NYSE
AMH
Last Price
US $33.72
KEY FIGURES
MKT CAP
$12.2B
EPS
TTM
$1.29
PEG
TTM
2.00x
P/E
TTM
27.72x
P/S
TTM
6.56x
YIELD
3.70%
GROWTH
Revenue Y/Y
9.74%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $33.72
-32.80%
Default assumptions
EBITDA Multiple
Fair Value
Market $33.72
-72.18%
Default assumptions
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
American Homes 4 Rent cash flow to debt ratio of 16.86% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial stability - Healthy cash flow growth.
American Homes 4 Rent's free cash flow has increased 8.17% from $689.78M last year to $746.12M, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
American Homes 4 Rent's debt to equity ratio is 0.74, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
American Homes 4 Rent's debt has increased relative to shareholder equity from 0.70 last year to 0.74 today, signaling weakened financials
Financial risk - Net debt/EBITDA.
American Homes 4 Rent has a net debt to EBITDA ratio of 4.17x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
American Homes 4 Rent's interest coverage ratio of 2.32 indicates that earnings with margin can cover interest payments on company debt
Financial stability - Profit margin growth.
American Homes 4 Rent's profit margin has increased (5.60%) in the last year from 23.86% to 25.19%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
American Homes 4 Rent's short-term assets of $273.81M exceed its short-term liabilities of $4.35M
Decreasing performance - ROA.
American Homes 4 Rent's return on assets of 3.57% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
American Homes 4 Rent's return on equity of 6.65%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
American Homes 4 Rent's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
American Homes 4 Rent had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
American Homes 4 Rent has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
American Homes 4 Rent has a free cash flow yield of 6.09%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
American Homes 4 Rent's yearly earnings has increased 9.83% since last year from $412.43M to $452.97M, signaling increasing performance
Increasing performance - Healthy revenue growth.
American Homes 4 Rent's yearly revenue has increased 7.95% since last year from $1.73G to $1.87G, signaling increasing performance
Decreasing performance - ROIC.
ROIC 3.65% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Increasing performance - 3-year revenue CAGR.
American Homes 4 Rent's 3-year revenue CAGR of 7.78% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
American Homes 4 Rent had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
American Homes 4 Rent had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
American Homes 4 Rent is overvalued relative to its fair value price of 22.66 based on Discounted Cash Flow model
Overvalued - Earnings yield.
American Homes 4 Rent has an earnings yield of 3.79%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
American Homes 4 Rent is overvalued relative to its fair value price of 9.38 based on EBITDA multiple model
Undervalued - EV/EBITDA.
American Homes 4 Rent has an EV/EBITDA ratio of 13.96x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
American Homes 4 Rent has a PEG-ratio over 1 which is considered overvalued
Undervalued - P/B ratio.
American Homes 4 Rent has a price-to-book ratio of 1.79x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
American Homes 4 Rent has a price-to-sales ratio of 6.56x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
6.65%
Return on equity
ROIC: 3.65%
Valuation History
27.7X
Price to Earnings
EV/EBITDA: 14.0X
Cash flow
Profit margin
16.09%
(FY vs FY)
Cash flow Y/Y
15.10%
(FY vs FY)
Base valuations use default assumptions. Customize in the Valuator.