AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
NYSE:AMH - New York Stock Exchange, Inc. - US02665T3068 - REIT - Currency: USD
We assign a fundamental rating of 5 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. While showing a medium growth rate, AMH is valued expensive at the moment. Finally AMH also has an excellent dividend rating.
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 has a Return On Assets of 3.81%. This is in the better half of the industry: AMH outperforms 75.00% of its industry peers.
AMH's Return On Equity of 7.08% is fine compared to the rest of the industry. AMH outperforms 75.00% of its industry peers.
The Return On Invested Capital of AMH (3.25%) is better than 70.00% 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 2.62%.
The last Return On Invested Capital (3.25%) for AMH is above the 3 year average (2.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 7.08% | ||
| ROIC | 3.25% |
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
The Profit Margin of AMH (23.16%) is better than 75.00% of its industry peers.
In the last couple of years the Profit Margin of AMH has grown nicely.
AMH's Operating Margin of 24.03% 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 (56.26%) than 65.00% of its industry peers.
In the last couple of years the Gross Margin of AMH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.03% | ||
| PM (TTM) | 23.16% | ||
| GM | 56.26% |
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.
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.
Compared to 1 year ago, AMH has a worse debt to assets ratio.
2.2 Solvency
AMH has an Altman-Z score of 1.52. 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 1.52. This is in the better half of the industry: AMH outperforms 65.00% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that AMH is somewhat dependend on debt financing.
AMH's Debt to Equity ratio of 0.69 is amongst the best of the industry. AMH outperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.52 |
ROIC/WACC0.46
WACC7.15%
2.3 Liquidity
A Current Ratio of 0.23 indicates that AMH may have some problems paying its short term obligations.
With a Current ratio value of 0.23, AMH perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
A Quick Ratio of 0.23 indicates that AMH may have some problems paying its short term obligations.
AMH has a Quick ratio (0.23) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.20% 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 strong growth in Revenue. The Revenue has grown by 32.65%.
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)10.2%
EPS 3Y39.25%
EPS 5Y30.08%
EPS Q2Q%0%
Revenue 1Y (TTM)32.65%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%8.43%
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 -13.03% on average per year.
AMH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.65% yearly.
EPS Next Y-33.6%
EPS Next 2Y-17.63%
EPS Next 3Y-13.03%
EPS Next 5YN/A
Revenue Next Year6.92%
Revenue Next 2Y5.91%
Revenue Next 3Y5.65%
Revenue Next 5Y7.65%
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
With a Price/Earnings ratio of 33.09, AMH can be considered very expensive at the moment.
Based on the Price/Earnings ratio, AMH is valued a bit cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.21, AMH is valued a bit more expensive.
AMH is valuated quite expensively with a Price/Forward Earnings ratio of 48.77.
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's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.09 | ||
| Fwd PE | 48.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMH indicates a somewhat cheap valuation: AMH is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.99 |
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 -13.03% in the coming years.
PEG (NY)N/A
PEG (5Y)1.1
EPS Next 2Y-17.63%
EPS Next 3Y-13.03%
5. Dividend
5.1 Amount
AMH has a Yearly Dividend Yield of 6.66%, which is a nice return.
AMH's Dividend Yield is rather good when compared to the industry average which is at 4.72. AMH pays more dividend than 90.00% of the companies in the same industry.
AMH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.66% |
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
81.68% of the earnings are spent on dividend by AMH. 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.
DP81.68%
EPS Next 2Y-17.63%
EPS Next 3Y-13.03%
35.74
-0.33 (-0.91%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners90.35%
Inst Owner Change1.81%
Ins Owners6%
Ins Owner Change1.29%
Market Cap13.23B
Analysts75
Price Target41.9 (17.24%)
Short Float %2.49%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.66% |
Yearly Dividend1.08
Dividend Growth(5Y)22.99%
DP81.68%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)108.54%
Min EPS beat(2)100.7%
Max EPS beat(2)116.38%
EPS beat(4)4
Avg EPS beat(4)87.81%
Min EPS beat(4)49.45%
Max EPS beat(4)116.38%
EPS beat(8)8
Avg EPS beat(8)93.93%
EPS beat(12)12
Avg EPS beat(12)92.84%
EPS beat(16)16
Avg EPS beat(16)78.59%
Revenue beat(2)1
Avg Revenue beat(2)-0.04%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)1.29%
Revenue beat(4)3
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)1.29%
Revenue beat(8)6
Avg Revenue beat(8)0.37%
Revenue beat(12)8
Avg Revenue beat(12)0.33%
Revenue beat(16)9
Avg Revenue beat(16)0.12%
PT rev (1m)2.83%
PT rev (3m)3.1%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)-6.87%
EPS NY rev (1m)10.08%
EPS NY rev (3m)6.37%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.09 | ||
| Fwd PE | 48.77 | ||
| P/S | 6.05 | ||
| P/FCF | N/A | ||
| P/OCF | 15.88 | ||
| P/B | 1.85 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 17.99 |
EPS(TTM)1.08
EY3.02%
EPS(NY)0.73
Fwd EY2.05%
FCF(TTM)-1.85
FCFYN/A
OCF(TTM)2.25
OCFY6.3%
SpS5.91
BVpS19.33
TBVpS19
PEG (NY)N/A
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 7.08% | ||
| ROCE | 4.12% | ||
| ROIC | 3.25% | ||
| ROICexc | 3.27% | ||
| ROICexgc | 3.32% | ||
| OM | 24.03% | ||
| PM (TTM) | 23.16% | ||
| GM | 56.26% | ||
| 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%
ROICexcg growth 3Y7.87%
ROICexcg 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-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.87 | ||
| Cap/Depr | 311.84% | ||
| Cap/Sales | 69.3% | ||
| Interest Coverage | 3.33 | ||
| Cash Conversion | 82.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 1.52 |
F-Score6
WACC7.15%
ROIC/WACC0.46
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)10.2%
EPS 3Y39.25%
EPS 5Y30.08%
EPS Q2Q%0%
EPS Next Y-33.6%
EPS Next 2Y-17.63%
EPS Next 3Y-13.03%
EPS Next 5YN/A
Revenue 1Y (TTM)32.65%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%8.43%
Revenue Next Year6.92%
Revenue Next 2Y5.91%
Revenue Next 3Y5.65%
Revenue Next 5Y7.65%
EBIT growth 1Y38.75%
EBIT growth 3Y12.82%
EBIT growth 5Y11.56%
EBIT Next Year130.71%
EBIT Next 3Y37.79%
EBIT Next 5Y29.34%
FCF growth 1Y11.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y17.79%
OCF growth 3Y10.89%
OCF growth 5Y12.13%