INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - NYSE:INVH - US46187W1071 - REIT
29.04 USD
-0.14 (-0.48%)
29.04 USD
0 (0%)
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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
INVH had positive earnings in the past year.
In the past year INVH had a positive cash flow from operations.
In the past 5 years INVH has always been profitable.
Each year in the past 5 years INVH had a positive operating cash flow.
1.2 Ratios
INVH has a Return On Assets of 2.92%. This is in the better half of the industry: INVH outperforms 65.00% of its industry peers.
With a decent Return On Equity value of 5.63%, INVH is doing good in the industry, outperforming 65.00% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for INVH is in line with the industry average of 2.59%.
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's Profit Margin of 20.34% is fine compared to the rest of the industry. INVH outperforms 65.00% of its industry peers.
In the last couple of years the Profit Margin of INVH has grown nicely.
INVH's Operating Margin of 27.93% 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.
With a Gross Margin value of 58.94%, INVH perfoms like the industry average, outperforming 60.00% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INVH is destroying value.
Compared to 1 year ago, INVH has about the same amount of shares outstanding.
Compared to 5 years ago, INVH has more shares outstanding
Compared to 1 year ago, INVH has an improved debt to assets ratio.
2.2 Solvency
INVH has an Altman-Z score of 1.33. This is a bad value and indicates that INVH is not financially healthy and even has some risk of bankruptcy.
INVH has a Altman-Z score of 1.33. This is comparable to the rest of the industry: INVH outperforms 60.00% of its industry peers.
INVH has a Debt/Equity ratio of 0.85. This is a neutral value indicating INVH is somewhat dependend on debt financing.
INVH's Debt to Equity ratio of 0.85 is in line compared to the rest of the industry. INVH outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.33 |
ROIC/WACC0.47
WACC6.98%
2.3 Liquidity
A Current Ratio of 0.25 indicates that INVH may have some problems paying its short term obligations.
The Current ratio of INVH (0.25) is worse than 60.00% of its industry peers.
INVH has a Quick Ratio of 0.25. This is a bad value and indicates that INVH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of INVH (0.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.25 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.29% over the past year.
INVH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.01% yearly.
The Revenue has been growing slightly by 5.27% in the past 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)14.29%
EPS 3Y17.5%
EPS 5Y22.01%
EPS Q2Q%91.67%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.28%
3.2 Future
Based on estimates for the next years, INVH will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.89% on average per year.
Based on estimates for the next years, INVH will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
EPS Next Y20.29%
EPS Next 2Y7.47%
EPS Next 3Y6.72%
EPS Next 5Y10.89%
Revenue Next Year3.68%
Revenue Next 2Y3.67%
Revenue Next 3Y2.91%
Revenue Next 5Y4.81%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
The Price/Earnings ratio is 33.00, which means the current valuation is very expensive for INVH.
Based on the Price/Earnings ratio, INVH is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of INVH to the average of the S&P500 Index (27.67), we can say INVH is valued inline with the index average.
The Price/Forward Earnings ratio is 34.44, which means the current valuation is very expensive for INVH.
95.00% of the companies in the same industry are more expensive than INVH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.13. INVH is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33 | ||
| Fwd PE | 34.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INVH is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.59 |
4.3 Compensation for Growth
The 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)1.63
PEG (5Y)1.5
EPS Next 2Y7.47%
EPS Next 3Y6.72%
5. Dividend
5.1 Amount
INVH has a Yearly Dividend Yield of 3.97%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.33, INVH is paying slightly less dividend.
INVH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
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 2Y7.47%
EPS Next 3Y6.72%
29.04
-0.14 (-0.48%)
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 Change0.46%
Ins Owners0.24%
Ins Owner Change-2.84%
Market Cap17.80B
Analysts73.33
Price Target37.1 (27.75%)
Short Float %2.04%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
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)-0.68%
PT rev (3m)-3.45%
EPS NQ rev (1m)-0.49%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)0.64%
EPS NY rev (3m)4.53%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33 | ||
| Fwd PE | 34.44 | ||
| P/S | 6.65 | ||
| P/FCF | N/A | ||
| P/OCF | 15.76 | ||
| P/B | 1.84 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 17.59 |
EPS(TTM)0.88
EY3.03%
EPS(NY)0.84
Fwd EY2.9%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)1.84
OCFY6.34%
SpS4.36
BVpS15.77
TBVpS15.35
PEG (NY)1.63
PEG (5Y)1.5
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%
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-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 | 1.33 |
F-Score6
WACC6.98%
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)14.29%
EPS 3Y17.5%
EPS 5Y22.01%
EPS Q2Q%91.67%
EPS Next Y20.29%
EPS Next 2Y7.47%
EPS Next 3Y6.72%
EPS Next 5Y10.89%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.28%
Revenue Next Year3.68%
Revenue Next 2Y3.67%
Revenue Next 3Y2.91%
Revenue Next 5Y4.81%
EBIT growth 1Y3.71%
EBIT growth 3Y10.41%
EBIT growth 5Y11.55%
EBIT Next Year107.69%
EBIT Next 3Y31.22%
EBIT Next 5Y20.13%
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%