INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INVH - US46187W1071 - REIT
26.41 USD
-1.69 (-6.01%)
26.35 USD
-0.06 (-0.23%)
We assign a fundamental rating of 4 out of 10 to INVH. INVH was compared to 20 industry peers in the Residential REITs industry. INVH has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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 has a Return On Assets (3.12%) which is in line with its industry peers.
INVH has a Return On Equity of 6.08%. This is comparable to the rest of the industry: INVH outperforms 60.00% of its industry peers.
INVH's Return On Invested Capital of 3.27% is fine compared to the rest 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 3 year average ROIC (2.99%) for INVH is below the current ROIC(3.27%), indicating increased profibility in the last year.
| 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 (21.67%) which is in line with its industry peers.
In the last couple of years the Profit Margin of INVH has grown nicely.
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.
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
INVH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.19. This is a bad value and indicates that INVH is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.19, INVH perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
INVH has a debt to FCF ratio of 80.95. This is a negative value and a sign of low solvency as INVH would need 80.95 years to pay back of all of its debts.
With a Debt to FCF ratio value of 80.95, INVH perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
INVH has a Debt/Equity ratio of 0.86. This is a neutral value indicating INVH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.86, INVH is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 80.95 | ||
| Altman-Z | 1.19 |
ROIC/WACC0.48
WACC6.84%
2.3 Liquidity
A Current Ratio of 0.35 indicates that INVH may have some problems paying 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.
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
The Earnings Per Share has grown by an impressive 33.80% over the past year.
INVH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.01% yearly.
INVH shows a small growth in Revenue. In the last year, the Revenue has grown by 4.61%.
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
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 Y22.73%
EPS Next 2Y5.11%
EPS Next 3Y5.23%
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
INVH is valuated quite expensively with a Price/Earnings ratio of 27.80.
Compared to the rest of the industry, the Price/Earnings ratio of INVH indicates a somewhat cheap valuation: INVH is cheaper than 70.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. INVH is around the same levels.
INVH is valuated quite expensively with a Price/Forward Earnings ratio of 32.74.
95.00% of the companies in the same industry are more expensive than INVH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.57. INVH is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.8 | ||
| Fwd PE | 32.74 |
4.2 Price Multiples
INVH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INVH is cheaper than 95.00% of the companies in the same industry.
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 | 159.04 | ||
| EV/EBITDA | 16.29 |
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)1.22
PEG (5Y)1.26
EPS Next 2Y5.11%
EPS Next 3Y5.23%
5. Dividend
5.1 Amount
INVH has a Yearly Dividend Yield of 4.32%, which is a nice return.
Compared to an average industry Dividend Yield of 11.09, 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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.
The dividend of INVH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP120.69%
EPS Next 2Y5.11%
EPS Next 3Y5.23%
26.41
-1.69 (-6.01%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners103.57%
Inst Owner Change0%
Ins Owners0.24%
Ins Owner Change-0.15%
Market Cap16.19B
Revenue(TTM)2.70B
Net Income(TTM)585.66M
Analysts74
Price Target34.85 (31.96%)
Short Float %1.89%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
Yearly Dividend1.13
Dividend Growth(5Y)16.68%
DP120.69%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-2.18%
PT rev (3m)-5.42%
EPS NQ rev (1m)-4.6%
EPS NQ rev (3m)-5.05%
EPS NY rev (1m)-0.85%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.8 | ||
| Fwd PE | 32.74 | ||
| P/S | 5.99 | ||
| P/FCF | 159.04 | ||
| P/OCF | 13.37 | ||
| P/B | 1.68 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 16.29 |
EPS(TTM)0.95
EY3.6%
EPS(NY)0.81
Fwd EY3.05%
FCF(TTM)0.17
FCFY0.63%
OCF(TTM)1.97
OCFY7.48%
SpS4.41
BVpS15.7
TBVpS15.28
PEG (NY)1.22
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
WACC6.84%
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 Y22.73%
EPS Next 2Y5.11%
EPS Next 3Y5.23%
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 Year108.76%
EBIT Next 3Y31.01%
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.
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%.