INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - NYSE:INVH - US46187W1071 - REIT
27.45 USD
-0.09 (-0.33%)
27.43 USD
-0.02 (-0.07%)
Taking everything into account, INVH scores 5 out of 10 in our fundamental rating. INVH was compared to 20 industry peers in the Residential REITs industry. While INVH has a great profitability rating, there are quite some concerns on its financial health. INVH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
INVH had positive earnings in the past year.
INVH had a positive operating cash flow in the past year.
In the past 5 years INVH has always been profitable.
In the past 5 years INVH always reported a positive cash flow from operatings.
1.2 Ratios
INVH has a Return On Assets of 3.12%. This is in the better half of the industry: INVH outperforms 65.00% of its industry peers.
With a decent Return On Equity value of 6.09%, INVH is doing good in the industry, outperforming 65.00% of the companies in the same industry.
INVH has a better Return On Invested Capital (3.27%) than 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for INVH is in line with the industry average of 2.59%.
The 3 year average ROIC (2.99%) for INVH is below the current ROIC(3.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 6.09% | ||
| ROIC | 3.27% |
ROA(3y)2.4%
ROA(5y)1.94%
ROE(3y)4.49%
ROE(5y)3.69%
ROIC(3y)2.99%
ROIC(5y)2.71%
1.3 Margins
With a Profit Margin value of 21.68%, INVH perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
In the last couple of years the Profit Margin of INVH has grown nicely.
The Operating Margin of INVH (27.79%) is better than 75.00% of its industry peers.
In the last couple of years the Operating Margin of INVH has grown nicely.
The Gross Margin of INVH (58.64%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of INVH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.79% | ||
| PM (TTM) | 21.68% | ||
| GM | 58.64% |
OM growth 3Y0.84%
OM growth 5Y3.06%
PM growth 3Y9.77%
PM growth 5Y16.04%
GM growth 3Y-1.11%
GM growth 5Y0.17%
2. Health
2.1 Basic Checks
INVH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, INVH has about the same amount of shares outstanding.
INVH has more shares outstanding than it did 5 years ago.
The debt/assets ratio for INVH has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that INVH is in the distress zone and has some risk of bankruptcy.
INVH has a Altman-Z score (1.24) which is in line with its industry peers.
The Debt to FCF ratio of INVH is 80.78, which is on the high side as it means it would take INVH, 80.78 years of fcf income to pay off all of its debts.
INVH has a Debt to FCF ratio of 80.78. This is comparable to the rest of the industry: INVH outperforms 50.00% of its industry peers.
INVH has a Debt/Equity ratio of 0.86. This is a neutral value indicating INVH is somewhat dependend on debt financing.
INVH's Debt to Equity ratio of 0.86 is in line compared to the rest of the industry. INVH outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 80.78 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.48
WACC6.85%
2.3 Liquidity
A Current Ratio of 0.35 indicates that INVH may have some problems paying its short term obligations.
INVH's Current ratio of 0.35 is in line compared to the rest of the industry. INVH outperforms 45.00% of its industry peers.
A Quick Ratio of 0.35 indicates that INVH may have some problems paying its short term obligations.
INVH's Quick ratio of 0.35 is in line compared to the rest of the industry. INVH outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.80% over the past year.
INVH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.01% yearly.
Looking at the last year, INVH shows a small growth in Revenue. The Revenue has grown by 4.61% in the last year.
The Revenue has been growing by 8.22% on average over the past years. This is quite good.
EPS 1Y (TTM)33.8%
EPS 3Y17.5%
EPS 5Y22.01%
EPS Q2Q%46.67%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.22%
3.2 Future
The Earnings Per Share is expected to grow by 9.56% on average over the next years. This is quite good.
INVH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.68% yearly.
EPS Next Y21.1%
EPS Next 2Y7.54%
EPS Next 3Y6.49%
EPS Next 5Y9.56%
Revenue Next Year3.99%
Revenue Next 2Y3.71%
Revenue Next 3Y2.94%
Revenue Next 5Y4.68%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.89 indicates a quite expensive valuation of INVH.
Based on the Price/Earnings ratio, INVH is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
INVH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 32.51, which means the current valuation is very expensive for INVH.
85.00% of the companies in the same industry are more expensive than INVH, based on the Price/Forward Earnings ratio.
INVH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 35.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.89 | ||
| Fwd PE | 32.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INVH indicates a somewhat cheap valuation: INVH is cheaper than 75.00% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as INVH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 164.97 | ||
| EV/EBITDA | 16.72 |
4.3 Compensation for Growth
INVH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of INVH may justify a higher PE ratio.
PEG (NY)1.37
PEG (5Y)1.31
EPS Next 2Y7.54%
EPS Next 3Y6.49%
5. Dividend
5.1 Amount
INVH has a Yearly Dividend Yield of 4.10%, which is a nice return.
INVH's Dividend Yield is slightly below the industry average, which is at 7.21.
Compared to an average S&P500 Dividend Yield of 2.44, INVH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
5.2 History
On average, the dividend of INVH grows each year by 16.66%, which is quite nice.
INVH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)16.66%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
INVH pays out 120.65% of its income as dividend. This is not a sustainable payout ratio.
INVH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP120.65%
EPS Next 2Y7.54%
EPS Next 3Y6.49%
27.45
-0.09 (-0.33%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners102.17%
Inst Owner Change0.94%
Ins Owners0.24%
Ins Owner Change-8.02%
Market Cap16.83B
Revenue(TTM)2.70B
Net Income(TTM)586.00M
Analysts74
Price Target36.6 (33.33%)
Short Float %1.64%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
Yearly Dividend1.12
Dividend Growth(5Y)16.66%
DP120.65%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.39%
Min EPS beat(2)17.55%
Max EPS beat(2)19.22%
EPS beat(4)4
Avg EPS beat(4)27.76%
Min EPS beat(4)17.55%
Max EPS beat(4)47.06%
EPS beat(8)6
Avg EPS beat(8)13.38%
EPS beat(12)10
Avg EPS beat(12)15.25%
EPS beat(16)12
Avg EPS beat(16)11.21%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-0.06%
Max Revenue beat(2)0.02%
Revenue beat(4)2
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)0.13%
Revenue beat(8)3
Avg Revenue beat(8)-0.47%
Revenue beat(12)3
Avg Revenue beat(12)-0.6%
Revenue beat(16)4
Avg Revenue beat(16)-0.83%
PT rev (1m)-0.68%
PT rev (3m)-3.87%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)-2.29%
EPS NY rev (1m)0.67%
EPS NY rev (3m)2.95%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.89 | ||
| Fwd PE | 32.51 | ||
| P/S | 6.22 | ||
| P/FCF | 164.97 | ||
| P/OCF | 13.9 | ||
| P/B | 1.75 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 16.72 |
EPS(TTM)0.95
EY3.46%
EPS(NY)0.84
Fwd EY3.08%
FCF(TTM)0.17
FCFY0.61%
OCF(TTM)1.98
OCFY7.2%
SpS4.41
BVpS15.7
TBVpS15.28
PEG (NY)1.37
PEG (5Y)1.31
Graham Number18.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 6.09% | ||
| ROCE | 4.14% | ||
| ROIC | 3.27% | ||
| ROICexc | 3.3% | ||
| ROICexgc | 3.36% | ||
| OM | 27.79% | ||
| PM (TTM) | 21.68% | ||
| GM | 58.64% | ||
| FCFM | 3.77% |
ROA(3y)2.4%
ROA(5y)1.94%
ROE(3y)4.49%
ROE(5y)3.69%
ROIC(3y)2.99%
ROIC(5y)2.71%
ROICexc(3y)3.06%
ROICexc(5y)2.76%
ROICexgc(3y)3.12%
ROICexgc(5y)2.82%
ROCE(3y)3.79%
ROCE(5y)3.42%
ROICexgc growth 3Y9.49%
ROICexgc growth 5Y10.19%
ROICexc growth 3Y9.32%
ROICexc growth 5Y10.11%
OM growth 3Y0.84%
OM growth 5Y3.06%
PM growth 3Y9.77%
PM growth 5Y16.04%
GM growth 3Y-1.11%
GM growth 5Y0.17%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 80.78 | ||
| Debt/EBITDA | 5.53 | ||
| Cap/Depr | 150.07% | ||
| Cap/Sales | 41.03% | ||
| Interest Coverage | 2.28 | ||
| Cash Conversion | 81.26% | ||
| Profit Quality | 17.41% | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.24 |
F-Score6
WACC6.85%
ROIC/WACC0.48
Cap/Depr(3y)143.86%
Cap/Depr(5y)158.62%
Cap/Sales(3y)39.99%
Cap/Sales(5y)45.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.8%
EPS 3Y17.5%
EPS 5Y22.01%
EPS Q2Q%46.67%
EPS Next Y21.1%
EPS Next 2Y7.54%
EPS Next 3Y6.49%
EPS Next 5Y9.56%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.22%
Revenue Next Year3.99%
Revenue Next 2Y3.71%
Revenue Next 3Y2.94%
Revenue Next 5Y4.68%
EBIT growth 1Y2.75%
EBIT growth 3Y10.39%
EBIT growth 5Y11.53%
EBIT Next Year107.69%
EBIT Next 3Y31.22%
EBIT Next 5Y20.28%
FCF growth 1Y344.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y6.3%
OCF growth 3Y6.03%
OCF growth 5Y10.32%
INVITATION HOMES INC / INVH FAQ
What is the ChartMill fundamental rating of INVITATION HOMES INC (INVH) stock?
ChartMill assigns a fundamental rating of 5 / 10 to INVH.
What is the valuation status for INVH stock?
ChartMill assigns a valuation rating of 4 / 10 to INVITATION HOMES INC (INVH). This can be considered as Fairly Valued.
What is the profitability of INVH stock?
INVITATION HOMES INC (INVH) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for INVH stock?
The Price/Earnings (PE) ratio for INVITATION HOMES INC (INVH) is 28.89 and the Price/Book (PB) ratio is 1.75.
What is the expected EPS growth for INVITATION HOMES INC (INVH) stock?
The Earnings per Share (EPS) of INVITATION HOMES INC (INVH) is expected to grow by 21.1% in the next year.