AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMH - US02665T3068 - REIT
31.89 USD
+0.06 (+0.19%)
31.89 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AMH. AMH was compared to 20 industry peers in the Residential REITs industry. AMH scores excellent on profitability, but there are concerns on its financial health. AMH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AMH was profitable.
In the past year AMH had a positive cash flow from operations.
In the past 5 years AMH has always been profitable.
Each year in the past 5 years AMH had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.30%, AMH is doing good in the industry, outperforming 65.00% of the companies in the same industry.
AMH's Return On Equity of 6.11% is fine compared to the rest of the industry. AMH outperforms 65.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.83%, AMH is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
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 last Return On Invested Capital (2.83%) for AMH is above the 3 year average (2.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 6.11% | ||
| ROIC | 2.83% |
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
Looking at the Profit Margin, with a value of 23.88%, AMH is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
In the last couple of years the Profit Margin of AMH has grown nicely.
AMH has a better Operating Margin (24.81%) than 65.00% of its industry peers.
In the last couple of years the Operating Margin of AMH has grown nicely.
AMH has a worse Gross Margin (56.70%) than 60.00% of its industry peers.
AMH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.81% | ||
| PM (TTM) | 23.88% | ||
| GM | 56.7% |
OM growth 3Y2.66%
OM growth 5Y2.48%
PM growth 3Y30.45%
PM growth 5Y24.85%
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
Based on the Altman-Z score of 1.33, we must say that AMH is in the distress zone and has some risk of bankruptcy.
AMH has a Altman-Z score (1.33) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.68 indicates that AMH is somewhat dependend on debt financing.
The Debt to Equity ratio of AMH (0.68) is better than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.33 |
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.
AMH's Quick ratio of 0.18 is on the low side compared to the rest of the industry. AMH is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
AMH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.92%, which is quite impressive.
Measured over the past years, AMH shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.08% on average per year.
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
Based on estimates for the next years, AMH will show a decrease in Earnings Per Share. The EPS will decrease by -9.41% on average per year.
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-19.22%
EPS Next 2Y-16.5%
EPS Next 3Y-9.41%
EPS Next 5YN/A
Revenue Next Year7.96%
Revenue Next 2Y6.02%
Revenue Next 3Y5.64%
Revenue Next 5Y7.32%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.03 indicates a quite expensive valuation of AMH.
75.00% of the companies in the same industry are more expensive than AMH, based on the Price/Earnings ratio.
AMH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 42.35, the valuation of AMH can be described as expensive.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.03 | ||
| Fwd PE | 42.35 |
4.2 Price Multiples
AMH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AMH is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.4 |
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 -9.41% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y-16.5%
EPS Next 3Y-9.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.79%, AMH has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.79, AMH pays less dividend than the industry average, which is at 11.45. 80.00% of the companies listed in the same industry pay a better dividend than AMH!
AMH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
5.2 History
The dividend of AMH is nicely growing with an annual growth rate of 22.94%!
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)22.94%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
AMH pays out 101.76% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of AMH has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP101.76%
EPS Next 2Y-16.5%
EPS Next 3Y-9.41%
31.89
+0.06 (+0.19%)
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 Cap11.83B
Revenue(TTM)1.83B
Net Income(TTM)437.38M
Analysts75
Price Target38.81 (21.7%)
Short Float %2.41%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
Yearly Dividend1.08
Dividend Growth(5Y)22.94%
DP101.76%
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)-4.39%
PT rev (3m)-6.47%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)-1.71%
EPS NY rev (1m)3.13%
EPS NY rev (3m)10.38%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.03 | ||
| Fwd PE | 42.35 | ||
| P/S | 6.46 | ||
| P/FCF | N/A | ||
| P/OCF | 14.41 | ||
| P/B | 1.65 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 17.4 |
EPS(TTM)1.18
EY3.7%
EPS(NY)0.75
Fwd EY2.36%
FCF(TTM)-1.79
FCFYN/A
OCF(TTM)2.21
OCFY6.94%
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 | 3.58% | ||
| ROIC | 2.83% | ||
| ROICexc | 2.83% | ||
| ROICexgc | 2.87% | ||
| OM | 24.81% | ||
| PM (TTM) | 23.88% | ||
| 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 3Y7.82%
ROICexgc growth 5Y4.63%
ROICexc growth 3Y7.69%
ROICexc growth 5Y4.62%
OM growth 3Y2.66%
OM growth 5Y2.48%
PM growth 3Y30.45%
PM growth 5Y24.85%
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 | 85.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 1.33 |
F-Score5
WACC6.89%
ROIC/WACC0.41
Cap/Depr(3y)335.59%
Cap/Depr(5y)358.27%
Cap/Sales(3y)94.53%
Cap/Sales(5y)101.97%
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-19.22%
EPS Next 2Y-16.5%
EPS Next 3Y-9.41%
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 2Y6.02%
Revenue Next 3Y5.64%
Revenue Next 5Y7.32%
EBIT growth 1Y-9.58%
EBIT growth 3Y12.77%
EBIT growth 5Y11.53%
EBIT Next Year132.01%
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 3Y10.91%
OCF growth 5Y12.14%
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 27.03 and the Price/Book (PB) ratio is 1.65.
Can you provide the financial health for AMH stock?
The financial health rating of AMERICAN HOMES 4 RENT- A (AMH) is 1 / 10.