INVITATION HOMES INC (INVH) Stock Fundamental Analysis
NYSE:INVH - New York Stock Exchange, Inc. - US46187W1071 - REIT - Currency: USD
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 belongs to the best of the industry regarding profitability, there are 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.
INVH had a positive operating cash flow in the past year.
INVH had positive earnings in each of the past 5 years.
INVH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
INVH's Return On Assets of 2.56% is fine compared to the rest of the industry. INVH outperforms 70.00% of its industry peers.
INVH has a Return On Equity of 4.90%. This is in the better half of the industry: INVH outperforms 70.00% of its industry peers.
With a decent Return On Invested Capital value of 3.24%, INVH is doing good in the industry, outperforming 70.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for INVH is in line with the industry average of 2.75%.
The 3 year average ROIC (2.99%) for INVH is below the current ROIC(3.24%), indicating increased profibility in the last year.
| 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
The Profit Margin of INVH (18.00%) is better than 70.00% of its industry peers.
In the last couple of years the Profit Margin of INVH has grown nicely.
INVH's Operating Margin of 28.09% is fine compared to the rest of the industry. INVH outperforms 75.00% of its industry peers.
INVH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 59.00%, INVH is in line with its industry, outperforming 55.00% of the companies in the same industry.
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
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.
Compared to 5 years ago, INVH has more shares outstanding
INVH has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.52, we must say that INVH is in the distress zone and has some risk of bankruptcy.
INVH has a Altman-Z score (1.52) which is comparable to the rest of the industry.
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 of 109.01. This is comparable to the rest of the industry: INVH outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that INVH is somewhat dependend on debt financing.
INVH has a better Debt to Equity ratio (0.83) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 109.01 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.44
WACC7.41%
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 (0.32) which is comparable to the rest of the industry.
A Quick Ratio of 0.32 indicates that INVH may have some problems paying its short term obligations.
With a Quick ratio value of 0.32, INVH perfoms like the industry average, 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
The earnings per share for INVH have decreased strongly by -11.49% in the last year.
The Earnings Per Share has been growing by 22.01% on average over the past years. This is a very strong growth
INVH shows a small growth in Revenue. In the last year, the Revenue has grown by 6.39%.
The Revenue has been growing by 8.22% on average over the past years. This is quite good.
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
INVH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.98% yearly.
Based on estimates for the next years, INVH will show a small growth in Revenue. The Revenue will grow by 4.59% on average per year.
EPS Next Y5.07%
EPS Next 2Y6.68%
EPS Next 3Y6.84%
EPS Next 5Y8.98%
Revenue Next Year3.8%
Revenue Next 2Y3.78%
Revenue Next 3Y3.66%
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.
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
INVH is valuated quite expensively with a Price/Earnings ratio of 42.99.
INVH's Price/Earnings ratio is a bit cheaper when compared to the industry. INVH is cheaper than 70.00% of the companies in the same industry.
INVH's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.91.
The Price/Forward Earnings ratio is 39.84, which means the current valuation is very expensive for INVH.
80.00% of the companies in the same industry are more expensive than INVH, based on the Price/Forward Earnings ratio.
INVH is valuated expensively when we compare the Price/Forward Earnings ratio to 21.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.99 | ||
| Fwd PE | 39.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INVH is valued a bit more expensive than 65.00% 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 | 272.62 | ||
| EV/EBITDA | 19.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
INVH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.47
PEG (5Y)1.95
EPS Next 2Y6.68%
EPS Next 3Y6.84%
5. Dividend
5.1 Amount
INVH has a Yearly Dividend Yield of 3.41%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.45, INVH is paying slightly less dividend.
INVH's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
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.
INVH has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)16.68%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
INVH pays out 145.69% of its income as dividend. This is not a sustainable payout ratio.
INVH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP145.69%
EPS Next 2Y6.68%
EPS Next 3Y6.84%
33.1
-0.48 (-1.43%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.49%
Inst Owner Change-0.47%
Ins Owners0.29%
Ins Owner Change1.71%
Market Cap20.29B
Analysts72
Price Target37.69 (13.87%)
Short Float %1.68%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Yearly Dividend1.13
Dividend Growth(5Y)16.68%
DP145.69%
Div Incr Years6
Div Non Decr Years6
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)0.9%
PT rev (3m)1.17%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-2.46%
EPS NY rev (1m)2.38%
EPS NY rev (3m)3.61%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.99 | ||
| Fwd PE | 39.84 | ||
| P/S | 7.66 | ||
| P/FCF | 272.62 | ||
| P/OCF | 18.17 | ||
| P/B | 2.09 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 19.32 |
EPS(TTM)0.77
EY2.33%
EPS(NY)0.83
Fwd EY2.51%
FCF(TTM)0.12
FCFY0.37%
OCF(TTM)1.82
OCFY5.5%
SpS4.32
BVpS15.86
TBVpS15.44
PEG (NY)8.47
PEG (5Y)1.95
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 | 1.52 |
F-Score5
WACC7.41%
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 Year3.8%
Revenue Next 2Y3.78%
Revenue Next 3Y3.66%
Revenue Next 5Y4.59%
EBIT growth 1Y4.8%
EBIT growth 3Y10.41%
EBIT growth 5Y11.55%
EBIT Next Year107.16%
EBIT Next 3Y31.93%
EBIT Next 5Y20.81%
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%