INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INVH - US46187W1071 - REIT
27.79 USD
-0.41 (-1.45%)
27.79 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to INVH. INVH was compared to 20 industry peers in the Residential REITs industry. There are concerns on the financial health of INVH while its profitability can be described as average. INVH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
INVH had positive earnings in the past year.
In the past year INVH had a positive cash flow from operations.
INVH had positive earnings in each of the past 5 years.
In the past 5 years INVH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.12%, INVH is in line with its industry, outperforming 60.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.08%, INVH is in line with its industry, outperforming 60.00% of the companies in the same industry.
INVH has a Return On Invested Capital of 3.27%. This is in the better half of the industry: INVH outperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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 | 6.08% | ||
| 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
The Profit Margin of INVH (21.67%) is comparable to the rest of the industry.
INVH's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 27.79%, INVH is doing good in the industry, outperforming 75.00% of the companies in the same industry.
INVH's Operating Margin has improved in the last couple of years.
INVH has a Gross Margin of 58.64%. This is comparable to the rest of the industry: INVH outperforms 50.00% of its industry peers.
INVH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.79% | ||
| PM (TTM) | 21.67% | ||
| GM | 58.64% |
OM growth 3Y0.86%
OM growth 5Y3.08%
PM growth 3Y9.78%
PM growth 5Y16.05%
GM growth 3Y-1.11%
GM growth 5Y0.17%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INVH is destroying value.
INVH has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for INVH has been increased compared to 5 years ago.
INVH has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that INVH is in the distress zone and has some risk of bankruptcy.
INVH has a Altman-Z score (1.27) which is comparable to the rest of the industry.
The Debt to FCF ratio of INVH is 80.95, which is on the high side as it means it would take INVH, 80.95 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of INVH (80.95) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.86 indicates that INVH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.86, INVH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 80.95 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.48
WACC6.8%
2.3 Liquidity
INVH has a Current Ratio of 0.35. This is a bad value and indicates that INVH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.35, INVH perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 0.35 indicates that INVH may have some problems paying its short term obligations.
INVH has a Quick ratio (0.35) which is in line with 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.
Measured over the past years, INVH shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.01% on average per year.
The Revenue has been growing slightly by 4.61% in the past year.
INVH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.22% yearly.
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.
The Revenue is expected to grow by 4.68% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.25, the valuation of INVH can be described as expensive.
65.00% of the companies in the same industry are more expensive than INVH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.11. INVH is around the same levels.
A Price/Forward Earnings ratio of 32.92 indicates a quite expensive valuation of INVH.
Based on the Price/Forward Earnings ratio, INVH is valued cheaper than 85.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. INVH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.25 | ||
| Fwd PE | 32.92 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of INVH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 167.35 | ||
| EV/EBITDA | 17.03 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
INVH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.39
PEG (5Y)1.33
EPS Next 2Y7.54%
EPS Next 3Y6.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.15%, INVH is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.09, INVH has a dividend in line with its industry peers.
INVH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
5.2 History
On average, the dividend of INVH grows each year by 16.68%, which is quite nice.
INVH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)16.68%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
120.69% of the earnings are spent on dividend by INVH. This is not a sustainable payout ratio.
INVH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP120.69%
EPS Next 2Y7.54%
EPS Next 3Y6.49%
27.79
-0.41 (-1.45%)
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 Change1.08%
Ins Owners0.24%
Ins Owner Change-3.88%
Market Cap17.04B
Revenue(TTM)2.70B
Net Income(TTM)585.66M
Analysts74
Price Target35.63 (28.21%)
Short Float %1.64%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
Yearly Dividend1.13
Dividend Growth(5Y)16.68%
DP120.69%
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)-2.65%
PT rev (3m)-4.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.76%
EPS NY rev (1m)0.35%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.25 | ||
| Fwd PE | 32.92 | ||
| P/S | 6.3 | ||
| P/FCF | 167.35 | ||
| P/OCF | 14.07 | ||
| P/B | 1.77 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 17.03 |
EPS(TTM)0.95
EY3.42%
EPS(NY)0.84
Fwd EY3.04%
FCF(TTM)0.17
FCFY0.6%
OCF(TTM)1.97
OCFY7.11%
SpS4.41
BVpS15.7
TBVpS15.28
PEG (NY)1.39
PEG (5Y)1.33
Graham Number18.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 6.08% | ||
| ROCE | 4.14% | ||
| ROIC | 3.27% | ||
| ROICexc | 3.3% | ||
| ROICexgc | 3.36% | ||
| OM | 27.79% | ||
| PM (TTM) | 21.67% | ||
| 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)2.77%
ROICexgc(3y)3.12%
ROICexgc(5y)2.82%
ROCE(3y)3.79%
ROCE(5y)3.43%
ROICexgc growth 3Y9.52%
ROICexgc growth 5Y10.2%
ROICexc growth 3Y9.34%
ROICexc growth 5Y10.13%
OM growth 3Y0.86%
OM growth 5Y3.08%
PM growth 3Y9.78%
PM growth 5Y16.05%
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 | 80.95 | ||
| Debt/EBITDA | 5.53 | ||
| Cap/Depr | 150.04% | ||
| Cap/Sales | 41.02% | ||
| Interest Coverage | 2.28 | ||
| Cash Conversion | 81.24% | ||
| Profit Quality | 17.38% | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.27 |
F-Score6
WACC6.8%
ROIC/WACC0.48
Cap/Depr(3y)143.85%
Cap/Depr(5y)158.61%
Cap/Sales(3y)39.98%
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 1Y2.73%
EBIT growth 3Y10.41%
EBIT growth 5Y11.55%
EBIT Next Year107.69%
EBIT Next 3Y31.22%
EBIT Next 5Y20.28%
FCF growth 1Y344.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y6.27%
OCF growth 3Y6.02%
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 4 / 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 6 / 10.
Can you provide the PE and PB ratios for INVH stock?
The Price/Earnings (PE) ratio for INVITATION HOMES INC (INVH) is 29.25 and the Price/Book (PB) ratio is 1.77.
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.