AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
USA - NYSE:AMH - US02665T3068 - REIT
32.47 USD
-0.15 (-0.46%)
32.47 USD
0 (0%)
AMH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. While AMH has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, AMH is valued expensive at the moment.
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.
In the past 5 years AMH has always been profitable.
In the past 5 years AMH always reported a positive cash flow from operatings.
1.2 Ratios
AMH's Return On Assets of 3.03% is fine compared to the rest of the industry. AMH outperforms 70.00% of its industry peers.
AMH has a better Return On Equity (5.74%) than 70.00% of its industry peers.
AMH's Return On Invested Capital of 2.68% is in line compared to the rest of the industry. AMH outperforms 60.00% of its industry peers.
AMH had an Average Return On Invested Capital over the past 3 years of 2.43%. This is in line with the industry average of 2.59%.
The 3 year average ROIC (2.43%) for AMH is below the current ROIC(2.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 5.74% | ||
| ROIC | 2.68% |
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's Profit Margin of 22.87% is fine compared to the rest of the industry. AMH outperforms 70.00% of its industry peers.
AMH's Profit Margin has improved in the last couple of years.
The Operating Margin of AMH (24.52%) is better than 65.00% of its industry peers.
In the last couple of years the Operating Margin of AMH has grown nicely.
Looking at the Gross Margin, with a value of 56.50%, AMH is doing worse than 65.00% of the companies in the same industry.
In the last couple of years the Gross Margin of AMH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.52% | ||
| PM (TTM) | 22.87% | ||
| GM | 56.5% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AMH is destroying value.
The number of shares outstanding for AMH has been increased compared to 1 year ago.
Compared to 5 years ago, AMH has more shares outstanding
Compared to 1 year ago, AMH has a worse debt to assets ratio.
2.2 Solvency
AMH has an Altman-Z score of 1.30. 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 1.30. This is comparable to the rest of the industry: AMH outperforms 55.00% of its industry peers.
AMH has a Debt/Equity ratio of 0.72. This is a neutral value indicating AMH is somewhat dependend on debt financing.
AMH has a Debt to Equity ratio of 0.72. This is in the better half of the industry: AMH outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
ROIC/WACC0.39
WACC6.95%
2.3 Liquidity
AMH has a Current Ratio of 0.64. 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 Current ratio of 0.64. This is comparable to the rest of the industry: AMH outperforms 60.00% of its industry peers.
AMH has a Quick Ratio of 0.64. This is a bad value and indicates that AMH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.64, AMH is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
AMH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.63%, which is quite good.
AMH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.08% yearly.
The Revenue for AMH has decreased by -14.40% in the past year. This is quite bad
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)15.63%
EPS 3Y39.25%
EPS 5Y30.08%
EPS Q2Q%12%
Revenue 1Y (TTM)-14.4%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%8.03%
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 -12.69% yearly.
The Revenue is expected to grow by 7.43% on average over the next years.
EPS Next Y-23.67%
EPS Next 2Y-16.56%
EPS Next 3Y-12.69%
EPS Next 5YN/A
Revenue Next Year7.67%
Revenue Next 2Y6.07%
Revenue Next 3Y5.5%
Revenue Next 5Y7.43%
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 29.25, AMH can be considered very expensive at the moment.
Based on the Price/Earnings ratio, AMH is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AMH to the average of the S&P500 Index (27.67), we can say AMH is valued inline with the index average.
AMH is valuated quite expensively with a Price/Forward Earnings ratio of 43.18.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMH indicates a somewhat cheap valuation: AMH is cheaper than 75.00% of the companies listed in the same industry.
AMH's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.25 | ||
| Fwd PE | 43.18 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AMH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.02 |
4.3 Compensation for Growth
The decent profitability rating of AMH may justify a higher PE ratio.
AMH's earnings are expected to decrease with -12.69% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.97
EPS Next 2Y-16.56%
EPS Next 3Y-12.69%
5. Dividend
5.1 Amount
AMH has a Yearly Dividend Yield of 3.66%.
Compared to an average industry Dividend Yield of 6.33, AMH is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.41, AMH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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
104.55% 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.
DP104.55%
EPS Next 2Y-16.56%
EPS Next 3Y-12.69%
32.47
-0.15 (-0.46%)
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 Change-0.82%
Ins Owners5.99%
Ins Owner Change0.31%
Market Cap12.04B
Analysts74.29
Price Target41.5 (27.81%)
Short Float %2.35%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
Yearly Dividend1.08
Dividend Growth(5Y)22.99%
DP104.55%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)93.38%
Min EPS beat(2)86.06%
Max EPS beat(2)100.7%
EPS beat(4)4
Avg EPS beat(4)88.15%
Min EPS beat(4)49.45%
Max EPS beat(4)116.38%
EPS beat(8)8
Avg EPS beat(8)84.7%
EPS beat(12)12
Avg EPS beat(12)96.69%
EPS beat(16)16
Avg EPS beat(16)82.54%
Revenue beat(2)2
Avg Revenue beat(2)1.3%
Min Revenue beat(2)1.29%
Max Revenue beat(2)1.31%
Revenue beat(4)3
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)1.31%
Revenue beat(8)6
Avg Revenue beat(8)0.49%
Revenue beat(12)9
Avg Revenue beat(12)0.46%
Revenue beat(16)10
Avg Revenue beat(16)0.26%
PT rev (1m)-0.26%
PT rev (3m)-0.96%
EPS NQ rev (1m)1.27%
EPS NQ rev (3m)2.58%
EPS NY rev (1m)4.31%
EPS NY rev (3m)14.96%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.25 | ||
| Fwd PE | 43.18 | ||
| P/S | 6.7 | ||
| P/FCF | N/A | ||
| P/OCF | 14.49 | ||
| P/B | 1.68 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 18.02 |
EPS(TTM)1.11
EY3.42%
EPS(NY)0.75
Fwd EY2.32%
FCF(TTM)-1.85
FCFYN/A
OCF(TTM)2.24
OCFY6.9%
SpS4.85
BVpS19.32
TBVpS18.99
PEG (NY)N/A
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.03% | ||
| ROE | 5.74% | ||
| ROCE | 3.39% | ||
| ROIC | 2.68% | ||
| ROICexc | 2.75% | ||
| ROICexgc | 2.79% | ||
| OM | 24.52% | ||
| PM (TTM) | 22.87% | ||
| GM | 56.5% | ||
| 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-Score4
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.51 | ||
| Cap/Depr | 306.33% | ||
| Cap/Sales | 84.41% | ||
| Interest Coverage | 2.96 | ||
| Cash Conversion | 88.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 1.3 |
F-Score4
WACC6.95%
ROIC/WACC0.39
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)15.63%
EPS 3Y39.25%
EPS 5Y30.08%
EPS Q2Q%12%
EPS Next Y-23.67%
EPS Next 2Y-16.56%
EPS Next 3Y-12.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.4%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%8.03%
Revenue Next Year7.67%
Revenue Next 2Y6.07%
Revenue Next 3Y5.5%
Revenue Next 5Y7.43%
EBIT growth 1Y-10.15%
EBIT growth 3Y12.82%
EBIT growth 5Y11.56%
EBIT Next Year132.12%
EBIT Next 3Y37.83%
EBIT Next 5Y29.53%
FCF growth 1Y-30.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.34%
OCF growth 3Y10.89%
OCF growth 5Y12.13%