INVITATION HOMES INC (INVH) Stock Fundamental Analysis
NYSE:INVH - New York Stock Exchange, Inc. - US46187W1071 - REIT
Taking everything into account, INVH scores 4 out of 10 in our fundamental rating. INVH was compared to 20 industry peers in the Residential REITs industry. Both the profitability and the financial health of INVH get a neutral evaluation. Nothing too spectacular is happening here. INVH is quite expensive at the moment. It does show a decent 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.
INVH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
INVH has a Return On Assets (2.24%) which is in line with its industry peers.
INVH's Return On Equity of 4.43% is in line compared to the rest of the industry. INVH outperforms 60.00% of its industry peers.
With a decent Return On Invested Capital value of 3.03%, INVH is doing good in the industry, outperforming 70.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for INVH is in line with the industry average of 2.61%.
The last Return On Invested Capital (3.03%) for INVH is above the 3 year average (2.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.24% | ||
| ROE | 4.43% | ||
| ROIC | 3.03% |
ROA(3y)2.06%
ROA(5y)1.62%
ROE(3y)3.83%
ROE(5y)3.11%
ROIC(3y)2.72%
ROIC(5y)2.46%
1.3 Margins
INVH's Profit Margin of 17.01% is in line compared to the rest of the industry. INVH outperforms 60.00% of its industry peers.
In the last couple of years the Profit Margin of INVH has grown nicely.
INVH has a Operating Margin of 28.28%. This is in the better half of the industry: INVH outperforms 75.00% of its industry peers.
INVH's Operating Margin has improved in the last couple of years.
The Gross Margin of INVH (59.02%) 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 | 28.28% | ||
| PM (TTM) | 17.01% | ||
| GM | 59.03% |
OM growth 3Y3.87%
OM growth 5Y6.27%
PM growth 3Y25.69%
PM growth 5YN/A
GM growth 3Y0.23%
GM growth 5Y0.58%
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.
Compared to 5 years ago, INVH has more shares outstanding
The debt/assets ratio for INVH is higher compared to a year ago.
2.2 Solvency
INVH has an Altman-Z score of 1.37. This is a bad value and indicates that INVH is not financially healthy and even has some risk of bankruptcy.
INVH's Altman-Z score of 1.37 is in line compared to the rest of the industry. INVH outperforms 60.00% of its industry peers.
The Debt to FCF ratio of INVH is 44.14, which is on the high side as it means it would take INVH, 44.14 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 44.14, INVH perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
A Debt/Equity ratio of 0.91 indicates that INVH is somewhat dependend on debt financing.
INVH has a Debt to Equity ratio (0.91) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 44.14 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.41
WACC7.32%
2.3 Liquidity
INVH has a Current Ratio of 1.82. This is a normal value and indicates that INVH is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of INVH (1.82) is better than 85.00% of its industry peers.
INVH has a Quick Ratio of 1.82. This is a normal value and indicates that INVH is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.82, INVH belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The earnings per share for INVH have decreased strongly by -10.13% in the last year.
The Earnings Per Share has been growing by 32.64% on average over the past years. This is a very strong growth
Looking at the last year, INVH shows a quite strong growth in Revenue. The Revenue has grown by 8.22% in the last year.
The Revenue has been growing slightly by 7.14% on average over the past years.
EPS 1Y (TTM)-10.13%
EPS 3Y32.64%
EPS 5YN/A
EPS Q2Q%-28.57%
Revenue 1Y (TTM)8.22%
Revenue growth 3Y10.09%
Revenue growth 5Y7.14%
Sales Q2Q%6.9%
3.2 Future
The Earnings Per Share is expected to grow by 4.78% on average over the next years.
The Revenue is expected to grow by 5.15% on average over the next years.
EPS Next Y-16.46%
EPS Next 2Y-4.4%
EPS Next 3Y0.13%
EPS Next 5Y4.78%
Revenue Next Year6.42%
Revenue Next 2Y5.42%
Revenue Next 3Y4.94%
Revenue Next 5Y5.15%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 43.94, which means the current valuation is very expensive for INVH.
The rest of the industry has a similar Price/Earnings ratio as INVH.
Compared to an average S&P500 Price/Earnings ratio of 28.29, INVH is valued quite expensively.
The Price/Forward Earnings ratio is 40.64, which means the current valuation is very expensive for INVH.
Based on the Price/Forward Earnings ratio, INVH is valued a bit cheaper than 80.00% of the companies in the same industry.
INVH's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.94 | ||
| Fwd PE | 40.64 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as INVH.
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 | 93.56 | ||
| EV/EBITDA | 18.87 |
4.3 Compensation for Growth
INVH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.4%
EPS Next 3Y0.13%
5. Dividend
5.1 Amount
INVH has a Yearly Dividend Yield of 3.73%.
Compared to an average industry Dividend Yield of 4.29, INVH has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, INVH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
5.2 History
On average, the dividend of INVH grows each year by 18.72%, which is quite nice.
INVH has been paying a dividend for over 5 years, so it has already some track record.
As INVH did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)18.72%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
153.77% 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.
DP153.77%
EPS Next 2Y-4.4%
EPS Next 3Y0.13%
INVITATION HOMES INC
NYSE:INVH (1/21/2025, 8:07:49 PM)
After market: 31.2 0 (0%)31.2
-0.12 (-0.38%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.9%
Inst Owner Change-0.01%
Ins Owners0.31%
Ins Owner Change-2.09%
Market Cap19.11B
Analysts73.79
Price Target38.35 (22.92%)
Short Float %1.79%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
Yearly Dividend1.04
Dividend Growth(5Y)18.72%
DP153.77%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-24.1%
Min EPS beat(2)-36.25%
Max EPS beat(2)-11.94%
EPS beat(4)2
Avg EPS beat(4)-1%
Min EPS beat(4)-36.25%
Max EPS beat(4)26.55%
EPS beat(8)6
Avg EPS beat(8)8.99%
EPS beat(12)8
Avg EPS beat(12)5.69%
EPS beat(16)12
Avg EPS beat(16)17.63%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)-0.3%
Revenue beat(4)1
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)0.29%
Revenue beat(8)1
Avg Revenue beat(8)-0.77%
Revenue beat(12)2
Avg Revenue beat(12)-1.01%
Revenue beat(16)4
Avg Revenue beat(16)-0.85%
PT rev (1m)-0.36%
PT rev (3m)-3.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.94 | ||
| Fwd PE | 40.64 | ||
| P/S | 7.4 | ||
| P/FCF | 93.56 | ||
| P/OCF | 18.44 | ||
| P/B | 1.93 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 18.87 |
EPS(TTM)0.71
EY2.28%
EPS(NY)0.77
Fwd EY2.46%
FCF(TTM)0.33
FCFY1.07%
OCF(TTM)1.69
OCFY5.42%
SpS4.22
BVpS16.19
TBVpS15.77
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.24% | ||
| ROE | 4.43% | ||
| ROCE | 3.84% | ||
| ROIC | 3.03% | ||
| ROICexc | 3.21% | ||
| ROICexgc | 3.27% | ||
| OM | 28.28% | ||
| PM (TTM) | 17.01% | ||
| GM | 59.03% | ||
| FCFM | 7.91% |
ROA(3y)2.06%
ROA(5y)1.62%
ROE(3y)3.83%
ROE(5y)3.11%
ROIC(3y)2.72%
ROIC(5y)2.46%
ROICexc(3y)2.8%
ROICexc(5y)2.52%
ROICexgc(3y)2.86%
ROICexgc(5y)2.56%
ROCE(3y)3.45%
ROCE(5y)3.12%
ROICexcg growth 3Y11.99%
ROICexcg growth 5Y13.16%
ROICexc growth 3Y11.86%
ROICexc growth 5Y13.18%
OM growth 3Y3.87%
OM growth 5Y6.27%
PM growth 3Y25.69%
PM growth 5YN/A
GM growth 3Y0.23%
GM growth 5Y0.58%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 44.14 | ||
| Debt/EBITDA | 6.28 | ||
| Cap/Depr | 117.95% | ||
| Cap/Sales | 32.21% | ||
| Interest Coverage | 2.24 | ||
| Cash Conversion | 72.17% | ||
| Profit Quality | 46.47% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 1.37 |
F-Score5
WACC7.32%
ROIC/WACC0.41
Cap/Depr(3y)171.84%
Cap/Depr(5y)159.96%
Cap/Sales(3y)49.36%
Cap/Sales(5y)46.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.13%
EPS 3Y32.64%
EPS 5YN/A
EPS Q2Q%-28.57%
EPS Next Y-16.46%
EPS Next 2Y-4.4%
EPS Next 3Y0.13%
EPS Next 5Y4.78%
Revenue 1Y (TTM)8.22%
Revenue growth 3Y10.09%
Revenue growth 5Y7.14%
Sales Q2Q%6.9%
Revenue Next Year6.42%
Revenue Next 2Y5.42%
Revenue Next 3Y4.94%
Revenue Next 5Y5.15%
EBIT growth 1Y5.64%
EBIT growth 3Y14.35%
EBIT growth 5Y13.85%
EBIT Next Year99.32%
EBIT Next 3Y29.9%
EBIT Next 5Y19.9%
FCF growth 1Y438.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.71%
OCF growth 3Y16.69%
OCF growth 5Y14.55%