Why I Like Innovative Industrial Properties, Inc. (NYSE:IIPR)

Simply Wall St - finance.yahoo.com Posted 5 years ago
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Innovative Industrial Properties, Inc. (NYSE:IIPR) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of IIPR, it is a company with robust financial health as well as an optimistic future outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Innovative Industrial Properties here.

Flawless balance sheet with high growth potential

One reason why investors are attracted to IIPR is its notable earnings growth potential in the near future of 82%. This growth in the bottom-line is bolstered by an equally impressive top-line expansion over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. IIPR is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that IIPR manages its cash and cost levels well, which is a crucial insight into the health of the company. Investors should not worry about IIPR’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. IIPR has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

NYSE:IIPR Past and Future Earnings, March 13th 2019
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Next Steps:

For Innovative Industrial Properties, there are three key aspects you should further examine:

  1. Historical Performance: What has IIPR’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Valuation: What is IIPR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether IIPR is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of IIPR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.