AMERICAN HOMES 4 RENT- A (AMH) Stock Fundamental Analysis
USA - NYSE:AMH - US02665T3068 - REIT
31.6 USD
-0.49 (-1.53%)
31.6 USD
0 (0%)
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. 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.
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 better Return On Assets (3.03%) than 70.00% of its industry peers.
The Return On Equity of AMH (5.74%) is better than 70.00% of its industry peers.
The Return On Invested Capital of AMH (2.68%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AMH is in line with the industry average of 2.60%.
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 has a Profit Margin of 22.87%. This is in the better half 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.
AMH's Operating Margin has improved in the last couple of years.
The Gross Margin of AMH (56.50%) is worse than 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.
The debt/assets ratio for AMH is higher compared to a year ago.
2.2 Solvency
AMH has an Altman-Z score of 1.29. This is a bad value and indicates that AMH is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.29, AMH perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
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 better Debt to Equity ratio (0.72) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.39
WACC6.85%
2.3 Liquidity
A Current Ratio of 0.64 indicates that AMH may have some problems paying its short term obligations.
With a Current ratio value of 0.64, AMH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 0.64 indicates that AMH may have some problems paying 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
The Earnings Per Share has grown by an impressive 43.75% 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 small growth in Revenue. In the last year, the Revenue has grown by 6.47%.
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)43.75%
EPS 3Y39.25%
EPS 5Y30.08%
EPS Q2Q%135%
Revenue 1Y (TTM)6.47%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%7.51%
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.
AMH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.08% yearly.
EPS Next Y-21.68%
EPS Next 2Y-16.69%
EPS Next 3Y-12.83%
EPS Next 5YN/A
Revenue Next Year7.73%
Revenue Next 2Y6.1%
Revenue Next 3Y5.51%
Revenue Next 5Y7.08%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.90 indicates a rather expensive valuation of AMH.
Based on the Price/Earnings ratio, AMH is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.10. AMH is around the same levels.
A Price/Forward Earnings ratio of 42.15 indicates a quite expensive valuation of AMH.
Based on the Price/Forward Earnings ratio, AMH is valued a bit cheaper than 70.00% of the companies in the same industry.
AMH is valuated expensively when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 42.15 |
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 | 17.87 |
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 -12.83% in the coming years.
PEG (NY)N/A
PEG (5Y)0.76
EPS Next 2Y-16.69%
EPS Next 3Y-12.83%
5. Dividend
5.1 Amount
AMH has a Yearly Dividend Yield of 3.77%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 3.77, AMH pays less dividend than the industry average, which is at 7.21. 80.00% of the companies listed in the same industry pay a better dividend than AMH!
AMH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
5.2 History
The dividend of AMH is nicely growing with an annual growth rate of 22.99%!
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.
The Dividend Rate of AMH has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP104.55%
EPS Next 2Y-16.69%
EPS Next 3Y-12.83%
31.6
-0.49 (-1.53%)
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 Change0.15%
Ins Owners5.99%
Ins Owner Change0.31%
Market Cap11.72B
Revenue(TTM)1.73B
Net Income(TTM)411.22M
Analysts73.57
Price Target40.6 (28.48%)
Short Float %2.36%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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)-1.29%
PT rev (3m)-2.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.58%
EPS NY rev (1m)2.6%
EPS NY rev (3m)11.3%
Revenue NQ rev (1m)-0.86%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 42.15 | ||
| P/S | 6.52 | ||
| P/FCF | N/A | ||
| P/OCF | 14.1 | ||
| P/B | 1.64 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 17.87 |
EPS(TTM)1.38
EY4.37%
EPS(NY)0.75
Fwd EY2.37%
FCF(TTM)-1.85
FCFYN/A
OCF(TTM)2.24
OCFY7.09%
SpS4.85
BVpS19.32
TBVpS18.99
PEG (NY)N/A
PEG (5Y)0.76
Graham Number24.49
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%
ROICexgc growth 3Y7.87%
ROICexgc 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 | 1.29 |
F-Score4
WACC6.85%
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)43.75%
EPS 3Y39.25%
EPS 5Y30.08%
EPS Q2Q%135%
EPS Next Y-21.68%
EPS Next 2Y-16.69%
EPS Next 3Y-12.83%
EPS Next 5YN/A
Revenue 1Y (TTM)6.47%
Revenue growth 3Y9.86%
Revenue growth 5Y8.83%
Sales Q2Q%7.51%
Revenue Next Year7.73%
Revenue Next 2Y6.1%
Revenue Next 3Y5.51%
Revenue Next 5Y7.08%
EBIT growth 1Y-10.15%
EBIT growth 3Y12.82%
EBIT growth 5Y11.56%
EBIT Next Year132.12%
EBIT Next 3Y37.83%
EBIT Next 5Y29.21%
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%
AMERICAN HOMES 4 RENT- A / AMH FAQ
Can you provide the ChartMill fundamental rating for AMERICAN HOMES 4 RENT- A?
ChartMill assigns a fundamental rating of 4 / 10 to AMH.
What is the valuation status for AMH stock?
ChartMill assigns a valuation rating of 2 / 10 to AMERICAN HOMES 4 RENT- A (AMH). This can be considered as Overvalued.
What is the profitability of AMH stock?
AMERICAN HOMES 4 RENT- A (AMH) has a profitability rating of 7 / 10.
What are the PE and PB ratios of AMERICAN HOMES 4 RENT- A (AMH) stock?
The Price/Earnings (PE) ratio for AMERICAN HOMES 4 RENT- A (AMH) is 22.9 and the Price/Book (PB) ratio is 1.64.
Can you provide the financial health for AMH stock?
The financial health rating of AMERICAN HOMES 4 RENT- A (AMH) is 2 / 10.