INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INVH - US46187W1071 - REIT
27.14 USD
-0.24 (-0.88%)
27.14 USD
0 (0%)
Taking everything into account, INVH scores 4 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent 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
INVH has a Return On Assets (3.12%) which is comparable to the rest of the industry.
INVH has a Return On Equity (6.08%) which 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.
INVH had an Average Return On Invested Capital over the past 3 years of 2.99%. This 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 Operating Margin of 27.79%. 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 (58.64%) 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 | 27.79% | ||
| 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.
The number of shares outstanding for INVH remains at a similar level compared to 1 year ago.
INVH has more shares outstanding than it did 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 1.23, we must say that INVH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of INVH (1.23) 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 of 80.95. This is comparable to the rest of the industry: INVH outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that INVH is somewhat dependend on debt financing.
INVH has a Debt to Equity ratio (0.86) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 80.95 | ||
| Altman-Z | 1.23 |
ROIC/WACC0.48
WACC6.83%
2.3 Liquidity
A Current Ratio of 0.35 indicates that INVH may have some problems paying its short term obligations.
INVH's Current ratio of 0.35 is in line compared to the rest of the industry. INVH outperforms 50.00% of its industry peers.
INVH has a Quick 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 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
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
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.
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 Y21.1%
EPS Next 2Y7.54%
EPS Next 3Y6.49%
EPS Next 5Y9.56%
Revenue Next Year3.99%
Revenue Next 2Y3.71%
Revenue Next 3Y2.94%
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
With a Price/Earnings ratio of 28.57, INVH can be considered very expensive at the moment.
Based on the Price/Earnings ratio, INVH is valued a bit cheaper than 65.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, INVH is valued at the same level.
A Price/Forward Earnings ratio of 32.15 indicates a quite expensive valuation of INVH.
INVH's Price/Forward Earnings ratio is rather cheap when compared to the industry. INVH is cheaper than 85.00% of the companies in the same industry.
INVH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.57 | ||
| Fwd PE | 32.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INVH is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
INVH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 163.43 | ||
| EV/EBITDA | 16.69 |
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)1.35
PEG (5Y)1.3
EPS Next 2Y7.54%
EPS Next 3Y6.49%
5. Dividend
5.1 Amount
INVH has a Yearly Dividend Yield of 4.24%, which is a nice return.
Compared to an average industry Dividend Yield of 7.09, INVH has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, INVH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
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 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 2Y7.54%
EPS Next 3Y6.49%
27.14
-0.24 (-0.88%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners103.5%
Inst Owner Change1.08%
Ins Owners0.24%
Ins Owner Change-3.88%
Market Cap16.64B
Revenue(TTM)2.70B
Net Income(TTM)585.66M
Analysts74
Price Target35.09 (29.29%)
Short Float %1.65%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
Yearly Dividend1.13
Dividend Growth(5Y)16.68%
DP120.69%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-2.65%
PT rev (3m)-4.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.76%
EPS NY rev (1m)0.35%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.57 | ||
| Fwd PE | 32.15 | ||
| P/S | 6.15 | ||
| P/FCF | 163.43 | ||
| P/OCF | 13.74 | ||
| P/B | 1.73 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 16.69 |
EPS(TTM)0.95
EY3.5%
EPS(NY)0.84
Fwd EY3.11%
FCF(TTM)0.17
FCFY0.61%
OCF(TTM)1.97
OCFY7.28%
SpS4.41
BVpS15.7
TBVpS15.28
PEG (NY)1.35
PEG (5Y)1.3
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 | 1.23 |
F-Score6
WACC6.83%
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 Y21.1%
EPS Next 2Y7.54%
EPS Next 3Y6.49%
EPS Next 5Y9.56%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.22%
Revenue Next Year3.99%
Revenue Next 2Y3.71%
Revenue Next 3Y2.94%
Revenue Next 5Y4.68%
EBIT growth 1Y2.73%
EBIT growth 3Y10.41%
EBIT growth 5Y11.55%
EBIT Next Year107.69%
EBIT Next 3Y31.22%
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.
What is the valuation status for INVH stock?
ChartMill assigns a valuation rating of 4 / 10 to INVITATION HOMES INC (INVH). This can be considered as Fairly Valued.
What is the profitability of INVH stock?
INVITATION HOMES INC (INVH) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for INVH stock?
The Price/Earnings (PE) ratio for INVITATION HOMES INC (INVH) is 28.57 and the Price/Book (PB) ratio is 1.73.
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 21.1% in the next year.