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 has an excellent profitability rating, but there are concerns on its financial health. 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.
Each year in the past 5 years AMH has been profitable.
In the past 5 years AMH always reported a positive cash flow from operatings.
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 has a better Return On Equity (7.08%) than 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 75.00% 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 2.75%.
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
AMH's Profit Margin of 23.16% is fine compared to the rest of the industry. AMH outperforms 75.00% of its industry peers.
AMH's Profit Margin has improved in the last couple of years.
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.
In the last couple of years the Operating Margin of AMH has grown nicely.
Looking at the Gross Margin, with a value of 56.26%, AMH is doing worse than 70.00% 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 | 24.03% | ||
| 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
AMH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
The debt/assets ratio for AMH is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that AMH is in the distress zone and has some risk of bankruptcy.
AMH has a better Altman-Z score (1.62) than 75.00% of its industry peers.
AMH has a Debt/Equity ratio of 0.69. This is a neutral value indicating AMH is somewhat dependend on debt financing.
The Debt to Equity ratio of AMH (0.69) is better than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.62 |
ROIC/WACC0.44
WACC7.37%
2.3 Liquidity
AMH has a Current Ratio of 0.23. This is a bad value and indicates that AMH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of AMH (0.23) is comparable to the rest of the industry.
A Quick Ratio of 0.23 indicates that AMH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.23, AMH is in line with its industry, outperforming 45.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
AMH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.20%, which is quite good.
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
The Earnings Per Share is expected to decrease by -12.42% on average over the next years. This is quite bad
AMH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.44% yearly.
EPS Next Y-39.68%
EPS Next 2Y-19.61%
EPS Next 3Y-12.42%
EPS Next 5YN/A
Revenue Next Year6.46%
Revenue Next 2Y5.75%
Revenue Next 3Y5.48%
Revenue Next 5Y4.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 35.54, 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 80.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AMH to the average of the S&P500 Index (26.60), we can say AMH is valued slightly more expensively.
A Price/Forward Earnings ratio of 54.98 indicates a quite expensive valuation of AMH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AMH is on the same level as its industry peers.
AMH is valuated expensively when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.54 | ||
| Fwd PE | 54.98 |
4.2 Price Multiples
AMH's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.92 |
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 -12.42% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y-19.61%
EPS Next 3Y-12.42%
5. Dividend
5.1 Amount
AMH has a Yearly Dividend Yield of 3.13%.
Compared to an average industry Dividend Yield of 4.43, AMH's dividend is way lower than its industry peers. On top of this 85.00% of the companies listed in the same industry pay a better dividend than AMH!
AMH's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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 81.68% of its income as dividend. 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.
DP81.68%
EPS Next 2Y-19.61%
EPS Next 3Y-12.42%
NYSE:AMH (5/21/2025, 11:07:57 AM)
38.38
-0.22 (-0.57%)
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 Change2.62%
Ins Owners6.03%
Ins Owner Change1.26%
Market Cap14.21B
Analysts75
Price Target40.75 (6.18%)
Short Float %3.19%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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)0.26%
PT rev (3m)-1.68%
EPS NQ rev (1m)-4.13%
EPS NQ rev (3m)-8.94%
EPS NY rev (1m)3.85%
EPS NY rev (3m)2.38%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-2.2%
Revenue NY rev (1m)1.04%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.54 | ||
| Fwd PE | 54.98 | ||
| P/S | 6.49 | ||
| P/FCF | N/A | ||
| P/OCF | 17.05 | ||
| P/B | 1.99 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 18.92 |
EPS(TTM)1.08
EY2.81%
EPS(NY)0.7
Fwd EY1.82%
FCF(TTM)-1.85
FCFYN/A
OCF(TTM)2.25
OCFY5.86%
SpS5.91
BVpS19.33
TBVpS19
PEG (NY)N/A
PEG (5Y)1.18
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 | 1.62 |
F-Score6
WACC7.37%
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 Year6.46%
Revenue Next 2Y5.75%
Revenue Next 3Y5.48%
Revenue Next 5Y4.44%
EBIT growth 1Y38.75%
EBIT growth 3Y12.82%
EBIT growth 5Y11.56%
EBIT Next Year132.32%
EBIT Next 3Y37.75%
EBIT Next 5Y29.32%
FCF growth 1Y11.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y17.79%
OCF growth 3Y10.89%
OCF growth 5Y12.13%