Irsa Inversiones Y Representaciones SA (IRS) AI Stock Analysis

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Irsa Inversiones Y Representaciones SA

(NYSE:IRS)

56Neutral

IRSA's overall score reflects strong revenue growth and solid cash flow, offset by profitability concerns due to negative margins. The technical analysis suggests stabilization, while the valuation is hindered by a negative P/E ratio but supported by a high dividend yield. The earnings call highlights a mix of strategic progress and operational challenges.

Irsa Inversiones Y Representaciones SA (IRS) vs. S&P 500 (SPY)

Market Cap

$1.09B

Dividend Yield6.59%

Average Volume (3M)144.53K

Price to Earnings (P/E)―

Beta (1Y)0.51

Revenue Growth-9.69%

EPS Growth-172.08%

CountryUS

Employees1,289

SectorReal Estate

Sector Strength79

IndustryConglomerates

Share Statistics

EPS (TTM)-4.14

Shares Outstanding75,769,966

10 Day Avg. Volume205,188

30 Day Avg. Volume144,529

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)3.45

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Irsa Inversiones Y Representaciones SA Business Overview & Revenue Model

Company DescriptionIrsa Inversiones y Representaciones SA (IRS) is a leading real estate company in Argentina, specializing in the development, ownership, and management of a diversified portfolio of properties. The company's core operations span across commercial real estate, including shopping malls, office buildings, and hotels, as well as residential developments. IRS is known for its strategic investments in high-demand urban areas, catering to both retail and corporate clients.

How the Company Makes MoneyIRS generates revenue primarily through rental income from its extensive portfolio of commercial properties, including shopping centers and office spaces. The company also earns money through the sale and development of residential and commercial real estate projects. Additionally, IRS benefits from its investments in hospitality, generating income from hotel operations. Key revenue streams include long-term lease agreements, property sales, and hospitality services. Strategic partnerships with retailers and corporate clients enhance the occupancy rates and value of their properties, contributing significantly to their earnings.

Irsa Inversiones Y Representaciones SA Financial Statement Overview

Summary

IRSA's financial performance shows strong revenue growth and a stable balance sheet, but profitability concerns persist due to negative margins. The cash flow position is solid, yet operational performance fluctuates.

Income Statement

Neutral

The company has experienced significant revenue growth over the years, notably a dramatic increase from 2020 to the current TTM period. However, margins have been under pressure, with the latest TTM data showing negative EBIT and EBITDA margins, indicating operational challenges. Net profit margins have also been negative in recent periods, reflecting profitability concerns.

Balance Sheet

Neutral

Irsa Inversiones Y Representaciones SA maintains a relatively strong equity position with an improving debt-to-equity ratio over time. However, the company still carries a substantial amount of debt, posing potential risks. The equity ratio has been stable, providing some assurance of financial stability.

Cash Flow

Neutral

The company shows a robust free cash flow, which has grown in recent periods, indicating good cash generation ability. However, the operating cash flow to net income ratio has fluctuated, reflecting inconsistent operational performance. Despite these fluctuations, the free cash flow to net income ratio demonstrates a capacity to generate cash relative to reported earnings.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
380.95B	328.55B	89.28B	32.09B	12.98B	95.79B
	Gross Profit
237.50B	219.31B	58.48B	19.97B	6.41B	33.59B
	EBIT
-23.66B	-204.44B	-21.69B	12.59B	1.91B	22.07B
	EBITDA
-392.51B	-33.23B	39.01B	13.52B	-3.78B	98.50B
	Net Income Common Stockholders
-274.99B	-29.13B	60.24B	34.55B	-28.67B	5.65B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
186.06B	148.96B	43.15B	31.22B	5.10B	113.17B
	Total Assets
2.50T	2.24T	711.61B	372.79B	222.78B	627.20B
	Total Debt
455.48B	377.70B	110.96B	75.96B	63.04B	394.40B
	Net Debt
418.82B	349.41B	102.22B	63.19B	61.11B	304.05B
	Total Liabilities
1.27T	1.09T	324.34B	203.06B	140.06B	504.54B
	Stockholders Equity
1.16T	1.08T	364.94B	158.85B	61.83B	57.13B
Cash Flow		Free Cash Flow
123.02B	99.45B	35.56B	12.28B	1.10B	22.17B
	Operating Cash Flow
130.15B	103.50B	36.49B	12.68B	1.46B	31.11B
	Investing Cash Flow
14.10B	83.25B	26.44B	11.20B	67.88B	40.64B
	Financing Cash Flow
-139.17B	-190.94B	-81.12B	-13.66B	-48.84B	-76.13B

Irsa Inversiones Y Representaciones SA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price13.82

Price Trends

50DMA

13.36

Positive

100DMA

14.52

Negative

200DMA

12.40

Positive

Market Momentum

MACD

0.11

Negative

RSI

54.50

Neutral

STOCH

85.77

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRS, the sentiment is Positive. The current price of 13.82 is above the 20-day moving average (MA) of 13.13, above the 50-day MA of 13.36, and above the 200-day MA of 12.40, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 54.50 is Neutral, neither overbought nor oversold. The STOCH value of 85.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRS.

Irsa Inversiones Y Representaciones SA Risk Analysis

Irsa Inversiones Y Representaciones SA disclosed 147 risk factors in its most recent earnings report. Irsa Inversiones Y Representaciones SA reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Irsa Inversiones Y Representaciones SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CODI	63 Neutral	$1.25B	―	-4.98%	6.04%	6.77%	9.95%
Sector *	59 Neutral	$2.69B	11.49	0.09%	8679.75%	5.56%	-16.50%
IRS	56 Neutral	$1.09B	―	-30.83%	6.59%	-9.69%	-172.08%
SPLP	55 Neutral	$593.65M	2.78	25.02%	―	6.37%	86.42%
TRC	55 Neutral	$444.94M	165.43	0.57%	―	-6.38%	-17.99%
FIP	47 Neutral	$406.77M	―	-32.63%	3.36%	3.44%	-52.51%
CRESY	46 Neutral	$747.46M	―	-8.05%	7.68%	-3.06%	-124.82%

* Real Estate Sector Average

Performance Comparison

IRS

Irsa Inversiones Y Representaciones SA

13.82

5.19

60.14%

CODI

Compass Diversified Holdings

15.92

-5.94

-27.17%

CRESY

Cresud Sociedad

11.60

2.83

32.27%

SPLP

Steel Partners Holdings

33.40

-3.35

-9.12%

TRC

Tejon Ranch Company

16.53

-0.04

-0.24%

FIP

FTAI Infrastructure Incorporation

3.48

-3.50

-50.14%

Irsa Inversiones Y Representaciones SA Earnings Call Summary

Earnings Call Date: Feb 7, 2025 | % Change Since: -1.99% | Next Earnings Date: May 13, 2025

Earnings Call Sentiment Neutral

The call presented a mix of positive developments, such as strong recovery in shopping malls and office segment performance, alongside significant challenges, including a reported net loss and weaker hotel segment performance. Despite these challenges, the strategic acquisitions and project milestones point towards a positive outlook.

Highlights

Shopping Malls Recovery

Shopping malls have shown a steady recovery in occupancy and tenant sales, increasing by 21.4% in the second quarter of 2025 compared to the previous quarter.

Office Segment Performance

The office segment achieved full occupancy of the premium portfolio, with stable rent levels at $25 per square meter per month.

Terrazas De Mayo Acquisition

Completed the acquisition of the 16th mall, Terrazas De Mayo, adding almost 34,000 square meters of GLA to the portfolio.

Ramblas Del Plata Project Progress

Achieved a major milestone with the sale of the first two plots of the Ramblas Del Plata project for $23.4 million.

Dividend Payment

Paid dividends with a yield of 8%, demonstrating strong shareholder returns.

Lowlights

Net Loss Reported

Reported a net loss of 41 billion Pesos mainly due to non-cash effects from the appraisal of investment properties.

Hotel Segment Challenges

Experienced weaker results in the hotel segment with occupancy declining from 72% to 67% and lower revenues.

Decline in Tenant Sales

Despite quarterly improvements, tenant sales were still 8.5% below compared to the same quarter last year.

Company Guidance

During the call, IRSA presented its second quarter results for fiscal year 2025, highlighting several key metrics. The company reported a net loss of 41 billion pesos, primarily due to non-cash effects from the appraisal of investment properties. Shopping mall occupancy remained high at nearly 98%, and tenant sales increased by 21.4% compared to the previous quarter, although still 8.5% below the same quarter last year. The office segment achieved full occupancy, while hotel occupancy and revenues saw a decline, with occupancy dropping from 72% to 67%. IRSA also completed the acquisition of Terrazas De Mayo, adding 34,000 square meters of GLA to its portfolio. The company paid dividends with an 8% yield and maintained a conservative net debt of $255 million, reflecting a net debt to EBITDA ratio of 1.6 times and an LTV of 12%. Additionally, IRSA sold two plots of its Ramblas Del Plata project for $23.4 million and expects to generate $120 million from sales of 14 swaps.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.