INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INVH - US46187W1071 - REIT
26.35 USD
-0.2 (-0.75%)
26.35 USD
0 (0%)
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. There are concerns on the financial health of INVH while its profitability can be described as average. INVH has a correct valuation and a medium 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.
In the past 5 years INVH always reported a positive cash flow from operatings.
1.2 Ratios
INVH's Return On Assets of 3.12% is in line compared to the rest of the industry. INVH outperforms 60.00% of its industry peers.
The Return On Equity of INVH (6.08%) 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.
Measured over the past 3 years, the Average Return On Invested Capital 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.
INVH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 27.79%, INVH is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of INVH has grown nicely.
INVH's Gross Margin of 58.64% is in line compared to the rest of the industry. INVH outperforms 50.00% of its industry peers.
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.
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
INVH has an Altman-Z score of 1.19. This is a bad value and indicates that INVH is not financially healthy and even has some risk of bankruptcy.
INVH's Altman-Z score of 1.19 is in line compared to the rest of the industry. INVH outperforms 55.00% of 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 | 1.19 |
ROIC/WACC0.48
WACC6.85%
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.
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.
Looking at the Quick ratio, with a value of 0.35, INVH is in line with its industry, 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.
Measured over the past years, INVH shows a quite strong growth in Revenue. The Revenue has been growing by 8.22% on average per year.
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
The Earnings Per Share is expected to grow by 9.56% on average over the next years. This is quite good.
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 Y23.77%
EPS Next 2Y6.74%
EPS Next 3Y5.4%
EPS Next 5Y9.56%
Revenue Next Year3.95%
Revenue Next 2Y3.58%
Revenue Next 3Y3.18%
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
With a Price/Earnings ratio of 27.74, 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.
When comparing the Price/Earnings ratio of INVH to the average of the S&P500 Index (26.56), we can say INVH is valued inline with the index average.
INVH is valuated quite expensively with a Price/Forward Earnings ratio of 31.68.
INVH's Price/Forward Earnings ratio is rather cheap when compared to the industry. INVH is cheaper than 95.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.79. INVH is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.74 | ||
| Fwd PE | 31.68 |
4.2 Price Multiples
90.00% of the companies in the same industry are more expensive than INVH, based on the Enterprise Value to EBITDA ratio.
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 | 158.68 | ||
| EV/EBITDA | 16.27 |
4.3 Compensation for Growth
The 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)1.17
PEG (5Y)1.26
EPS Next 2Y6.74%
EPS Next 3Y5.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.37%, INVH is a good candidate for dividend investing.
INVH's Dividend Yield is comparable with the industry average which is at 7.21.
Compared to an average S&P500 Dividend Yield of 1.87, INVH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
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 2Y6.74%
EPS Next 3Y5.4%
26.35
-0.2 (-0.75%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners103.5%
Inst Owner Change1.1%
Ins Owners0.24%
Ins Owner Change-0.15%
Market Cap16.15B
Revenue(TTM)2.70B
Net Income(TTM)585.66M
Analysts74
Price Target35.09 (33.17%)
Short Float %1.65%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
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)-4.11%
PT rev (3m)-5.42%
EPS NQ rev (1m)-0.94%
EPS NQ rev (3m)-2.31%
EPS NY rev (1m)2.21%
EPS NY rev (3m)3.55%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.74 | ||
| Fwd PE | 31.68 | ||
| P/S | 5.98 | ||
| P/FCF | 158.68 | ||
| P/OCF | 13.34 | ||
| P/B | 1.68 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | 16.27 |
EPS(TTM)0.95
EY3.61%
EPS(NY)0.83
Fwd EY3.16%
FCF(TTM)0.17
FCFY0.63%
OCF(TTM)1.97
OCFY7.49%
SpS4.41
BVpS15.7
TBVpS15.28
PEG (NY)1.17
PEG (5Y)1.26
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 | 1.19 |
F-Score6
WACC6.85%
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 Y23.77%
EPS Next 2Y6.74%
EPS Next 3Y5.4%
EPS Next 5Y9.56%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.22%
Revenue Next Year3.95%
Revenue Next 2Y3.58%
Revenue Next 3Y3.18%
Revenue Next 5Y4.68%
EBIT growth 1Y2.73%
EBIT growth 3Y10.41%
EBIT growth 5Y11.55%
EBIT Next Year108.49%
EBIT Next 3Y31.03%
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 27.74 and the Price/Book (PB) ratio is 1.68.
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 23.77% in the next year.