NasdaqCM:INTG

Stock Analysis Report

Executive Summary

The InterGroup Corporation, through its subsidiaries, operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California.

Rewards

Trading at 13.9% below its fair value

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Profit margins (1.6%) are lower than last year (7%)

Does not have a meaningful market cap ($83M)



Snowflake Analysis

Overvalued with poor track record.


Similar Companies

Monmouth Real Estate Investment

NYSE:MNR

Share Price & News

How has InterGroup's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: INTG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.3%

INTG

1.8%

US Real Estate

1.1%

US Market


1 Year Return

7.7%

INTG

19.5%

US Real Estate

17.8%

US Market

Return vs Industry: INTG underperformed the US Real Estate industry which returned 19.5% over the past year.

Return vs Market: INTG underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

INTGIndustryMarket
7 Day0.3%1.8%1.1%
30 Day11.7%4.0%1.4%
90 Day21.5%6.0%3.9%
1 Year7.7%7.7%20.5%19.5%20.3%17.8%
3 Year35.8%35.8%31.6%28.4%44.8%35.4%
5 Year107.6%107.6%18.4%14.5%71.3%52.4%

Price Volatility Vs. Market

How volatile is InterGroup's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is InterGroup undervalued compared to its fair value and its price relative to the market?

13.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INTG ($36.22) is trading below our estimate of fair value ($42.05)

Significantly Below Fair Value: INTG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: INTG is poor value based on its PE Ratio (72.3x) compared to the Real Estate industry average (24.9x).

PE vs Market: INTG is poor value based on its PE Ratio (72.3x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate INTG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: INTG has negative assets, so we can't compare its PB Ratio to the US Real Estate industry average.


Next Steps

Future Growth

How is InterGroup forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.1%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as InterGroup has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has InterGroup performed over the past 5 years?

26.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INTG has a large one-off loss of $2.5M impacting its September 30 2019 financial results.

Growing Profit Margin: INTG's current net profit margins (1.6%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: INTG has become profitable over the past 5 years, growing earnings by 26.5% per year.

Accelerating Growth: INTG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: INTG had negative earnings growth (-77.3%) over the past year, making it difficult to compare to the Real Estate industry average (-25%).


Return on Equity

High ROE: INTG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is InterGroup's financial position?


Financial Position Analysis

Short Term Liabilities: INTG has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: INTG has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: INTG has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: INTG's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: INTG's debt is not well covered by operating cash flow (7.3%).

Interest Coverage: INTG's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

Inventory Level: INTG has a high level of physical assets or inventory.

Debt Coverage by Assets: INTG has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is InterGroup's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of INTG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of InterGroup's salary, the management and board of directors tenure and is there insider trading?

21.9yrs

Average board tenure


CEO

John Winfield (72yo)

32.9yrs

Tenure

US$908,000

Compensation

Mr. John V. Winfield serves as the Chairman, President and Chief Executive Officer at Portsmouth Square Inc. since May 1996. Mr. John V. Winfield has been the Chairman, Chief Executive Officer and Presiden ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD908.00K) is above average for companies of similar size in the US market ($USD529.29K).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Board Age and Tenure

21.9yrs

Average Tenure

75yo

Average Age

Experienced Board: INTG's board of directors are seasoned and experienced ( 21.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$74,16022 May 19
William Nance
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,400
Max PriceUS$30.90

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • John Winfield (72yo)

    Chairman

    • Tenure: 32.9yrs
    • Compensation: US$908.00k
  • Stacy Xu (33yo)

    Principal Financial Officer

    • Tenure: 2.2yrs
    • Compensation: US$152.00k

Board Members

  • Bill Nance (75yo)

    Independent Director

    • Tenure: 35.9yrs
    • Compensation: US$56.00k
  • John Winfield (72yo)

    Chairman

    • Tenure: 32.9yrs
    • Compensation: US$908.00k
  • John Love (78yo)

    Independent Director

    • Tenure: 21.9yrs
    • Compensation: US$54.00k
  • Jerold R. Babin (86yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$44.00k
  • Yvonne Murphy (62yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$36.00k

Company Information

The InterGroup Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The InterGroup Corporation
  • Ticker: INTG
  • Exchange: NasdaqCM
  • Founded: 1965
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: US$83.275m
  • Shares outstanding: 2.30m
  • Website: https://www.intgla.com

Number of Employees


Location

  • The InterGroup Corporation
  • 12121 Wilshire Boulevard
  • Suite 610
  • Los Angeles
  • California
  • 90025
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INTGNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJan 1980

Biography

The InterGroup Corporation, through its subsidiaries, operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California. It operates through three segments: Hotel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:39
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.