INDEPENDENCE REALTY TRUST IN (IRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IRT - US45378A1060 - REIT
17.07 USD
+0.27 (+1.61%)
17.07 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. 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.
IRT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years IRT had a positive operating cash flow.
1.2 Ratios
IRT's Return On Assets of 0.37% is on the low side compared to the rest of the industry. IRT is outperformed by 70.00% of its industry peers.
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.
IRT's Operating Margin has declined in the last couple of years.
IRT has a Gross Margin of 59.03%. This is comparable 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IRT is destroying value.
Compared to 1 year ago, IRT has more shares outstanding
Compared to 5 years ago, IRT has more shares outstanding
IRT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.94, 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 0.94, IRT is in line with its industry, outperforming 50.00% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 18.13, IRT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
IRT has a Debt/Equity ratio of 0.66. This is a neutral value indicating 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 | 0.94 |
ROIC/WACC0.26
WACC6.38%
2.3 Liquidity
A Current Ratio of 0.72 indicates that IRT may have some problems paying its short term obligations.
The Current ratio of IRT (0.72) is better than 70.00% of its industry peers.
A Quick Ratio of 0.13 indicates that IRT may have some problems paying its short term obligations.
IRT has a Quick ratio of 0.13. This is in the lower half of the industry: IRT underperforms 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.
The earnings per share for IRT have been decreasing by -18.85% on average. This is quite bad
IRT shows a small growth in Revenue. In the last year, the Revenue has grown by 0.84%.
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 a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.18% yearly.
IRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.82% yearly.
EPS Next Y54.94%
EPS Next 2Y22.82%
EPS Next 3Y20.18%
EPS Next 5YN/A
Revenue Next Year2.98%
Revenue Next 2Y3.85%
Revenue Next 3Y4.45%
Revenue Next 5Y4.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
IRT is valuated quite expensively with a Price/Earnings ratio of 284.50.
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.
When comparing the Price/Earnings ratio of IRT to the average of the S&P500 Index (25.98), we can say IRT is valued expensively.
A Price/Forward Earnings ratio of 64.30 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.
The average S&P500 Price/Forward Earnings ratio is at 35.79. IRT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 284.5 | ||
| Fwd PE | 64.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRT is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
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 | 31.52 | ||
| EV/EBITDA | 17.2 |
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 20.18% in the coming years.
PEG (NY)5.18
PEG (5Y)N/A
EPS Next 2Y22.82%
EPS Next 3Y20.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.06%, IRT is a good candidate for dividend investing.
IRT's Dividend Yield is slightly below the industry average, which is at 7.26.
Compared to an average S&P500 Dividend Yield of 2.41, IRT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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 2Y22.82%
EPS Next 3Y20.18%
17.07
+0.27 (+1.61%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners102.76%
Inst Owner Change0.76%
Ins Owners0.48%
Ins Owner Change-0.22%
Market Cap3.99B
Revenue(TTM)651.53M
Net Income(TTM)22.29M
Analysts82.22
Price Target20.99 (22.96%)
Short Float %5.85%
Short Ratio4.46
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)-1.43%
PT rev (3m)-3.49%
EPS NQ rev (1m)-11.34%
EPS NQ rev (3m)21.13%
EPS NY rev (1m)0%
EPS NY rev (3m)15.51%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)-1.48%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 284.5 | ||
| Fwd PE | 64.3 | ||
| P/S | 6.13 | ||
| P/FCF | 31.52 | ||
| P/OCF | 13.99 | ||
| P/B | 1.15 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 17.2 |
EPS(TTM)0.06
EY0.35%
EPS(NY)0.27
Fwd EY1.56%
FCF(TTM)0.54
FCFY3.17%
OCF(TTM)1.22
OCFY7.15%
SpS2.79
BVpS14.91
TBVpS14.88
PEG (NY)5.18
PEG (5Y)N/A
Graham Number4.49
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 | 0.94 |
F-Score7
WACC6.38%
ROIC/WACC0.26
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 Y54.94%
EPS Next 2Y22.82%
EPS Next 3Y20.18%
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 5Y4.82%
EBIT growth 1Y-7.47%
EBIT growth 3Y35.52%
EBIT growth 5Y20.76%
EBIT Next Year184.21%
EBIT Next 3Y48.01%
EBIT Next 5Y35.04%
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 54.94% 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%.