCFY7.26%
SpS2.72
BVpS14.58
TBVpS14.55
PEG (NY)7.87
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 | 0.95 |
F-Score7
WACC6.47%
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 Y34.86%
EPS Next 2Y20.08%
EPS Next 3Y17.47%
EPS Next 5YN/A
Revenue 1Y (TTM)0.84%
Revenue growth 3Y36.75%
Revenue growth 5Y25.79%
Sales Q2Q%4.4%
Revenue Next Year2.98%
Revenue Next 2Y3.85%
Revenue Next 3Y4.45%
Revenue Next 5Y5.01%
EBIT growth 1Y-7.47%
EBIT growth 3Y35.52%
EBIT growth 5Y20.76%
EBIT Next Year182.69%
EBIT Next 3Y46.83%
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.
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 3 / 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 34.86% 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 671.86%.