INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INVH - US46187W1071 - REIT
26.64 USD
+0.14 (+0.53%)
26.66 USD
+0.02 (+0.08%)
We assign a fundamental rating of 4 out of 10 to INVH. INVH was compared to 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 has a correct valuation and a medium 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.
Each year in the past 5 years INVH has been profitable.
INVH had a positive operating cash flow in each of the past 5 years.
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.
The Return On Equity of INVH (6.08%) is comparable to the rest of the 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 last Return On Invested Capital (3.27%) for INVH is above the 3 year average (2.99%), which is a sign of increasing profitability.
| 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 comparable to the rest of the industry.
INVH's Profit Margin has improved in the last couple of years.
INVH has a better Operating Margin (27.79%) than 75.00% of its industry peers.
INVH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 58.64%, INVH is in line with its industry, outperforming 50.00% of the companies in the same 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
INVH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for INVH has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.20, we must say that INVH is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.20, INVH perfoms like the industry average, 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 (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.
The Debt to Equity ratio of INVH (0.86) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 80.95 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.48
WACC6.85%
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.
Looking at the Current ratio, with a value of 0.35, INVH is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 0.35 indicates that INVH may have some problems paying its short term obligations.
The Quick ratio of INVH (0.35) is comparable to the rest of the industry.
| 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%.
Measured over the past years, INVH shows a quite strong growth in Revenue. The Revenue has been growing by 8.22% on average per year.
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 Y22.73%
EPS Next 2Y5.11%
EPS Next 3Y5.23%
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 28.04.
70.00% of the companies in the same industry are more expensive than INVH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.25, INVH is valued at the same level.
A Price/Forward Earnings ratio of 33.03 indicates a quite expensive valuation of INVH.
Based on the Price/Forward Earnings ratio, INVH is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, INVH is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.04 | ||
| Fwd PE | 33.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INVH is valued a bit cheaper than 80.00% of the companies 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 | 160.42 | ||
| EV/EBITDA | 16.33 |
4.3 Compensation for Growth
The 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)1.23
PEG (5Y)1.27
EPS Next 2Y5.11%
EPS Next 3Y5.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.50%, INVH is a good candidate for dividend investing.
INVH's Dividend Yield is comparable with the industry average which is at 32.52.
INVH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
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.
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%
26.64
+0.14 (+0.53%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners103.57%
Inst Owner Change0.19%
Ins Owners0.24%
Ins Owner Change-0.15%
Market Cap16.33B
Revenue(TTM)2.70B
Net Income(TTM)585.66M
Analysts74
Price Target34.85 (30.82%)
Short Float %1.89%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
Yearly Dividend1.13
Dividend Growth(5Y)16.68%
DP120.69%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-0.69%
PT rev (3m)-5.42%
EPS NQ rev (1m)-4.6%
EPS NQ rev (3m)-5.05%
EPS NY rev (1m)-0.85%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.04 | ||
| Fwd PE | 33.03 | ||
| P/S | 6.04 | ||
| P/FCF | 160.42 | ||
| P/OCF | 13.49 | ||
| P/B | 1.7 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 16.33 |
EPS(TTM)0.95
EY3.57%
EPS(NY)0.81
Fwd EY3.03%
FCF(TTM)0.17
FCFY0.62%
OCF(TTM)1.97
OCFY7.41%
SpS4.41
BVpS15.7
TBVpS15.28
PEG (NY)1.23
PEG (5Y)1.27
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 | 1.2 |
F-Score6
WACC6.85%
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 Y22.73%
EPS Next 2Y5.11%
EPS Next 3Y5.23%
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 Year108.76%
EBIT Next 3Y31.01%
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.
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%.