INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - NYSE:INVH - US46187W1071 - REIT
28.87 USD
-0.04 (-0.14%)
28.87 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. While INVH has a great profitability rating, there are quite some concerns on its financial health. INVH is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
INVH had positive earnings in the past year.
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 has a better Return On Assets (2.92%) than 65.00% of its industry peers.
INVH has a better Return On Equity (5.63%) than 65.00% of its industry peers.
With a decent Return On Invested Capital value of 3.25%, INVH is doing good in 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 last Return On Invested Capital (3.25%) for INVH is above the 3 year average (2.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 5.63% | ||
| ROIC | 3.25% |
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 decent Profit Margin value of 20.34%, INVH is doing good in the industry, outperforming 65.00% of the companies in the same industry.
INVH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 27.93%, 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.
INVH has a Gross Margin (58.94%) which is in line with 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 | 27.93% | ||
| PM (TTM) | 20.34% | ||
| GM | 58.94% |
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.
The number of shares outstanding for INVH remains at a similar level compared to 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
INVH has an Altman-Z score of 1.32. 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 (1.32) is comparable to the rest of the industry.
INVH has a Debt/Equity ratio of 0.85. This is a neutral value indicating INVH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.85, INVH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.48
WACC6.85%
2.3 Liquidity
A Current Ratio of 0.25 indicates that INVH may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.25, INVH is doing worse than 60.00% of the companies in the same industry.
INVH has a Quick Ratio of 0.25. 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 (0.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
INVH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.29%, which is quite good.
The Earnings Per Share has been growing by 22.01% on average over the past years. This is a very strong growth
INVH shows a small growth in Revenue. In the last year, the Revenue has grown by 5.27%.
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)14.29%
EPS 3Y17.5%
EPS 5Y22.01%
EPS Q2Q%91.67%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.28%
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 Y20.67%
EPS Next 2Y7.15%
EPS Next 3Y6.49%
EPS Next 5Y9.56%
Revenue Next Year3.91%
Revenue Next 2Y3.75%
Revenue Next 3Y2.81%
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.
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 32.81 indicates a quite expensive valuation of INVH.
65.00% of the companies in the same industry are more expensive than INVH, based on the Price/Earnings ratio.
INVH is valuated rather expensively when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
INVH is valuated quite expensively with a Price/Forward Earnings ratio of 34.45.
Based on the Price/Forward Earnings ratio, INVH is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, INVH is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.81 | ||
| Fwd PE | 34.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INVH is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.46 |
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)1.59
PEG (5Y)1.49
EPS Next 2Y7.15%
EPS Next 3Y6.49%
5. Dividend
5.1 Amount
INVH has a Yearly Dividend Yield of 4.01%, which is a nice return.
Compared to an average industry Dividend Yield of 7.05, INVH is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.31, INVH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
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
INVH pays out 128.83% 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.
DP128.83%
EPS Next 2Y7.15%
EPS Next 3Y6.49%
28.87
-0.04 (-0.14%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners102.17%
Inst Owner Change0.02%
Ins Owners0.24%
Ins Owner Change-2.84%
Market Cap17.70B
Revenue(TTM)2.68B
Net Income(TTM)544.21M
Analysts73.33
Price Target36.85 (27.64%)
Short Float %1.87%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
Yearly Dividend1.13
Dividend Growth(5Y)16.68%
DP128.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)32.31%
Min EPS beat(2)17.55%
Max EPS beat(2)47.06%
EPS beat(4)3
Avg EPS beat(4)19.97%
Min EPS beat(4)-11.94%
Max EPS beat(4)47.06%
EPS beat(8)6
Avg EPS beat(8)13.33%
EPS beat(12)9
Avg EPS beat(12)12.16%
EPS beat(16)12
Avg EPS beat(16)11.4%
Revenue beat(2)2
Avg Revenue beat(2)0.08%
Min Revenue beat(2)0.02%
Max Revenue beat(2)0.13%
Revenue beat(4)2
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)0.13%
Revenue beat(8)3
Avg Revenue beat(8)-0.59%
Revenue beat(12)3
Avg Revenue beat(12)-0.73%
Revenue beat(16)5
Avg Revenue beat(16)-0.8%
PT rev (1m)-0.69%
PT rev (3m)-3.99%
EPS NQ rev (1m)-1.49%
EPS NQ rev (3m)-2.92%
EPS NY rev (1m)0.32%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.81 | ||
| Fwd PE | 34.45 | ||
| P/S | 6.62 | ||
| P/FCF | N/A | ||
| P/OCF | 15.67 | ||
| P/B | 1.83 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 17.46 |
EPS(TTM)0.88
EY3.05%
EPS(NY)0.84
Fwd EY2.9%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)1.84
OCFY6.38%
SpS4.36
BVpS15.77
TBVpS15.35
PEG (NY)1.59
PEG (5Y)1.49
Graham Number17.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 5.63% | ||
| ROCE | 4.12% | ||
| ROIC | 3.25% | ||
| ROICexc | 3.27% | ||
| ROICexgc | 3.33% | ||
| OM | 27.93% | ||
| PM (TTM) | 20.34% | ||
| GM | 58.94% | ||
| FCFM | N/A |
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 | 0.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.54 | ||
| Cap/Depr | 168.71% | ||
| Cap/Sales | 46.1% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 76.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 1.32 |
F-Score6
WACC6.85%
ROIC/WACC0.48
Cap/Depr(3y)143.8%
Cap/Depr(5y)158.59%
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)14.29%
EPS 3Y17.5%
EPS 5Y22.01%
EPS Q2Q%91.67%
EPS Next Y20.67%
EPS Next 2Y7.15%
EPS Next 3Y6.49%
EPS Next 5Y9.56%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.28%
Revenue Next Year3.91%
Revenue Next 2Y3.75%
Revenue Next 3Y2.81%
Revenue Next 5Y4.68%
EBIT growth 1Y3.71%
EBIT growth 3Y10.41%
EBIT growth 5Y11.55%
EBIT Next Year107.69%
EBIT Next 3Y31.22%
EBIT Next 5Y20.28%
FCF growth 1Y-117.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.53%
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 3 / 10 to INVITATION HOMES INC (INVH). This can be considered as Overvalued.
What is the profitability of INVH stock?
INVITATION HOMES INC (INVH) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for INVH stock?
The Price/Earnings (PE) ratio for INVITATION HOMES INC (INVH) is 32.81 and the Price/Book (PB) ratio is 1.83.
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 20.67% in the next year.