MeritValue

INCOME OPPORTUNITY REALTY INVESTORS INC /TX/

IORdata completeness 63%17 fiscal years on file

Data notes: no data for concept 'revenue'; no data for concept 'totalDebt'

The thesis, from the filings

INCOME OPPORTUNITY REALTY INVESTORS INC /TX/ earns about 4% on equity, and has bought back 2% of its shares over 5 years. The applicable estimate puts fair value near $10.17 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue—————
Net income$3.6M1$3.93M2$7M3$4.65M3$3.99M3
Operating cash flow−$2.98M4$4,0005$973,0006$713,0006−$77,0006
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$2,0007$6,0008$71,0009$9,00010$6,00010
Diluted shares4.2M4.2M4.2M4.1M4.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$309.67
your share of equity
Profit it earned you last year
$9.81
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $309.67 of net worth that earned you $9.81 last year.

iii. Is this a good business?
Moat signal · return on equity
4% avg · 5y
FY21 3%FY22 4%FY23 6%FY24 4%FY25 3%

It earned an average 4% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−2% shares · 5y

Share count is down 2% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$10.17
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$3.99M
  • growthAssumed0.0%
Graham Number
$26.13
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001999371-24-003780 (NetIncomeLoss)
  2. 10-K · period ending 2022-12-31 · accession 0001999371-25-002901 (NetIncomeLoss)
  3. 10-K · period ending 2023-12-31 · accession 0001999371-26-005688 (NetIncomeLoss)
  4. 10-K · period ending 2021-12-31 · accession 0001999371-24-003780 (NetCashProvidedByUsedInOperatingActivities)
  5. 10-K · period ending 2022-12-31 · accession 0001999371-25-002901 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2023-12-31 · accession 0001999371-26-005688 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2021-12-31 · accession 0001387131-23-003916 (CashAndCashEquivalentsAtCarryingValue)
  8. 10-K · period ending 2022-12-31 · accession 0001999371-24-003780 (CashAndCashEquivalentsAtCarryingValue)
  9. 10-K · period ending 2023-12-31 · accession 0001999371-25-002901 (CashAndCashEquivalentsAtCarryingValue)
  10. 10-K · period ending 2024-12-31 · accession 0001999371-26-005688 (CashAndCashEquivalentsAtCarryingValue)