INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INVH - US46187W1071 - REIT
27.05 USD
-0.36 (-1.31%)
27.1577 USD
+0.11 (+0.4%)
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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year INVH was profitable.
INVH had a positive operating cash flow in the past year.
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.
The Return On Equity of INVH (6.08%) is comparable to the rest of the 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.
Measured over the past 3 years, the Average Return On Invested Capital 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 has a Profit Margin (21.67%) which is in line with its industry peers.
In the last couple of years the Profit Margin of INVH has grown nicely.
INVH's Operating Margin of 27.79% is fine compared to the rest 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 (58.64%) 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 | 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.
Compared to 5 years ago, INVH has more shares outstanding
Compared to 1 year ago, INVH has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.23, we must say that INVH is in the distress zone and has some risk of bankruptcy.
INVH has a Altman-Z score (1.23) which is in line with 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.
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 | 1.23 |
ROIC/WACC0.48
WACC6.86%
2.3 Liquidity
A Current Ratio of 0.35 indicates that INVH may have some problems paying its short term obligations.
The Current ratio of INVH (0.35) 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
The Earnings Per Share has grown by an impressive 33.80% over the past year.
INVH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.01% yearly.
INVH shows a small growth in Revenue. In the last year, the Revenue has grown by 4.61%.
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
INVH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.56% yearly.
INVH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.68% yearly.
EPS Next Y23.77%
EPS Next 2Y6.74%
EPS Next 3Y5.4%
EPS Next 5Y9.56%
Revenue Next Year3.95%
Revenue Next 2Y3.58%
Revenue Next 3Y3.18%
Revenue Next 5Y4.68%
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
INVH is valuated quite expensively with a Price/Earnings ratio of 28.47.
70.00% of the companies in the same industry are more expensive than INVH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of INVH to the average of the S&P500 Index (26.38), we can say INVH is valued inline with the index average.
The Price/Forward Earnings ratio is 32.52, which means the current valuation is very expensive for INVH.
Based on the Price/Forward Earnings ratio, INVH is valued cheaper than 90.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.83. INVH is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.47 | ||
| Fwd PE | 32.52 |
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 80.00% of the companies listed in the same industry.
INVH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 162.89 | ||
| EV/EBITDA | 16.7 |
4.3 Compensation for Growth
INVH's 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)1.2
PEG (5Y)1.29
EPS Next 2Y6.74%
EPS Next 3Y5.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.38%, INVH is a good candidate for dividend investing.
INVH's Dividend Yield is comparable with the industry average which is at 11.44.
INVH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
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 2Y6.74%
EPS Next 3Y5.4%
27.05
-0.36 (-1.31%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners103.5%
Inst Owner Change1.1%
Ins Owners0.24%
Ins Owner Change-0.15%
Market Cap16.58B
Revenue(TTM)2.70B
Net Income(TTM)585.66M
Analysts74
Price Target35.09 (29.72%)
Short Float %1.81%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
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)-4.11%
PT rev (3m)-5.42%
EPS NQ rev (1m)-0.94%
EPS NQ rev (3m)-2.31%
EPS NY rev (1m)2.21%
EPS NY rev (3m)3.55%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.47 | ||
| Fwd PE | 32.52 | ||
| P/S | 6.13 | ||
| P/FCF | 162.89 | ||
| P/OCF | 13.7 | ||
| P/B | 1.72 | ||
| P/tB | 1.77 | ||
| EV/EBITDA | 16.7 |
EPS(TTM)0.95
EY3.51%
EPS(NY)0.83
Fwd EY3.07%
FCF(TTM)0.17
FCFY0.61%
OCF(TTM)1.97
OCFY7.3%
SpS4.41
BVpS15.7
TBVpS15.28
PEG (NY)1.2
PEG (5Y)1.29
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 | 1.23 |
F-Score6
WACC6.86%
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 Y23.77%
EPS Next 2Y6.74%
EPS Next 3Y5.4%
EPS Next 5Y9.56%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.22%
Revenue Next Year3.95%
Revenue Next 2Y3.58%
Revenue Next 3Y3.18%
Revenue Next 5Y4.68%
EBIT growth 1Y2.73%
EBIT growth 3Y10.41%
EBIT growth 5Y11.55%
EBIT Next Year108.49%
EBIT Next 3Y31.03%
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 28.47 and the Price/Book (PB) ratio is 1.72.
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 23.77% in the next year.