* Note: Prices are in Million (M) USD.
Description:
Innovative Industrial Properties, Inc. is a self-advising Maryland corporation focused on acquiring, owning, and managing specialty properties leased to experienced state-licensed operators for their regulated medical cannabis facilities.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $146 M
Debt : $298 M
EBITDA : $240 M
Net Debt (Debt - Cash): $152 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: REAL ESTATE & CONSTRUCTION
Industry: REAL ESTATE
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: 10.22
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $-200 M
Average Revenue: $129 M
Revenue Converted To Free Cash FLow(%): -155%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 37.92%
Since Free Cash Flow (FCF) to Revenue percentage is negative, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $309 M
Revenue 4 Years Ago (2020-12-31): $117 M
Last 5 Years Average Revenue Growth: 33%
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): $29 M
Share Count 5 Years Ago (2020-12-31): $20 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): $3.90
Trailing 12-Month Earnings Per Share (EPS): $5.12
Average Earnings Per Share (EPS): $4.51
Dividend Per Share (DPS): $8
Payout Ratio: 169%
Dividend Yield: 15%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 4%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $46
52-Week Low: $44
Threshold Price (15% Above 52-Week Low): $51
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,468 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 2% exposure of Total Portfolio.
Value-Trade has assigned 29 points to above Innovative Industrial Properties Inc (IIPR) stock.
Last 8 Years Avg PE (Limited to last 8 years of EPS data) 31, Fair Value PE 15, Industry Based PE is 11 and Growth based PE is 16. Based on these all values average assigned is 18.25.
Value-Trades has assined P/E value 18.25. Since an average (Current Year EPS + Next Year EPS) earning per share is $4.51.
The fair value of Innovative Industrial Properties Inc (IIPR) stock should be (18.25 x $4.51) = $82.31
