INVITATION HOMES INC (INVH)
US46187W1071 - REIT
INVH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. INVH has an average financial health and profitability rating. 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.
In the past year INVH had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 2.24%, INVH is in line with its industry, outperforming 60.00% of the companies in the same industry.
INVH has a Return On Equity (4.43%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 3.03%, INVH is doing good in the industry, outperforming 70.00% 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 2.61%.
The last Return On Invested Capital (3.03%) for INVH is above the 3 year average (2.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.24% | ||
| ROE | 4.43% | ||
| ROIC | 3.03% |
ROA(3y)2.06%
ROA(5y)1.62%
ROE(3y)3.83%
ROE(5y)3.11%
ROIC(3y)2.72%
ROIC(5y)2.46%
1.3 Margins
INVH has a Profit Margin (17.01%) which is in line with its industry peers.
In the last couple of years the Profit Margin of INVH has grown nicely.
INVH has a better Operating Margin (28.28%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of INVH has grown nicely.
With a Gross Margin value of 59.02%, INVH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
INVH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.28% | ||
| PM (TTM) | 17.01% | ||
| GM | 59.03% |
OM growth 3Y3.87%
OM growth 5Y6.27%
PM growth 3Y25.69%
PM growth 5YN/A
GM growth 3Y0.23%
GM growth 5Y0.58%
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 worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that INVH is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.41, INVH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
INVH has a debt to FCF ratio of 44.14. This is a negative value and a sign of low solvency as INVH would need 44.14 years to pay back of all of its debts.
INVH has a Debt to FCF ratio of 44.14. This is comparable to the rest of the industry: INVH outperforms 55.00% of its industry peers.
INVH has a Debt/Equity ratio of 0.91. This is a neutral value indicating INVH is somewhat dependend on debt financing.
INVH's Debt to Equity ratio of 0.91 is in line compared to the rest of the industry. INVH outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 44.14 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.41
WACC7.34%
2.3 Liquidity
INVH has a Current Ratio of 1.82. This is a normal value and indicates that INVH is financially healthy and should not expect problems in meeting its short term obligations.
INVH has a Current ratio of 1.82. This is amongst the best in the industry. INVH outperforms 85.00% of its industry peers.
INVH has a Quick Ratio of 1.82. This is a normal value and indicates that INVH is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of INVH (1.82) is better than 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
INVH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.13%.
The Earnings Per Share has been growing by 32.64% on average over the past years. This is a very strong growth
The Revenue has grown by 8.22% in the past year. This is quite good.
Measured over the past years, INVH shows a small growth in Revenue. The Revenue has been growing by 7.14% on average per year.
EPS 1Y (TTM)-10.13%
EPS 3Y32.64%
EPS 5YN/A
EPS Q2Q%-28.57%
Revenue 1Y (TTM)8.22%
Revenue growth 3Y10.09%
Revenue growth 5Y7.14%
Sales Q2Q%6.9%
3.2 Future
Based on estimates for the next years, INVH will show a small growth in Earnings Per Share. The EPS will grow by 4.78% on average per year.
Based on estimates for the next years, INVH will show a small growth in Revenue. The Revenue will grow by 5.15% on average per year.
EPS Next Y-16.46%
EPS Next 2Y-4.4%
EPS Next 3Y0.13%
EPS Next 5Y4.78%
Revenue Next Year7.1%
Revenue Next 2Y5.98%
Revenue Next 3Y5.48%
Revenue Next 5Y5.15%
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
Based on the Price/Earnings ratio of 45.27, the valuation of INVH can be described as expensive.
INVH's Price/Earnings is on the same level as the industry average.
INVH is valuated expensively when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 41.86, the valuation of INVH can be described as expensive.
Based on the Price/Forward Earnings ratio, INVH is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, INVH is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.27 | ||
| Fwd PE | 41.86 |
4.2 Price Multiples
INVH's Enterprise Value to EBITDA ratio is in line with the industry average.
INVH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 96.38 | ||
| EV/EBITDA | 19.27 |
4.3 Compensation for Growth
The decent profitability rating of INVH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.4%
EPS Next 3Y0.13%
5. Dividend
5.1 Amount
INVH has a Yearly Dividend Yield of 3.66%. Purely for dividend investing, there may be better candidates out there.
INVH's Dividend Yield is comparable with the industry average which is at 4.23.
Compared to an average S&P500 Dividend Yield of 2.34, INVH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
5.2 History
The dividend of INVH is nicely growing with an annual growth rate of 18.72%!
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)18.72%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
153.77% 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.
DP153.77%
EPS Next 2Y-4.4%
EPS Next 3Y0.13%
INVITATION HOMES INC
NYSE:INVH (12/20/2024, 8:18:39 PM)
After market: 32.14 0 (0%)32.14
+0.42 (+1.32%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.9%
Inst Owner Change-0.52%
Ins Owners0.31%
Ins Owner Change-2.09%
Market Cap19.69B
Analysts73.79
Price Target38.49 (19.76%)
Short Float %1.76%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
Dividend Growth(5Y)18.72%
DP153.77%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-24.1%
Min EPS beat(2)-36.25%
Max EPS beat(2)-11.94%
EPS beat(4)2
Avg EPS beat(4)-1%
Min EPS beat(4)-36.25%
Max EPS beat(4)26.55%
EPS beat(8)6
Avg EPS beat(8)8.99%
EPS beat(12)8
Avg EPS beat(12)5.69%
EPS beat(16)12
Avg EPS beat(16)17.63%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)-0.3%
Revenue beat(4)1
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)0.29%
Revenue beat(8)1
Avg Revenue beat(8)-0.77%
Revenue beat(12)2
Avg Revenue beat(12)-1.01%
Revenue beat(16)4
Avg Revenue beat(16)-0.85%
PT rev (1m)-2.71%
PT rev (3m)-2.47%
EPS NQ rev (1m)3.39%
EPS NQ rev (3m)-2.66%
EPS NY rev (1m)0.73%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.27 | ||
| Fwd PE | 41.86 | ||
| P/S | 7.62 | ||
| P/FCF | 96.38 | ||
| P/OCF | 18.99 | ||
| P/B | 1.99 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 19.27 |
EPS(TTM)0.71
EY2.21%
EPS(NY)0.77
Fwd EY2.39%
FCF(TTM)0.33
FCFY1.04%
OCF(TTM)1.69
OCFY5.26%
SpS4.22
BVpS16.19
TBVpS15.77
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.24% | ||
| ROE | 4.43% | ||
| ROCE | 3.84% | ||
| ROIC | 3.03% | ||
| ROICexc | 3.21% | ||
| ROICexgc | 3.27% | ||
| OM | 28.28% | ||
| PM (TTM) | 17.01% | ||
| GM | 59.03% | ||
| FCFM | 7.91% |
ROA(3y)2.06%
ROA(5y)1.62%
ROE(3y)3.83%
ROE(5y)3.11%
ROIC(3y)2.72%
ROIC(5y)2.46%
ROICexc(3y)2.8%
ROICexc(5y)2.52%
ROICexgc(3y)2.86%
ROICexgc(5y)2.56%
ROCE(3y)3.45%
ROCE(5y)3.12%
ROICexcg growth 3Y11.99%
ROICexcg growth 5Y13.16%
ROICexc growth 3Y11.86%
ROICexc growth 5Y13.18%
OM growth 3Y3.87%
OM growth 5Y6.27%
PM growth 3Y25.69%
PM growth 5YN/A
GM growth 3Y0.23%
GM growth 5Y0.58%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 44.14 | ||
| Debt/EBITDA | 6.28 | ||
| Cap/Depr | 117.95% | ||
| Cap/Sales | 32.21% | ||
| Interest Coverage | 2.24 | ||
| Cash Conversion | 72.17% | ||
| Profit Quality | 46.47% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 1.41 |
F-Score5
WACC7.34%
ROIC/WACC0.41
Cap/Depr(3y)171.84%
Cap/Depr(5y)159.96%
Cap/Sales(3y)49.36%
Cap/Sales(5y)46.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.13%
EPS 3Y32.64%
EPS 5YN/A
EPS Q2Q%-28.57%
EPS Next Y-16.46%
EPS Next 2Y-4.4%
EPS Next 3Y0.13%
EPS Next 5Y4.78%
Revenue 1Y (TTM)8.22%
Revenue growth 3Y10.09%
Revenue growth 5Y7.14%
Sales Q2Q%6.9%
Revenue Next Year7.1%
Revenue Next 2Y5.98%
Revenue Next 3Y5.48%
Revenue Next 5Y5.15%
EBIT growth 1Y5.64%
EBIT growth 3Y14.35%
EBIT growth 5Y13.85%
EBIT Next Year100.25%
EBIT Next 3Y30.86%
EBIT Next 5Y19.9%
FCF growth 1Y438.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.71%
OCF growth 3Y16.69%
OCF growth 5Y14.55%