AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
NYSE:AMH - New York Stock Exchange, Inc. - US02665T3068 - REIT
We assign a fundamental rating of 4 out of 10 to AMH. AMH was compared to 20 industry peers in the Residential REITs industry. While AMH has a great profitability rating, there are quite some 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.
Each year in the past 5 years AMH has been profitable.
In the past 5 years AMH always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.58%, AMH is doing good in the industry, outperforming 70.00% of the companies in the same industry.
The Return On Equity of AMH (6.55%) is better than 65.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.42%, AMH is in the better half of 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 last Return On Invested Capital (3.42%) for AMH is above the 3 year average (2.26%), which is a sign of increasing profitability.
| 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
The Profit Margin of AMH (21.64%) is better than 70.00% of its industry peers.
In the last couple of years the Profit Margin of AMH has grown nicely.
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.
AMH's Operating Margin has improved in the last couple of years.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AMH is destroying value.
The number of shares outstanding for AMH has been increased compared to 1 year ago.
The number of shares outstanding for AMH has been increased compared to 5 years ago.
The debt/assets ratio for AMH has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.50, we must say that AMH is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.50, AMH is doing good in the industry, outperforming 65.00% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that AMH is somewhat dependend on debt financing.
AMH has a Debt to Equity ratio of 0.64. This is amongst the best in the industry. AMH outperforms 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.5 |
ROIC/WACC0.46
WACC7.46%
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.
The Current ratio of AMH (0.17) is worse than 65.00% of its industry peers.
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.
AMH has a worse Quick ratio (0.17) 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 for AMH have decreased by -7.69% in the last year.
AMH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.40% yearly.
The Revenue has grown by 33.12% in the past year. This is a very strong growth!
The Revenue has been growing by 8.64% on average over the past years. This is quite good.
EPS 1Y (TTM)-7.69%
EPS 3Y52.86%
EPS 5Y39.4%
EPS Q2Q%0%
Revenue 1Y (TTM)33.12%
Revenue growth 3Y11.46%
Revenue growth 5Y8.64%
Sales Q2Q%5.54%
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 -10.13% on average per year.
The Revenue is expected to grow by 5.71% on average over the next years.
EPS Next Y-13.98%
EPS Next 2Y-20.31%
EPS Next 3Y-10.13%
EPS Next 5YN/A
Revenue Next Year5.61%
Revenue Next 2Y5.72%
Revenue Next 3Y5.25%
Revenue Next 5Y5.71%
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.
The Revenue 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
Based on the Price/Earnings ratio of 36.91, the valuation of AMH can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AMH is on the same level as its industry peers.
AMH is valuated rather expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 55.79 indicates a quite expensive valuation of AMH.
Based on the Price/Forward Earnings ratio, AMH is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
AMH is valuated expensively when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.91 | ||
| Fwd PE | 55.79 |
4.2 Price Multiples
AMH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AMH is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.97 |
4.3 Compensation for Growth
AMH has a very decent profitability rating, which may justify a higher PE ratio.
AMH's earnings are expected to decrease with -10.13% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.94
EPS Next 2Y-20.31%
EPS Next 3Y-10.13%
5. Dividend
5.1 Amount
AMH has a Yearly Dividend Yield of 2.98%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.29, 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 a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
On average, the dividend of AMH grows each year by 16.62%, 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)16.62%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
82.90% of the earnings are spent on dividend by AMH. 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-20.31%
EPS Next 3Y-10.13%
AMERICAN HOMES 4 RENT- A
NYSE:AMH (1/21/2025, 8:04:00 PM)
After market: 35.43 0 (0%)35.43
+0.24 (+0.68%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners91.25%
Inst Owner Change-0.07%
Ins Owners6.15%
Ins Owner Change-0.2%
Market Cap13.09B
Analysts76.3
Price Target42.14 (18.94%)
Short Float %2.99%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend0.93
Dividend Growth(5Y)16.62%
DP82.9%
Div Incr Years4
Div Non Decr Years11
Ex-DateN/A
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)0.09%
PT rev (3m)-1.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.95%
EPS NY rev (1m)0%
EPS NY rev (3m)1.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)-0.86%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.91 | ||
| Fwd PE | 55.79 | ||
| P/S | 6.16 | ||
| P/FCF | N/A | ||
| P/OCF | 15.88 | ||
| P/B | 1.87 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 17.97 |
EPS(TTM)0.96
EY2.71%
EPS(NY)0.64
Fwd EY1.79%
FCF(TTM)-0.81
FCFYN/A
OCF(TTM)2.23
OCFY6.3%
SpS5.75
BVpS18.98
TBVpS18.65
PEG (NY)N/A
PEG (5Y)0.94
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 | 1.5 |
F-Score6
WACC7.46%
ROIC/WACC0.46
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)-7.69%
EPS 3Y52.86%
EPS 5Y39.4%
EPS Q2Q%0%
EPS Next Y-13.98%
EPS Next 2Y-20.31%
EPS Next 3Y-10.13%
EPS Next 5YN/A
Revenue 1Y (TTM)33.12%
Revenue growth 3Y11.46%
Revenue growth 5Y8.64%
Sales Q2Q%5.54%
Revenue Next Year5.61%
Revenue Next 2Y5.72%
Revenue Next 3Y5.25%
Revenue Next 5Y5.71%
EBIT growth 1Y40.67%
EBIT growth 3Y15.39%
EBIT growth 5Y10.64%
EBIT Next Year148.76%
EBIT Next 3Y42.04%
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%