INVITATION HOMES INC (INVH)
US46187W1071 - REIT
We assign a fundamental rating of 4 out of 10 to INVH. INVH was compared to 20 industry peers in the Residential REITs industry. INVH has only an average score on both its financial health and profitability. INVH is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year INVH was profitable.
In the past year INVH had a positive cash flow from operations.
INVH had positive earnings in each of the past 5 years.
INVH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
INVH's Return On Assets of 2.24% is in line compared to the rest of the industry. INVH outperforms 60.00% of its industry peers.
Looking at the Return On Equity, with a value of 4.43%, INVH is in line with its industry, outperforming 60.00% of the companies in the same industry.
INVH has a better Return On Invested Capital (3.03%) than 70.00% 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 2.61%.
The 3 year average ROIC (2.72%) for INVH is below the current ROIC(3.03%), indicating increased profibility in the last year.
| 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 has a Profit Margin (17.01%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of INVH has grown nicely.
INVH has a better Operating Margin (28.28%) 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 (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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.47, we must say that INVH is in the distress zone and has some risk of bankruptcy.
INVH has a Altman-Z score of 1.47. This is comparable to the rest of the industry: INVH outperforms 60.00% of its industry peers.
INVH has a debt to FCF ratio of 44.14. This is a negative value and a sign of low solvency as INVH would need 44.14 years to pay back of 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.
INVH has a Debt/Equity ratio of 0.91. This is a neutral value indicating INVH is somewhat dependend on debt financing.
INVH's Debt to Equity ratio of 0.91 is in line compared to the rest of the industry. INVH outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 44.14 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.42
WACC7.29%
2.3 Liquidity
A Current Ratio of 1.82 indicates that INVH should not have too much problems paying its short term obligations.
The Current ratio of INVH (1.82) is better than 85.00% of its industry peers.
A Quick Ratio of 1.82 indicates that INVH should not have too much problems paying its short term obligations.
INVH's Quick ratio of 1.82 is amongst the best of the industry. INVH outperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
INVH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.13%.
Measured over the past years, INVH shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.64% on average per year.
Looking at the last year, INVH shows a quite strong growth in Revenue. The Revenue has grown by 8.22% in the last year.
Measured over the past years, INVH shows a small growth in Revenue. The Revenue has been growing by 7.14% on average per year.
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
Based on estimates for the next years, INVH will show a small growth in Earnings Per Share. The EPS will grow by 4.58% on average per year.
INVH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.72% yearly.
EPS Next Y-17.06%
EPS Next 2Y-4.63%
EPS Next 3Y0.4%
EPS Next 5Y4.58%
Revenue Next Year7.06%
Revenue Next 2Y5.98%
Revenue Next 3Y5.11%
Revenue Next 5Y4.72%
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
A Price/Earnings ratio of 47.63 indicates a quite expensive valuation of INVH.
Compared to the rest of the industry, the Price/Earnings ratio of INVH is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.96. INVH is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 44.26, INVH can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, INVH is valued a bit cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of INVH to the average of the S&P500 Index (23.82), we can say INVH is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.63 | ||
| Fwd PE | 44.26 |
4.2 Price Multiples
INVH's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as INVH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 101.41 | ||
| EV/EBITDA | 19.94 |
4.3 Compensation for Growth
The decent profitability rating of INVH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.63%
EPS Next 3Y0.4%
5. Dividend
5.1 Amount
INVH has a Yearly Dividend Yield of 3.34%.
Compared to an average industry Dividend Yield of 3.90, INVH has a dividend in line with its industry peers.
INVH's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
5.2 History
The dividend of INVH is nicely growing with an annual growth rate of 18.72%!
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-4.63%
EPS Next 3Y0.4%
INVITATION HOMES INC
NYSE:INVH (11/21/2024, 8:04:00 PM)
After market: 33.82 0 (0%)33.82
+0.12 (+0.36%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.63 | ||
| Fwd PE | 44.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.24% | ||
| ROE | 4.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.28% | ||
| PM (TTM) | 17.01% | ||
| GM | 59.03% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-10.13%
EPS 3Y32.64%
EPS 5Y
EPS Q2Q%
EPS Next Y-17.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.22%
Revenue growth 3Y10.09%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y