AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AMH • US02665T3068
30.92 USD
+0.13 (+0.42%)
At close: Jan 29, 2026
30.92 USD
0 (0%)
After Hours: 1/29/2026, 8:04:00 PM
AMH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
- AMH had a positive operating cash flow in the past year.
- Each year in the past 5 years AMH has been profitable.
- Each year in the past 5 years AMH had a positive operating cash flow.
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.
- 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
- Looking at the Profit Margin, with a value of 23.87%, AMH is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
- AMH's Profit Margin has improved in the last couple of years.
- AMH's Operating Margin of 24.85% is fine compared to the rest of the industry. AMH outperforms 65.00% of its industry peers.
- AMH's Operating Margin has improved in the last couple of years.
- 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 | 24.85% | ||
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
- The debt/assets ratio for AMH is higher compared to a year ago.
2.2 Solvency
- AMH has an Altman-Z score of 1.30. This is a bad value and indicates that AMH is not financially healthy and even has some risk of bankruptcy.
- AMH has a Altman-Z score of 1.30. This is comparable to the rest of the industry: AMH outperforms 60.00% of its industry peers.
- 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 | 1.3 |
ROIC/WACC0.41
WACC6.92%
2.3 Liquidity
- A Current Ratio of 0.18 indicates that AMH may have some problems paying its short term obligations.
- AMH's Current ratio of 0.18 is on the low side compared to the rest of the industry. AMH is outperformed by 65.00% of its industry peers.
- A Quick Ratio of 0.18 indicates that AMH may have some problems paying 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.
- 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.
- 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 -8.58% 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-17.3%
EPS Next 2Y-17.02%
EPS Next 3Y-8.58%
EPS Next 5YN/A
Revenue Next Year7.84%
Revenue Next 2Y5.88%
Revenue Next 3Y4.73%
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
- The Price/Earnings ratio is 26.20, which means the current valuation is very expensive for AMH.
- 75.00% of the companies in the same industry are more expensive than AMH, based on the Price/Earnings ratio.
- AMH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.39.
- AMH is valuated quite expensively with a Price/Forward Earnings ratio of 41.58.
- Based on the Price/Forward Earnings ratio, AMH is valued a bit cheaper than 75.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of AMH to the average of the S&P500 Index (25.72), we can say AMH is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.2 | ||
| Fwd PE | 41.58 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AMH is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.04 |
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 -8.58% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.87
EPS Next 2Y-17.02%
EPS Next 3Y-8.58%
5. Dividend
5.1 Amount
- AMH has a Yearly Dividend Yield of 3.81%. Purely for dividend investing, there may be better candidates out there.
- With a Dividend Yield of 3.81, AMH pays less dividend than the industry average, which is at 32.02. 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
5.2 History
- The dividend of AMH is nicely growing with an annual growth rate of 22.99%!
- AMH has paid a dividend for at least 10 years, which is 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
- 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-17.02%
EPS Next 3Y-8.58%
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 26.2 and the Price/Book (PB) ratio is 1.6.
Can you provide the financial health for AMH stock?
The financial health rating of AMERICAN HOMES 4 RENT- A (AMH) is 1 / 10.