INVITATION HOMES INC (INVH) Stock Fundamental Analysis
NYSE:INVH - New York Stock Exchange, Inc. - US46187W1071 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to INVH. INVH was compared to 20 industry peers in the Residential REITs industry. While INVH has a great profitability rating, there are quite some concerns on its financial health. INVH 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 INVH was profitable.
In the past year INVH had a positive cash flow from operations.
In the past 5 years INVH has always been profitable.
In the past 5 years INVH always reported a positive cash flow from operatings.
1.2 Ratios
INVH has a Return On Assets of 2.56%. This is in the better half of the industry: INVH outperforms 70.00% of its industry peers.
The Return On Equity of INVH (4.90%) is better than 70.00% of its industry peers.
INVH's Return On Invested Capital of 3.24% is fine compared to the rest of the industry. INVH outperforms 65.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INVH is in line with the industry average of 2.62%.
The last Return On Invested Capital (3.24%) for INVH is above the 3 year average (2.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 4.9% | ||
| ROIC | 3.24% |
ROA(3y)2.4%
ROA(5y)1.94%
ROE(3y)4.49%
ROE(5y)3.69%
ROIC(3y)2.99%
ROIC(5y)2.71%
1.3 Margins
Looking at the Profit Margin, with a value of 18.00%, INVH is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
INVH's Profit Margin has improved in the last couple of years.
The Operating Margin of INVH (28.09%) is better than 75.00% of its industry peers.
INVH's Operating Margin has improved in the last couple of years.
INVH has a Gross Margin of 59.00%. This is comparable to the rest of the industry: INVH outperforms 55.00% of its industry peers.
INVH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.09% | ||
| PM (TTM) | 18% | ||
| GM | 59% |
OM growth 3Y0.86%
OM growth 5Y3.08%
PM growth 3Y9.78%
PM growth 5Y16.05%
GM growth 3Y-1.11%
GM growth 5Y0.17%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INVH is destroying value.
INVH has about the same amout of shares outstanding than it did 1 year ago.
INVH has more shares outstanding than it did 5 years ago.
INVH has a better debt/assets ratio than last year.
2.2 Solvency
INVH has an Altman-Z score of 1.53. This is a bad value and indicates that INVH is not financially healthy and even has some risk of bankruptcy.
INVH's Altman-Z score of 1.53 is in line compared to the rest of the industry. INVH outperforms 60.00% of its industry peers.
The Debt to FCF ratio of INVH is 109.01, which is on the high side as it means it would take INVH, 109.01 years of fcf income to pay off all of its debts.
INVH has a Debt to FCF ratio (109.01) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.83 indicates that INVH is somewhat dependend on debt financing.
INVH has a Debt to Equity ratio of 0.83. This is in the better half of the industry: INVH outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 109.01 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.44
WACC7.34%
2.3 Liquidity
A Current Ratio of 0.32 indicates that INVH may have some problems paying its short term obligations.
INVH has a Current ratio of 0.32. This is comparable to the rest of the industry: INVH outperforms 50.00% of its industry peers.
A Quick Ratio of 0.32 indicates that INVH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.32, INVH is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
INVH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.49%.
Measured over the past years, INVH shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.01% on average per year.
INVH shows a small growth in Revenue. In the last year, the Revenue has grown by 6.39%.
INVH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.22% yearly.
EPS 1Y (TTM)-11.49%
EPS 3Y17.5%
EPS 5Y22.01%
EPS Q2Q%17.39%
Revenue 1Y (TTM)6.39%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.4%
3.2 Future
The Earnings Per Share is expected to grow by 8.98% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.59% on average over the next years.
EPS Next Y5.07%
EPS Next 2Y6.68%
EPS Next 3Y6.84%
EPS Next 5Y8.98%
Revenue Next Year3.42%
Revenue Next 2Y3.64%
Revenue Next 3Y3.29%
Revenue Next 5Y4.59%
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.
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
INVH is valuated quite expensively with a Price/Earnings ratio of 43.55.
Based on the Price/Earnings ratio, INVH is valued a bit cheaper than 70.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of INVH to the average of the S&P500 Index (26.32), we can say INVH is valued expensively.
The Price/Forward Earnings ratio is 40.36, which means the current valuation is very expensive for INVH.
Based on the Price/Forward Earnings ratio, INVH is valued cheaper than 85.00% of the companies in the same industry.
INVH's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.55 | ||
| Fwd PE | 40.36 |
4.2 Price Multiples
INVH's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. INVH is more expensive than 60.00% of the companies in the same industry.
INVH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 276.16 | ||
| EV/EBITDA | 19.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of INVH may justify a higher PE ratio.
PEG (NY)8.58
PEG (5Y)1.98
EPS Next 2Y6.68%
EPS Next 3Y6.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.44%, INVH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.54, INVH is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, INVH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
The dividend of INVH is nicely growing with an annual growth rate of 16.68%!
INVH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)16.68%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
145.69% of the earnings are spent on dividend by INVH. This is not a sustainable payout ratio.
The dividend of INVH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP145.69%
EPS Next 2Y6.68%
EPS Next 3Y6.84%
33.53
+0.15 (+0.45%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.86%
Inst Owner Change0.48%
Ins Owners0.31%
Ins Owner Change4.55%
Market Cap20.55B
Analysts72
Price Target38.25 (14.08%)
Short Float %1.51%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Yearly Dividend1.13
Dividend Growth(5Y)16.68%
DP145.69%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)37.13%
Min EPS beat(2)27.2%
Max EPS beat(2)47.06%
EPS beat(4)2
Avg EPS beat(4)6.52%
Min EPS beat(4)-36.25%
Max EPS beat(4)47.06%
EPS beat(8)6
Avg EPS beat(8)14.65%
EPS beat(12)9
Avg EPS beat(12)12.03%
EPS beat(16)12
Avg EPS beat(16)12.25%
Revenue beat(2)1
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)0.13%
Revenue beat(4)1
Avg Revenue beat(4)-0.55%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)0.13%
Revenue beat(8)2
Avg Revenue beat(8)-0.78%
Revenue beat(12)3
Avg Revenue beat(12)-0.72%
Revenue beat(16)5
Avg Revenue beat(16)-0.79%
PT rev (1m)1.49%
PT rev (3m)3.62%
EPS NQ rev (1m)3.97%
EPS NQ rev (3m)0.36%
EPS NY rev (1m)0%
EPS NY rev (3m)3.61%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.55 | ||
| Fwd PE | 40.36 | ||
| P/S | 7.76 | ||
| P/FCF | 276.16 | ||
| P/OCF | 18.4 | ||
| P/B | 2.11 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 19.5 |
EPS(TTM)0.77
EY2.3%
EPS(NY)0.83
Fwd EY2.48%
FCF(TTM)0.12
FCFY0.36%
OCF(TTM)1.82
OCFY5.43%
SpS4.32
BVpS15.86
TBVpS15.44
PEG (NY)8.58
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 4.9% | ||
| ROCE | 4.1% | ||
| ROIC | 3.24% | ||
| ROICexc | 3.26% | ||
| ROICexgc | 3.32% | ||
| OM | 28.09% | ||
| PM (TTM) | 18% | ||
| GM | 59% | ||
| FCFM | 2.81% |
ROA(3y)2.4%
ROA(5y)1.94%
ROE(3y)4.49%
ROE(5y)3.69%
ROIC(3y)2.99%
ROIC(5y)2.71%
ROICexc(3y)3.06%
ROICexc(5y)2.77%
ROICexgc(3y)3.12%
ROICexgc(5y)2.82%
ROCE(3y)3.79%
ROCE(5y)3.43%
ROICexcg growth 3Y9.52%
ROICexcg growth 5Y10.2%
ROICexc growth 3Y9.34%
ROICexc growth 5Y10.13%
OM growth 3Y0.86%
OM growth 5Y3.08%
PM growth 3Y9.78%
PM growth 5Y16.05%
GM growth 3Y-1.11%
GM growth 5Y0.17%
F-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 109.01 | ||
| Debt/EBITDA | 5.53 | ||
| Cap/Depr | 144.33% | ||
| Cap/Sales | 39.37% | ||
| Interest Coverage | 2.3 | ||
| Cash Conversion | 76.19% | ||
| Profit Quality | 15.62% | ||
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 1.53 |
F-Score5
WACC7.34%
ROIC/WACC0.44
Cap/Depr(3y)143.8%
Cap/Depr(5y)158.59%
Cap/Sales(3y)39.98%
Cap/Sales(5y)45.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.49%
EPS 3Y17.5%
EPS 5Y22.01%
EPS Q2Q%17.39%
EPS Next Y5.07%
EPS Next 2Y6.68%
EPS Next 3Y6.84%
EPS Next 5Y8.98%
Revenue 1Y (TTM)6.39%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.4%
Revenue Next Year3.42%
Revenue Next 2Y3.64%
Revenue Next 3Y3.29%
Revenue Next 5Y4.59%
EBIT growth 1Y4.8%
EBIT growth 3Y10.41%
EBIT growth 5Y11.55%
EBIT Next Year107.03%
EBIT Next 3Y31.75%
EBIT Next 5Y20.82%
FCF growth 1Y-84.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.93%
OCF growth 3Y6.02%
OCF growth 5Y10.32%