AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMH - US02665T3068 - REIT
31.53 USD
-0.34 (-1.07%)
31.53 USD
0 (0%)
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 has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, AMH is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year AMH was profitable.
- AMH had a positive operating cash flow in the past year.
- AMH had positive earnings in each of the past 5 years.
- Each year in the past 5 years AMH had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.30%, AMH is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
- With a decent Return On Equity value of 6.11%, AMH is doing good in the industry, outperforming 65.00% of the companies in the same industry.
- 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.
- AMH had an Average Return On Invested Capital over the past 3 years of 2.43%. This 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.
- In the last couple of years the Profit Margin of AMH has grown nicely.
- 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.
- AMH has a worse Gross Margin (56.70%) than 60.00% 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 | 24.85% | ||
| 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.
- AMH has more shares outstanding than it did 1 year ago.
- AMH has more shares outstanding than it did 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 1.33. 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 (1.33) which is comparable to the rest of the industry.
- AMH has a Debt/Equity ratio of 0.68. This is a neutral value indicating AMH is somewhat dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.68, AMH belongs to the best 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 | 1.33 |
ROIC/WACC0.41
WACC6.92%
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.
- AMH has a Quick 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'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
- 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.
- 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
- 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
- AMH is valuated quite expensively with a Price/Earnings ratio of 26.72.
- AMH's Price/Earnings ratio is a bit cheaper when compared to the industry. AMH is cheaper than 75.00% of the companies in the same industry.
- AMH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.87.
- Based on the Price/Forward Earnings ratio of 42.40, the valuation of AMH can be described as expensive.
- AMH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AMH is cheaper than 70.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, AMH is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.72 | ||
| Fwd PE | 42.4 |
4.2 Price Multiples
- AMH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AMH is cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.41 |
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 -8.58% in the coming years.
PEG (NY)N/A
PEG (5Y)0.89
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 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 26.72 and the Price/Book (PB) ratio is 1.63.
Can you provide the financial health for AMH stock?
The financial health rating of AMERICAN HOMES 4 RENT- A (AMH) is 1 / 10.