INVITATION HOMES INC (INVH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INVH - US46187W1071 - REIT
26.72 USD
-0.05 (-0.19%)
Overall INVH gets a fundamental rating of 4 out of 10. We evaluated INVH against 20 industry peers in the Residential REITs industry. There are concerns on the financial health of INVH while its profitability can be described as average. INVH is not valued too expensively and it also shows 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 has a Return On Assets (3.12%) which is comparable to the rest of the industry.
- With a Return On Equity value of 6.08%, INVH perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- INVH has a Return On Invested Capital of 3.27%. This is in the better half of the industry: INVH outperforms 75.00% of its industry peers.
- 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
- The Profit Margin of INVH (21.67%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of INVH has grown nicely.
- INVH has a better Operating Margin (27.79%) than 75.00% of its industry peers.
- INVH's Operating Margin has improved in the last couple of years.
- INVH has a Gross Margin of 58.64%. This is comparable to the rest of the industry: INVH outperforms 50.00% 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 | 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
- 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
- INVH has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.21, we must say that INVH is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of INVH (1.21) 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.
- Looking at the Debt to FCF ratio, with a value of 80.95, INVH is in line with its industry, outperforming 50.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.86 indicates that 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 | 1.21 |
ROIC/WACC0.47
WACC6.89%
2.3 Liquidity
- A Current Ratio of 0.35 indicates that INVH may have some problems paying its short term obligations.
- INVH has a Current ratio of 0.35. This is comparable to the rest of the industry: INVH outperforms 50.00% of its industry peers.
- A Quick Ratio of 0.35 indicates that INVH may have some problems paying its short term obligations.
- INVH has a Quick ratio (0.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 33.80% over the past year.
- The Earnings Per Share has been growing by 22.01% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 4.61% 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)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
- INVH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.56% yearly.
- Based on estimates for the next years, INVH will show a small growth in Revenue. The Revenue will grow by 4.68% on average per year.
EPS Next Y23.34%
EPS Next 2Y5.01%
EPS Next 3Y5.23%
EPS Next 5Y9.56%
Revenue Next Year4.02%
Revenue Next 2Y3.56%
Revenue Next 3Y3.09%
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.
- 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
- With a Price/Earnings ratio of 28.13, INVH can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, INVH is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
- INVH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- INVH is valuated quite expensively with a Price/Forward Earnings ratio of 33.19.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of INVH indicates a rather cheap valuation: INVH is cheaper than 90.00% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of INVH to the average of the S&P500 Index (25.95), we can say INVH is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.13 | ||
| Fwd PE | 33.19 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INVH indicates a rather cheap valuation: INVH is cheaper than 85.00% of the companies listed 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 | 160.91 | ||
| EV/EBITDA | 16.44 |
4.3 Compensation for Growth
- INVH's 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)1.21
PEG (5Y)1.28
EPS Next 2Y5.01%
EPS Next 3Y5.23%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.44%, INVH is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 32.02, INVH has a dividend in line with its industry peers.
- INVH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.44% |
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 2Y5.01%
EPS Next 3Y5.23%
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 5 / 10 and the dividend payout ratio is 120.69%.