Income Opportunity Realty Investors Inc /Tx/ (NYSE: IOR)

Sector: Financial Services Industry: Mortgage Finance CIK: 0000949961
Market Cap 74.29 Mn
P/B 0.59
P/E 18.00
P/S 0.00
ROIC (Qtr) -0.25
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Investment thesis

Bull case

  • Retained earnings of 64.69M represent substantial 0.52x of equity 124.94M, indicating strong internal capital generation.
  • Cash position of 6000 fully covers payables of 4000 by 1.50x, showing strong vendor relationship management.

Bear case

  • Operating cash flow of (82000) provides minimal -0.07x coverage of tax expenses of 1.10M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating cash flow of (82000) barely covers operating expenses of 109000 with a -0.75 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • R&D investment of 0 represents just 0x of SG&A expenses of 279000, indicating potential underinvestment in innovation relative to administrative overhead.
  • Cash position of 6000 provides minimal 0.02x coverage of SG&A expenses of 279000, indicating potential operational inflexibility in market downturns.
  • Other current assets of 0 provide weak coverage of payables of 4000, which is 0x, suggesting potential working capital stress in near term.

Peer comparison

Companies in the Mortgage Finance
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 FNMA Federal National Mortgage Association Fannie Mae 45.24 Bn 5,026.67 1.55 4,053.14 Bn
2 RKT Rocket Companies, Inc. 37.92 Bn -371.21 6.57 19.41 Bn
3 FMCC Federal Home Loan Mortgage Corp 27.03 Bn -346.50 1.16 3,405.02 Bn
4 WD Walker & Dunlop, Inc. 1.85 Bn 22.56 3.96 3.01 Bn
5 PFSI PennyMac Financial Services, Inc. 1.63 Bn 113.11 4.21 19.40 Bn
6 VEL Velocity Financial, Inc. 0.71 Bn 7.90 2.27 6.15 Bn
7 BETR Better Home & Finance Holding Co 0.47 Bn -2.56 3.26 0.55 Bn
8 LDI loanDepot, Inc. 0.41 Bn -5.61 0.36 4.51 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.59 -0.29
EV to Cash from Ops. EV/CFO -904.57 -306.56
EV to Debt EV to Debt 0.00 -0.16
EV to EBIT EV/EBIT 14.20 74.08
EV to EBITDA EV/EBITDA -191.17 34.17
EV to Free Cash Flow [EV/FCF] EV/FCF -904.57 16,800.36
EV to Market Cap EV to Market Cap 1.00 19.32
EV to Revenue EV/Rev 0.00 21.05
Price to Book Value [P/B] P/B 0.59 -3.89
Price to Earnings [P/E] P/E 18.00 294.11
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 7.52
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 141.58
Dividend per Basic Share Div per Share (Qtr) 0.00 0.43
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -7.23
Interest Coverage Int. cover (Qtr) 0.00 -0.52
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -24.00
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -57.14 52.20
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.53
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -31.35 10.22
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -15.48 393.39
EBIT Growth (1y) % EBIT 1y % (Qtr) -29.03 -7.84
EBT Growth (1y) % EBT 1y % (Qtr) -29.03 -41.79
EPS Growth (1y) % EPS 1y % (Qtr) -31.03 -5.52
FCF Growth (1y) % FCF 1y % (Qtr) -104.87 -27.18
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 15.35
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.11
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.02
Cash Ratio Cash Ratio 0.00 0.01
Current Ratio Current Ratio 0.00 0.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 15.84
Interest Cover Ratio Int Coverage (Qtr) 0.00 -0.52
Times Interest Earned Times Interest Earned (Qtr) 0.00 -0.52
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 18.97
EBIT Margin % EBIT Margin % (Qtr) 0.00 -17.72
EBT Margin % EBT Margin % (Qtr) 0.00 -17.90
Gross Margin % Gross Margin % (Qtr) 0.00 72.92
Net Profit Margin % Net Margin % (Qtr) 0.00 -25.85