NYSE:AMH.PRD

Stock Analysis Report

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Executive Summary

American Homes 4 Rent (NYSE: AMH) is a leader in the single-family home rental industry and "American Homes 4 Rent" is fast becoming a nationally recognized brand for rental homes, known for high-quality, good value and tenant satisfaction.


Snowflake Analysis

Proven track record with imperfect balance sheet.

Share Price & News

How has American Homes 4 Rent's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMH.PRD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.0%

AMH.PRD

6.6%

US REITs

3.8%

US Market


1 Year Return

-2.7%

AMH.PRD

-5.9%

US REITs

9.7%

US Market

Return vs Industry: AMH.PRD exceeded the US REITs industry which returned -7.2% over the past year.

Return vs Market: AMH.PRD underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

AMH.PRDIndustryMarket
7 Day1.0%6.6%3.8%
30 Day4.8%13.4%11.4%
90 Day1.8%-8.2%6.8%
1 Year3.4%-2.7%-2.0%-5.9%12.1%9.7%
3 Year22.0%1.1%18.5%3.9%36.2%27.2%
5 Yearn/a50.1%19.4%63.7%45.4%

Price Volatility Vs. Market

How volatile is American Homes 4 Rent's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is American Homes 4 Rent undervalued compared to its fair value and its price relative to the market?

89.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AMH.PRD ($26.2) is trading above our estimate of fair value ($21.69)

Significantly Below Fair Value: AMH.PRD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AMH.PRD is poor value based on its PE Ratio (89.5x) compared to the REITs industry average (29.6x).

PE vs Market: AMH.PRD is poor value based on its PE Ratio (89.5x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: AMH.PRD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AMH.PRD is overvalued based on its PB Ratio (1.5x) compared to the US REITs industry average (1.5x).


Next Steps

Future Growth

How is American Homes 4 Rent forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-23.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMH.PRD's earnings are forecast to decline over the next 3 years (-23.5% per year).

Earnings vs Market: AMH.PRD's earnings are forecast to decline over the next 3 years (-23.5% per year).

High Growth Earnings: AMH.PRD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AMH.PRD's revenue (3.6% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: AMH.PRD's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMH.PRD is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has American Homes 4 Rent performed over the past 5 years?

69.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMH.PRD has a large one-off gain of $39.8M impacting its March 31 2020 financial results.

Growing Profit Margin: AMH.PRD's current net profit margins (7.8%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: AMH.PRD has become profitable over the past 5 years, growing earnings by 69.2% per year.

Accelerating Growth: AMH.PRD's earnings growth over the past year (161.8%) exceeds its 5-year average (69.2% per year).

Earnings vs Industry: AMH.PRD earnings growth over the past year (161.8%) exceeded the REITs industry 5.2%.


Return on Equity

High ROE: AMH.PRD's Return on Equity (2.7%) is considered low.


Next Steps

Financial Health

How is American Homes 4 Rent's financial position?


Financial Position Analysis

Short Term Liabilities: AMH.PRD's short term assets ($540.1M) exceed its short term liabilities ($242.0M).

Long Term Liabilities: AMH.PRD's short term assets ($540.1M) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: AMH.PRD's debt to equity ratio (48.7%) is considered high.

Reducing Debt: AMH.PRD's debt to equity ratio has reduced from 51.6% to 48.7% over the past 5 years.

Debt Coverage: AMH.PRD's debt is not well covered by operating cash flow (14.9%).

Interest Coverage: AMH.PRD's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

What is American Homes 4 Rent's current dividend yield, its reliability and sustainability?

0.75%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: AMH.PRD's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: AMH.PRD's dividend (0.75%) is low compared to the top 25% of dividend payers in the US market (4.32%).


Stability and Growth of Payments

Stable Dividend: AMH.PRD is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: AMH.PRD is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: AMH.PRD is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMH.PRD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

David Singelyn (58yo)

7.67yrs

Tenure

US$1,477,075

Compensation

Mr. David P. Singelyn, CPA, has been the Chief Executive Officer and Trustee of American Homes 4 Rent since October 2012. Mr. Singelyn has been the Chief Executive Officer and Trustee of American Homes 4 R ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.48M) is below average for companies of similar size in the US market ($USD7.17M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Singelyn
CEO & Trustee7.67yrsUS$1.48m2.31% $217.5m
Christopher Lau
Chief Financial Officer1.92yrsUS$1.42m0.0080% $751.4k
Bryan Smith
Chief Operating Officer0.67yrUS$1.49mno data
John Corrigan
Chief Investment Officer & Trustee7.67yrsUS$1.22m0.00078% $73.5k
Sara Vogt-Lowell
Chief Legal Officer & Secretary7.67yrsUS$1.07m0.0086% $808.0k
B. Hughes
no datano data6% $566.0m
Brian Reitz
Senior Vice President of Accountingno datano datano data
Philip Irby
Chief Technology Officerno datano datano data
Joanne Halliday
Chief Administrative Officerno datano datano data
Megan Grabos
Senior Vice President of Communications0.083yrno datano data

1.9yrs

Average Tenure

51.5yo

Average Age

Experienced Management: AMH.PRD's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Singelyn
CEO & Trustee7.67yrsUS$1.48m2.31% $217.5m
John Corrigan
Chief Investment Officer & Trustee7.67yrsUS$1.22m0.00078% $73.5k
Matthew Hart
7.58yrsUS$165.01k0.0058% $547.8k
David Goldberg
1.08yrsUS$131.26k0.012% $1.1m
Kenneth Woolley
Independent Chairman0.083yrUS$157.51k0.0021% $198.0k
James Kropp
Independent Trustee7.58yrsUS$165.01k0.0061% $573.2k
Douglas Benham
Independent Trustee4.25yrsUS$157.51k0.0060% $564.7k
Winifred Webb
Independent Trustee1.42yrsUS$150.01kno data
J. Lynch
Advisory Board Memberno datano datano data
Tamara Gustavson
3.83yrsUS$161.26k6.72% $633.8m

4.3yrs

Average Tenure

64yo

Average Age

Experienced Board: AMH.PRD's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AMH.PRD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

American Homes 4 Rent's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Homes 4 Rent
  • Ticker: AMH.PRD
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: US$9.428b
  • Market Cap: US$8.038b
  • Shares outstanding: 352.98m
  • Website: https://www.americanhomes4rent.com

Number of Employees


Location

  • American Homes 4 Rent
  • 30601 Agoura Road
  • Suite 200
  • Agoura Hills
  • California
  • 91301
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMHNYSE (New York Stock Exchange)YesClass A Common SharesUSUSDAug 2013
A4XADB (Deutsche Boerse AG)YesClass A Common SharesDEEURAug 2013
0HEJLSE (London Stock Exchange)YesClass A Common SharesGBUSDAug 2013
AMH.PRDNYSE (New York Stock Exchange)RED PFD SER DUSUSDMay 2016
AMH.PRENYSE (New York Stock Exchange)PFD CUM RED EUSUSDJun 2016
AMH.PRFNYSE (New York Stock Exchange)CM RED PFD SHS FUSUSDApr 2017
AMH.PRGNYSE (New York Stock Exchange)5.875% CUM PFD GUSUSDJul 2017
AMH.PRHNYSE (New York Stock Exchange)6.25% CUM PFD HUSUSDSep 2018

Biography

American Homes 4 Rent (NYSE: AMH) is a leader in the single-family home rental industry and "American Homes 4 Rent" is fast becoming a nationally recognized brand for rental homes, known for high-quality, good value and tenant satisfaction. We are an internally managed Maryland real estate investment trust, or REIT, focused on acquiring, developing, renovating, leasing, and operating attractive, single-family homes as rental properties. As of March 31, 2020, we owned 52,776 single-family properties in selected submarkets in 22 states. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 06:08
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.