Innovative Industrial Properties, Inc. (IIPR)
Valuation Overview•Is Innovative Industrial Properties, Inc. Overvalued or Undervalued?
Trading at a discount compared to peers, but the underlying intrinsic cash flows struggle to support the current price.
Moderate quality score of 61/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street is highly bullish, projecting significant upside. This outlook is strongly supported by highly attractive capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
IIPR demonstrates strong business quality with robust profitability and healthy margins. This is paired with a moderately leveraged but stable balance sheet.
The company is facing top-line contraction (-1.3% 3Y CAGR) however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 46.7% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $69.0M | -13.8% | -1.3% | +17.9% | — | |
| EBITDA | $51.1M | — | -5.0% | — | — | |
| Net Income | $32.8M | -29.2% | -9.5% | — | — | |
| EPS (Diluted) | $1.02 | -28.8% | -10.7% | +3.7% | — | |
| Free Cash Flow | $0.00 | -32.4% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 60.3% | 90.5% | 93.1% | 92.6% |
| Operating Margin | 46.7% | 52.5% | 57.0% | -93.5% |
| Net Margin | 45.6% | 49.6% | 52.1% | -95.3% |
| FCF Margin | 54.7% | 77.3% | 54.8% | -964.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.07 | $1.88 | +75.7% | ||
| Q1'26 | $1.05 | $1.88 | +79.0% | ||
| Q4'25 | $1.71 | $1.71 | +0.0% | ||
| Q3'25 | $1.61 | $1.71 | +6.2% | ||
| Q2'25 | $1.99 | $1.94 | -2.5% | ||
| Q1'25 | $2.22 | $2.22 | +0.0% | ||
| Q4'24 | $2.29 | $2.25 | -1.7% | ||
| Q3'24 | $2.23 | $2.29 | +2.7% |
Total return is +16.1% (1Y), lagging the benchmark by -8.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +24.3% | +15.0% | — |
| 1Y | +16.1% | -8.9% | +13.1% |
| 3YCAGR | +3.6% | -16.3% | +30.4% |
| 5YCAGR | -12.4% | -25.5% | +19.4% |
| 10YCAGR | +18.6% | +4.9% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Innovative Industrial Properties, Inc. (IIPR) valuation, health, and returns.
Innovative Industrial Properties, Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. overvalued (implying -19.8% downside from DCF intrinsic value of $47.78)
Innovative Industrial Properties, Inc. has multiple valuation anchors: DCF Intrinsic Value: $47.78 | Peer Relative Fair Value: $95.00 | Wall Street Analyst Target: $84.67 (implying +42.1% upside). A convergence of these signals offers higher conviction.
Innovative Industrial Properties, Inc. displays good financial health with a composite quality score of 61/100, supported by a Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 4.3%.
Innovative Industrial Properties, Inc. pays a 12.8% dividend yield, covered by a 189% payout ratio with 9 years of growth, supplemented by a 1.2% buyback yield.
Innovative Industrial Properties, Inc.'s current growth trajectory is Decelerating. The company achieved -13.8% 1Y revenue growth and -28.8% 1Y EPS growth, compared to its 3Y revenue CAGR of -1.3%.
Wall Street consensus is Hold based on 11 analysts, beating EPS expectations in 58% of recent quarters with a 2-quarter streak. The consensus price target represents a +42.1% change from current levels.
Investment risks for Innovative Industrial Properties, Inc. include: -24.3% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.91x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.