AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMH - US02665T3068 - REIT
31.99 USD
+0.46 (+1.46%)
32 USD
+0.01 (+0.03%)
Overall AMH gets a fundamental rating of 4 out of 10. We evaluated AMH against 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.
1. Profitability
1.1 Basic Checks
- In the past year AMH was profitable.
- AMH had a positive operating cash flow in the past year.
- Each year in the past 5 years AMH has been profitable.
- AMH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AMH's Return On Assets of 3.30% is fine compared to the rest 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.
- With a decent Return On Invested Capital value of 2.84%, AMH is doing good in the industry, outperforming 65.00% 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 2.59%.
- 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
- With a decent Profit Margin value of 23.87%, AMH is doing good in 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 (24.85%) than 65.00% of its industry peers.
- In the last couple of years the Operating Margin of AMH has grown nicely.
- Looking at the Gross Margin, with a value of 56.70%, AMH is doing worse than 60.00% of the companies in the same industry.
- AMH's Gross Margin has been stable in the last couple of years.
| 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
- AMH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- AMH has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AMH has more shares outstanding
- Compared to 1 year ago, AMH has a worse debt to assets ratio.
2.2 Solvency
- AMH has an Altman-Z score of 1.32. 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 1.32, AMH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.68 indicates that AMH is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.68, AMH belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.41
WACC6.96%
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
- The Earnings Per Share has grown by an impressive 22.92% 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 30.08% on average per year.
- AMH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.77%.
- The Revenue has been growing by 8.83% on average over the past years. This is quite good.
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 -9.65% on average per year.
- AMH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.32% yearly.
EPS Next Y-17.82%
EPS Next 2Y-16.62%
EPS Next 3Y-9.65%
EPS Next 5YN/A
Revenue Next Year7.9%
Revenue Next 2Y5.83%
Revenue Next 3Y4.61%
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.
- 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
- The Price/Earnings ratio is 27.11, which means the current valuation is very expensive for AMH.
- AMH's Price/Earnings ratio is a bit cheaper when compared to the industry. AMH is cheaper than 75.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. AMH is around the same levels.
- A Price/Forward Earnings ratio of 42.61 indicates a quite expensive valuation of AMH.
- Based on the Price/Forward Earnings ratio, AMH is valued a bit cheaper than 75.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, AMH is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.11 | ||
| Fwd PE | 42.61 |
4.2 Price Multiples
- 65.00% 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 | 17.28 |
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
- With a Yearly Dividend Yield of 3.81%, AMH has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 32.02, AMH's dividend is way lower than its industry peers. On top of this 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
5.2 History
- On average, the dividend of AMH grows each year by 22.99%, which is quite nice.
- AMH has paid a dividend for at least 10 years, which is a reliable track record.
- AMH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)22.99%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
- AMH pays out 101.80% 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.
DP101.8%
EPS Next 2Y-16.62%
EPS Next 3Y-9.65%
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 of AMERICAN HOMES 4 RENT- A (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 27.11 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.