INVITATION HOMES INC (INVH) Stock Fundamental Analysis
NYSE:INVH - New York Stock Exchange, Inc. - US46187W1071 - REIT - Currency: USD
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 only an average score on both its financial health and profitability. While showing a medium growth rate, INVH is valued expensive at the moment.
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.
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
INVH has a Return On Assets (2.24%) which is comparable to the rest of the industry.
INVH has a Return On Equity (4.43%) which is comparable to the rest of the industry.
INVH has a better Return On Invested Capital (3.03%) than 70.00% of its industry peers.
INVH had an Average Return On Invested Capital over the past 3 years of 2.72%. This is in line with the industry average of 2.61%.
The last Return On Invested Capital (3.03%) for INVH is above the 3 year average (2.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.24% | ||
| ROE | 4.43% | ||
| ROIC | 3.03% |
ROA(3y)2.06%
ROA(5y)1.62%
ROE(3y)3.83%
ROE(5y)3.11%
ROIC(3y)2.72%
ROIC(5y)2.46%
1.3 Margins
With a Profit Margin value of 17.01%, INVH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
INVH's Profit Margin has improved in the last couple of years.
INVH has a better Operating Margin (28.28%) than 75.00% of its industry peers.
INVH's Operating Margin has improved in the last couple of years.
The Gross Margin of INVH (59.02%) 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 | 28.28% | ||
| PM (TTM) | 17.01% | ||
| GM | 59.03% |
OM growth 3Y3.87%
OM growth 5Y6.27%
PM growth 3Y25.69%
PM growth 5YN/A
GM growth 3Y0.23%
GM growth 5Y0.58%
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.
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 a worse debt to assets ratio.
2.2 Solvency
INVH has an Altman-Z score of 1.41. This is a bad value and indicates that INVH is not financially healthy and even has some risk of bankruptcy.
INVH has a Altman-Z score (1.41) which is in line with its industry peers.
INVH has a debt to FCF ratio of 44.14. This is a negative value and a sign of low solvency as INVH would need 44.14 years to pay back of all of its debts.
INVH has a Debt to FCF ratio (44.14) which is in line with its industry peers.
INVH has a Debt/Equity ratio of 0.91. This is a neutral value indicating INVH is somewhat dependend on debt financing.
INVH's Debt to Equity ratio of 0.91 is in line compared to the rest of the industry. INVH outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 44.14 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.42
WACC7.22%
2.3 Liquidity
INVH has a Current Ratio of 1.82. This is a normal value and indicates that INVH is financially healthy and should not expect problems in meeting its short term obligations.
INVH has a Current ratio of 1.82. This is amongst the best in the industry. INVH outperforms 85.00% of its industry peers.
A Quick Ratio of 1.82 indicates that INVH should not have too much problems paying its short term obligations.
The Quick ratio of INVH (1.82) is better than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
INVH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.13%.
Measured over the past years, INVH shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.64% on average per year.
INVH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.22%.
INVH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.14% yearly.
EPS 1Y (TTM)-10.13%
EPS 3Y32.64%
EPS 5YN/A
EPS Q2Q%-28.57%
Revenue 1Y (TTM)8.22%
Revenue growth 3Y10.09%
Revenue growth 5Y7.14%
Sales Q2Q%6.9%
3.2 Future
Based on estimates for the next years, INVH will show a small growth in Earnings Per Share. The EPS will grow by 4.78% on average per year.
INVH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.15% yearly.
EPS Next Y-16.88%
EPS Next 2Y-6.12%
EPS Next 3Y-0.92%
EPS Next 5Y4.78%
Revenue Next Year6.3%
Revenue Next 2Y5.27%
Revenue Next 3Y4.76%
Revenue Next 5Y5.15%
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
A Price/Earnings ratio of 44.92 indicates a quite expensive valuation of INVH.
The rest of the industry has a similar Price/Earnings ratio as INVH.
INVH's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.63.
INVH is valuated quite expensively with a Price/Forward Earnings ratio of 43.07.
INVH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. INVH is cheaper than 80.00% of the companies in the same industry.
INVH is valuated expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.92 | ||
| Fwd PE | 43.07 |
4.2 Price Multiples
INVH's Enterprise Value to EBITDA is on the same level as the industry average.
INVH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 95.63 | ||
| EV/EBITDA | 19.31 |
4.3 Compensation for Growth
INVH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.12%
EPS Next 3Y-0.92%
5. Dividend
5.1 Amount
INVH has a Yearly Dividend Yield of 3.60%. Purely for dividend investing, there may be better candidates out there.
INVH's Dividend Yield is comparable with the industry average which is at 4.25.
Compared to an average S&P500 Dividend Yield of 2.27, INVH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
5.2 History
On average, the dividend of INVH grows each year by 18.72%, which is quite nice.
INVH has been paying a dividend for over 5 years, so it has already some track record.
As INVH did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)18.72%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
INVH pays out 153.77% 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.
DP153.77%
EPS Next 2Y-6.12%
EPS Next 3Y-0.92%
31.89
-0.35 (-1.09%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.49%
Inst Owner Change2.3%
Ins Owners0.29%
Ins Owner Change-1.93%
Market Cap19.54B
Analysts71.33
Price Target36.87 (15.62%)
Short Float %1.84%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
Yearly Dividend1.04
Dividend Growth(5Y)18.72%
DP153.77%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-24.1%
Min EPS beat(2)-36.25%
Max EPS beat(2)-11.94%
EPS beat(4)2
Avg EPS beat(4)-1%
Min EPS beat(4)-36.25%
Max EPS beat(4)26.55%
EPS beat(8)6
Avg EPS beat(8)8.99%
EPS beat(12)8
Avg EPS beat(12)5.69%
EPS beat(16)12
Avg EPS beat(16)17.63%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)-0.3%
Revenue beat(4)1
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)0.29%
Revenue beat(8)1
Avg Revenue beat(8)-0.77%
Revenue beat(12)2
Avg Revenue beat(12)-1.01%
Revenue beat(16)4
Avg Revenue beat(16)-0.85%
PT rev (1m)-2.86%
PT rev (3m)-5.84%
EPS NQ rev (1m)-3.13%
EPS NQ rev (3m)-1.52%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.92 | ||
| Fwd PE | 43.07 | ||
| P/S | 7.56 | ||
| P/FCF | 95.63 | ||
| P/OCF | 18.85 | ||
| P/B | 1.97 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 19.31 |
EPS(TTM)0.71
EY2.23%
EPS(NY)0.74
Fwd EY2.32%
FCF(TTM)0.33
FCFY1.05%
OCF(TTM)1.69
OCFY5.31%
SpS4.22
BVpS16.19
TBVpS15.77
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.24% | ||
| ROE | 4.43% | ||
| ROCE | 3.84% | ||
| ROIC | 3.03% | ||
| ROICexc | 3.21% | ||
| ROICexgc | 3.27% | ||
| OM | 28.28% | ||
| PM (TTM) | 17.01% | ||
| GM | 59.03% | ||
| FCFM | 7.91% |
ROA(3y)2.06%
ROA(5y)1.62%
ROE(3y)3.83%
ROE(5y)3.11%
ROIC(3y)2.72%
ROIC(5y)2.46%
ROICexc(3y)2.8%
ROICexc(5y)2.52%
ROICexgc(3y)2.86%
ROICexgc(5y)2.56%
ROCE(3y)3.45%
ROCE(5y)3.12%
ROICexcg growth 3Y11.99%
ROICexcg growth 5Y13.16%
ROICexc growth 3Y11.86%
ROICexc growth 5Y13.18%
OM growth 3Y3.87%
OM growth 5Y6.27%
PM growth 3Y25.69%
PM growth 5YN/A
GM growth 3Y0.23%
GM growth 5Y0.58%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 44.14 | ||
| Debt/EBITDA | 6.28 | ||
| Cap/Depr | 117.95% | ||
| Cap/Sales | 32.21% | ||
| Interest Coverage | 2.24 | ||
| Cash Conversion | 72.17% | ||
| Profit Quality | 46.47% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 1.41 |
F-Score5
WACC7.22%
ROIC/WACC0.42
Cap/Depr(3y)171.84%
Cap/Depr(5y)159.96%
Cap/Sales(3y)49.36%
Cap/Sales(5y)46.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.13%
EPS 3Y32.64%
EPS 5YN/A
EPS Q2Q%-28.57%
EPS Next Y-16.88%
EPS Next 2Y-6.12%
EPS Next 3Y-0.92%
EPS Next 5Y4.78%
Revenue 1Y (TTM)8.22%
Revenue growth 3Y10.09%
Revenue growth 5Y7.14%
Sales Q2Q%6.9%
Revenue Next Year6.3%
Revenue Next 2Y5.27%
Revenue Next 3Y4.76%
Revenue Next 5Y5.15%
EBIT growth 1Y5.64%
EBIT growth 3Y14.35%
EBIT growth 5Y13.85%
EBIT Next Year99.19%
EBIT Next 3Y29.69%
EBIT Next 5Y19.9%
FCF growth 1Y438.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.71%
OCF growth 3Y16.69%
OCF growth 5Y14.55%