AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
NYSE:AMH - New York Stock Exchange, Inc. - US02665T3068 - REIT - Currency: USD
Overall AMH gets a fundamental rating of 4 out of 10. We evaluated AMH against 20 industry peers in the Residential REITs industry. There are concerns on the financial health of AMH while its profitability can be described as average. AMH is valued expensive and it does not seem to be growing.
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.
AMH had positive earnings in 4 of the past 5 years.
AMH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AMH has a better Return On Assets (3.58%) than 70.00% of its industry peers.
AMH has a better Return On Equity (6.55%) than 65.00% of its industry peers.
With a decent Return On Invested Capital value of 3.42%, AMH is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AMH is in line with the industry average of 2.61%.
The 3 year average ROIC (2.26%) for AMH is below the current ROIC(3.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 6.55% | ||
| ROIC | 3.42% |
ROA(3y)2.05%
ROA(5y)1.6%
ROE(3y)3.77%
ROE(5y)2.88%
ROIC(3y)2.26%
ROIC(5y)2.19%
1.3 Margins
Looking at the Profit Margin, with a value of 21.64%, AMH is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
AMH's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 23.64%, AMH is doing good in the industry, outperforming 65.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AMH has grown nicely.
AMH's Gross Margin of 56.01% is on the low side compared to the rest of the industry. AMH is outperformed by 70.00% of its industry peers.
AMH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.64% | ||
| PM (TTM) | 21.64% | ||
| GM | 56.01% |
OM growth 3Y3.52%
OM growth 5Y1.85%
PM growth 3Y45.84%
PM growth 5Y59.33%
GM growth 3Y0.95%
GM growth 5Y0.33%
2. Health
2.1 Basic Checks
AMH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for AMH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
AMH has an Altman-Z score of 1.51. This is a bad value and indicates that AMH is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.51, AMH is doing good in the industry, outperforming 65.00% of the companies in the same industry.
AMH has a Debt/Equity ratio of 0.64. This is a neutral value indicating AMH is somewhat dependend on debt financing.
AMH has a better Debt to Equity ratio (0.64) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.51 |
ROIC/WACC0.47
WACC7.31%
2.3 Liquidity
AMH has a Current Ratio of 0.17. This is a bad value and indicates that AMH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.17, AMH is doing worse than 65.00% of the companies in the same industry.
AMH has a Quick Ratio of 0.17. 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 (0.17) is worse than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 20.00% over the past year.
Measured over the past years, AMH shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.85% on average per year.
EPS 1Y (TTM)20%
EPS 3Y44.23%
EPS 5Y32.85%
EPS Q2Q%114.29%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.84%
3.2 Future
Based on estimates for the next years, AMH will show a very negative growth in Earnings Per Share. The EPS will decrease by -21.38% on average per year.
Based on estimates for the next years, AMH will show a small growth in Revenue. The Revenue will grow by 5.70% on average per year.
EPS Next Y-46.97%
EPS Next 2Y-21.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.94%
Revenue Next 2Y5.34%
Revenue Next 3Y5.7%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.28, which means the current valuation is very expensive for AMH.
Compared to the rest of the industry, the Price/Earnings ratio of AMH indicates a somewhat cheap valuation: AMH is cheaper than 80.00% of the companies listed in the same industry.
AMH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
AMH is valuated quite expensively with a Price/Forward Earnings ratio of 55.23.
Based on the Price/Forward Earnings ratio, AMH is valued a bit cheaper than 65.00% of the companies in the same industry.
AMH is valuated expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.28 | ||
| Fwd PE | 55.23 |
4.2 Price Multiples
90.00% 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 | 18.08 |
4.3 Compensation for Growth
The decent profitability rating of AMH may justify a higher PE ratio.
AMH's earnings are expected to decrease with -21.38% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y-21.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AMH has a Yearly Dividend Yield of 3.36%.
AMH's Dividend Yield is slightly below the industry average, which is at 4.25.
AMH's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
5.2 History
The dividend of AMH is nicely growing with an annual growth rate of 16.62%!
AMH has been paying a dividend for at least 10 years, so it has a reliable track record.
AMH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.62%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
AMH pays out 82.90% of its income as dividend. 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.
DP82.9%
EPS Next 2Y-21.38%
EPS Next 3YN/A
35.14
-0.57 (-1.6%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners90.34%
Inst Owner Change2.75%
Ins Owners6.03%
Ins Owner Change0.09%
Market Cap12.98B
Analysts75
Price Target41.18 (17.19%)
Short Float %3.31%
Short Ratio4.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
Yearly Dividend0.93
Dividend Growth(5Y)16.62%
DP82.9%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)67.08%
Min EPS beat(2)49.45%
Max EPS beat(2)84.72%
EPS beat(4)4
Avg EPS beat(4)74.19%
Min EPS beat(4)49.45%
Max EPS beat(4)106.27%
EPS beat(8)8
Avg EPS beat(8)104.86%
EPS beat(12)12
Avg EPS beat(12)80.74%
EPS beat(16)16
Avg EPS beat(16)71.09%
Revenue beat(2)2
Avg Revenue beat(2)0.31%
Min Revenue beat(2)0.27%
Max Revenue beat(2)0.36%
Revenue beat(4)3
Avg Revenue beat(4)0.15%
Min Revenue beat(4)-0.67%
Max Revenue beat(4)0.64%
Revenue beat(8)6
Avg Revenue beat(8)0.27%
Revenue beat(12)7
Avg Revenue beat(12)0%
Revenue beat(16)9
Avg Revenue beat(16)-0.07%
PT rev (1m)-1.66%
PT rev (3m)-2.74%
EPS NQ rev (1m)2.37%
EPS NQ rev (3m)1.51%
EPS NY rev (1m)3.18%
EPS NY rev (3m)7.38%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.28 | ||
| Fwd PE | 55.23 | ||
| P/S | 6.11 | ||
| P/FCF | N/A | ||
| P/OCF | 15.75 | ||
| P/B | 1.85 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 18.08 |
EPS(TTM)1.2
EY3.41%
EPS(NY)0.64
Fwd EY1.81%
FCF(TTM)-0.81
FCFYN/A
OCF(TTM)2.23
OCFY6.35%
SpS5.75
BVpS18.98
TBVpS18.65
PEG (NY)N/A
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 6.55% | ||
| ROCE | 4.33% | ||
| ROIC | 3.42% | ||
| ROICexc | 3.47% | ||
| ROICexgc | 3.55% | ||
| OM | 23.64% | ||
| PM (TTM) | 21.64% | ||
| GM | 56.01% | ||
| FCFM | N/A |
ROA(3y)2.05%
ROA(5y)1.6%
ROE(3y)3.77%
ROE(5y)2.88%
ROIC(3y)2.26%
ROIC(5y)2.19%
ROICexc(3y)2.27%
ROICexc(5y)2.21%
ROICexgc(3y)2.32%
ROICexgc(5y)2.25%
ROCE(3y)2.86%
ROCE(5y)2.78%
ROICexcg growth 3Y5.57%
ROICexcg growth 5Y3.93%
ROICexc growth 3Y5.27%
ROICexc growth 5Y3.77%
OM growth 3Y3.52%
OM growth 5Y1.85%
PM growth 3Y45.84%
PM growth 5Y59.33%
GM growth 3Y0.95%
GM growth 5Y0.33%
F-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.65 | ||
| Cap/Depr | 240% | ||
| Cap/Sales | 52.96% | ||
| Interest Coverage | 3.73 | ||
| Cash Conversion | 84.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.17 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 1.51 |
F-Score6
WACC7.31%
ROIC/WACC0.47
Cap/Depr(3y)395.87%
Cap/Depr(5y)322.27%
Cap/Sales(3y)112.8%
Cap/Sales(5y)92.44%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20%
EPS 3Y44.23%
EPS 5Y32.85%
EPS Q2Q%114.29%
EPS Next Y-46.97%
EPS Next 2Y-21.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.84%
Revenue Next Year5.94%
Revenue Next 2Y5.34%
Revenue Next 3Y5.7%
Revenue Next 5YN/A
EBIT growth 1Y40.67%
EBIT growth 3Y15.39%
EBIT growth 5Y10.64%
EBIT Next Year147.99%
EBIT Next 3Y41.82%
EBIT Next 5Y33.21%
FCF growth 1Y78.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.86%
OCF growth 3Y15.93%
OCF growth 5Y12.45%