DB:4IV

Stock Analysis Report

Executive Summary

Invitation Homes is a leading owner and operator of single-family rental homes, offering residents high-quality homes across America.

Snowflake

Moderate growth potential second-rate dividend payer.

Share Price & News

How has Invitation Homes's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4IV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

4IV

1.1%

DE REITs

-0.5%

DE Market


1 Year Return

48.2%

4IV

32.1%

DE REITs

12.2%

DE Market

Return vs Industry: 4IV exceeded the German REITs industry which returned 32.1% over the past year.

Return vs Market: 4IV exceeded the German Market which returned 12.2% over the past year.


Shareholder returns

4IVIndustryMarket
7 Day1.5%1.1%-0.5%
30 Day-1.5%1.8%4.4%
90 Day5.7%8.9%11.1%
1 Year51.2%48.2%36.9%32.1%15.8%12.2%
3 Yearn/a39.9%20.2%24.7%13.8%
5 Yearn/a54.3%20.8%35.0%16.6%

Price Volatility Vs. Market

How volatile is Invitation Homes's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Invitation Homes undervalued compared to its fair value and its price relative to the market?

133.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 4IV (€27) is trading above our estimate of fair value (€26.3)

Significantly Below Fair Value: 4IV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 4IV is poor value based on its PE Ratio (133.5x) compared to the REITs industry average (8.1x).

PE vs Market: 4IV is poor value based on its PE Ratio (133.5x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: 4IV is poor value based on its PEG Ratio (6x)


Price to Book Ratio

PB vs Industry: 4IV is overvalued based on its PB Ratio (2x) compared to the DE REITs industry average (1.6x).


Next Steps

Future Growth

How is Invitation Homes forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

22.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4IV's forecast earnings growth (22.4% per year) is above the savings rate (0.2%).

Earnings vs Market: 4IV's earnings (22.4% per year) are forecast to grow faster than the German market (12.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 4IV's revenue (4.4% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: 4IV's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4IV's Return on Equity is forecast to be low in 3 years time (1.7%).


Next Steps

Past Performance

How has Invitation Homes performed over the past 5 years?

60.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4IV has large one-off items impacting its financial results.

Growing Profit Margin: 4IV became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 4IV has become profitable over the past 5 years, growing earnings by 60.8% per year.

Accelerating Growth: 4IV has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 4IV has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (103.4%).


Return on Equity

High ROE: 4IV's Return on Equity (1.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Invitation Homes's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 4IV has a high level of physical assets or inventory.

Debt Coverage by Assets: 4IV's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: 4IV's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 4IV has a sufficient allowance for bad loans.

Low Risk Liabilities: 4IV reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 4IV has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 4IV has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 4IV has an appropriate level of bad loans.


Next Steps

Dividend

What is Invitation Homes's current dividend yield, its reliability and sustainability?

1.73%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.3%markettop25%3.7%industryaverage2.9%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: 4IV's dividend (1.73%) is higher than the bottom 25% of dividend payers in the German market (1.35%).

High Dividend: 4IV's dividend (1.73%) is low compared to the top 25% of dividend payers in the German market (3.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 4IV has been paying a dividend for less than 10 years.

Growing Dividend: 4IV's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.6%), 4IV's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 4IV's dividends in 3 years are forecast to be thoroughly covered by earnings (0.08% payout ratio).


Next Steps

Management

What is the CEO of Invitation Homes's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Dallas Tanner (38yo)

0.8yrs

Tenure

US$3,342,458

Compensation

Mr. Dallas B. Tanner has been President, Chief Executive Officer and Director of Invitation Homes Inc since January 16, 2019. He served as Interim President and Interim Chief Executive Officer of Invitatio ...


CEO Compensation Analysis

Compensation vs Market: Dallas's total compensation ($USD3.34M) is about average for companies of similar size in the German market ($USD4.61M).

Compensation vs Earnings: Dallas's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

51yo

Average Age

Experienced Management: 4IV's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 4IV's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 4IV insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,893,05718 Nov 19
Dallas Tanner
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares70,000
Max PriceUS$27.04
SellUS$20,262,35118 Nov 19
Starwood Capital Operations, LLC
EntityCompany
Shares747,002
Max PriceUS$27.15
SellUS$1,127,583,24825 Sep 19
The Blackstone Group Inc.
EntityCompany
Shares44,000,000
Max PriceUS$25.63
SellUS$786,82429 Aug 19
Mark Solls
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares30,000
Max PriceUS$26.24
SellUS$816,65820 Aug 19
Ernest Freedman
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares31,892
Max PriceUS$25.61
SellUS$903,852,78828 Jun 19
The Blackstone Group Inc.
EntityCompany
Shares37,500,000
Max PriceUS$24.10
SellUS$899,997,00005 Jun 19
The Blackstone Group Inc.
EntityCompany
Shares40,000,000
Max PriceUS$22.50
SellUS$661,52714 May 19
Charles Young
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares29,925
Max PriceUS$22.11
SellUS$820,966,32027 Mar 19
The Blackstone Group Inc.
EntityCompany
Shares40,000,000
Max PriceUS$20.52

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.1%.


Management Team

  • Mark Solls (62yo)

    Executive VP

    • Tenure: 4.3yrs
    • Compensation: US$1.59m
  • Bryce Blair (60yo)

    Chairperson of the Board

    • Tenure: 2.8yrs
    • Compensation: US$740.02k
  • Ernie Freedman (48yo)

    Executive VP & CFO

    • Tenure: 4.1yrs
    • Compensation: US$3.33m
  • Charles Young (51yo)

    Executive VP & COO

    • Tenure: 2yrs
    • Compensation: US$3.05m
  • Larry Gorman (51yo)

    Executive VP & CTO

    • Tenure: 0yrs
  • Dallas Tanner (38yo)

    Co-Founder

    • Tenure: 0.8yrs
    • Compensation: US$3.34m
  • Kimberly Norrell

    Senior VP & Chief Accounting Officer

    • Tenure: 0yrs
  • Greg Winkle

    Vice President of Investor Relations

    • Tenure: 3.3yrs
  • Kristi DesJarlais

    Senior Vice President of Communications

    • Tenure: 1.2yrs
  • Jiggs Foster

    Senior Vice President of Marketing

    • Tenure: 3.6yrs

Board Members

  • Bill Stein (57yo)

    Independent Director

    • Tenure: 2.8yrs
  • Ken Caplan (46yo)

    Independent Director

    • Tenure: 1.5yrs
  • Bryce Blair (60yo)

    Chairperson of the Board

    • Tenure: 2.8yrs
    • Compensation: US$740.02k
  • Barry Sternlicht (58yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$180.00k
  • Jeffrey Kelter (65yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$180.00k
  • Skip Bronson (74yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$180.00k
  • Rob Harper (41yo)

    Independent Director

    • Tenure: 2.8yrs
  • Janice Sears (58yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$200.00k
  • John Rhea (53yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$200.00k
  • Dallas Tanner (38yo)

    Co-Founder

    • Tenure: 0.8yrs
    • Compensation: US$3.34m

Company Information

Invitation Homes Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Invitation Homes Inc.
  • Ticker: 4IV
  • Exchange: DB
  • Founded: 2012
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: US$16.309b
  • Market Cap: US$14.571b
  • Listing Market Cap: US$14.719b
  • Shares outstanding: 543.82m
  • Website: https://www.InvitationHomes.com

Number of Employees


Location

  • Invitation Homes Inc.
  • 1717 Main Street
  • Suite 2000
  • Dallas
  • Texas
  • 75201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4IVDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2017
INVHNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2017
INVH *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 2017

Biography

Invitation Homes is a leading owner and operator of single-family rental homes, offering residents high-quality homes across America. With over 80,000 homes for lease in 17 markets across the country, Invi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 21:36
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.