AMERICAN HOMES 4 RENT- A (AMH)
US02665T3068 - REIT
Overall AMH gets a fundamental rating of 4 out of 10. We evaluated AMH against 21 industry peers in the Residential REITs industry. There are concerns on the financial health of AMH while its profitability can be described as average. AMH is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AMH was profitable.
In the past year AMH had a positive cash flow from operations.
AMH had positive earnings in each of the past 5 years.
Each year in the past 5 years AMH had a positive operating cash flow.
1.2 Ratios
AMH has a Return On Assets (2.88%) which is in line with its industry peers.
The Return On Equity of AMH (5.24%) is comparable to the rest of the industry.
The Return On Invested Capital of AMH (2.41%) is better than 61.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMH is in line with the industry average of 2.53%.
The last Return On Invested Capital (2.41%) for AMH is above the 3 year average (2.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 5.24% | ||
| ROIC | 2.41% |
ROA(3y)2.05%
ROA(5y)1.6%
ROE(3y)3.77%
ROE(5y)2.88%
ROIC(3y)2.26%
ROIC(5y)2.19%
1.3 Margins
Looking at the Profit Margin, with a value of 22.49%, AMH is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
In the last couple of years the Profit Margin of AMH has grown nicely.
Looking at the Operating Margin, with a value of 22.77%, AMH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of AMH has grown nicely.
AMH has a worse Gross Margin (55.48%) than 66.67% of its industry peers.
AMH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.77% | ||
| PM (TTM) | 22.49% | ||
| GM | 55.48% |
OM growth 3Y3.52%
OM growth 5Y1.85%
PM growth 3Y45.84%
PM growth 5Y59.33%
GM growth 3Y0.95%
GM growth 5Y0.33%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.52, we must say that AMH is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.52, AMH is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that AMH is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.64, AMH belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.52 |
ROIC/WACC0.32
WACC7.49%
2.3 Liquidity
A Current Ratio of 0.18 indicates that AMH may have some problems paying its short term obligations.
AMH has a Current ratio of 0.18. This is in the lower half of the industry: AMH underperforms 76.19% of its industry peers.
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's Quick ratio of 0.18 is on the low side compared to the rest of the industry. AMH is outperformed by 66.67% 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 40.85%, 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 39.40% on average per year.
AMH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.93%.
The Revenue has been growing by 8.64% on average over the past years. This is quite good.
EPS 1Y (TTM)40.85%
EPS 3Y52.86%
EPS 5Y39.4%
EPS growth Q2Q-16%
Revenue 1Y (TTM)8.93%
Revenue growth 3Y11.46%
Revenue growth 5Y8.64%
Revenue growth Q2Q7.29%
3.2 Future
AMH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.94% yearly.
AMH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.73% yearly.
EPS Next Y-40.63%
EPS Next 2Y-15.98%
EPS Next 3Y-6.94%
EPS Next 5YN/A
Revenue Next Year4.82%
Revenue Next 2Y5.43%
Revenue Next 3Y2.73%
Revenue Next 5YN/A
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
Based on the Price/Earnings ratio of 36.45, the valuation of AMH can be described as expensive.
Based on the Price/Earnings ratio, AMH is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
AMH is valuated rather expensively when we compare the Price/Earnings ratio to 24.55, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 61.39, the valuation of AMH can be described as expensive.
AMH's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, AMH is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.45 | ||
| Fwd PE | 61.39 |
4.2 Price Multiples
AMH's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AMH is more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.26 |
4.3 Compensation for Growth
The decent profitability rating of AMH may justify a higher PE ratio.
A cheap valuation may be justified as AMH's earnings are expected to decrease with -6.94% in the coming years.
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y-15.98%
EPS Next 3Y-6.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.91%, AMH has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.91, AMH pays less dividend than the industry average, which is at 4.45. 85.71% 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 | 2.91% |
5.2 History
On average, the dividend of AMH grows each year by 16.62%, which is quite nice.
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)16.62%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
91.31% of the earnings are spent on dividend by AMH. This is not a sustainable payout ratio.
The Dividend Rate of AMH has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP91.31%
EPS Next 2Y-15.98%
EPS Next 3Y-6.94%
AMERICAN HOMES 4 RENT- A
NYSE:AMH (5/2/2024, 1:40:58 PM)
36.445
+0.52 (+1.43%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.45 | ||
| Fwd PE | 61.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 5.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.77% | ||
| PM (TTM) | 22.49% | ||
| GM | 55.48% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)40.85%
EPS 3Y52.86%
EPS 5Y
EPS growth Q2Q
EPS Next Y-40.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.93%
Revenue growth 3Y11.46%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y