INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INVH - US46187W1071 - REIT
28.14 USD
-0.05 (-0.18%)
28.14 USD
0 (0%)
Overall INVH gets a fundamental rating of 4 out of 10. We evaluated INVH against 20 industry peers in the Residential REITs industry. There are concerns on the financial health of INVH while its profitability can be described as average. 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.
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
Looking at the Return On Assets, with a value of 3.12%, INVH is in line with its industry, outperforming 60.00% of the companies in the same industry.
INVH has a Return On Equity (6.08%) which is comparable to the rest of the industry.
INVH has a Return On Invested Capital of 3.27%. This is in the better half of the industry: INVH outperforms 75.00% of its industry peers.
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 of 21.67%. This is comparable to the rest of the industry: INVH outperforms 55.00% 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 27.79%, 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 (58.64%) which 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.
Compared to 5 years ago, INVH has more shares outstanding
The debt/assets ratio for INVH has been reduced compared to a year ago.
2.2 Solvency
INVH has an Altman-Z score of 1.27. 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 (1.27) which is in line with its industry peers.
The Debt to FCF ratio of INVH is 80.95, which is on the high side as it means it would take INVH, 80.95 years of fcf income to pay off all of its debts.
INVH has a Debt to FCF ratio (80.95) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.86 indicates that INVH is somewhat dependend on debt financing.
The Debt to Equity ratio of INVH (0.86) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 80.95 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.48
WACC6.84%
2.3 Liquidity
INVH has a Current 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.
INVH has a Current ratio (0.35) which is comparable to the rest of the industry.
A Quick Ratio of 0.35 indicates that INVH may have some problems paying its short term obligations.
With a Quick ratio value of 0.35, INVH perfoms like the industry average, 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.
Looking at the last year, INVH shows a small growth in Revenue. The Revenue has grown by 4.61% in the last year.
The Revenue has been growing by 8.22% on average over the past years. This is quite good.
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.
INVH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.68% yearly.
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
A Price/Earnings ratio of 29.62 indicates a quite expensive valuation of INVH.
65.00% of the companies in the same industry are more expensive than INVH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.65. INVH is around the same levels.
With a Price/Forward Earnings ratio of 33.33, INVH can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, INVH is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.45. INVH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.62 | ||
| Fwd PE | 33.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INVH indicates a somewhat cheap valuation: INVH is cheaper than 75.00% of the companies listed in the same industry.
INVH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 169.45 | ||
| EV/EBITDA | 17.02 |
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)1.4
PEG (5Y)1.35
EPS Next 2Y7.54%
EPS Next 3Y6.49%
5. Dividend
5.1 Amount
INVH has a Yearly Dividend Yield of 4.15%, which is a nice return.
INVH's Dividend Yield is comparable with the industry average which is at 7.26.
INVH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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 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%
28.14
-0.05 (-0.18%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners102.17%
Inst Owner Change1.08%
Ins Owners0.24%
Ins Owner Change-3.88%
Market Cap17.25B
Revenue(TTM)2.70B
Net Income(TTM)585.66M
Analysts74
Price Target35.63 (26.62%)
Short Float %1.64%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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)-3.31%
PT rev (3m)-4.63%
EPS NQ rev (1m)0.95%
EPS NQ rev (3m)-1.84%
EPS NY rev (1m)0.35%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.62 | ||
| Fwd PE | 33.33 | ||
| P/S | 6.38 | ||
| P/FCF | 169.45 | ||
| P/OCF | 14.25 | ||
| P/B | 1.79 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 17.02 |
EPS(TTM)0.95
EY3.38%
EPS(NY)0.84
Fwd EY3%
FCF(TTM)0.17
FCFY0.59%
OCF(TTM)1.97
OCFY7.02%
SpS4.41
BVpS15.7
TBVpS15.28
PEG (NY)1.4
PEG (5Y)1.35
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 | 1.27 |
F-Score6
WACC6.84%
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 29.62 and the Price/Book (PB) ratio is 1.79.
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.