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%)
Overall INVH gets a fundamental rating of 4 out of 10. We evaluated INVH against 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.
- 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.
- With a Return On Equity value of 6.08%, INVH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- With a decent Return On Invested Capital value of 3.27%, INVH is doing good in 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
- With a Profit Margin value of 21.67%, INVH perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
- 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's Gross Margin of 58.64% is in line compared to the rest of the industry. INVH outperforms 50.00% of its industry peers.
- 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.
- Compared to 1 year ago, INVH has about the same amount of shares outstanding.
- The number of shares outstanding for INVH has been increased compared to 5 years ago.
- Compared to 1 year ago, INVH has an improved debt to assets ratio.
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.
- The Altman-Z score of INVH (1.22) is comparable to the rest of the industry.
- 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 has a Debt to FCF ratio (80.95) which is in line with its industry peers.
- A Debt/Equity ratio of 0.86 indicates that INVH is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.86, INVH perfoms like the industry average, 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
WACC6.93%
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.
- 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.
- Looking at the Quick ratio, with a value of 0.35, INVH is in line with its industry, 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.
- The Earnings Per Share has been growing by 22.01% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 4.61% in the past year.
- 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
- The Earnings Per Share is expected to grow by 9.56% on average over the next years. This is quite good.
- 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 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- A Price/Earnings ratio of 28.62 indicates a quite expensive valuation of 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.
- The Price/Forward Earnings ratio is 33.71, which means the current valuation is very expensive for INVH.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of INVH indicates a rather cheap valuation: INVH is cheaper than 90.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, INVH is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.62 | ||
| Fwd PE | 33.71 |
4.2 Price Multiples
- 75.00% of the companies in the same industry are more expensive than INVH, based on the Enterprise Value to EBITDA ratio.
- INVH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 163.74 | ||
| EV/EBITDA | 16.54 |
4.3 Compensation for Growth
- INVH's 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
- With a Yearly Dividend Yield of 4.43%, INVH is a good candidate for dividend investing.
- INVH's Dividend Yield is comparable with the industry average which is at 30.96.
- INVH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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
- INVH pays out 120.69% of its income as dividend. This is not a sustainable payout ratio.
- INVH's earnings are growing slower than its dividend. 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%.