Innovative Industrial Properties, Inc. (IIPR) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+2.8%

$55.76

vs $54.24 price

Levered DCF

$46.88

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.34

Distress zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	11.9×	11.94×	17.32×	18.2×	56.06×	55.83×	46.55×	46.32×
P/B	0.72×	0.97×	1.44×	1.41×	3.9×	2.33×	1.46×	1.23×
P/S	4.99×	6.1×	9.11×	10.03×	30.72×	30.46×	17.91×	21.91×
EV / EBITDA	8.01×	8.17×	11.98×	12.83×	37.93×	35.64×	22.71×	32.35×
Gross margin	88.7%	90.8%	92.0%	96.2%	97.8%	95.8%	97.1%	97.0%
Operating margin	46.7%	54.6%	56.4%	61.4%	66.2%	59.7%	55.8%	36.1%
Net margin	43.0%	52.4%	53.5%	55.9%	55.7%	56.2%	52.6%	47.2%
Current ratio	0.15×	1.27×	1.24×	0.71×	0.68×	1.2×	1.89×	0.76×
Debt / equity	0.21×	0.15×	0.15×	0.15×	0.2×	0.09×	0.25×	0×
Interest coverage	6.15×	10.35×	10.85×	9.27×	7.48×	9.38×	3.95×	0×
Dividend yield	16.6%	11.4%	7.2%	6.7%	2.1%	2.2%	3.0%	2.5%
Payout ratio	191.8%	132.1%	123.2%	120.0%	116.1%	116.9%	102.0%	114.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	6.2%	8.3%	8.5%	7.9%	7.1%	4.3%	4.3%	2.6%
Return on invested capital	227.9%	7.5%	7.7%	7.5%	7.0%	4.2%	3.6%	2.0%
Return on assets	4.8%	6.8%	6.9%	6.4%	5.5%	3.7%	3.1%	2.5%
Free cash flow yield	13.2%	13.7%	9.1%	-5.0%	3.0%	-11.8%	-37.4%	-2.0%
Earnings yield	8.6%	8.6%	5.9%	5.6%	1.8%	1.8%	2.9%	2.2%
Enterprise value	$1.7B	$2B	$3B	$3B	$6.5B	$3.6B	$853.7M	$311M
Net debt / EBITDA	1.66×	0.61×	0.65×	0.92×	1.42×	0.12×	1.43×	-1.36×
Cash conversion cycle (days)	-144	-240	-282	-1,364	-4,412	-3,032	-7,879	-3,610