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IRSA Inversiones y Representaciones Sociedad Anónima

Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.

Share Price & News

How has IRSA Inversiones y Representaciones Sociedad Anónima's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IRS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.8%

IRS

5.4%

US Real Estate

1.1%

US Market


1 Year Return

-62.1%

IRS

-23.6%

US Real Estate

4.6%

US Market

Return vs Industry: IRS underperformed the US Real Estate industry which returned -27.6% over the past year.

Return vs Market: IRS underperformed the US Market which returned 4.1% over the past year.


Shareholder returns

IRSIndustryMarket
7 Day-4.8%5.4%1.1%
30 Day25.4%4.7%5.5%
90 Day-33.2%-31.2%-4.9%
1 Year-61.3%-62.1%-23.1%-23.6%7.0%4.6%
3 Year-84.3%-85.3%-21.5%-23.2%28.6%20.1%
5 Year-79.3%-80.7%-30.3%-32.4%52.5%35.3%

Price Volatility Vs. Market

How volatile is IRSA Inversiones y Representaciones Sociedad Anónima's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is IRSA Inversiones y Representaciones Sociedad Anónima undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IRS ($3.65) is trading below our estimate of fair value ($8.87)

Significantly Below Fair Value: IRS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IRS is unprofitable, so we can't compare its PE Ratio to the Real Estate industry average.

PE vs Market: IRS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IRS is good value based on its PB Ratio (0.7x) compared to the US Real Estate industry average (1x).


Next Steps

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?

103.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IRS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: IRS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IRS's is expected to become profitable in the next 3 years.

Revenue vs Market: IRS's revenue is expected to decline over the next 3 years (-56% per year).

High Growth Revenue: IRS's revenue is forecast to decline over the next 3 years (-56% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IRS's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

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

-62.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRS is currently unprofitable.

Growing Profit Margin: IRS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IRS is unprofitable, and losses have increased over the past 5 years at a rate of -62.6% per year.

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

Earnings vs Industry: IRS is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-6.4%).


Return on Equity

High ROE: IRS has a negative Return on Equity (-34.04%), as it is currently unprofitable.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: IRS's short term assets (ARS138.8B) exceed its short term liabilities (ARS109.3B).

Long Term Liabilities: IRS's short term assets (ARS138.8B) do not cover its long term liabilities (ARS310.9B).


Debt to Equity History and Analysis

Debt Level: IRS's debt to equity ratio (383.9%) is considered high.

Reducing Debt: IRS's debt to equity ratio has increased from 212.9% to 383.9% 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 IRS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: IRS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 44.9% per year.


Next Steps

Dividend

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

5.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IRS's dividend (5.6%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: IRS's dividend (5.6%) is in the top 25% of dividend payers in the US market (4.73%)


Stability and Growth of Payments

Stable Dividend: IRS's dividend payments have been volatile in the past 10 years.

Growing Dividend: IRS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: IRS is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Eduardo Sergio Elsztain (59yo)

29.33yrs

Tenure

Mr. Eduardo Sergio Elsztain serves as Chairman Property and Building Corp. Ltd. and serves as its Acting Chief Executive Officer since May 7, 2019. Mr. Elsztain is Chairman of IRSA Inversiones y Representa ...


Leadership Team

NamePositionTenureCompensationOwnership
Eduardo Sergio Elsztain
Chairman29.33yrsno data11.75% ARS43.0m
Saul Zang
First Vice Chairman & Acting President11.33yrsno datano data
Matias Ivan Gaivironsky
Chief Financial & Administrative Officer8.42yrsno data0.0075% ARS27.5k
Daniel Elsztain
Chief Real Estate Operating Officer13.33yrsno data0.017% ARS63.7k
Arnaldo Jawerbaum
Chief Investment Officer2.5yrsno datano data
Gil Kotler
Chief Financial Officer of Israel4.33yrsno datano data
Eran Saar
Chief Executive Officer of Israel0.42yrno datano data

6.3yrs

Average Tenure

53yo

Average Age

Experienced Management: IRS's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eduardo Sergio Elsztain
Chairman29.33yrsno data11.75% ARS43.0m
Saul Zang
First Vice Chairman & Acting President11.33yrsno datano data
Daniel Elsztain
Chief Real Estate Operating Officer13.33yrsno data0.017% ARS63.7k
Fernando Adrian Elsztain
Regular Director21.33yrsno datano data
Alejandro Gustavo Elsztain
Second Vice-Chairman13.33yrsno data0.40% ARS1.5m
Marcos Fischman
Regular Director17.33yrsno datano data
Cedric David Bridger
Independent Regular Director17.33yrsno datano data
Mario I. Blejer
Independent Regular Director14.75yrsno datano data
Carlos Ricardo Esteves
Independent Regular Director15.33yrsno datano data
Mauricio Elías Wior
Regular Director14.33yrsno datano data

15.0yrs

Average Tenure

61yo

Average Age

Experienced Board: IRS's board of directors are seasoned and experienced ( 15 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

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


Top Shareholders

Company Information

IRSA Inversiones y Representaciones Sociedad Anónima's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IRSA Inversiones y Representaciones Sociedad Anónima
  • Ticker: IRS
  • Exchange: NYSE
  • Founded: 1943
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: AR$24.988b
  • Listing Market Cap: AR$366.035m
  • Shares outstanding: 573.77m
  • Website: https://www.irsa.com.ar

Number of Employees


Location

  • IRSA Inversiones y Representaciones Sociedad Anónima
  • Intercontinental Plaza Tower
  • Moreno 877
  • Buenos Aires
  • Capital Federal
  • C1091AAQ
  • Argentina

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IRSABASE (Buenos Aires Stock Exchange)YesCommon SharesARARSOct 1993
IRSNYSE (New York Stock Exchange)GLOBL DEP RCPTUSUSDDec 1994

Biography

IRSA Inversiones y Representaciones Sociedad Anónima engages in the diversified real estate activities in Argentina. It is involved in the acquisition, development, and operation of shopping malls, office buildings, and other non-shopping mall properties primarily for rental purposes. The company also acquires and operates hotels; develops and sells residential properties; and acquires undeveloped land reserves for future development or sale. In addition, it engages in the consumer finance operations. The company was founded in 1943 and is headquartered in Buenos Aires, Argentina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 11:43
End of Day Share Price2020/05/26 00:00
Earnings2019/12/31
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.