Irsa Inversiones Y Representaciones SA (IRS) AI Stock Analysis

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Irsa Inversiones Y Representaciones SA

(NYSE:IRS)

Rating:65Neutral

Price Target:

$15.50

▲( 0.00% Upside)

IRSA's overall stock score reflects strong technical momentum and positive developments from the latest earnings call, which highlight a financial recovery and strategic achievements. However, persistent profitability challenges and a negative P/E ratio weigh on the valuation, balancing the score around the mid-range.

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

Market Cap

$1.19B

Dividend Yield6.22%

Average Volume (3M)139.90K

Price to Earnings (P/E)8.4

Beta (1Y)0.36

Revenue Growth-0.52%

EPS GrowthN/A

CountryUS

Employees1,289

SectorReal Estate

Sector Strength64

IndustryConglomerates

Share Statistics

EPS (TTM)0.98

Shares Outstanding75,769,966

10 Day Avg. Volume116,260

30 Day Avg. Volume139,898

Financial Highlights & Ratios

PEG Ratio>-0.01

Price to Book (P/B)0.11

Price to Sales (P/S)0.00

P/FCF Ratio1.02

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 an Argentine company primarily engaged in the real estate sector. The company focuses on the acquisition, development, and management of properties, including commercial real estate such as shopping malls, office buildings, and hotels. Additionally, IRSA is involved in the development of residential projects and holds interests in various real estate investments across Argentina and other countries.

How the Company Makes MoneyIRSA generates revenue through multiple streams, primarily from leasing and managing its portfolio of commercial properties, which include shopping malls and office spaces. The company earns rental income from tenants occupying these properties. Additionally, IRSA develops and sells residential properties, contributing to its revenue through property sales. The company also benefits from strategic partnerships and joint ventures that enhance its real estate development projects, providing further income opportunities. Other significant factors contributing to its earnings include property appreciation and capital gains from the sale of real estate assets.

Irsa Inversiones Y Representaciones SA Financial Statement Overview

Summary

Irsa Inversiones Y Representaciones SA shows strong revenue growth and a stable balance sheet. However, profitability remains a concern with negative margins in recent periods, necessitating operational improvements. The company's cash flow position is solid, although there are fluctuations in operational performance.

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 Price15.50

Price Trends

50DMA

13.93

Positive

100DMA

14.15

Positive

200DMA

13.17

Positive

Market Momentum

MACD

0.49

Negative

RSI

61.51

Neutral

STOCH

47.83

Neutral

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 15.5 is above the 20-day moving average (MA) of 14.80, above the 50-day MA of 13.93, and above the 200-day MA of 13.17, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 61.51 is Neutral, neither overbought nor oversold. The STOCH value of 47.83 is Neutral, 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRS	65 Neutral	$1.19B	8.37	11.71%	6.22%	-0.52%	―
Sector *	60 Neutral	$2.76B	10.33	0.49%	8508.28%	5.95%	-17.56%
CODI	58 Neutral	$554.49M	―	-4.98%	13.57%	6.77%	9.95%
SPLP	58 Neutral	$748.07M	3.49	24.14%	―	5.83%	72.33%
FIP	55 Neutral	$626.60M	―	-6.42%	2.20%	5.70%	36.39%
TRC	49 Neutral	$438.43M	204.64	0.46%	―	7.04%	268.20%
CRESY	48 Neutral	$742.03M	6.90	12.81%	7.89%	-3.07%	-18.57%

* Real Estate Sector Average

Performance Comparison

IRS

Irsa Inversiones Y Representaciones SA

15.50

6.20

66.67%

CODI

Compass Diversified Holdings

7.37

-13.96

-65.45%

CRESY

Cresud Sociedad

12.07

3.28

37.32%

SPLP

Steel Partners Holdings

39.06

0.93

2.44%

TRC

Tejon Ranch Company

16.31

-1.72

-9.54%

FIP

FTAI Infrastructure Incorporation

5.46

-2.98

-35.31%

Irsa Inversiones Y Representaciones SA Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q3-2025)

% Change Since: 9.54%|

Next Earnings Date:Sep 09, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial recovery, record performance in shopping malls, and successful capital market activities. However, challenges remain in the hotel segment and currency-related valuation impacts. Overall, the company's positive trends seem to outweigh the lowlights.

Q3-2025 Updates

Positive Updates

Reversal of Previous Losses

The company posted a gain of ARS35 billion, reversing a loss of ARS40 billion from the previous six months.

Record High EBITDA for Malls

In the last 12 months in dollar terms, the company achieved a record high EBITDA for malls over the last 10 years, reaching almost $160 million.

Occupancy and Tenant Sales Growth

Shopping malls achieved a 98.1% occupancy rate, and tenant sales increased by 13.4% compared to the same quarter in 2024.

Successful International Bond Issuance

The company issued 10-year notes for $300 million at a yield of 8.5%, marking their return to the international capital markets since 2016.

Progress in Ramblas Del Plata Project

Since launching nine months ago, two parcels were sold for $23.4 million, and swaps for another nine parcels totaling $42.7 million were signed.

Negative Updates

Drop in Hotel Revenues

The hotel segment faced a decline in revenues and occupancy due to reduced international tourism and currency depreciation.

Adjusted EBITDA Drop

The adjusted EBITDA for the rental segment experienced a 4.9% drop, mainly triggered by the hotel segment.

Impact of Currency Appreciation

Appreciation of the peso led to valuation losses in investment properties, affecting net income figures.

Company Guidance

During the third quarter of fiscal year 2025, IRSA reported a gain of ARS35 billion, reversing a loss of ARS40 billion from the prior six months. Tenant sales increased by 13.4% year-over-year, and the company's shopping malls achieved a record high EBITDA in dollar terms for the past decade, with an occupancy rate of 98.1%. Despite a drop in hotel revenues, the hotels maintained an average occupancy rate of 65%, although affected by construction works. The company also successfully issued $300 million in notes for ten years, demonstrating robust access to international capital markets. Additionally, IRSA's ambitious Ramblas Del Plata project has seen significant commercialization progress, with sales and swaps reaching $166.1 million, indicating strong market interest. Management remains optimistic about future growth, supported by a conservative debt structure with a leverage ratio of 1.3 times EBITDA and an LTV of 10%.

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.