INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INVH - US46187W1071 - REIT
27.19 USD
+0.17 (+0.63%)
27.19 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. INVH has a medium profitability rating, but doesn't score so well on its financial health evaluation. INVH has a decent growth rate and is not valued too expensively.
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.
- In the past 5 years INVH always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 3.12%, INVH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- INVH has a Return On Equity (6.08%) which is in line with its industry peers.
- INVH has a better Return On Invested Capital (3.27%) than 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.
- Looking at the Operating Margin, with a value of 27.79%, INVH is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- INVH's Operating Margin has improved in the last couple of years.
- The Gross Margin of INVH (58.64%) is comparable to the rest of the industry.
- 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
- 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.
- Compared to 5 years ago, INVH has more shares outstanding
- The debt/assets ratio for INVH has been reduced compared to a year ago.
2.2 Solvency
- INVH has an Altman-Z score of 1.22. This is a bad value and indicates that INVH is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.22, INVH is in line with its industry, outperforming 55.00% of the companies in the same 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.
- INVH has a Debt to FCF ratio of 80.95. 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.
- Looking at the Debt to Equity ratio, with a value of 0.86, INVH is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 80.95 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.47
WACC6.92%
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.
- INVH has a Quick 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.
- INVH has a Quick ratio of 0.35. This is comparable to the rest of the industry: INVH outperforms 60.00% of its industry peers.
| 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.
- 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.
- INVH shows a small growth in Revenue. In the last year, the Revenue has grown by 4.61%.
- 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
- 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.
- The Revenue is expected to grow by 4.68% on average over the next years.
EPS Next Y22.73%
EPS Next 2Y5.11%
EPS Next 3Y5.23%
EPS Next 5Y9.56%
Revenue Next Year4.06%
Revenue Next 2Y3.62%
Revenue Next 3Y3.18%
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
- The Price/Earnings ratio is 28.62, which means the current valuation is very expensive for INVH.
- 70.00% 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 27.21, which is the current average of the S&P500 Index.
- INVH is valuated quite expensively with a Price/Forward Earnings ratio of 33.71.
- Based on the Price/Forward Earnings ratio, INVH is valued cheaper than 90.00% of the companies in the same industry.
- INVH's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.62 | ||
| Fwd PE | 33.71 |
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 | 163.74 | ||
| EV/EBITDA | 16.54 |
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)1.26
PEG (5Y)1.3
EPS Next 2Y5.11%
EPS Next 3Y5.23%
5. Dividend
5.1 Amount
- INVH has a Yearly Dividend Yield of 4.44%, which is a nice return.
- INVH's Dividend Yield is comparable with the industry average which is at 32.02.
- Compared to an average S&P500 Dividend Yield of 1.81, INVH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
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.
- The dividend of INVH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP120.69%
EPS Next 2Y5.11%
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%.