AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
NYSE:AMH - New York Stock Exchange, Inc. - US02665T3068 - REIT - Currency: USD
AMH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 20 industry peers in the Residential REITs industry. AMH has an excellent profitability rating, 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
AMH had positive earnings in the past year.
In the past year AMH had a positive cash flow from operations.
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
With a decent Return On Assets value of 3.03%, AMH is doing good in the industry, outperforming 70.00% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for AMH is in line with the industry average of 2.62%.
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
With a decent Profit Margin value of 22.87%, AMH is doing good in the industry, outperforming 70.00% of the companies in the same industry.
AMH's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 24.52%, AMH is doing good in the industry, outperforming 65.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AMH has grown nicely.
AMH's Gross Margin of 56.50% is on the low side compared to the rest of the industry. AMH is outperformed by 65.00% of its industry peers.
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.
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 1.38. 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 (1.38) which is in line with 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 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.38 |
ROIC/WACC0.38
WACC7.07%
2.3 Liquidity
A Current Ratio of 0.64 indicates that AMH may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.64, AMH is in line with its industry, outperforming 55.00% of the companies in the same industry.
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.
AMH has a Quick ratio of 0.64. This is in the better half of the industry: AMH outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.63% over the past year.
AMH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.08% yearly.
Looking at the last year, AMH shows a very negative growth in Revenue. The Revenue has decreased by -14.40% in the last year.
The Revenue has been growing by 8.83% on average over the past years. This is quite good.
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 -12.83% yearly.
The Revenue is expected to grow by 7.65% on average over the next years.
EPS Next Y-29.63%
EPS Next 2Y-17.31%
EPS Next 3Y-12.83%
EPS Next 5YN/A
Revenue Next Year7.04%
Revenue Next 2Y5.94%
Revenue Next 3Y5.62%
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
Based on the Price/Earnings ratio of 31.01, the valuation of AMH can be described as expensive.
AMH's Price/Earnings ratio is a bit cheaper when compared to the industry. AMH is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.48. AMH is around the same levels.
A Price/Forward Earnings ratio of 46.61 indicates a quite expensive valuation of AMH.
65.00% of the companies in the same industry are more expensive than AMH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, AMH is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.01 | ||
| Fwd PE | 46.61 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than AMH, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.9 |
4.3 Compensation for Growth
AMH has a very decent profitability rating, which may justify a higher PE ratio.
AMH's earnings are expected to decrease with -12.83% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.03
EPS Next 2Y-17.31%
EPS Next 3Y-12.83%
5. Dividend
5.1 Amount
AMH has a Yearly Dividend Yield of 3.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.74, AMH is paying slightly less dividend.
AMH's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
On average, the dividend of AMH grows each year by 22.99%, which is quite nice.
AMH has paid a dividend for at least 10 years, which is 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 104.55% 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.
DP104.55%
EPS Next 2Y-17.31%
EPS Next 3Y-12.83%
34.42
-0.33 (-0.95%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners90.35%
Inst Owner Change-0.36%
Ins Owners6%
Ins Owner Change1.63%
Market Cap12.74B
Analysts73.57
Price Target41.79 (21.41%)
Short Float %2.67%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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)-0.13%
PT rev (3m)4.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.82%
EPS NY rev (1m)5.99%
EPS NY rev (3m)21.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.01 | ||
| Fwd PE | 46.61 | ||
| P/S | 7.08 | ||
| P/FCF | N/A | ||
| P/OCF | 15.33 | ||
| P/B | 1.78 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 18.9 |
EPS(TTM)1.11
EY3.22%
EPS(NY)0.74
Fwd EY2.15%
FCF(TTM)-1.86
FCFYN/A
OCF(TTM)2.25
OCFY6.52%
SpS4.86
BVpS19.36
TBVpS19.03
PEG (NY)N/A
PEG (5Y)1.03
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 | 1.38 |
F-Score4
WACC7.07%
ROIC/WACC0.38
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-29.63%
EPS Next 2Y-17.31%
EPS Next 3Y-12.83%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.4%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%8.03%
Revenue Next Year7.04%
Revenue Next 2Y5.94%
Revenue Next 3Y5.62%
Revenue Next 5Y7.65%
EBIT growth 1Y-10.15%
EBIT growth 3Y12.82%
EBIT growth 5Y11.56%
EBIT Next Year130.66%
EBIT Next 3Y37.87%
EBIT Next 5Y29.34%
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%