* Note: Prices are in Million (M) USD.
Description:
Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multi-family apartment properties in non-entry US markets, including Atlanta, Louisville, Memphis and Raleigh.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $21 M
Debt : $2,334 M
EBITDA : $351 M
Net Debt (Debt - Cash): $2,312 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Real Estate
Industry: REIT - Residential
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 95.53
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $35 M
Average Revenue: $220 M
Revenue Converted To Free Cash Flow (%): 16%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 315.79%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $640 M
Revenue 4 Years Ago (2020-12-31): $212 M
Last 5 Years Average Revenue Growth: 40%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $226 M
Share Count 5 Years Ago (2020-12-31): $95 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.22
Trailing 12-Month Earnings Per Share (EPS): $0.13
Average Earnings Per Share (EPS): $0.18
Dividend Per Share (DPS): $1
Payout Ratio: 356%
Dividend Yield: 4%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 3, 3 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: -8%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $17
52-Week Low: $17
Threshold Price (15% Above 52-Week Low): $19
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $4,166 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.20% exposure of Total Portfolio.
Value-Trade has assigned 21 points to above Independence Realty Trust Inc (IRT) stock.
Last 5 Years Avg PE (Limited to last 5 years of EPS data) 25.97, Fair Value PE 15, Industry Based PE is 20 and Growth based PE is 20. Based on these all values average assigned is 20.24.
Value-Trades has assined P/E value 20.24. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.18.
The fair value of Independence Realty Trust Inc (IRT) stock should be (20.24 x $0.18) = $3.64
