INVITATION HOMES INC (INVH)
US46187W1071 - REIT
We assign a fundamental rating of 4 out of 10 to INVH. INVH was compared to 21 industry peers in the Residential REITs industry. Both the profitability and the financial health of INVH get a neutral evaluation. Nothing too spectacular is happening here. INVH is valied quite expensively at the moment, while 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.
Each year in the past 5 years INVH has been profitable.
INVH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.70%, INVH is in line with its industry, outperforming 52.38% of the companies in the same industry.
INVH has a Return On Equity (5.11%) which is comparable to the rest of the industry.
The Return On Invested Capital of INVH (2.94%) is better than 71.43% 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 2.53%.
The last Return On Invested Capital (2.94%) for INVH is above the 3 year average (2.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 5.11% | ||
| ROIC | 2.94% |
ROA(3y)2.06%
ROA(5y)1.62%
ROE(3y)3.83%
ROE(5y)3.11%
ROIC(3y)2.72%
ROIC(5y)2.46%
1.3 Margins
With a Profit Margin value of 21.33%, INVH perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Profit Margin of INVH has grown nicely.
INVH has a better Operating Margin (28.76%) than 76.19% of its industry peers.
In the last couple of years the Operating Margin of INVH has grown nicely.
INVH's Gross Margin of 59.87% is in line compared to the rest of the industry. INVH outperforms 52.38% of 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 | 28.76% | ||
| PM (TTM) | 21.33% | ||
| GM | 59.87% |
OM growth 3Y3.87%
OM growth 5Y6.27%
PM growth 3Y25.69%
PM growth 5YN/A
GM growth 3Y0.23%
GM growth 5Y0.58%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INVH is destroying value.
INVH has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for INVH has been increased compared to 5 years ago.
INVH has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.59, we must say that INVH is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.59, INVH is doing good in the industry, outperforming 76.19% of the companies in the same industry.
A Debt/Equity ratio of 0.84 indicates that INVH is somewhat dependend on debt financing.
INVH has a Debt to Equity ratio of 0.84. This is in the better half of the industry: INVH outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.59 |
ROIC/WACC0.39
WACC7.5%
2.3 Liquidity
INVH has a Current Ratio of 1.93. This is a normal value and indicates that INVH is financially healthy and should not expect problems in meeting its short term obligations.
INVH's Current ratio of 1.93 is amongst the best of the industry. INVH outperforms 90.48% of its industry peers.
A Quick Ratio of 1.93 indicates that INVH should not have too much problems paying its short term obligations.
INVH has a Quick ratio of 1.93. This is amongst the best in the industry. INVH outperforms 95.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
INVH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.48%, which is quite impressive.
Measured over the past years, INVH shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.64% on average per year.
INVH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.68%.
Measured over the past years, INVH shows a small growth in Revenue. The Revenue has been growing by 7.14% on average per year.
EPS 1Y (TTM)35.48%
EPS 3Y32.64%
EPS 5YN/A
EPS growth Q2Q31.25%
Revenue 1Y (TTM)8.68%
Revenue growth 3Y10.09%
Revenue growth 5Y7.14%
Revenue growth Q2Q7.68%
3.2 Future
The Earnings Per Share is expected to grow by 5.75% on average over the next years.
The Revenue is expected to grow by 4.46% on average over the next years.
EPS Next Y-13.23%
EPS Next 2Y-3.43%
EPS Next 3Y2.88%
EPS Next 5Y5.75%
Revenue Next Year6.34%
Revenue Next 2Y4.05%
Revenue Next 3Y2.96%
Revenue Next 5Y4.46%
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.
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
A Price/Earnings ratio of 40.71 indicates a quite expensive valuation of INVH.
INVH's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.02, INVH is valued quite expensively.
INVH is valuated quite expensively with a Price/Forward Earnings ratio of 46.92.
66.67% of the companies in the same industry are more expensive than INVH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, INVH is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.71 | ||
| Fwd PE | 46.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INVH indicates a slightly more expensive valuation: INVH is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.13 |
4.3 Compensation for Growth
The decent profitability rating of INVH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.43%
EPS Next 3Y2.88%
5. Dividend
5.1 Amount
INVH has a Yearly Dividend Yield of 3.25%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.47, INVH is paying slightly less dividend.
INVH's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
5.2 History
On average, the dividend of INVH grows each year by 18.72%, which is quite nice.
INVH has been paying a dividend for over 5 years, so it has already some track record.
As INVH did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)18.72%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
123.01% 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.
DP123.01%
EPS Next 2Y-3.43%
EPS Next 3Y2.88%
INVITATION HOMES INC
NYSE:INVH (4/30/2024, 3:15:00 PM)
After market: 34.2 0 (0%)34.2
-0.38 (-1.1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.71 | ||
| Fwd PE | 46.92 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 5.11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.76% | ||
| PM (TTM) | 21.33% | ||
| GM | 59.87% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)35.48%
EPS 3Y32.64%
EPS 5Y
EPS growth Q2Q
EPS Next Y-13.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.68%
Revenue growth 3Y10.09%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y