Independent Realty Trust
Contributor Since 2018
Summary
- Book/Market Value is Good.
- Capital Structure is Decent.
- Revenue and Earnings are kind of Sketchy.
From a study of the 2018 10K report:
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(The Following Calculated With Depreciation Added Back)
Current Ratio = 1.7
Equity = 716,349,000
Book Value = $8.45
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Market Value = $13.91
a ROE of 5.88% according to Macrotrends
Dividend Yield of 5.18%
Current Quarterly Dividend of $.18 per share
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Earnings Per Share Looks Really Sketchy
Revenue has gone up continually, but earnings have been all over the place.
So I did some research.
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On page 53 of the 2018 10K, when I removed depreciation expense from the expenses, I was able to calculate Funds From Operations.
This showed that actual Net Income for 2017 was 64,407.
In 2018 actual Net Income was 71,449.
This also revealed the following:
2017 EPS: .83
2018 EPS: .82
This EPS is more than sufficient to cover the .72 annual dividend, which makes me feel much more confident in this company.
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Margin Of Safety:
If I buy this stock at the current market price, I am risking 39% of my principal. However if I hold it for 10 years, I am guaranteed a total of $7.2 per share, which means in the long run I am guaranteed at least a gain of 12.5%.
Of course the time value of money would mean worst case scenario I break even. Which means worst case scenario, my principal is safe. Best case scenario, I make a good profit.
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However, I am also concerned that the Book Value per Share has been dropping significantly over the past few years, I should probably pay more attention to why this is happening.