Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc. Fundamental Analysis
Innovative Industrial Properties, Inc. (IIPR-PA) shows moderate financial fundamentals with a PE ratio of 10.10, profit margin of 45.80%, and ROE of 6.65%. The company generates $0.6B in annual revenue with weak year-over-year growth of -0.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IIPR-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakIIPR-PA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIIPR-PA trades at attractive valuation levels.
Growth Score
WeakIIPR-PA faces weak or negative growth trends.
Financial Health Score
ModerateIIPR-PA shows balanced financial health with some risks.
Profitability Score
ModerateIIPR-PA maintains healthy but balanced margins.
Key Financial Metrics
Is IIPR-PA Expensive or Cheap?
P/E Ratio
IIPR-PA trades at 10.10 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IIPR-PA's PEG of -1.28 indicates potential undervaluation.
Price to Book
The market values Innovative Industrial Properties, Inc. at 0.69 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.52 times EBITDA. This is generally considered low.
How Well Does IIPR-PA Make Money?
Net Profit Margin
For every $100 in sales, Innovative Industrial Properties, Inc. keeps $45.80 as profit after all expenses.
Operating Margin
Core operations generate 48.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.65 in profit for every $100 of shareholder equity.
ROA
Innovative Industrial Properties, Inc. generates $5.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Innovative Industrial Properties, Inc. generates strong operating cash flow of $444.95M, reflecting robust business health.
Free Cash Flow
Innovative Industrial Properties, Inc. generates strong free cash flow of $407.34M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.77 in free cash annually.
FCF Yield
IIPR-PA converts 14.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.91
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How IIPR-PA Stacks Against Its Sector Peers
| Metric | IIPR-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.10 | 24.23 | Better (Cheaper) |
| ROE | 6.65% | 659.00% | Weak |
| Net Margin | 45.80% | 4497.00% | Weak |
| Debt/Equity | 0.18 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.91 | 13.87 | Weak Liquidity |
| ROA | 5.41% | -1390.00% (disorted) | Weak |
IIPR-PA outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Innovative Industrial Properties, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
158.07%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
251.80%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
114.90%
Industry Style: Income, Inflation Hedge, REIT
High Growth