AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
NYSE:AMH - New York Stock Exchange, Inc. - US02665T3068 - REIT - Currency: USD
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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AMH was profitable.
AMH had a positive operating cash flow in the past year.
In the past 5 years AMH has always 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 3.81%. This is in the better half of the industry: AMH outperforms 75.00% of its industry peers.
AMH's Return On Equity of 7.08% is fine compared to the rest of the industry. AMH outperforms 75.00% of its industry peers.
AMH has a Return On Invested Capital of 3.25%. This is in the better half of the industry: AMH outperforms 70.00% 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 2.62%.
The last Return On Invested Capital (3.25%) for AMH is above the 3 year average (2.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 7.08% | ||
| ROIC | 3.25% |
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
The Profit Margin of AMH (23.16%) is better than 75.00% of its industry peers.
In the last couple of years the Profit Margin of AMH has grown nicely.
AMH has a Operating Margin of 24.03%. This is in the better half of the industry: AMH outperforms 65.00% of its industry peers.
AMH's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 56.26%, AMH is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
AMH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.03% | ||
| PM (TTM) | 23.16% | ||
| GM | 56.26% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AMH is destroying value.
Compared to 1 year ago, AMH has more shares outstanding
AMH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AMH has a worse debt to assets ratio.
2.2 Solvency
AMH has an Altman-Z score of 1.55. This is a bad value and indicates that AMH is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.55, AMH is doing good in the industry, outperforming 65.00% of the companies in the same industry.
AMH has a Debt/Equity ratio of 0.69. This is a neutral value indicating AMH is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.69, AMH belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.55 |
ROIC/WACC0.44
WACC7.33%
2.3 Liquidity
A Current Ratio of 0.23 indicates that AMH may have some problems paying its short term obligations.
With a Current ratio value of 0.23, AMH perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
A Quick Ratio of 0.23 indicates that AMH may have some problems paying its short term obligations.
AMH has a Quick ratio (0.23) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.20% over the past year.
The Earnings Per Share has been growing by 30.08% on average over the past years. This is a very strong growth
Looking at the last year, AMH shows a very strong growth in Revenue. The Revenue has grown by 32.65%.
Measured over the past years, AMH shows a quite strong growth in Revenue. The Revenue has been growing by 8.83% on average per year.
EPS 1Y (TTM)10.2%
EPS 3Y39.25%
EPS 5Y30.08%
EPS Q2Q%0%
Revenue 1Y (TTM)32.65%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%8.43%
3.2 Future
AMH is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -12.42% yearly.
The Revenue is expected to grow by 7.65% on average over the next years.
EPS Next Y-39.68%
EPS Next 2Y-19.61%
EPS Next 3Y-12.42%
EPS Next 5YN/A
Revenue Next Year6.86%
Revenue Next 2Y5.86%
Revenue Next 3Y5.65%
Revenue Next 5Y7.65%
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 34.20, AMH can be considered very expensive at the moment.
Based on the Price/Earnings ratio, AMH is valued a bit cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, AMH is valued a bit more expensive.
A Price/Forward Earnings ratio of 52.92 indicates a quite expensive valuation of AMH.
AMH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AMH is cheaper than 65.00% of the companies in the same industry.
AMH is valuated expensively when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.2 | ||
| Fwd PE | 52.92 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than AMH, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.22 |
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 -12.42% in the coming years.
PEG (NY)N/A
PEG (5Y)1.14
EPS Next 2Y-19.61%
EPS Next 3Y-12.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.26%, AMH has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.26, AMH pays less dividend than the industry average, which is at 4.52. 90.00% of the companies listed in the same industry pay a better dividend than AMH!
Compared to an average S&P500 Dividend Yield of 2.39, AMH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
5.2 History
The dividend of AMH is nicely growing with an annual growth rate of 22.99%!
AMH has paid a dividend for at least 10 years, which is a reliable track record.
AMH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)22.99%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
81.68% of the earnings are spent on dividend by AMH. 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.
DP81.68%
EPS Next 2Y-19.61%
EPS Next 3Y-12.42%
36.94
+0.24 (+0.65%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners90.34%
Inst Owner Change1.81%
Ins Owners6.03%
Ins Owner Change1.26%
Market Cap13.67B
Analysts75
Price Target41.63 (12.7%)
Short Float %3.08%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
Yearly Dividend1.08
Dividend Growth(5Y)22.99%
DP81.68%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)108.54%
Min EPS beat(2)100.7%
Max EPS beat(2)116.38%
EPS beat(4)4
Avg EPS beat(4)87.81%
Min EPS beat(4)49.45%
Max EPS beat(4)116.38%
EPS beat(8)8
Avg EPS beat(8)93.93%
EPS beat(12)12
Avg EPS beat(12)92.84%
EPS beat(16)16
Avg EPS beat(16)78.59%
Revenue beat(2)1
Avg Revenue beat(2)-0.04%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)1.29%
Revenue beat(4)3
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)1.29%
Revenue beat(8)6
Avg Revenue beat(8)0.37%
Revenue beat(12)8
Avg Revenue beat(12)0.33%
Revenue beat(16)9
Avg Revenue beat(16)0.12%
PT rev (1m)2.17%
PT rev (3m)1.64%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)-11.7%
EPS NY rev (1m)3.85%
EPS NY rev (3m)2.38%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-1.47%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.2 | ||
| Fwd PE | 52.92 | ||
| P/S | 6.25 | ||
| P/FCF | N/A | ||
| P/OCF | 16.41 | ||
| P/B | 1.91 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 18.22 |
EPS(TTM)1.08
EY2.92%
EPS(NY)0.7
Fwd EY1.89%
FCF(TTM)-1.85
FCFYN/A
OCF(TTM)2.25
OCFY6.09%
SpS5.91
BVpS19.33
TBVpS19
PEG (NY)N/A
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 7.08% | ||
| ROCE | 4.12% | ||
| ROIC | 3.25% | ||
| ROICexc | 3.27% | ||
| ROICexgc | 3.32% | ||
| OM | 24.03% | ||
| PM (TTM) | 23.16% | ||
| GM | 56.26% | ||
| 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%
ROICexcg growth 3Y7.87%
ROICexcg 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-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.87 | ||
| Cap/Depr | 311.84% | ||
| Cap/Sales | 69.3% | ||
| Interest Coverage | 3.33 | ||
| Cash Conversion | 82.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 1.55 |
F-Score6
WACC7.33%
ROIC/WACC0.44
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)10.2%
EPS 3Y39.25%
EPS 5Y30.08%
EPS Q2Q%0%
EPS Next Y-39.68%
EPS Next 2Y-19.61%
EPS Next 3Y-12.42%
EPS Next 5YN/A
Revenue 1Y (TTM)32.65%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%8.43%
Revenue Next Year6.86%
Revenue Next 2Y5.86%
Revenue Next 3Y5.65%
Revenue Next 5Y7.65%
EBIT growth 1Y38.75%
EBIT growth 3Y12.82%
EBIT growth 5Y11.56%
EBIT Next Year130.71%
EBIT Next 3Y37.79%
EBIT Next 5Y29.34%
FCF growth 1Y11.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y17.79%
OCF growth 3Y10.89%
OCF growth 5Y12.13%