Independence Realty Trust, Inc.
Independence Realty Trust, Inc. Fundamental Analysis
Independence Realty Trust, Inc. (IRT) shows weak financial fundamentals with a PE ratio of 70.80, profit margin of 8.60%, and ROE of 1.64%. The company generates $0.6B in annual revenue with weak year-over-year growth of -3.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 19.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IRT's fundamental strength across five key dimensions:
Efficiency Score
WeakIRT struggles to generate sufficient returns from assets.
Valuation Score
ModerateIRT shows balanced valuation metrics.
Growth Score
WeakIRT faces weak or negative growth trends.
Financial Health Score
ModerateIRT shows balanced financial health with some risks.
Profitability Score
ModerateIRT maintains healthy but balanced margins.
Key Financial Metrics
Is IRT Expensive or Cheap?
P/E Ratio
IRT trades at 70.80 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IRT's PEG of 0.47 indicates potential undervaluation.
Price to Book
The market values Independence Realty Trust, Inc. at 1.16 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.38 times EBITDA. This is generally considered low.
How Well Does IRT Make Money?
Net Profit Margin
For every $100 in sales, Independence Realty Trust, Inc. keeps $8.60 as profit after all expenses.
Operating Margin
Core operations generate 18.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.64 in profit for every $100 of shareholder equity.
ROA
Independence Realty Trust, Inc. generates $0.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Independence Realty Trust, Inc. generates strong operating cash flow of $274.71M, reflecting robust business health.
Free Cash Flow
Independence Realty Trust, Inc. generates strong free cash flow of $142.66M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.60 in free cash annually.
FCF Yield
IRT converts 3.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
70.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How IRT Stacks Against Its Sector Peers
| Metric | IRT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 70.80 | 24.42 | Worse (Expensive) |
| ROE | 1.64% | 679.00% | Weak |
| Net Margin | 8.60% | 4598.00% | Weak |
| Debt/Equity | 0.66 | -22.07 (disorted) | Distorted |
| Current Ratio | 0.00 | 14.99 | Weak Liquidity |
| ROA | 0.94% | -1369.00% (disorted) | Weak |
IRT outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Independence Realty Trust, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.81%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
135.31%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
38.35%
Industry Style: Income, Inflation Hedge, REIT
High Growth