AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMH - US02665T3068 - REIT
32.08 USD
+0.19 (+0.6%)
32.34 USD
+0.26 (+0.81%)
Taking everything into account, AMH scores 4 out of 10 in our fundamental rating. AMH was compared to 20 industry peers in the Residential REITs industry. While AMH belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, AMH is valued expensive at the moment. AMH also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
AMH had positive earnings in the past year.
AMH had a positive operating cash flow in the past year.
In the past 5 years AMH has always been profitable.
In the past 5 years AMH always reported a positive cash flow from operatings.
1.2 Ratios
AMH has a Return On Assets of 3.30%. This is in the better half of the industry: AMH outperforms 65.00% of its industry peers.
The Return On Equity of AMH (6.11%) is better than 65.00% of its industry peers.
AMH's Return On Invested Capital of 2.84% is fine compared to the rest of the industry. AMH outperforms 65.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMH is in line with the industry average of 2.59%.
The 3 year average ROIC (2.43%) for AMH is below the current ROIC(2.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 6.11% | ||
| ROIC | 2.84% |
ROA(3y)2.63%
ROA(5y)2%
ROE(3y)4.88%
ROE(5y)3.67%
ROIC(3y)2.43%
ROIC(5y)2.3%
1.3 Margins
AMH has a Profit Margin of 23.87%. This is in the better half of the industry: AMH outperforms 65.00% of its industry peers.
In the last couple of years the Profit Margin of AMH has grown nicely.
With a decent Operating Margin value of 24.85%, AMH is doing good in the industry, outperforming 65.00% of the companies in the same industry.
AMH's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 56.70%, AMH is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AMH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.85% | ||
| PM (TTM) | 23.87% | ||
| GM | 56.7% |
OM growth 3Y2.7%
OM growth 5Y2.51%
PM growth 3Y30.47%
PM growth 5Y24.86%
GM growth 3Y0.81%
GM growth 5Y0.84%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AMH is destroying value.
AMH has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AMH has been increased compared to 5 years ago.
Compared to 1 year ago, AMH has a worse debt to assets ratio.
2.2 Solvency
AMH has an Altman-Z score of 1.34. This is a bad value and indicates that AMH is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.34, AMH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
AMH has a Debt/Equity ratio of 0.68. This is a neutral value indicating AMH is somewhat dependend on debt financing.
AMH has a better Debt to Equity ratio (0.68) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.34 |
ROIC/WACC0.41
WACC6.89%
2.3 Liquidity
A Current Ratio of 0.18 indicates that AMH may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.18, AMH is doing worse than 65.00% of the companies in the same industry.
AMH has a Quick Ratio of 0.18. This is a bad value and indicates that AMH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AMH (0.18) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.92% over the past year.
The Earnings Per Share has been growing by 30.08% on average over the past years. This is a very strong growth
Looking at the last year, AMH shows a very negative growth in Revenue. The Revenue has decreased by -13.77% in the last year.
AMH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.83% yearly.
EPS 1Y (TTM)22.92%
EPS 3Y39.25%
EPS 5Y30.08%
EPS Q2Q%35%
Revenue 1Y (TTM)-13.77%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%7.51%
3.2 Future
The Earnings Per Share is expected to decrease by -9.65% on average over the next years.
Based on estimates for the next years, AMH will show a small growth in Revenue. The Revenue will grow by 7.32% on average per year.
EPS Next Y-17.82%
EPS Next 2Y-16.62%
EPS Next 3Y-9.65%
EPS Next 5YN/A
Revenue Next Year7.96%
Revenue Next 2Y5.99%
Revenue Next 3Y5.6%
Revenue Next 5Y7.32%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
AMH is valuated quite expensively with a Price/Earnings ratio of 27.19.
Based on the Price/Earnings ratio, AMH is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
AMH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.84.
A Price/Forward Earnings ratio of 42.73 indicates a quite expensive valuation of AMH.
Based on the Price/Forward Earnings ratio, AMH is valued a bit cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AMH to the average of the S&P500 Index (23.40), we can say AMH is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 42.73 |
4.2 Price Multiples
70.00% of the companies in the same industry are more expensive than AMH, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.49 |
4.3 Compensation for Growth
The decent profitability rating of AMH may justify a higher PE ratio.
A cheap valuation may be justified as AMH's earnings are expected to decrease with -9.65% in the coming years.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y-16.62%
EPS Next 3Y-9.65%
5. Dividend
5.1 Amount
AMH has a Yearly Dividend Yield of 6.50%, which is a nice return.
AMH's Dividend Yield is a higher than the industry average which is at 11.48.
AMH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.5% |
5.2 History
The dividend of AMH is nicely growing with an annual growth rate of 22.99%!
AMH has been paying a dividend for at least 10 years, so it has a reliable track record.
AMH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)22.99%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
101.80% of the earnings are spent on dividend by AMH. This is not a sustainable payout ratio.
AMH's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP101.8%
EPS Next 2Y-16.62%
EPS Next 3Y-9.65%
32.08
+0.19 (+0.6%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners90.21%
Inst Owner Change0.14%
Ins Owners5.99%
Ins Owner Change0.16%
Market Cap11.91B
Revenue(TTM)1.83B
Net Income(TTM)437.21M
Analysts75
Price Target38.43 (19.79%)
Short Float %3.3%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.5% |
Yearly Dividend1.08
Dividend Growth(5Y)22.99%
DP101.8%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)77.09%
Min EPS beat(2)68.13%
Max EPS beat(2)86.06%
EPS beat(4)4
Avg EPS beat(4)92.82%
Min EPS beat(4)68.13%
Max EPS beat(4)116.38%
EPS beat(8)8
Avg EPS beat(8)83.5%
EPS beat(12)12
Avg EPS beat(12)100.84%
EPS beat(16)16
Avg EPS beat(16)83.76%
Revenue beat(2)2
Avg Revenue beat(2)1.29%
Min Revenue beat(2)1.26%
Max Revenue beat(2)1.31%
Revenue beat(4)3
Avg Revenue beat(4)0.62%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)1.31%
Revenue beat(8)6
Avg Revenue beat(8)0.39%
Revenue beat(12)9
Avg Revenue beat(12)0.39%
Revenue beat(16)10
Avg Revenue beat(16)0.16%
PT rev (1m)-2.74%
PT rev (3m)-7.4%
EPS NQ rev (1m)-1.01%
EPS NQ rev (3m)-2.14%
EPS NY rev (1m)4.93%
EPS NY rev (3m)7.66%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)-1.67%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 42.73 | ||
| P/S | 6.5 | ||
| P/FCF | N/A | ||
| P/OCF | 14.49 | ||
| P/B | 1.66 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 17.49 |
EPS(TTM)1.18
EY3.68%
EPS(NY)0.75
Fwd EY2.34%
FCF(TTM)-1.79
FCFYN/A
OCF(TTM)2.21
OCFY6.9%
SpS4.94
BVpS19.3
TBVpS18.97
PEG (NY)N/A
PEG (5Y)0.9
Graham Number22.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 6.11% | ||
| ROCE | 3.59% | ||
| ROIC | 2.84% | ||
| ROICexc | 2.84% | ||
| ROICexgc | 2.87% | ||
| OM | 24.85% | ||
| PM (TTM) | 23.87% | ||
| GM | 56.7% | ||
| FCFM | N/A |
ROA(3y)2.63%
ROA(5y)2%
ROE(3y)4.88%
ROE(5y)3.67%
ROIC(3y)2.43%
ROIC(5y)2.3%
ROICexc(3y)2.45%
ROICexc(5y)2.32%
ROICexgc(3y)2.51%
ROICexgc(5y)2.36%
ROCE(3y)3.08%
ROCE(5y)2.91%
ROICexgc growth 3Y7.87%
ROICexgc growth 5Y4.66%
ROICexc growth 3Y7.74%
ROICexc growth 5Y4.65%
OM growth 3Y2.7%
OM growth 5Y2.51%
PM growth 3Y30.47%
PM growth 5Y24.86%
GM growth 3Y0.81%
GM growth 5Y0.84%
F-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.06 | ||
| Cap/Depr | 295.64% | ||
| Cap/Sales | 81.1% | ||
| Interest Coverage | 2.75 | ||
| Cash Conversion | 85.78% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 1.34 |
F-Score5
WACC6.89%
ROIC/WACC0.41
Cap/Depr(3y)335.63%
Cap/Depr(5y)358.29%
Cap/Sales(3y)94.51%
Cap/Sales(5y)101.96%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.92%
EPS 3Y39.25%
EPS 5Y30.08%
EPS Q2Q%35%
EPS Next Y-17.82%
EPS Next 2Y-16.62%
EPS Next 3Y-9.65%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.77%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%7.51%
Revenue Next Year7.96%
Revenue Next 2Y5.99%
Revenue Next 3Y5.6%
Revenue Next 5Y7.32%
EBIT growth 1Y-9.46%
EBIT growth 3Y12.82%
EBIT growth 5Y11.56%
EBIT Next Year131.57%
EBIT Next 3Y37.34%
EBIT Next 5Y29.1%
FCF growth 1Y-37.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.7%
OCF growth 3Y10.89%
OCF growth 5Y12.13%
AMERICAN HOMES 4 RENT- A / AMH FAQ
Can you provide the ChartMill fundamental rating for AMERICAN HOMES 4 RENT- A?
ChartMill assigns a fundamental rating of 4 / 10 to AMH.
What is the valuation status for AMH stock?
ChartMill assigns a valuation rating of 2 / 10 to AMERICAN HOMES 4 RENT- A (AMH). This can be considered as Overvalued.
What is the profitability of AMH stock?
AMERICAN HOMES 4 RENT- A (AMH) has a profitability rating of 7 / 10.
What are the PE and PB ratios of AMERICAN HOMES 4 RENT- A (AMH) stock?
The Price/Earnings (PE) ratio for AMERICAN HOMES 4 RENT- A (AMH) is 27.19 and the Price/Book (PB) ratio is 1.66.
Can you provide the financial health for AMH stock?
The financial health rating of AMERICAN HOMES 4 RENT- A (AMH) is 1 / 10.