AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMH - US02665T3068 - REIT
31.99 USD
+0.46 (+1.46%)
32 USD
+0.01 (+0.03%)
AMH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. While AMH belongs to the best of the industry regarding profitability, 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.
- In the past year AMH had a positive cash flow from operations.
- AMH had positive earnings in each of the past 5 years.
- In the past 5 years AMH always reported a positive cash flow from operatings.
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.
- 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 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 Operating Margin of 24.85%. This is in the better half of the industry: AMH outperforms 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
- AMH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
- AMH has a worse debt/assets ratio than last year.
2.2 Solvency
- AMH has an Altman-Z score of 1.34. This is a bad value and indicates that AMH is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.34, AMH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- AMH has a Debt/Equity ratio of 0.68. This is a neutral value indicating AMH is somewhat dependend on debt financing.
- AMH's Debt to Equity ratio of 0.68 is amongst the best of the industry. AMH outperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.34 |
ROIC/WACC0.41
WACC6.96%
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.
- The Current ratio of AMH (0.18) is worse 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.
- The Quick ratio of AMH (0.18) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 22.92% over the past year.
- AMH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.08% yearly.
- AMH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.77%.
- The Revenue has been growing by 8.83% on average over the past years. This is quite good.
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.
- Based on estimates for the next years, AMH will show a small growth in Revenue. The Revenue will grow by 7.32% on average per year.
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 27.11 indicates a quite expensive valuation of AMH.
- Based on the Price/Earnings ratio, AMH is valued a bit 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 27.21.
- AMH is valuated quite expensively with a Price/Forward Earnings ratio of 43.02.
- 65.00% of the companies in the same industry are more expensive than AMH, based on the Price/Forward Earnings ratio.
- AMH is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.11 | ||
| Fwd PE | 43.02 |
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 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.45 |
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)0.9
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!
- Compared to an average S&P500 Dividend Yield of 1.81, AMH pays a better dividend.
| 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 been paying a dividend for at least 10 years, so it has 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.
- The Dividend Rate of AMH has been growing, while earnings will be declining. 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 27.11 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.