Innovative Industrial Properties Inc (IIPR, Financial) has been making waves in the stock market with a significant gain of 14.19% over the past week and a remarkable 35.44% surge over the past three months. The company's market cap stands at $2.45 billion, with its current stock price at $87.23. According to the GF Value, a measure defined by GuruFocus.com that calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, the stock is significantly undervalued. This valuation has remained consistent over the past three months, indicating a potential opportunity for investors.
Understanding Innovative Industrial Properties Inc (IIPR, Financial)
Innovative Industrial Properties Inc is a key player in the REITs industry. The company's business model revolves around the acquisition, ownership, and management of specialized industrial properties leased to state-licensed operators for their regulated medical-use cannabis facilities. Operating through a traditional umbrella partnership real estate investment trust (UPREIT) structure, IIPR's property portfolio is spread across the United States, making it a significant player in the industry.
Profitability Analysis of Innovative Industrial Properties Inc (IIPR, Financial)
With a Profitability Rank of 7/10, IIPR stands out among its industry peers. The company's Operating Margin of 57.43% is better than 61.08% of 668 companies in the industry. Furthermore, its ROE and ROA stand at 8.23% and 6.68% respectively, outperforming a significant majority of companies in the sector. The company's ROIC of 7.07% is also impressive, better than 90.79% of 673 companies. Over the past decade, IIPR has demonstrated profitability for five years, outperforming 28.44% of 749 companies.
Growth Prospects of Innovative Industrial Properties Inc (IIPR, Financial)
IIPR's growth potential is evident in its Growth Rank of 10/10. The company's 3-Year Revenue Growth Rate per Share of 33.70% and 5-Year Revenue Growth Rate per Share of 43.70% are better than 94.65% and 97.82% of companies in the industry, respectively. Furthermore, the company's future total revenue growth rate estimate stands at 14.64%, outperforming 95.11% of 184 companies. The 3-Year EPS without NRI Growth Rate of 39.60% further underscores the company's robust growth potential.
Top Holders of Innovative Industrial Properties Inc (IIPR, Financial) Stock
Jefferies Group (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), and Ken Fisher (Trades, Portfolio) are the top three holders of IIPR's stock. Jefferies Group (Trades, Portfolio) holds 2791 shares, accounting for 0.01% of the company's stock. Joel Greenblatt (Trades, Portfolio) holds a similar share percentage with 2785 shares. Ken Fisher (Trades, Portfolio) holds a smaller stake with 224 shares.
Competitors of Innovative Industrial Properties Inc (IIPR, Financial)
IIPR faces competition from LXP Industrial Trust (LXP, Financial) with a market cap of $2.86 billion, Terreno Realty Corp (TRNO, Financial) with a market cap of $5.12 billion, and National Storage Affiliates Trust (NSA, Financial) with a market cap of $3.02 billion. Despite the competition, IIPR's impressive growth and profitability metrics position it favorably in the industry.
Conclusion
In conclusion, Innovative Industrial Properties Inc's stock performance, profitability, and growth potential make it a compelling consideration for investors. Despite facing competition in the REITs industry, the company's robust business model and impressive financial metrics underscore its potential for future growth. As the company continues to expand its portfolio across the United States, it is poised to capitalize on the growing medical-use cannabis market, offering promising prospects for investors.
