AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMH - US02665T3068 - REIT
32.09 USD
-0.33 (-1.02%)
32.31 USD
+0.22 (+0.69%)
Overall AMH gets a fundamental rating of 4 out of 10. We evaluated AMH against 20 industry peers in the Residential REITs industry. AMH scores excellent on profitability, but there are concerns on its financial health. AMH is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AMH had positive earnings in the past year.
In the past year AMH had a positive cash flow from operations.
AMH had positive earnings in each of the past 5 years.
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.
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.
The Return On Invested Capital of AMH (2.84%) is better than 65.00% of its industry peers.
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
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.
AMH's Profit Margin has improved in the last couple of years.
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.
AMH has a Gross Margin of 56.70%. This is in the lower half of the industry: AMH underperforms 65.00% 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.
AMH has a worse debt/assets ratio than last year.
2.2 Solvency
AMH has an Altman-Z score of 1.35. This is a bad value and indicates that AMH is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AMH (1.35) is better than 65.00% 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.
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 | 1.35 |
ROIC/WACC0.42
WACC6.82%
2.3 Liquidity
AMH has a Current 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 has a worse Current ratio (0.18) than 65.00% of its industry peers.
A Quick Ratio of 0.18 indicates that AMH may have some problems paying its short term obligations.
With a Quick ratio value of 0.18, AMH is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| 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.
AMH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.08% yearly.
Looking at the last year, AMH shows a very negative growth in Revenue. The Revenue has decreased by -13.77% in the last year.
Measured over the past years, AMH shows a quite strong growth in Revenue. The Revenue has been growing by 8.83% on average per year.
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 -12.83% on average over the next years. This is quite bad
Based on estimates for the next years, AMH will show a small growth in Revenue. The Revenue will grow by 7.08% on average per year.
EPS Next Y-21.68%
EPS Next 2Y-16.69%
EPS Next 3Y-12.83%
EPS Next 5YN/A
Revenue Next Year7.73%
Revenue Next 2Y6.07%
Revenue Next 3Y5.57%
Revenue Next 5Y7.08%
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
Based on the Price/Earnings ratio of 27.19, the valuation of AMH can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AMH indicates a somewhat cheap valuation: AMH is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.98. AMH is around the same levels.
The Price/Forward Earnings ratio is 42.81, which means the current valuation is very expensive for AMH.
65.00% of the companies in the same industry are more expensive than AMH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 35.79. AMH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 42.81 |
4.2 Price Multiples
AMH's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.61 |
4.3 Compensation for Growth
AMH has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as AMH's earnings are expected to decrease with -12.83% in the coming years.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y-16.69%
EPS Next 3Y-12.83%
5. Dividend
5.1 Amount
AMH has a Yearly Dividend Yield of 3.75%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.26, 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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 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.
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-16.69%
EPS Next 3Y-12.83%
32.09
-0.33 (-1.02%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners91.58%
Inst Owner Change0.13%
Ins Owners5.99%
Ins Owner Change0.16%
Market Cap11.90B
Revenue(TTM)1.83B
Net Income(TTM)437.21M
Analysts75
Price Target39.51 (23.12%)
Short Float %2.28%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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)-3.54%
PT rev (3m)-5.03%
EPS NQ rev (1m)-1.14%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)7.03%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 42.81 | ||
| P/S | 6.5 | ||
| P/FCF | N/A | ||
| P/OCF | 14.49 | ||
| P/B | 1.66 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 17.61 |
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
BVpS19.31
TBVpS18.98
PEG (NY)N/A
PEG (5Y)0.9
Graham Number22.64
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 | 1.35 |
F-Score5
WACC6.82%
ROIC/WACC0.42
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-21.68%
EPS Next 2Y-16.69%
EPS Next 3Y-12.83%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.77%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%7.51%
Revenue Next Year7.73%
Revenue Next 2Y6.07%
Revenue Next 3Y5.57%
Revenue Next 5Y7.08%
EBIT growth 1Y-9.46%
EBIT growth 3Y12.82%
EBIT growth 5Y11.56%
EBIT Next Year132.12%
EBIT Next 3Y37.83%
EBIT Next 5Y29.21%
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.