IRSA Inversiones y Representaciones Sociedad Anónima (BASE:IRSA) - Share price, News & Analysis

Q: What is the Fair Price of IRSA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

IRSA (ARS124.75) is trading above our estimate of [[fair value]] (ARS3.92)

IRSA fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	2/6
Past Performance	0/6
Financial Health	3/6
Dividends	0/6

IRSA Stock Overview

IRSA Inversiones y Representaciones Sociedad Anónima engages in the diversified real estate activities in Argentina.

Rewards

Revenue is forecast to grow 45.06% per year

Risk Analysis

Shareholders have been diluted in the past year

IRSA Inversiones y Representaciones Sociedad Anónima Competitors

Consultatio

BASE:CTIO

AR$122.6b

Gateway Real Estate

XTRA:GTY

€762.0m

Lighthouse Properties

JSE:LTE

R9.4b

Guangdong Highsun GroupLtd

SZSE:000861

CN¥5.5b

Price History & Performance

Summary of all time highs, changes and price drops for IRSA Inversiones y Representaciones Sociedad Anónima
Historical stock prices
Current Share Price	AR$124.75
52 Week High	AR$132.00
52 Week Low	AR$82.00
Beta	1.5
1 Month Change	4.83%
3 Month Change	31.80%
1 Year Change	43.56%
3 Year Change	247.49%
5 Year Change	181.29%
Change since IPO	4,674.11%

Shareholder Returns

	IRSA	AR Real Estate	AR Market
7D	7.1%	-0.9%	-1.6%
1Y	43.6%	5.3%	74.6%

Return vs Industry: IRSA exceeded the AR Real Estate industry which returned 5.3% over the past year.

Return vs Market: IRSA underperformed the AR Market which returned 74.6% over the past year.

Price Volatility

Is IRSA's price volatile compared to industry and market?
IRSA volatility
IRSA Average Weekly Movement	5.8%
Real Estate Industry Average Movement	6.1%
Market Average Movement	6.9%
10% most volatile stocks in AR Market	9.0%
10% least volatile stocks in AR Market	5.2%

Stable Share Price: IRSA is less volatile than 75% of AR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: IRSA's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1943	1,281	Eduardo Sergio Elsztain	https://www.irsa.com.ar

IRSA Inversiones y Representaciones Sociedad Anónima engages in the diversified real estate activities in Argentina. The company is involved in the acquisition, development, and operation of shopping malls, office buildings, and other non-shopping mall properties primarily for rental purposes. It also develops and sells residential properties; acquires and operates luxury hotels; and acquires undeveloped land reserves for future development or sale.

IRSA Inversiones y Representaciones Sociedad Anónima Fundamentals Summary

How do IRSA Inversiones y Representaciones Sociedad Anónima's earnings and revenue compare to its market cap?
IRSA fundamental statistics
Market Cap	AR$100.91b
Earnings (TTM)	-AR$3.19b
Revenue (TTM)	AR$16.24b

6.2x

P/S Ratio

-31.6x

P/E Ratio

Is IRSA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IRSA income statement (TTM)
Revenue	AR$16.24b
Cost of Revenue	AR$6.39b
Gross Profit	AR$9.85b
Other Expenses	AR$13.04b
Earnings	-AR$3.19b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-3.95
Gross Margin	60.64%
Net Profit Margin	-19.66%
Debt/Equity Ratio	49.9%

How did IRSA perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is IRSA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IRSA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for IRSA. This is calculated by dividing IRSA's market cap by their current preferred multiple.
What is IRSA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	AR$100.91b

IRSA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	10.3x
Enterprise Value/EBITDA	29.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does IRSA's PS Ratio compare to its peers?

IRSA PS Ratio vs Peers

The above table shows the PS ratio for IRSA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	9.8x
CTIO Consultatio	17.9x	n/a	AR$122.6b
GTY Gateway Real Estate	62.7x	n/a	€762.0m
LTE Lighthouse Properties	9.9x	n/a	R9.4b
000861 Guangdong Highsun GroupLtd	4.4x	n/a	CN¥5.5b
IRSA IRSA Inversiones y Representaciones Sociedad Anónima	6.2x	45.1%	AR$100.9b

Price-To-Sales vs Peers: IRSA is good value based on its Price-To-Sales Ratio (6.2x) compared to the peer average (9.8x).

Price to Earnings Ratio vs Industry

How does IRSA's PE Ratio compare vs other companies in the South American Real Estate Industry?

Price-To-Sales vs Industry: IRSA is expensive based on its Price-To-Sales Ratio (6.2x) compared to the South American Real Estate industry average (5x)

Price to Sales Ratio vs Fair Ratio

What is IRSA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IRSA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	6.2x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate IRSA's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of IRSA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IRSA (ARS124.75) is trading above our estimate of fair value (ARS3.92)

Significantly Below Fair Value: IRSA is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is IRSA Inversiones y Representaciones Sociedad Anónima forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

45.1%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if IRSA's forecast earnings growth is above the savings rate (7.7%).

Earnings vs Market: Insufficient data to determine if IRSA's earnings are forecast to grow faster than the AR market

High Growth Earnings: Insufficient data to determine if IRSA's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IRSA's revenue (45.1% per year) is forecast to grow faster than the AR market (21% per year).

High Growth Revenue: IRSA's revenue (45.1% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if IRSA's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has IRSA Inversiones y Representaciones Sociedad Anónima performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

4.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IRSA is currently unprofitable.

Growing Profit Margin: IRSA is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: IRSA is unprofitable, but has reduced losses over the past 5 years at a rate of 4.2% per year.

Accelerating Growth: Unable to compare IRSA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IRSA is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (35.7%).

Return on Equity

High ROE: IRSA has a negative Return on Equity (-5.4%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is IRSA Inversiones y Representaciones Sociedad Anónima's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: IRSA's short term assets (ARS18.0B) do not cover its short term liabilities (ARS25.0B).

Long Term Liabilities: IRSA's short term assets (ARS18.0B) do not cover its long term liabilities (ARS140.3B).

Debt to Equity History and Analysis

Debt Level: IRSA's net debt to equity ratio (45.4%) is considered high.

Reducing Debt: IRSA's debt to equity ratio has reduced from 586.8% to 49.9% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable IRSA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: IRSA is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 11.4% per year.

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Dividend

What is IRSA Inversiones y Representaciones Sociedad Anónima current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

IRSA Inversiones y Representaciones Sociedad Anónima Dividend Yield vs Market

How does IRSA Inversiones y Representaciones Sociedad Anónima dividend yield compare to the market?
Segment	Dividend Yield
Company (IRSA Inversiones y Representaciones Sociedad Anónima)	0%
Market Bottom 25% (AR)	0.7%
Market Top 25% (AR)	4.5%
Industry Average (Real Estate)	4.3%
Analyst forecast in 3 Years (IRSA Inversiones y Representaciones Sociedad Anónima)	n/a

Notable Dividend: Unable to evaluate IRSA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate IRSA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IRSA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IRSA's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: IRSA is not paying a notable dividend for the AR market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as IRSA has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure

CEO

Eduardo Sergio Elsztain (62 yo)

31.67yrs

Tenure

Mr. Eduardo Sergio Elsztain serves as Non-Executive Vice-Chairman at Austral Gold Limited since August 2020. He served as Chief Executive Officer and Director at Property and Building Corp. Ltd in November...

Leadership Team

Experienced Management: IRSA's management team is considered experienced (2.8 years average tenure).

Board Members

Experienced Board: IRSA's board of directors are seasoned and experienced ( 16.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

What is the ownership structure of IRSA?
Owner Type	Number of Shares	Ownership Percentage
Private Companies	0	0%
Individual Insiders	10,682,536	1.3%
Hedge Funds	48,879,200	6.0%
Institutions	100,048,395	12.4%
General Public	214,994,151	26.6%
Public Companies	434,263,346	53.7%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 23.2%.

Top Shareholders

Top 25 shareholders own 73.34% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
53.69%	Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria	434,263,346	ARS54.2b	102.31%	no data
6.04%	683 Capital Management, LLC	48,879,200	ARS6.1b	43.03%	1.35%
3.67%	Argentine Social Security Administration	29,696,047	ARS3.7b	0%	0.79%
2.89%	Vr Advisory Services Ltd.	23,361,710	ARS2.9b	9.31%	3.37%
2.83%	Macquarie Investment Management Business Trust	22,915,750	ARS2.9b	8.43%	0.01%
0.97%	Autonomy Capital Research LLP	7,860,580	ARS980.6m	25.26%	13.35%
0.9%	Eduardo Sergio Elsztain	7,315,145	ARS912.6m	-92.36%	no data
0.43%	City of London Investment Management Company Limited	3,489,230	ARS435.3m	0%	0.03%
0.32%	Alejandro Gustavo Elsztain	2,594,464	ARS323.7m	0%	no data
0.32%	Eaton Vance Management	2,573,820	ARS321.1m	10.94%	no data
0.22%	Perry Creek Capital LP	1,795,100	ARS223.9m	9.38%	0.17%
0.17%	Goldman Sachs Asset Management, L.P.	1,408,970	ARS175.8m	10.67%	no data
0.16%	Consultores Asset Management	1,263,190	ARS157.6m	156.22%	63.12%
0.15%	BTG Pactual Asset Management S.A. Distribuidora de Títulos e Valores Mobiliários	1,197,660	ARS149.4m	35.66%	0.01%
0.099%	SEI Investments Company	797,990	ARS99.5m	9.37%	no data
0.089%	Millennium Management LLC	722,080	ARS90.1m	285.99%	no data
0.083%	Mirae Asset Global Investments Co., Ltd	673,680	ARS84.0m	13.24%	no data
0.067%	Saul Zang	540,311	ARS67.4m	0%	no data
0.047%	Voya Investment Management LLC	383,980	ARS47.9m	10.97%	no data
0.046%	Delta Asset Management S.A.	368,957	ARS46.0m	0%	1.84%
0.043%	Clear Harbor Asset Management, LLC	351,520	ARS43.9m	49.93%	0.02%
0.028%	Bankhaus Ellwanger & Geiger, Asset Management Arm	222,430	ARS27.7m	0%	0.22%
0.023%	Matias Ivan Gaivironsky	182,258	ARS22.7m	0%	no data
0.022%	Envestnet Asset Management, Inc.	180,750	ARS22.5m	-49.53%	no data
0.022%	Freestone Capital Management, LLC	180,030	ARS22.5m	-7.6%	no data

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
IRSA	BASE (Buenos Aires Stock Exchange)	Yes	Common Shares	AR	ARS	Oct 1993
IRS	NYSE (New York Stock Exchange)		GLOBL DEP RCPT	US	USD	Dec 1994

Data	Last Updated (UTC time)
Company Analysis	2022/10/01 00:00
End of Day Share Price	2022/09/30 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30