INVITATION HOMES INC (INVH) Stock Fundamental Analysis
NYSE:INVH - New York Stock Exchange, Inc. - US46187W1071 - REIT - Currency: USD
Taking everything into account, INVH scores 5 out of 10 in our fundamental rating. 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. 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.
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 Return On Assets of 2.56%. This is in the better half of the industry: INVH outperforms 70.00% of its industry peers.
The Return On Equity of INVH (4.90%) is better than 70.00% of its industry peers.
With a decent Return On Invested Capital value of 3.24%, INVH is doing good in the industry, outperforming 65.00% 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 2.62%.
The 3 year average ROIC (2.99%) for INVH is below the current ROIC(3.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 4.9% | ||
| ROIC | 3.24% |
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 (18.00%) than 70.00% of its industry peers.
In the last couple of years the Profit Margin of INVH has grown nicely.
With a decent Operating Margin value of 28.09%, INVH is doing good in 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 (59.00%) which is comparable to the rest of the industry.
INVH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.09% | ||
| PM (TTM) | 18% | ||
| GM | 59% |
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.
The number of shares outstanding for INVH has been increased compared to 5 years ago.
INVH has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that INVH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of INVH (1.49) is comparable to the rest of the industry.
The Debt to FCF ratio of INVH is 109.01, which is on the high side as it means it would take INVH, 109.01 years of fcf income to pay off all of its debts.
INVH has a Debt to FCF ratio of 109.01. This is comparable to the rest of the industry: INVH outperforms 50.00% of its industry peers.
INVH has a Debt/Equity ratio of 0.83. This is a neutral value indicating INVH is somewhat dependend on debt financing.
INVH's Debt to Equity ratio of 0.83 is fine compared to the rest of the industry. INVH outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 109.01 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.45
WACC7.22%
2.3 Liquidity
INVH has a Current Ratio of 0.32. 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 Current ratio (0.32) which is comparable to the rest of the industry.
A Quick Ratio of 0.32 indicates that INVH may have some problems paying its short term obligations.
INVH has a Quick ratio of 0.32. This is comparable to the rest of the industry: INVH outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The earnings per share for INVH have decreased strongly by -11.49% in the last year.
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.
The Revenue has been growing slightly by 6.39% 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)-11.49%
EPS 3Y17.5%
EPS 5Y22.01%
EPS Q2Q%17.39%
Revenue 1Y (TTM)6.39%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.4%
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.
INVH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
EPS Next Y15.08%
EPS Next 2Y8.34%
EPS Next 3Y7.31%
EPS Next 5Y10.89%
Revenue Next Year3.61%
Revenue Next 2Y3.67%
Revenue Next 3Y3.33%
Revenue Next 5Y4.81%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 42.01, INVH can be considered very expensive at the moment.
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 27.47, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 37.76, INVH can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INVH indicates a rather cheap valuation: INVH is cheaper than 90.00% of the companies listed in the same industry.
INVH's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.01 | ||
| Fwd PE | 37.76 |
4.2 Price Multiples
INVH's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as INVH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 266.44 | ||
| EV/EBITDA | 19.02 |
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.
The decent profitability rating of INVH may justify a higher PE ratio.
PEG (NY)2.79
PEG (5Y)1.91
EPS Next 2Y8.34%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.56%, INVH has a reasonable but not impressive dividend return.
INVH's Dividend Yield is slightly below the industry average, which is at 4.66.
Compared to an average S&P500 Dividend Yield of 2.37, INVH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
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
INVH pays out 145.69% 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.
DP145.69%
EPS Next 2Y8.34%
EPS Next 3Y7.31%
32.35
-0.03 (-0.09%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.86%
Inst Owner Change0.01%
Ins Owners0.31%
Ins Owner Change1%
Market Cap19.83B
Analysts72
Price Target38.43 (18.79%)
Short Float %1.4%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend1.13
Dividend Growth(5Y)16.68%
DP145.69%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)37.13%
Min EPS beat(2)27.2%
Max EPS beat(2)47.06%
EPS beat(4)2
Avg EPS beat(4)6.52%
Min EPS beat(4)-36.25%
Max EPS beat(4)47.06%
EPS beat(8)6
Avg EPS beat(8)14.65%
EPS beat(12)9
Avg EPS beat(12)12.03%
EPS beat(16)12
Avg EPS beat(16)12.25%
Revenue beat(2)1
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)0.13%
Revenue beat(4)1
Avg Revenue beat(4)-0.55%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)0.13%
Revenue beat(8)2
Avg Revenue beat(8)-0.78%
Revenue beat(12)3
Avg Revenue beat(12)-0.72%
Revenue beat(16)5
Avg Revenue beat(16)-0.79%
PT rev (1m)1.96%
PT rev (3m)2.88%
EPS NQ rev (1m)1.93%
EPS NQ rev (3m)4%
EPS NY rev (1m)9.53%
EPS NY rev (3m)11%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.01 | ||
| Fwd PE | 37.76 | ||
| P/S | 7.49 | ||
| P/FCF | 266.44 | ||
| P/OCF | 17.75 | ||
| P/B | 2.04 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 19.02 |
EPS(TTM)0.77
EY2.38%
EPS(NY)0.86
Fwd EY2.65%
FCF(TTM)0.12
FCFY0.38%
OCF(TTM)1.82
OCFY5.63%
SpS4.32
BVpS15.86
TBVpS15.44
PEG (NY)2.79
PEG (5Y)1.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 4.9% | ||
| ROCE | 4.1% | ||
| ROIC | 3.24% | ||
| ROICexc | 3.26% | ||
| ROICexgc | 3.32% | ||
| OM | 28.09% | ||
| PM (TTM) | 18% | ||
| GM | 59% | ||
| FCFM | 2.81% |
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 | 0.83 | ||
| Debt/FCF | 109.01 | ||
| Debt/EBITDA | 5.53 | ||
| Cap/Depr | 144.33% | ||
| Cap/Sales | 39.37% | ||
| Interest Coverage | 2.3 | ||
| Cash Conversion | 76.19% | ||
| Profit Quality | 15.62% | ||
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 1.49 |
F-Score5
WACC7.22%
ROIC/WACC0.45
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)-11.49%
EPS 3Y17.5%
EPS 5Y22.01%
EPS Q2Q%17.39%
EPS Next Y15.08%
EPS Next 2Y8.34%
EPS Next 3Y7.31%
EPS Next 5Y10.89%
Revenue 1Y (TTM)6.39%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.4%
Revenue Next Year3.61%
Revenue Next 2Y3.67%
Revenue Next 3Y3.33%
Revenue Next 5Y4.81%
EBIT growth 1Y4.8%
EBIT growth 3Y10.41%
EBIT growth 5Y11.55%
EBIT Next Year107.03%
EBIT Next 3Y31.75%
EBIT Next 5Y20.13%
FCF growth 1Y-84.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.93%
OCF growth 3Y6.02%
OCF growth 5Y10.32%