INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - NYSE:INVH - US46187W1071 - REIT
29.64 USD
+0.11 (+0.37%)
29.64 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 belongs to the best of the industry regarding profitability, there are 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.
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 better Return On Assets (2.92%) than 65.00% of its industry peers.
INVH has a Return On Equity of 5.63%. This is in the better half of the industry: INVH outperforms 65.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.25%, 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(3.25%), indicating increased profibility in the last year.
| 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
INVH has a Profit Margin of 20.34%. This is in the better half of the industry: INVH outperforms 65.00% of its industry peers.
INVH's Profit Margin has improved in the last couple of years.
INVH has a Operating Margin of 27.93%. This is in the better half 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 (58.94%) 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 | 27.93% | ||
| 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.
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
INVH has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that INVH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of INVH (1.35) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.85 indicates that INVH is somewhat dependend on debt financing.
INVH's Debt to Equity ratio of 0.85 is in line compared to the rest of the industry. INVH outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.35 |
ROIC/WACC0.47
WACC6.9%
2.3 Liquidity
A Current Ratio of 0.25 indicates that INVH may have some problems paying its short term obligations.
With a Current ratio value of 0.25, INVH is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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 comparable to the rest of the industry.
| 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.
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 5.27%.
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)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
INVH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.89% yearly.
Based on estimates for the next years, INVH will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
EPS Next Y19.53%
EPS Next 2Y8.5%
EPS Next 3Y7.77%
EPS Next 5Y10.89%
Revenue Next Year3.68%
Revenue Next 2Y3.67%
Revenue Next 3Y2.91%
Revenue Next 5Y4.81%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
INVH is valuated quite expensively with a Price/Earnings ratio of 33.68.
Compared to the rest of the industry, the Price/Earnings ratio of INVH indicates a somewhat cheap valuation: INVH is cheaper than 65.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. INVH is valued slightly more expensive when compared to this.
INVH is valuated quite expensively with a Price/Forward Earnings ratio of 34.49.
90.00% of the companies in the same industry are more expensive than INVH, based on the Price/Forward Earnings ratio.
INVH's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.68 | ||
| Fwd PE | 34.49 |
4.2 Price Multiples
65.00% of the companies in the same industry are more expensive than INVH, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.78 |
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)1.72
PEG (5Y)1.53
EPS Next 2Y8.5%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.79%, INVH has a reasonable but not impressive dividend return.
INVH's Dividend Yield is slightly below the industry average, which is at 4.68.
Compared to an average S&P500 Dividend Yield of 2.38, INVH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
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
128.83% 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.
DP128.83%
EPS Next 2Y8.5%
EPS Next 3Y7.77%
29.64
+0.11 (+0.37%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.96%
Inst Owner Change0.47%
Ins Owners0.24%
Ins Owner Change-2.84%
Market Cap18.17B
Analysts73.33
Price Target37.1 (25.17%)
Short Float %2.04%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
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)-2.55%
PT rev (3m)-3%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)1.62%
EPS NY rev (3m)13.76%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.68 | ||
| Fwd PE | 34.49 | ||
| P/S | 6.79 | ||
| P/FCF | N/A | ||
| P/OCF | 16.09 | ||
| P/B | 1.88 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 17.78 |
EPS(TTM)0.88
EY2.97%
EPS(NY)0.86
Fwd EY2.9%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)1.84
OCFY6.22%
SpS4.36
BVpS15.77
TBVpS15.35
PEG (NY)1.72
PEG (5Y)1.53
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%
ROICexcg growth 3Y9.52%
ROICexcg 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 | 1.35 |
F-Score6
WACC6.9%
ROIC/WACC0.47
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 Y19.53%
EPS Next 2Y8.5%
EPS Next 3Y7.77%
EPS Next 5Y10.89%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.28%
Revenue Next Year3.68%
Revenue Next 2Y3.67%
Revenue Next 3Y2.91%
Revenue Next 5Y4.81%
EBIT growth 1Y3.71%
EBIT growth 3Y10.41%
EBIT growth 5Y11.55%
EBIT Next Year107.16%
EBIT Next 3Y31.73%
EBIT Next 5Y20.13%
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%