INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INVH - US46187W1071 - REIT
27.79 USD
-0.17 (-0.61%)
27.98 USD
+0.19 (+0.68%)
Taking everything into account, INVH scores 4 out of 10 in our fundamental rating. INVH was compared to 20 industry peers in the Residential REITs industry. While INVH is still in line with the averages on profitability rating, there are concerns on its financial health. INVH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
INVH had positive earnings in the past year.
INVH had a positive operating cash flow in the past year.
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
INVH has a Return On Assets (3.12%) which is in line with its industry peers.
INVH has a Return On Equity (6.08%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 3.27%, INVH is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for INVH is in line with the industry average of 2.59%.
The 3 year average ROIC (2.99%) for INVH is below the current ROIC(3.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 6.08% | ||
| ROIC | 3.27% |
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 21.67%. This is comparable to the rest of the industry: INVH outperforms 55.00% of its industry peers.
INVH's Profit Margin has improved in the last couple of years.
The Operating Margin of INVH (27.79%) 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 (58.64%) which is in line with its industry peers.
INVH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.79% | ||
| PM (TTM) | 21.67% | ||
| GM | 58.64% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so INVH is destroying value.
The number of shares outstanding for INVH remains at a similar level compared to 1 year ago.
The number of shares outstanding for INVH has been increased compared to 5 years ago.
Compared to 1 year ago, INVH has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.25, we must say that INVH is in the distress zone and has some risk of bankruptcy.
INVH has a Altman-Z score (1.25) which is comparable to the rest of the industry.
INVH has a debt to FCF ratio of 80.95. This is a negative value and a sign of low solvency as INVH would need 80.95 years to pay back of all of its debts.
INVH has a Debt to FCF ratio (80.95) which is in line with its industry peers.
INVH has a Debt/Equity ratio of 0.86. This is a neutral value indicating INVH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.86, INVH is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 80.95 | ||
| Altman-Z | 1.25 |
ROIC/WACC0.48
WACC6.88%
2.3 Liquidity
INVH has a Current Ratio of 0.35. This is a bad value and indicates that INVH is not financially healthy enough and could expect problems in meeting its short term obligations.
INVH has a Current ratio (0.35) which is in line with its industry peers.
INVH has a Quick Ratio of 0.35. This is a bad value and indicates that INVH is not financially healthy enough and could expect problems in meeting its short term obligations.
INVH has a Quick ratio of 0.35. This is comparable to the rest of the industry: INVH outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
INVH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.80%, 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.
INVH shows a small growth in Revenue. In the last year, the Revenue has grown by 4.61%.
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)33.8%
EPS 3Y17.5%
EPS 5Y22.01%
EPS Q2Q%46.67%
Revenue 1Y (TTM)4.61%
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 Y22.73%
EPS Next 2Y5.11%
EPS Next 3Y5.23%
EPS Next 5Y9.56%
Revenue Next Year3.95%
Revenue Next 2Y3.58%
Revenue Next 3Y3.18%
Revenue Next 5Y4.68%
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
The Price/Earnings ratio is 29.25, which means the current valuation is very expensive for INVH.
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 26.51. INVH is around the same levels.
With a Price/Forward Earnings ratio of 34.45, INVH can be considered very expensive at the moment.
INVH's Price/Forward Earnings ratio is rather cheap when compared to the industry. INVH is cheaper than 90.00% of the companies in the same industry.
INVH's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.25 | ||
| Fwd PE | 34.45 |
4.2 Price Multiples
INVH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INVH is cheaper than 85.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of INVH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 167.35 | ||
| EV/EBITDA | 16.86 |
4.3 Compensation for Growth
INVH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
INVH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.29
PEG (5Y)1.33
EPS Next 2Y5.11%
EPS Next 3Y5.23%
5. Dividend
5.1 Amount
INVH has a Yearly Dividend Yield of 4.39%, which is a nice return.
Compared to an average industry Dividend Yield of 11.48, INVH is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.00, INVH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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
120.69% of the earnings are spent on dividend by INVH. This is not a sustainable payout ratio.
INVH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP120.69%
EPS Next 2Y5.11%
EPS Next 3Y5.23%
27.79
-0.17 (-0.61%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners103.5%
Inst Owner Change1.1%
Ins Owners0.24%
Ins Owner Change-0.15%
Market Cap17.04B
Revenue(TTM)2.70B
Net Income(TTM)585.66M
Analysts74
Price Target34.85 (25.4%)
Short Float %1.89%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
Yearly Dividend1.13
Dividend Growth(5Y)16.68%
DP120.69%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.39%
Min EPS beat(2)17.55%
Max EPS beat(2)19.22%
EPS beat(4)4
Avg EPS beat(4)27.76%
Min EPS beat(4)17.55%
Max EPS beat(4)47.06%
EPS beat(8)6
Avg EPS beat(8)13.38%
EPS beat(12)10
Avg EPS beat(12)15.25%
EPS beat(16)12
Avg EPS beat(16)11.21%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-0.06%
Max Revenue beat(2)0.02%
Revenue beat(4)2
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)0.13%
Revenue beat(8)3
Avg Revenue beat(8)-0.47%
Revenue beat(12)3
Avg Revenue beat(12)-0.6%
Revenue beat(16)4
Avg Revenue beat(16)-0.83%
PT rev (1m)-2.18%
PT rev (3m)-6.07%
EPS NQ rev (1m)-4.6%
EPS NQ rev (3m)-6.8%
EPS NY rev (1m)1.35%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.25 | ||
| Fwd PE | 34.45 | ||
| P/S | 6.3 | ||
| P/FCF | 167.35 | ||
| P/OCF | 14.07 | ||
| P/B | 1.77 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 16.86 |
EPS(TTM)0.95
EY3.42%
EPS(NY)0.81
Fwd EY2.9%
FCF(TTM)0.17
FCFY0.6%
OCF(TTM)1.97
OCFY7.11%
SpS4.41
BVpS15.7
TBVpS15.28
PEG (NY)1.29
PEG (5Y)1.33
Graham Number18.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 6.08% | ||
| ROCE | 4.14% | ||
| ROIC | 3.27% | ||
| ROICexc | 3.3% | ||
| ROICexgc | 3.36% | ||
| OM | 27.79% | ||
| PM (TTM) | 21.67% | ||
| GM | 58.64% | ||
| FCFM | 3.77% |
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 | 0.86 | ||
| Debt/FCF | 80.95 | ||
| Debt/EBITDA | 5.53 | ||
| Cap/Depr | 150.04% | ||
| Cap/Sales | 41.02% | ||
| Interest Coverage | 2.28 | ||
| Cash Conversion | 81.24% | ||
| Profit Quality | 17.38% | ||
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.25 |
F-Score6
WACC6.88%
ROIC/WACC0.48
Cap/Depr(3y)143.85%
Cap/Depr(5y)158.61%
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)33.8%
EPS 3Y17.5%
EPS 5Y22.01%
EPS Q2Q%46.67%
EPS Next Y22.73%
EPS Next 2Y5.11%
EPS Next 3Y5.23%
EPS Next 5Y9.56%
Revenue 1Y (TTM)4.61%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.22%
Revenue Next Year3.95%
Revenue Next 2Y3.58%
Revenue Next 3Y3.18%
Revenue Next 5Y4.68%
EBIT growth 1Y2.73%
EBIT growth 3Y10.41%
EBIT growth 5Y11.55%
EBIT Next Year108.76%
EBIT Next 3Y31.01%
EBIT Next 5Y20.28%
FCF growth 1Y344.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y6.27%
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.
Can you provide the valuation status for INVITATION HOMES INC?
ChartMill assigns a valuation rating of 4 / 10 to INVITATION HOMES INC (INVH). This can be considered as Fairly Valued.
Can you provide the profitability details for INVITATION HOMES INC?
INVITATION HOMES INC (INVH) has a profitability rating of 6 / 10.
What is the financial health of INVITATION HOMES INC (INVH) stock?
The financial health rating of INVITATION HOMES INC (INVH) is 2 / 10.
Can you provide the dividend sustainability for INVH stock?
The dividend rating of INVITATION HOMES INC (INVH) is 4 / 10 and the dividend payout ratio is 120.69%.