INVITATION HOMES INC (INVH) Stock Fundamental Analysis
NYSE:INVH - US46187W1071 - REIT
30.25 USD
-0.1 (-0.33%)
30.16 USD
-0.09 (-0.3%)
We assign a fundamental rating of 4 out of 10 to INVH. INVH was compared to 20 industry peers in the Residential REITs industry. INVH scores excellent on profitability, 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
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.
In the past 5 years INVH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.92%, INVH is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
INVH's Return On Equity of 5.63% is fine compared to the rest of the industry. INVH outperforms 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.
INVH had an Average Return On Invested Capital over the past 3 years of 2.99%. This is in line with the industry average of 2.59%.
The 3 year average ROIC (2.99%) for INVH is below the current ROIC(3.25%), indicating increased profibility in the last year.
| 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 better Profit Margin (20.34%) than 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.
In the last couple of years the Operating Margin of INVH has grown nicely.
INVH has a Gross Margin (58.94%) which is in line with its industry peers.
In the last couple of years the Gross Margin of INVH has remained more or less at the same level.
| 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.
Compared to 1 year ago, INVH has about the same amount of shares outstanding.
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 1.37. 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 1.37 is in line compared to the rest of the industry. INVH outperforms 55.00% of its industry peers.
A Debt/Equity ratio of 0.85 indicates that INVH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.85, INVH is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.37 |
ROIC/WACC0.47
WACC6.96%
2.3 Liquidity
INVH has a Current 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.
INVH's Current ratio of 0.25 is on the low side compared to the rest of the industry. INVH is outperformed by 60.00% of its industry peers.
A Quick Ratio of 0.25 indicates that INVH may have some problems paying its short term obligations.
With a Quick ratio value of 0.25, INVH perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
| 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 14.29%, which is quite good.
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.
The Revenue has been growing slightly by 5.27% in the past year.
The Revenue has been growing by 8.22% on average over the past years. This is quite good.
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 Y19.53%
EPS Next 2Y8.5%
EPS Next 3Y7.77%
EPS Next 5Y10.89%
Revenue Next Year3.64%
Revenue Next 2Y3.65%
Revenue Next 3Y3.41%
Revenue Next 5Y4.81%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
The Price/Earnings ratio is 34.38, which means the current valuation is very expensive for INVH.
65.00% of the companies in the same industry are more expensive than INVH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.06, INVH is valued a bit more expensive.
INVH is valuated quite expensively with a Price/Forward Earnings ratio of 35.20.
Based on the Price/Forward Earnings ratio, INVH is valued cheaper than 90.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.69. INVH is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.38 | ||
| Fwd PE | 35.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INVH is valued a bit cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.04 |
4.3 Compensation for Growth
The 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)1.76
PEG (5Y)1.56
EPS Next 2Y8.5%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.82%, INVH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.74, 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 | 3.82% |
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
INVH pays out 128.83% of its income as dividend. 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 2Y8.5%
EPS Next 3Y7.77%
30.25
-0.1 (-0.33%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.96%
Inst Owner Change0.47%
Ins Owners0.24%
Ins Owner Change-0.06%
Market Cap18.54B
Analysts73.33
Price Target37.15 (22.81%)
Short Float %2.22%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
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)-2.41%
PT rev (3m)-2.87%
EPS NQ rev (1m)-1.46%
EPS NQ rev (3m)-0.43%
EPS NY rev (1m)1.62%
EPS NY rev (3m)13.76%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-1.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.38 | ||
| Fwd PE | 35.2 | ||
| P/S | 6.93 | ||
| P/FCF | N/A | ||
| P/OCF | 16.42 | ||
| P/B | 1.92 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 18.04 |
EPS(TTM)0.88
EY2.91%
EPS(NY)0.86
Fwd EY2.84%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)1.84
OCFY6.09%
SpS4.36
BVpS15.77
TBVpS15.35
PEG (NY)1.76
PEG (5Y)1.56
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 | 1.37 |
F-Score6
WACC6.96%
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 Y19.53%
EPS Next 2Y8.5%
EPS Next 3Y7.77%
EPS Next 5Y10.89%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y9.47%
Revenue growth 5Y8.22%
Sales Q2Q%4.28%
Revenue Next Year3.64%
Revenue Next 2Y3.65%
Revenue Next 3Y3.41%
Revenue Next 5Y4.81%
EBIT growth 1Y3.71%
EBIT growth 3Y10.41%
EBIT growth 5Y11.55%
EBIT Next Year107.16%
EBIT Next 3Y31.73%
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%