INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:INVH • US46187W1071
26.73 USD
+0.38 (+1.44%)
At close: Jan 30, 2026
26.71 USD
-0.02 (-0.07%)
After Hours: 1/30/2026, 8:04:00 PM
INVH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. While INVH is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- INVH had a positive operating cash flow in the past year.
- In the past 5 years INVH has always been profitable.
- INVH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- INVH has a Return On Assets (3.12%) which is in line with its industry peers.
- 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.
- Looking at the Return On Invested Capital, with a value of 3.27%, INVH is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- 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
- INVH's Profit Margin of 21.67% is in line compared to the rest of the industry. INVH outperforms 55.00% of its industry peers.
- 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.
- In the last couple of years the Operating Margin of INVH has grown nicely.
- 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
- INVH 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 INVH remains at a similar level compared to 1 year ago.
- 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 1.21, we must say that INVH is in the distress zone and has some risk of bankruptcy.
- INVH has a Altman-Z score of 1.21. This is comparable to the rest of the industry: INVH outperforms 55.00% of its industry peers.
- INVH has a debt to FCF ratio of 80.95. This is a negative value and a sign of low solvency as INVH would need 80.95 years to pay back of all of its debts.
- INVH's Debt to FCF ratio of 80.95 is in line compared 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 has a Debt to Equity ratio (0.86) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 80.95 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.47
WACC6.91%
2.3 Liquidity
- A Current Ratio of 0.35 indicates that INVH may have some problems paying its short term obligations.
- INVH has a Current ratio (0.35) which is comparable to the rest of the industry.
- A Quick Ratio of 0.35 indicates that INVH may have some problems paying its short term obligations.
- With a Quick ratio value of 0.35, INVH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
- INVH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.80%, which is quite impressive.
- INVH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.01% yearly.
- The Revenue has been growing slightly by 4.61% in the past year.
- Measured over the past years, INVH shows a quite strong growth in Revenue. The Revenue has been growing by 8.22% on average per year.
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
- Based on estimates for the next years, INVH will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.56% on average per year.
- Based on estimates for the next years, INVH will show a small growth in Revenue. The Revenue will grow by 4.68% on average per year.
EPS Next Y23.34%
EPS Next 2Y5.01%
EPS Next 3Y5.23%
EPS Next 5Y9.56%
Revenue Next Year4.02%
Revenue Next 2Y3.56%
Revenue Next 3Y3.09%
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
- With a Price/Earnings ratio of 28.14, INVH can be considered very expensive at the moment.
- 65.00% of the companies in the same industry are more expensive than INVH, based on the Price/Earnings ratio.
- INVH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 33.21, which means the current valuation is very expensive for INVH.
- 95.00% of the companies in the same industry are more expensive than INVH, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. INVH is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.14 | ||
| Fwd PE | 33.21 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, INVH is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
- INVH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 160.97 | ||
| EV/EBITDA | 16.42 |
4.3 Compensation for Growth
- The 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)1.21
PEG (5Y)1.28
EPS Next 2Y5.01%
EPS Next 3Y5.23%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.55%, INVH is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 41.00, 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
5.2 History
- The dividend of INVH is nicely growing with an annual growth rate of 16.68%!
- 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.
- The dividend of INVH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP120.69%
EPS Next 2Y5.01%
EPS Next 3Y5.23%
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.
Can you provide the valuation status for INVITATION HOMES INC?
ChartMill assigns a valuation rating of 4 / 10 to INVITATION HOMES INC (INVH). This can be considered as Fairly Valued.
Can you provide the profitability details for INVITATION HOMES INC?
INVITATION HOMES INC (INVH) has a profitability rating of 6 / 10.
What is the financial health of INVITATION HOMES INC (INVH) stock?
The financial health rating of INVITATION HOMES INC (INVH) is 2 / 10.
Can you provide the dividend sustainability for INVH stock?
The dividend rating of INVITATION HOMES INC (INVH) is 5 / 10 and the dividend payout ratio is 120.69%.