AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AMH - US02665T3068 - REIT
32.09 USD
-0.33 (-1.02%)
32.31 USD
+0.22 (+0.69%)
Taking everything into account, AMH scores 4 out of 10 in our fundamental rating. AMH was compared to 20 industry peers in the Residential REITs industry. AMH scores excellent on profitability, but there are concerns on its financial health. AMH is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AMH had positive earnings in the past year.
AMH had a positive operating cash flow in the past year.
Each year in the past 5 years AMH has been profitable.
Each year in the past 5 years AMH had a positive operating cash flow.
1.2 Ratios
AMH has a Return On Assets of 3.30%. This is in the better half of the industry: AMH outperforms 65.00% of its industry peers.
AMH's Return On Equity of 6.11% is fine compared to the rest of the industry. AMH outperforms 65.00% of its industry peers.
AMH's Return On Invested Capital of 2.84% is fine compared to the rest of the industry. AMH outperforms 65.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMH is in line with the industry average of 2.59%.
The last Return On Invested Capital (2.84%) for AMH is above the 3 year average (2.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 6.11% | ||
| ROIC | 2.84% |
ROA(3y)2.63%
ROA(5y)2%
ROE(3y)4.88%
ROE(5y)3.67%
ROIC(3y)2.43%
ROIC(5y)2.3%
1.3 Margins
AMH has a Profit Margin of 23.87%. This is in the better half of the industry: AMH outperforms 65.00% of its industry peers.
In the last couple of years the Profit Margin of AMH has grown nicely.
AMH has a better Operating Margin (24.85%) than 65.00% of its industry peers.
AMH's Operating Margin has improved in the last couple of years.
The Gross Margin of AMH (56.70%) is worse than 65.00% of its industry peers.
AMH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.85% | ||
| PM (TTM) | 23.87% | ||
| GM | 56.7% |
OM growth 3Y2.7%
OM growth 5Y2.51%
PM growth 3Y30.47%
PM growth 5Y24.86%
GM growth 3Y0.81%
GM growth 5Y0.84%
2. Health
2.1 Basic Checks
AMH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AMH has been increased compared to 1 year ago.
The number of shares outstanding for AMH has been increased compared to 5 years ago.
AMH has a worse debt/assets ratio than last year.
2.2 Solvency
AMH has an Altman-Z score of 1.34. This is a bad value and indicates that AMH is not financially healthy and even has some risk of bankruptcy.
AMH has a Altman-Z score of 1.34. This is comparable to the rest of the industry: AMH outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that AMH is somewhat dependend on debt financing.
The Debt to Equity ratio of AMH (0.68) is better than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.34 |
ROIC/WACC0.42
WACC6.82%
2.3 Liquidity
A Current Ratio of 0.18 indicates that AMH may have some problems paying its short term obligations.
With a Current ratio value of 0.18, AMH is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
AMH has a Quick Ratio of 0.18. This is a bad value and indicates that AMH is not financially healthy enough and could expect problems in meeting its short term obligations.
AMH has a Quick ratio of 0.18. This is in the lower half of the industry: AMH underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
AMH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.92%, which is quite impressive.
Measured over the past years, AMH shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.08% on average per year.
AMH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.77%.
The Revenue has been growing by 8.83% on average over the past years. This is quite good.
EPS 1Y (TTM)22.92%
EPS 3Y39.25%
EPS 5Y30.08%
EPS Q2Q%35%
Revenue 1Y (TTM)-13.77%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%7.51%
3.2 Future
The Earnings Per Share is expected to decrease by -12.83% on average over the next years. This is quite bad
AMH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.08% yearly.
EPS Next Y-21.68%
EPS Next 2Y-16.69%
EPS Next 3Y-12.83%
EPS Next 5YN/A
Revenue Next Year7.73%
Revenue Next 2Y6.07%
Revenue Next 3Y5.57%
Revenue Next 5Y7.08%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.19, AMH can be considered very expensive at the moment.
Based on the Price/Earnings ratio, AMH is valued a bit cheaper than 75.00% of the companies in the same industry.
AMH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
AMH is valuated quite expensively with a Price/Forward Earnings ratio of 42.81.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMH indicates a somewhat cheap valuation: AMH is cheaper than 70.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AMH to the average of the S&P500 Index (35.79), we can say AMH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 42.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.49 |
4.3 Compensation for Growth
AMH has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as AMH's earnings are expected to decrease with -12.83% in the coming years.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y-16.69%
EPS Next 3Y-12.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.75%, AMH has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.75, AMH pays less dividend than the industry average, which is at 7.26. 80.00% of the companies listed in the same industry pay a better dividend than AMH!
Compared to an average S&P500 Dividend Yield of 2.41, AMH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
5.2 History
On average, the dividend of AMH grows each year by 22.99%, which is quite nice.
AMH has been paying a dividend for at least 10 years, so it has a reliable track record.
AMH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)22.99%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
AMH pays out 101.80% of its income as dividend. This is not a sustainable payout ratio.
AMH's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP101.8%
EPS Next 2Y-16.69%
EPS Next 3Y-12.83%
32.09
-0.33 (-1.02%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners91.58%
Inst Owner Change0.13%
Ins Owners5.99%
Ins Owner Change0.16%
Market Cap11.90B
Revenue(TTM)1.83B
Net Income(TTM)437.21M
Analysts75
Price Target39.51 (23.12%)
Short Float %2.28%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Yearly Dividend1.08
Dividend Growth(5Y)22.99%
DP101.8%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)77.09%
Min EPS beat(2)68.13%
Max EPS beat(2)86.06%
EPS beat(4)4
Avg EPS beat(4)92.82%
Min EPS beat(4)68.13%
Max EPS beat(4)116.38%
EPS beat(8)8
Avg EPS beat(8)83.5%
EPS beat(12)12
Avg EPS beat(12)100.84%
EPS beat(16)16
Avg EPS beat(16)83.76%
Revenue beat(2)2
Avg Revenue beat(2)1.29%
Min Revenue beat(2)1.26%
Max Revenue beat(2)1.31%
Revenue beat(4)3
Avg Revenue beat(4)0.62%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)1.31%
Revenue beat(8)6
Avg Revenue beat(8)0.39%
Revenue beat(12)9
Avg Revenue beat(12)0.39%
Revenue beat(16)10
Avg Revenue beat(16)0.16%
PT rev (1m)-3.54%
PT rev (3m)-5.03%
EPS NQ rev (1m)-1.14%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)7.03%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 42.81 | ||
| P/S | 6.5 | ||
| P/FCF | N/A | ||
| P/OCF | 14.49 | ||
| P/B | 1.66 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 17.49 |
EPS(TTM)1.18
EY3.68%
EPS(NY)0.75
Fwd EY2.34%
FCF(TTM)-1.79
FCFYN/A
OCF(TTM)2.21
OCFY6.9%
SpS4.94
BVpS19.31
TBVpS18.98
PEG (NY)N/A
PEG (5Y)0.9
Graham Number22.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 6.11% | ||
| ROCE | 3.59% | ||
| ROIC | 2.84% | ||
| ROICexc | 2.84% | ||
| ROICexgc | 2.87% | ||
| OM | 24.85% | ||
| PM (TTM) | 23.87% | ||
| GM | 56.7% | ||
| FCFM | N/A |
ROA(3y)2.63%
ROA(5y)2%
ROE(3y)4.88%
ROE(5y)3.67%
ROIC(3y)2.43%
ROIC(5y)2.3%
ROICexc(3y)2.45%
ROICexc(5y)2.32%
ROICexgc(3y)2.51%
ROICexgc(5y)2.36%
ROCE(3y)3.08%
ROCE(5y)2.91%
ROICexgc growth 3Y7.87%
ROICexgc growth 5Y4.66%
ROICexc growth 3Y7.74%
ROICexc growth 5Y4.65%
OM growth 3Y2.7%
OM growth 5Y2.51%
PM growth 3Y30.47%
PM growth 5Y24.86%
GM growth 3Y0.81%
GM growth 5Y0.84%
F-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.06 | ||
| Cap/Depr | 295.64% | ||
| Cap/Sales | 81.1% | ||
| Interest Coverage | 2.75 | ||
| Cash Conversion | 85.78% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 1.34 |
F-Score5
WACC6.82%
ROIC/WACC0.42
Cap/Depr(3y)335.63%
Cap/Depr(5y)358.29%
Cap/Sales(3y)94.51%
Cap/Sales(5y)101.96%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.92%
EPS 3Y39.25%
EPS 5Y30.08%
EPS Q2Q%35%
EPS Next Y-21.68%
EPS Next 2Y-16.69%
EPS Next 3Y-12.83%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.77%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%7.51%
Revenue Next Year7.73%
Revenue Next 2Y6.07%
Revenue Next 3Y5.57%
Revenue Next 5Y7.08%
EBIT growth 1Y-9.46%
EBIT growth 3Y12.82%
EBIT growth 5Y11.56%
EBIT Next Year132.12%
EBIT Next 3Y37.83%
EBIT Next 5Y29.21%
FCF growth 1Y-37.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.7%
OCF growth 3Y10.89%
OCF growth 5Y12.13%
AMERICAN HOMES 4 RENT- A / AMH FAQ
Can you provide the ChartMill fundamental rating for AMERICAN HOMES 4 RENT- A?
ChartMill assigns a fundamental rating of 4 / 10 to AMH.
What is the valuation status for AMH stock?
ChartMill assigns a valuation rating of 2 / 10 to AMERICAN HOMES 4 RENT- A (AMH). This can be considered as Overvalued.
What is the profitability of AMH stock?
AMERICAN HOMES 4 RENT- A (AMH) has a profitability rating of 7 / 10.
What are the PE and PB ratios of AMERICAN HOMES 4 RENT- A (AMH) stock?
The Price/Earnings (PE) ratio for AMERICAN HOMES 4 RENT- A (AMH) is 27.19 and the Price/Book (PB) ratio is 1.66.
Can you provide the financial health for AMH stock?
The financial health rating of AMERICAN HOMES 4 RENT- A (AMH) is 1 / 10.