Invitation Homes Inc.
Invitation Homes Inc. Fundamental Analysis
Invitation Homes Inc. (INVH) shows moderate financial fundamentals with a PE ratio of 26.13, profit margin of 21.54%, and ROE of 6.10%. The company generates $2.7B in annual revenue with moderate year-over-year growth of 7.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze INVH's fundamental strength across five key dimensions:
Efficiency Score
WeakINVH struggles to generate sufficient returns from assets.
Valuation Score
WeakINVH trades at a premium to fair value.
Growth Score
ModerateINVH shows steady but slowing expansion.
Financial Health Score
ExcellentINVH maintains a strong and stable balance sheet.
Profitability Score
ModerateINVH maintains healthy but balanced margins.
Key Financial Metrics
Is INVH Expensive or Cheap?
P/E Ratio
INVH trades at 26.13 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, INVH's PEG of 24.83 indicates potential overvaluation.
Price to Book
The market values Invitation Homes Inc. at 1.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.35 times EBITDA. This is generally considered low.
How Well Does INVH Make Money?
Net Profit Margin
For every $100 in sales, Invitation Homes Inc. keeps $21.54 as profit after all expenses.
Operating Margin
Core operations generate 35.82 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.10 in profit for every $100 of shareholder equity.
ROA
Invitation Homes Inc. generates $3.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Invitation Homes Inc. generates strong operating cash flow of $1.21B, reflecting robust business health.
Free Cash Flow
Invitation Homes Inc. generates strong free cash flow of $1.21B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.97 in free cash annually.
FCF Yield
INVH converts 7.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
24.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.88
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How INVH Stacks Against Its Sector Peers
| Metric | INVH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.13 | 23.18 | Worse (Expensive) |
| ROE | 6.10% | 709.00% | Weak |
| Net Margin | 21.54% | -21241.00% (disorted) | Strong |
| Debt/Equity | 0.88 | -21.97 (disorted) | Distorted |
| Current Ratio | 1.52 | 26.77 | Neutral |
| ROA | 3.15% | 176.00% | Weak |
INVH outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Invitation Homes Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.71%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
170.63%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
41.69%
Industry Style: Income, Inflation Hedge, REIT
High Growth