AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
USA - NYSE:AMH - US02665T3068 - REIT
33.35 USD
+0.07 (+0.21%)
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. 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.
In the past 5 years AMH has always been profitable.
Each year in the past 5 years AMH had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.03%, AMH is doing good in the industry, outperforming 70.00% of the companies in the same industry.
AMH's Return On Equity of 5.74% is fine compared to the rest of the industry. AMH outperforms 70.00% of its industry peers.
AMH's Return On Invested Capital of 2.68% is in line compared to the rest of the industry. AMH outperforms 60.00% 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 (2.68%) for AMH is above the 3 year average (2.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 5.74% | ||
| ROIC | 2.68% |
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 better Profit Margin (22.87%) than 70.00% of its industry peers.
AMH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 24.52%, AMH is in the better half of 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 has a Gross Margin of 56.50%. This is in the lower half of the industry: AMH underperforms 65.00% of its industry peers.
AMH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.52% | ||
| PM (TTM) | 22.87% | ||
| GM | 56.5% |
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.
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
Based on the Altman-Z score of 1.33, we must say that AMH is in the distress zone and has some risk of bankruptcy.
AMH has a Altman-Z score (1.33) which is in line with its industry peers.
AMH has a Debt/Equity ratio of 0.72. This is a neutral value indicating AMH is somewhat dependend on debt financing.
AMH has a Debt to Equity ratio of 0.72. This is in the better half of the industry: AMH outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.33 |
ROIC/WACC0.39
WACC6.86%
2.3 Liquidity
A Current Ratio of 0.64 indicates that AMH may have some problems paying its short term obligations.
AMH's Current ratio of 0.64 is in line compared to the rest of the industry. AMH outperforms 60.00% of its industry peers.
AMH has a Quick Ratio of 0.64. This is a bad value and indicates that AMH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.64, AMH is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
AMH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.63%, which is quite good.
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 -14.40%.
AMH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.83% yearly.
EPS 1Y (TTM)15.63%
EPS 3Y39.25%
EPS 5Y30.08%
EPS Q2Q%12%
Revenue 1Y (TTM)-14.4%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%8.03%
3.2 Future
AMH is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -12.96% yearly.
Based on estimates for the next years, AMH will show a small growth in Revenue. The Revenue will grow by 7.43% on average per year.
EPS Next Y-26.82%
EPS Next 2Y-17.06%
EPS Next 3Y-12.96%
EPS Next 5YN/A
Revenue Next Year7.67%
Revenue Next 2Y6.07%
Revenue Next 3Y5.5%
Revenue Next 5Y7.43%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.05, AMH can be considered very expensive at the moment.
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 (27.20), we can say AMH is valued inline with the index average.
With a Price/Forward Earnings ratio of 44.89, AMH can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, AMH is valued a bit cheaper than 65.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. AMH is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.05 | ||
| Fwd PE | 44.89 |
4.2 Price Multiples
AMH's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.34 |
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 -12.96% in the coming years.
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y-17.06%
EPS Next 3Y-12.96%
5. Dividend
5.1 Amount
AMH has a Yearly Dividend Yield of 3.47%.
Compared to an average industry Dividend Yield of 4.68, 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!
Compared to an average S&P500 Dividend Yield of 2.38, AMH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
On average, the dividend of AMH grows each year by 22.99%, which is quite nice.
AMH has been paying a dividend for at least 10 years, so it has a reliable track record.
AMH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)22.99%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
104.55% 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.
DP104.55%
EPS Next 2Y-17.06%
EPS Next 3Y-12.96%
NYSE:AMH (9/18/2025, 1:59:24 PM)
33.35
+0.07 (+0.21%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners90%
Inst Owner Change-0.82%
Ins Owners6%
Ins Owner Change0.31%
Market Cap12.37B
Analysts74.29
Price Target41.5 (24.44%)
Short Float %2.37%
Short Ratio3.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend1.08
Dividend Growth(5Y)22.99%
DP104.55%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)93.38%
Min EPS beat(2)86.06%
Max EPS beat(2)100.7%
EPS beat(4)4
Avg EPS beat(4)88.15%
Min EPS beat(4)49.45%
Max EPS beat(4)116.38%
EPS beat(8)8
Avg EPS beat(8)84.7%
EPS beat(12)12
Avg EPS beat(12)96.69%
EPS beat(16)16
Avg EPS beat(16)82.54%
Revenue beat(2)2
Avg Revenue beat(2)1.3%
Min Revenue beat(2)1.29%
Max Revenue beat(2)1.31%
Revenue beat(4)3
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)1.31%
Revenue beat(8)6
Avg Revenue beat(8)0.49%
Revenue beat(12)9
Avg Revenue beat(12)0.46%
Revenue beat(16)10
Avg Revenue beat(16)0.26%
PT rev (1m)-0.71%
PT rev (3m)-0.32%
EPS NQ rev (1m)1.92%
EPS NQ rev (3m)2.58%
EPS NY rev (1m)3.99%
EPS NY rev (3m)21.32%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.05 | ||
| Fwd PE | 44.89 | ||
| P/S | 6.88 | ||
| P/FCF | N/A | ||
| P/OCF | 14.89 | ||
| P/B | 1.73 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 18.34 |
EPS(TTM)1.11
EY3.33%
EPS(NY)0.74
Fwd EY2.23%
FCF(TTM)-1.85
FCFYN/A
OCF(TTM)2.24
OCFY6.72%
SpS4.85
BVpS19.32
TBVpS18.99
PEG (NY)N/A
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 5.74% | ||
| ROCE | 3.39% | ||
| ROIC | 2.68% | ||
| ROICexc | 2.75% | ||
| ROICexgc | 2.79% | ||
| OM | 24.52% | ||
| PM (TTM) | 22.87% | ||
| GM | 56.5% | ||
| 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-Score4
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.51 | ||
| Cap/Depr | 306.33% | ||
| Cap/Sales | 84.41% | ||
| Interest Coverage | 2.96 | ||
| Cash Conversion | 88.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 1.33 |
F-Score4
WACC6.86%
ROIC/WACC0.39
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)15.63%
EPS 3Y39.25%
EPS 5Y30.08%
EPS Q2Q%12%
EPS Next Y-26.82%
EPS Next 2Y-17.06%
EPS Next 3Y-12.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.4%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%8.03%
Revenue Next Year7.67%
Revenue Next 2Y6.07%
Revenue Next 3Y5.5%
Revenue Next 5Y7.43%
EBIT growth 1Y-10.15%
EBIT growth 3Y12.82%
EBIT growth 5Y11.56%
EBIT Next Year130.66%
EBIT Next 3Y37.87%
EBIT Next 5Y29.53%
FCF growth 1Y-30.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.34%
OCF growth 3Y10.89%
OCF growth 5Y12.13%