AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
NYSE:AMH - US02665T3068 - REIT
34.64 USD
-0.14 (-0.4%)
34.64 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AMH. AMH was compared to 20 industry peers in the Residential REITs industry. While AMH has a great profitability rating, there are quite some 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.
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 better Return On Assets (3.03%) than 70.00% of its industry peers.
Looking at the Return On Equity, with a value of 5.74%, AMH is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.68%, AMH is in line with its industry, outperforming 60.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AMH 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
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.
In the last couple of years the Profit Margin of AMH has grown nicely.
AMH has a Operating Margin of 24.52%. This is in the better half of the industry: AMH outperforms 65.00% of its industry peers.
In the last couple of years the Operating Margin of AMH has grown nicely.
With a Gross Margin value of 56.50%, 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 | 24.52% | ||
| 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.
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
Based on the Altman-Z score of 1.38, we must say that AMH is in the distress zone and has some risk of bankruptcy.
AMH's Altman-Z score of 1.38 is in line compared to the rest of the industry. AMH outperforms 60.00% 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 | 1.38 |
ROIC/WACC0.39
WACC6.92%
2.3 Liquidity
A Current Ratio of 0.64 indicates that AMH may have some problems paying its short term obligations.
The Current ratio of AMH (0.64) is comparable to the rest of the 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's Quick ratio of 0.64 is fine compared to the rest of the industry. AMH outperforms 70.00% 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.
AMH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.40%.
AMH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.83% yearly.
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 -12.96% yearly.
Based on estimates for the next years, AMH will show a small growth in Revenue. The Revenue will grow by 7.43% on average per year.
EPS Next Y-26.82%
EPS Next 2Y-17.06%
EPS Next 3Y-12.96%
EPS Next 5YN/A
Revenue Next Year7.27%
Revenue Next 2Y6.07%
Revenue Next 3Y5.67%
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
AMH is valuated quite expensively with a Price/Earnings ratio of 31.21.
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 (27.07), we can say AMH is valued inline with the index average.
A Price/Forward Earnings ratio of 46.63 indicates a quite expensive valuation of AMH.
Based on the Price/Forward Earnings ratio, AMH is valued a bit cheaper than 65.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.59, AMH is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| Fwd PE | 46.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMH is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.94 |
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 -12.96% in the coming years.
PEG (NY)N/A
PEG (5Y)1.04
EPS Next 2Y-17.06%
EPS Next 3Y-12.96%
5. Dividend
5.1 Amount
AMH has a Yearly Dividend Yield of 3.47%.
With a Dividend Yield of 3.47, AMH pays less dividend than the industry average, which is at 4.74. 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 2.46, AMH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
The dividend of AMH is nicely growing with an annual growth rate of 22.99%!
AMH has been paying a dividend for at least 10 years, so it has 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
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-17.06%
EPS Next 3Y-12.96%
34.64
-0.14 (-0.4%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners90%
Inst Owner Change-0.82%
Ins Owners6%
Ins Owner Change0.25%
Market Cap12.85B
Analysts74.29
Price Target41.5 (19.8%)
Short Float %2.49%
Short Ratio3.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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)-0.71%
PT rev (3m)-0.32%
EPS NQ rev (1m)1.92%
EPS NQ rev (3m)-7.15%
EPS NY rev (1m)3.99%
EPS NY rev (3m)21.32%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-1.67%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| Fwd PE | 46.63 | ||
| P/S | 7.14 | ||
| P/FCF | N/A | ||
| P/OCF | 15.46 | ||
| P/B | 1.79 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 18.94 |
EPS(TTM)1.11
EY3.2%
EPS(NY)0.74
Fwd EY2.14%
FCF(TTM)-1.85
FCFYN/A
OCF(TTM)2.24
OCFY6.47%
SpS4.85
BVpS19.32
TBVpS18.99
PEG (NY)N/A
PEG (5Y)1.04
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
WACC6.92%
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-26.82%
EPS Next 2Y-17.06%
EPS Next 3Y-12.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.4%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%8.03%
Revenue Next Year7.27%
Revenue Next 2Y6.07%
Revenue Next 3Y5.67%
Revenue Next 5Y7.43%
EBIT growth 1Y-10.15%
EBIT growth 3Y12.82%
EBIT growth 5Y11.56%
EBIT Next Year130.66%
EBIT Next 3Y37.87%
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%