INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INVH - US46187W1071 - REIT
26.9 USD
-0.29 (-1.07%)
27.05 USD
+0.15 (+0.56%)
We assign a fundamental rating of 4 out of 10 to INVH. INVH was compared to 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 has a decent growth rate and is not valued too expensively.
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.
- In the past 5 years INVH has always been profitable.
- In the past 5 years INVH always reported a positive cash flow from operatings.
1.2 Ratios
- INVH has a Return On Assets of 3.12%. This is comparable to the rest of the industry: INVH outperforms 60.00% of its industry peers.
- With a Return On Equity value of 6.08%, INVH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- The Return On Invested Capital of INVH (3.27%) is better than 75.00% 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 2.59%.
- 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
- The Profit Margin of INVH (21.67%) is comparable to the rest of the industry.
- 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.
- With a Gross Margin value of 58.64%, INVH perfoms like the industry average, outperforming 50.00% of the companies in the same 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.
- Compared to 1 year ago, INVH has about the same amount of shares outstanding.
- 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 1.21. 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 (1.21) which is comparable to the rest of the industry.
- 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 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 of 0.86. This is comparable to the rest of the industry: INVH outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 80.95 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.47
WACC6.91%
2.3 Liquidity
- A Current Ratio of 0.35 indicates that INVH may have some problems paying its short term obligations.
- With a Current ratio value of 0.35, INVH perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- 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.
- INVH has a Quick ratio (0.35) which is in line with its industry peers.
| 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.
- The Revenue has been growing slightly by 4.61% 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)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
- INVH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.56% yearly.
- 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 Y23.34%
EPS Next 2Y5.01%
EPS Next 3Y5.23%
EPS Next 5Y9.56%
Revenue Next Year4.02%
Revenue Next 2Y3.56%
Revenue Next 3Y3.09%
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.
- 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 28.32, INVH can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, INVH is valued a bit cheaper than 70.00% of the companies in the same industry.
- INVH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- INVH is valuated quite expensively with a Price/Forward Earnings ratio of 33.42.
- Based on the Price/Forward Earnings ratio, INVH is valued cheaper than 90.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. INVH is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.32 | ||
| Fwd PE | 33.42 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INVH indicates a rather cheap valuation: INVH is cheaper than 85.00% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as INVH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 161.99 | ||
| EV/EBITDA | 16.49 |
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)1.21
PEG (5Y)1.29
EPS Next 2Y5.01%
EPS Next 3Y5.23%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.44%, INVH is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 32.02, INVH has a dividend in line with its industry peers.
- INVH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
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
- 120.69% of the earnings are spent on dividend by INVH. 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 2Y5.01%
EPS Next 3Y5.23%
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.
Can you provide the valuation status for INVITATION HOMES INC?
ChartMill assigns a valuation rating of 4 / 10 to INVITATION HOMES INC (INVH). This can be considered as Fairly Valued.
Can you provide the profitability details for INVITATION HOMES INC?
INVITATION HOMES INC (INVH) has a profitability rating of 6 / 10.
What is the financial health of INVITATION HOMES INC (INVH) stock?
The financial health rating of INVITATION HOMES INC (INVH) is 2 / 10.
Can you provide the dividend sustainability for INVH stock?
The dividend rating of INVITATION HOMES INC (INVH) is 5 / 10 and the dividend payout ratio is 120.69%.