INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - NYSE:INVH - US46187W1071 - REIT
28.01 USD
+0.2 (+0.72%)
28.01 USD
0 (0%)
INVH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. While INVH has a great profitability rating, there are quite some concerns on its financial health. INVH has a correct valuation and a medium 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.
Each year in the past 5 years INVH has been profitable.
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 3.12%, INVH is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.08%, INVH is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
INVH has a Return On Invested Capital of 3.27%. This is in the better half of the industry: INVH outperforms 70.00% 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 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 of 21.66%. This is comparable to the rest of the industry: INVH outperforms 60.00% of its industry peers.
In the last couple of years the Profit Margin of INVH has grown nicely.
INVH's Operating Margin of 27.78% is fine compared to the rest of the industry. INVH outperforms 75.00% of its industry peers.
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.
INVH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.78% | ||
| PM (TTM) | 21.66% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
Compared to 1 year ago, INVH has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that INVH is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.26, INVH perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
The Debt to FCF ratio of INVH is 81.36, which is on the high side as it means it would take INVH, 81.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of INVH (81.36) is comparable to the rest of the industry.
INVH has a Debt/Equity ratio of 0.86. This is a neutral value indicating 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 | 81.36 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.48
WACC6.87%
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.
The Quick ratio of INVH (0.35) is comparable to the rest of the 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.
The Earnings Per Share has been growing by 22.01% on average over the past years. This is a very strong growth
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.
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.
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
A Price/Earnings ratio of 29.48 indicates a quite expensive valuation of INVH.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.06, INVH is valued at the same level.
A Price/Forward Earnings ratio of 33.18 indicates a quite expensive valuation of INVH.
Based on the Price/Forward Earnings ratio, INVH is valued cheaper than 90.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.73, INVH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.48 | ||
| Fwd PE | 33.18 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than INVH, based on the Enterprise Value to EBITDA ratio.
INVH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 169.53 | ||
| EV/EBITDA | 16.95 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of INVH may justify a higher PE ratio.
PEG (NY)1.4
PEG (5Y)1.34
EPS Next 2Y7.54%
EPS Next 3Y6.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.17%, INVH is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.39, INVH is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.37, INVH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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 120.80% 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.
DP120.8%
EPS Next 2Y7.54%
EPS Next 3Y6.49%
28.01
+0.2 (+0.72%)
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 Change-0.2%
Ins Owners0.24%
Ins Owner Change-2.84%
Market Cap17.17B
Revenue(TTM)2.70B
Net Income(TTM)585.60M
Analysts74
Price Target36.6 (30.67%)
Short Float %1.88%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Yearly Dividend1.13
Dividend Growth(5Y)16.68%
DP120.8%
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)-0.68%
PT rev (3m)-3.87%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)-2.74%
EPS NY rev (1m)0.67%
EPS NY rev (3m)2.95%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.48 | ||
| Fwd PE | 33.18 | ||
| P/S | 6.35 | ||
| P/FCF | 169.53 | ||
| P/OCF | 14.19 | ||
| P/B | 1.78 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 16.95 |
EPS(TTM)0.95
EY3.39%
EPS(NY)0.84
Fwd EY3.01%
FCF(TTM)0.17
FCFY0.59%
OCF(TTM)1.97
OCFY7.05%
SpS4.41
BVpS15.7
TBVpS15.28
PEG (NY)1.4
PEG (5Y)1.34
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 | 27.78% | ||
| PM (TTM) | 21.66% | ||
| GM | 58.64% | ||
| FCFM | 3.75% |
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 | 81.36 | ||
| Debt/EBITDA | 5.53 | ||
| Cap/Depr | 150.09% | ||
| Cap/Sales | 41.03% | ||
| Interest Coverage | 2.27 | ||
| Cash Conversion | 81.24% | ||
| Profit Quality | 17.3% | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.26 |
F-Score6
WACC6.87%
ROIC/WACC0.48
Cap/Depr(3y)143.8%
Cap/Depr(5y)158.59%
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 1Y2.74%
EBIT growth 3Y10.41%
EBIT growth 5Y11.55%
EBIT Next Year107.69%
EBIT Next 3Y31.22%
EBIT Next 5Y20.28%
FCF growth 1Y342.88%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y6.25%
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 5 / 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 7 / 10.
Can you provide the PE and PB ratios for INVH stock?
The Price/Earnings (PE) ratio for INVITATION HOMES INC (INVH) is 29.48 and the Price/Book (PB) ratio is 1.78.
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.