INVITATION HOMES INC (INVH) Stock Fundamental Analysis
NYSE:INVH - New York Stock Exchange, Inc. - US46187W1071 - REIT - Currency: USD
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. INVH has an excellent profitability rating, but there are concerns on its financial health. INVH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
INVH had positive earnings in the past year.
INVH had a positive operating cash flow in the past year.
INVH had positive earnings in each of the past 5 years.
Each year in the past 5 years INVH had a positive operating cash flow.
1.2 Ratios
INVH has a Return On Assets of 2.42%. This is in the better half of the industry: INVH outperforms 70.00% of its industry peers.
With a decent Return On Equity value of 4.64%, INVH is doing good in the industry, outperforming 70.00% of the companies in the same industry.
The Return On Invested Capital of INVH (3.21%) is better than 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INVH is in line with the industry average of 2.75%.
The 3 year average ROIC (2.99%) for INVH is below the current ROIC(3.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 4.64% | ||
| ROIC | 3.21% |
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 better Profit Margin (17.30%) than 70.00% of its industry peers.
In the last couple of years the Profit Margin of INVH has grown nicely.
INVH's Operating Margin of 28.31% is fine compared to the rest of the industry. INVH outperforms 75.00% of its industry peers.
INVH's Operating Margin has improved in the last couple of years.
INVH has a Gross Margin (59.04%) which is in line with its industry peers.
INVH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.31% | ||
| PM (TTM) | 17.3% | ||
| GM | 59.04% |
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.
INVH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, INVH has an improved debt to assets ratio.
2.2 Solvency
INVH has an Altman-Z score of 1.53. This is a bad value and indicates that INVH is not financially healthy and even has some risk of bankruptcy.
INVH has a better Altman-Z score (1.53) than 65.00% of its industry peers.
INVH has a debt to FCF ratio of 64.77. This is a negative value and a sign of low solvency as INVH would need 64.77 years to pay back of all of its debts.
With a Debt to FCF ratio value of 64.77, INVH perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.84 indicates that INVH is somewhat dependend on debt financing.
INVH has a Debt to Equity ratio (0.84) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 64.77 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.44
WACC7.26%
2.3 Liquidity
A Current Ratio of 0.52 indicates that INVH may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.52, INVH is in line with its industry, outperforming 50.00% of the companies in the same industry.
INVH has a Quick Ratio of 0.52. This is a bad value and indicates that INVH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.52, INVH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for INVH have decreased strongly by -13.10% in the last year.
INVH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.01% yearly.
The Revenue has been growing slightly by 7.67% in the past year.
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)-13.1%
EPS 3Y17.5%
EPS 5Y22.01%
EPS Q2Q%9.52%
Revenue 1Y (TTM)7.67%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%5.58%
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 8.98% on average per year.
INVH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.59% yearly.
EPS Next Y2.64%
EPS Next 2Y4.86%
EPS Next 3Y7.47%
EPS Next 5Y8.98%
Revenue Next Year3.57%
Revenue Next 2Y3.67%
Revenue Next 3Y3.44%
Revenue Next 5Y4.59%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
Based on the Price/Earnings ratio of 46.05, the valuation of INVH can be described as expensive.
Based on the Price/Earnings ratio, INVH is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
INVH is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
INVH is valuated quite expensively with a Price/Forward Earnings ratio of 44.87.
Based on the Price/Forward Earnings ratio, INVH is valued a bit cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.08. INVH is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.05 | ||
| Fwd PE | 44.87 |
4.2 Price Multiples
INVH's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. INVH is more expensive than 65.00% 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 | 162.55 | ||
| EV/EBITDA | 19.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates INVH does not grow enough to justify the current Price/Earnings ratio.
INVH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)17.47
PEG (5Y)2.09
EPS Next 2Y4.86%
EPS Next 3Y7.47%
5. Dividend
5.1 Amount
INVH has a Yearly Dividend Yield of 3.45%.
Compared to an average industry Dividend Yield of 4.60, INVH is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.52, INVH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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.
INVH has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)16.68%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
INVH pays out 152.10% 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.
DP152.1%
EPS Next 2Y4.86%
EPS Next 3Y7.47%
33.62
+0.58 (+1.76%)
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 Change0.02%
Ins Owners0.29%
Ins Owner Change1.71%
Market Cap20.61B
Analysts72
Price Target37.35 (11.09%)
Short Float %2.28%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend1.13
Dividend Growth(5Y)16.68%
DP152.1%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.63%
Min EPS beat(2)-11.94%
Max EPS beat(2)27.2%
EPS beat(4)2
Avg EPS beat(4)1.39%
Min EPS beat(4)-36.25%
Max EPS beat(4)27.2%
EPS beat(8)6
Avg EPS beat(8)11.71%
EPS beat(12)9
Avg EPS beat(12)8.37%
EPS beat(16)12
Avg EPS beat(16)12.31%
Revenue beat(2)0
Avg Revenue beat(2)-1%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)-0.82%
Revenue beat(4)1
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)0.29%
Revenue beat(8)1
Avg Revenue beat(8)-0.88%
Revenue beat(12)2
Avg Revenue beat(12)-0.91%
Revenue beat(16)4
Avg Revenue beat(16)-0.85%
PT rev (1m)1.18%
PT rev (3m)-2.61%
EPS NQ rev (1m)-1.24%
EPS NQ rev (3m)-8.21%
EPS NY rev (1m)1.2%
EPS NY rev (3m)-2.42%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.05 | ||
| Fwd PE | 44.87 | ||
| P/S | 7.87 | ||
| P/FCF | 162.55 | ||
| P/OCF | 19.05 | ||
| P/B | 2.11 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 19.67 |
EPS(TTM)0.73
EY2.17%
EPS(NY)0.75
Fwd EY2.23%
FCF(TTM)0.21
FCFY0.62%
OCF(TTM)1.77
OCFY5.25%
SpS4.27
BVpS15.92
TBVpS15.5
PEG (NY)17.47
PEG (5Y)2.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 4.64% | ||
| ROCE | 4.06% | ||
| ROIC | 3.21% | ||
| ROICexc | 3.24% | ||
| ROICexgc | 3.31% | ||
| OM | 28.31% | ||
| PM (TTM) | 17.3% | ||
| GM | 59.04% | ||
| FCFM | 4.84% |
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-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 64.77 | ||
| Debt/EBITDA | 5.64 | ||
| Cap/Depr | 133.7% | ||
| Cap/Sales | 36.47% | ||
| Interest Coverage | 2.31 | ||
| Cash Conversion | 74.31% | ||
| Profit Quality | 27.97% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 1.53 |
F-Score5
WACC7.26%
ROIC/WACC0.44
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)-13.1%
EPS 3Y17.5%
EPS 5Y22.01%
EPS Q2Q%9.52%
EPS Next Y2.64%
EPS Next 2Y4.86%
EPS Next 3Y7.47%
EPS Next 5Y8.98%
Revenue 1Y (TTM)7.67%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%5.58%
Revenue Next Year3.57%
Revenue Next 2Y3.67%
Revenue Next 3Y3.44%
Revenue Next 5Y4.59%
EBIT growth 1Y5.99%
EBIT growth 3Y10.41%
EBIT growth 5Y11.55%
EBIT Next Year107.16%
EBIT Next 3Y31.93%
EBIT Next 5Y20.81%
FCF growth 1Y251.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2.28%
OCF growth 3Y6.02%
OCF growth 5Y10.32%