AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AMH • US02665T3068
30.985 USD
-0.34 (-1.07%)
Last: Feb 2, 2026, 12:53 PM
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 has an excellent profitability rating, 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
- 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.
- AMH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AMH has a better Return On Assets (3.30%) than 65.00% of its industry peers.
- AMH has a Return On Equity of 6.11%. This is in the better half of the industry: AMH outperforms 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.
- 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 (2.84%) 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 | 2.84% |
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's Profit Margin of 23.87% is fine compared to the rest of the industry. AMH outperforms 65.00% of its industry peers.
- AMH's Profit Margin has improved in the last couple of years.
- The Operating Margin of AMH (24.85%) is better than 65.00% of its industry peers.
- AMH's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 56.70%, AMH is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AMH is destroying value.
- Compared to 1 year ago, AMH has more shares outstanding
- Compared to 5 years ago, AMH has more shares outstanding
- The debt/assets ratio for AMH is higher compared to a year ago.
2.2 Solvency
- AMH has an Altman-Z score of 1.31. This is a bad value and indicates that AMH is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.31, AMH is in line with its industry, 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.
- 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 | 1.31 |
ROIC/WACC0.41
WACC6.94%
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.
- Looking at the Quick ratio, with a value of 0.18, AMH is doing worse than 60.00% of the companies in the same industry.
| 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.
- AMH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.77%.
- 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
- AMH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.58% yearly.
- The Revenue is expected to grow by 7.32% on average over the next years.
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
- 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
- A Price/Earnings ratio of 26.26 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.
- When comparing the Price/Earnings ratio of AMH to the average of the S&P500 Index (28.32), we can say AMH is valued inline with the index average.
- A Price/Forward Earnings ratio of 41.67 indicates a quite expensive valuation of AMH.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AMH indicates a somewhat cheap valuation: AMH is cheaper than 75.00% of the companies listed in the same industry.
- AMH is valuated expensively when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.26 | ||
| Fwd PE | 41.67 |
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 | 17.19 |
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 -8.58% in the coming years.
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 3.88%.
- AMH's Dividend Yield is slightly below the industry average, which is at 41.00.
- AMH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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
- 101.80% 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.
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 26.26 and the Price/Book (PB) ratio is 1.61.
Can you provide the financial health for AMH stock?
The financial health rating of AMERICAN HOMES 4 RENT- A (AMH) is 1 / 10.