INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - NYSE:INVH - US46187W1071 - REIT
28.15 USD
-0.26 (-0.92%)
28.1913 USD
+0.04 (+0.15%)
Overall INVH gets a fundamental rating of 4 out of 10. We evaluated INVH against 20 industry peers in the Residential REITs industry. INVH has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, INVH is valued expensive at the moment.
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.
INVH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.92%, INVH is doing good in the industry, outperforming 65.00% of the companies in the same industry.
The Return On Equity of INVH (5.63%) is better than 65.00% of its industry peers.
INVH's Return On Invested Capital of 3.25% is fine compared to the rest of the industry. INVH outperforms 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for INVH is in line with the industry average of 2.60%.
The last Return On Invested Capital (3.25%) for INVH is above the 3 year average (2.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 5.63% | ||
| ROIC | 3.25% |
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
INVH has a Profit Margin of 20.34%. This is comparable to the rest of the industry: INVH outperforms 60.00% of its industry peers.
In the last couple of years the Profit Margin of INVH has grown nicely.
INVH has a Operating Margin of 27.93%. This is in the better half of the industry: INVH outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of INVH has grown nicely.
INVH has a Gross Margin (58.94%) which is comparable to the rest of the industry.
INVH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.93% | ||
| PM (TTM) | 20.34% | ||
| GM | 58.94% |
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
INVH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.29. This is a bad value and indicates that INVH is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of INVH (1.29) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.85 indicates that INVH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.85, INVH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.47
WACC6.88%
2.3 Liquidity
A Current Ratio of 0.25 indicates that INVH may have some problems paying its short term obligations.
INVH has a Current ratio of 0.25. This is in the lower half of the industry: INVH underperforms 60.00% of its industry peers.
A Quick Ratio of 0.25 indicates that INVH may have some problems paying its short term obligations.
INVH has a Quick ratio (0.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
INVH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 69.01%, which is quite impressive.
INVH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.01% yearly.
Looking at the last year, INVH shows a small growth in Revenue. The Revenue has grown by 7.67% in the last year.
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)69.01%
EPS 3Y17.5%
EPS 5Y22.01%
EPS Q2Q%213.33%
Revenue 1Y (TTM)7.67%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.22%
3.2 Future
The Earnings Per Share is expected to grow by 9.56% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.68% on average over the next years.
EPS Next Y20.67%
EPS Next 2Y7.15%
EPS Next 3Y6.49%
EPS Next 5Y9.56%
Revenue Next Year3.91%
Revenue Next 2Y3.75%
Revenue Next 3Y2.81%
Revenue Next 5Y4.68%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.46, INVH is valued on the expensive side.
Based on the Price/Earnings ratio, INVH is valued a bit cheaper than 70.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.11. INVH is around the same levels.
With a Price/Forward Earnings ratio of 33.59, INVH can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, INVH is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of INVH to the average of the S&P500 Index (22.55), we can say INVH is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.46 | ||
| Fwd PE | 33.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INVH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.17 |
4.3 Compensation for Growth
INVH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of INVH may justify a higher PE ratio.
PEG (NY)1.13
PEG (5Y)1.07
EPS Next 2Y7.15%
EPS Next 3Y6.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.08%, INVH is a good candidate for dividend investing.
INVH's Dividend Yield is slightly below the industry average, which is at 7.40.
Compared to an average S&P500 Dividend Yield of 2.37, INVH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
5.2 History
On average, the dividend of INVH grows each year by 16.68%, which is quite nice.
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
128.83% 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.
DP128.83%
EPS Next 2Y7.15%
EPS Next 3Y6.49%
28.15
-0.26 (-0.92%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners102.17%
Inst Owner Change-0.11%
Ins Owners0.24%
Ins Owner Change-2.84%
Market Cap17.26B
Revenue(TTM)2.62B
Net Income(TTM)544.21M
Analysts73.33
Price Target36.6 (30.02%)
Short Float %1.88%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
Yearly Dividend1.13
Dividend Growth(5Y)16.68%
DP128.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)32.31%
Min EPS beat(2)17.55%
Max EPS beat(2)47.06%
EPS beat(4)3
Avg EPS beat(4)19.97%
Min EPS beat(4)-11.94%
Max EPS beat(4)47.06%
EPS beat(8)6
Avg EPS beat(8)13.33%
EPS beat(12)9
Avg EPS beat(12)12.16%
EPS beat(16)12
Avg EPS beat(16)11.4%
Revenue beat(2)2
Avg Revenue beat(2)0.08%
Min Revenue beat(2)0.02%
Max Revenue beat(2)0.13%
Revenue beat(4)2
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)0.13%
Revenue beat(8)3
Avg Revenue beat(8)-0.59%
Revenue beat(12)3
Avg Revenue beat(12)-0.73%
Revenue beat(16)5
Avg Revenue beat(16)-0.8%
PT rev (1m)-1.36%
PT rev (3m)-4.64%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-2.92%
EPS NY rev (1m)0.32%
EPS NY rev (3m)2.59%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.46 | ||
| Fwd PE | 33.59 | ||
| P/S | 6.45 | ||
| P/FCF | N/A | ||
| P/OCF | 15.28 | ||
| P/B | 1.78 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 17.17 |
EPS(TTM)1.2
EY4.26%
EPS(NY)0.84
Fwd EY2.98%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)1.84
OCFY6.54%
SpS4.36
BVpS15.77
TBVpS15.35
PEG (NY)1.13
PEG (5Y)1.07
Graham Number20.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.92% | ||
| ROE | 5.63% | ||
| ROCE | 4.12% | ||
| ROIC | 3.25% | ||
| ROICexc | 3.27% | ||
| ROICexgc | 3.33% | ||
| OM | 27.93% | ||
| PM (TTM) | 20.34% | ||
| GM | 58.94% | ||
| FCFM | N/A |
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%
ROICexgc growth 3Y9.52%
ROICexgc 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-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.54 | ||
| Cap/Depr | 168.71% | ||
| Cap/Sales | 46.1% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | 76.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 1.29 |
F-Score6
WACC6.88%
ROIC/WACC0.47
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)69.01%
EPS 3Y17.5%
EPS 5Y22.01%
EPS Q2Q%213.33%
EPS Next Y20.67%
EPS Next 2Y7.15%
EPS Next 3Y6.49%
EPS Next 5Y9.56%
Revenue 1Y (TTM)7.67%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.22%
Revenue Next Year3.91%
Revenue Next 2Y3.75%
Revenue Next 3Y2.81%
Revenue Next 5Y4.68%
EBIT growth 1Y3.71%
EBIT growth 3Y10.41%
EBIT growth 5Y11.55%
EBIT Next Year107.69%
EBIT Next 3Y31.22%
EBIT Next 5Y20.28%
FCF growth 1Y-117.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.53%
OCF growth 3Y6.02%
OCF growth 5Y10.32%
INVITATION HOMES INC / INVH FAQ
What is the ChartMill fundamental rating of INVITATION HOMES INC (INVH) stock?
ChartMill assigns a fundamental rating of 4 / 10 to INVH.
What is the valuation status for INVH stock?
ChartMill assigns a valuation rating of 3 / 10 to INVITATION HOMES INC (INVH). This can be considered as Overvalued.
What is the profitability of INVH stock?
INVITATION HOMES INC (INVH) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for INVH stock?
The Price/Earnings (PE) ratio for INVITATION HOMES INC (INVH) is 23.46 and the Price/Book (PB) ratio is 1.78.
What is the expected EPS growth for INVITATION HOMES INC (INVH) stock?
The Earnings per Share (EPS) of INVITATION HOMES INC (INVH) is expected to grow by 20.67% in the next year.