AMH Stock Overview
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.
American Homes 4 Rent Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$32.70|
|52 Week High||US$44.07|
|52 Week Low||US$32.19|
|1 Month Change||-6.92%|
|3 Month Change||-8.02%|
|1 Year Change||-14.22%|
|3 Year Change||26.11%|
|5 Year Change||50.00%|
|Change since IPO||109.62%|
Recent News & Updates
American Homes 4 Rent: Dividend Increases Live Here
Summary In January, I predicted Single Family Rental (SFR) REITs would outperform the REIT average this year. That has proved true thus far, but just barely. Accordingly, in February, I chose American Homes 4 Rent (AMH) as one of the Top 12 REITs for the succeeding 12 months. That has not panned out. Going forward, however, the tailwinds still look favorable for Single Family Rental REITs. In August, American Homes 4 Rent reported a strong second quarter and a strong first half. This article examines growth, balance sheet, dividend, and valuation metrics for this fast-growing SFR REIT. In January, I predicted Single Family Rental ((SFR)) REITs would outperform the REIT average this year. That has proved true thus far, but just barely. According to Hoya Capital Income Builder, SFRs have averaged a total return of (-15.38)% YTD, compared to the Equity REIT Index return of (-17.41)%. Hoya Capital Income Builder Accordingly, in February I chose American Homes 4 Rent (AMH) as one of the Top 12 REITs for the succeeding 12 months. That has not panned out. Although AMH is up about 10% from its June low, and has slightly outperformed the VNQ, as shown in the chart below, there are no fewer than 25 REITs that have posted positive total returns YTD, while AMH has returned (-14.17)%. AMH Total Return Level data by YCharts Going forward, however, the tailwinds still look favorable for Single Family Rental REITs. As Hoya Capital writes in its recent Sector Report on SFRs: Single Family Rental ("SFR") REITs have been beneficiaries of surging mortgage rates, which made renting single-family homes a relative bargain. Indeed, according to Hoya's research, the nationwide average mortgage payment on a starter home is $839 a month higher than the average monthly rent. Hoya Capital Income Builder Another factor playing in favor of SFRs is the significant leasing spreads caused by the housing shortage and higher interest rates. Single-family rents rose at the fastest pace on record through mid-2022, an elevated pace that has staying-power given the significant 'embedded' rent growth resulting from below-market renewal offers. Hoya Capital Income Builder The Sunbelt continues to lead the way in economic growth and rent increase rates. Of the hottest 15 rental-increase markets in the U.S., 13 are in the southern half of the country. Three of the top four are in Florida. Hoya Capital Income Builder Meet the Company American Homes 4 Rent Based in Calabasas, California, AMH owns over 58,715 homes, according to their Q2 2022 10-Q. These are spread across 37 U.S. markets in 22 states, with a high concentration in desirable neighborhoods in the Sunbelt, enjoying a 97.4% occupancy rate. The average AMH home is 17 years old, about 2000 square feet in size, and rents for $1901 per month. Company 8-K as of September 12 The company's strongest concentrations of assets are in Atlanta, Dallas-Fort Worth, Charlotte, and Phoenix, but these four locales account for only 28.8% of the portfolio's gross book value, and 30.2% of total properties. Company 10-Q for Q2 2022 AMH grows in three ways: Development of build-to-rent housing communities, in which AMH is far and away the leader, Networking with builders to acquire newly constructed homes, and In-market acquisition teams that identify homes that come onto the market in areas where AMH already has a relatively high concentration. Further details on how the company operates can be found in this previous article, published in February. Of the three SFR REITs, AMH is the only one that builds its own units from the ground up, and such activity accounts for about half of AMH acquisitions. Thus, this company is contributing to resolving the housing shortage. Hoya Capital Income Builder AMH leasing spreads are averaging a healthy 12.9% on new leases, and 8.2% on renewals, for a blended spread of 9.6%. Company 8-K as of September 12 Housing continues to be in short supply, with the existing home inventory about 50% below its long-term average, and single-family permit levels down from a year ago. This adds up to a favorable situation for SFR landlords. Company 8-K as of September 12 Further enhancing SFR prospects, it is currently about 20% cheaper to rent a home than to own one, and the Millennial cohort, particularly over the coming 3 years, is coming into the 35-49 age range where people typically transition into single family dwellings. Company 8-K as of September 12 Net migration trends continue to benefit AMH, as Americans move from big cities on the coasts to secondary markets in the Sunbelt. AMH is conducting more than double the showings per property, compared to pre-pandemic levels, and handling more than half of inbound inquiries digitally. Company 8-K as of September 12 As Ross Bowler notes in a previous article, American Homes 4 Rent has shown a knack for being ahead of these patterns, and building a presence in these markets even before the change occurs. All three SFR REITs are concentrated more in the Sunbelt than anywhere else in the country. Of AMH's total portfolio, 80% is located in the Sunbelt, with 2% in Seattle and 18% in the Midwest. Hoya Capital Income Builder Quarterly results AMH reported Q2 results for 2022 on August 5. Here are the healthy highlights: Revenues of $362 million, up 15.4% YoY (year over year). Expenses of $324 million, up 18.4% YoY. Net income of $74.6 million, up 43.9% YoY. An increase of 8.8% in shares outstanding YoY. Net income per share of $0.16, up 167% YoY. Assets of $11.8 billion, versus liabilities totaling $4.9 billion. Same-property core NOI of $174 million, up 10.2% YoY. Core FFO of $153 million, up 24.8% YoY. EBITDA of $214 million, up 25.4% YoY. For the first half of 2022: Revenues of $718 million, up 14.7% YoY. Expenses of $634 million, up 14.5% YoY. Net income of $145 million, up 43.5% YoY. Net income per share of $0.32 up 100% YoY. Net cash from operations of $379 million, up 14.2% YoY. Same-property core NOI of $349 million, up 10.7% YoY Core FFO of $303 million, up 26.8% YoY EBITDA of $411 million, up 21.9% YoY In short, everything is up double digits, across the board. The company guided for full-year Core FFO per share of $1.56, core NOI growth of 10.0%, and $700 million in total acquisitions. Growth metrics Here are the sizzling 3-year growth figures for FFO (funds from operations) and TCFO (total cash from operations). Metric 2019 2020 2021 2022* 3-year CAGR FFO (millions) $384 $397 $471 $606 -- FFO Growth % -- 3.4 18.6 28.7 16.4% FFO per share $1.11 $1.16 $1.36 $1.56 -- FFO per share growth % -- 4.5 17.2 14.7 12.0% TCFO (millions) $458 $474 $595 $758 -- TCFO Growth % -- 3.5 25.5 27.4 18.3% *Projected, based on H1 2022 results Source: TD Ameritrade, CompaniesMarketCap.com, and author calculations The 3-year growth figures for revenue and cash flow are all double digits, and even in the pandemic year of 2020, AMH kept growing. AMH has slightly outgained its larger competitor Invitation Homes (INVH) in FFO growth per share and total return over the past 3 years.
|AMH||US REITs||US Market|
Return vs Industry: AMH exceeded the US REITs industry which returned -19.2% over the past year.
Return vs Market: AMH exceeded the US Market which returned -20.3% over the past year.
|AMH Average Weekly Movement||3.0%|
|REITs Industry Average Movement||4.0%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.7%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: AMH is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: AMH's weekly volatility (3%) has been stable over the past year.
About the Company
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 September 30, 2020, we owned 53,229 single-family properties in selected submarkets in 22 states.
American Homes 4 Rent Fundamentals Summary
|AMH fundamental statistics|
Is AMH overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|AMH income statement (TTM)|
|Cost of Revenue||US$644.97m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||0.57|
|Net Profit Margin||14.12%|
How did AMH perform over the long term?See historical performance and comparison
2.2%Current Dividend Yield
Is AMH undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for AMH?
Other financial metrics that can be useful for relative valuation.
|What is AMH's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does AMH's PE Ratio compare to its peers?
|AMH PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
CPT Camden Property Trust
ELS Equity LifeStyle Properties
ESS Essex Property Trust
AMH American Homes 4 Rent
Price-To-Earnings vs Peers: AMH is expensive based on its Price-To-Earnings Ratio (57.8x) compared to the peer average (46.5x).
Price to Earnings Ratio vs Industry
How does AMH's PE Ratio compare vs other companies in the US REITs Industry?
Price-To-Earnings vs Industry: AMH is expensive based on its Price-To-Earnings Ratio (57.8x) compared to the US REITs industry average (26.6x)
Price to Earnings Ratio vs Fair Ratio
What is AMH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||57.8x|
|Fair PE Ratio||41.7x|
Price-To-Earnings vs Fair Ratio: AMH is expensive based on its Price-To-Earnings Ratio (57.8x) compared to the estimated Fair Price-To-Earnings Ratio (41.7x).
Share Price vs Fair Value
What is the Fair Price of AMH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: AMH ($32.7) is trading below our estimate of fair value ($59.93)
Significantly Below Fair Value: AMH is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is American Homes 4 Rent forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AMH's forecast earnings growth (8.6% per year) is above the savings rate (1.9%).
Earnings vs Market: AMH's earnings (8.6% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: AMH's earnings are forecast to grow, but not significantly.
Revenue vs Market: AMH's revenue (8.3% per year) is forecast to grow faster than the US market (7.7% per year).
High Growth Revenue: AMH's revenue (8.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AMH's Return on Equity is forecast to be low in 3 years time (3.3%).
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How has American Homes 4 Rent performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AMH has a large one-off gain of $78.6M impacting its June 30 2022 financial results.
Growing Profit Margin: AMH's current net profit margins (14.1%) are higher than last year (8.1%).
Past Earnings Growth Analysis
Earnings Trend: AMH has become profitable over the past 5 years, growing earnings by 53.2% per year.
Accelerating Growth: AMH's earnings growth over the past year (97.4%) exceeds its 5-year average (53.2% per year).
Earnings vs Industry: AMH earnings growth over the past year (97.4%) exceeded the REITs industry 45.8%.
Return on Equity
High ROE: AMH's Return on Equity (3.7%) is considered low.
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How is American Homes 4 Rent's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: AMH's short term assets ($1.0B) exceed its short term liabilities ($477.3M).
Long Term Liabilities: AMH's short term assets ($1.0B) do not cover its long term liabilities ($4.4B).
Debt to Equity History and Analysis
Debt Level: AMH's net debt to equity ratio (62.1%) is considered high.
Reducing Debt: AMH's debt to equity ratio has increased from 44.3% to 63.1% over the past 5 years.
Debt Coverage: AMH's debt is not well covered by operating cash flow (14.6%).
Interest Coverage: AMH's interest payments on its debt are not well covered by EBIT (2.4x coverage).
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What is American Homes 4 Rent current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|American Homes 4 Rent Dividend Yield vs Market|
|Company (American Homes 4 Rent)||2.2%|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (REITs)||4.1%|
|Analyst forecast in 3 Years (American Homes 4 Rent)||2.6%|
Notable Dividend: AMH's dividend (2.2%) is higher than the bottom 25% of dividend payers in the US market (1.64%).
High Dividend: AMH's dividend (2.2%) is low compared to the top 25% of dividend payers in the US market (4.61%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, AMH has been paying a dividend for less than 10 years.
Growing Dividend: AMH's dividend payments have increased, but the company has only paid a dividend for 9 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (40%), AMH's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (47%), AMH's dividend payments are well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
David Singelyn (61 yo)
Mr. David P. Singelyn, CPA, has been the Chief Executive Officer and Trustee of American Homes 4 Rent, a General Partner of American Homes 4 Rent, L.P. since October 2012. He serves as Chief Executive Offi...
CEO Compensation Analysis
|David Singelyn's Compensation vs American Homes 4 Rent Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$5m||US$700k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$3m||US$570k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$1m||US$550k|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$473k||US$450k|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$268k||US$250k|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$272k||US$250k|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$282k||US$260k|
Compensation vs Market: David's total compensation ($USD4.59M) is below average for companies of similar size in the US market ($USD13.03M).
Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.
Experienced Management: AMH's management team is considered experienced (4.2 years average tenure).
Experienced Board: AMH's board of directors are considered experienced (6.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AMH insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|15 Sep 22||SellUS$196,865||Bryan Smith||Individual||5,519||US$35.67|
|08 Sep 22||BuyUS$15,430,415||Tamara Gustavson||Individual||422,203||US$36.84|
|13 May 22||BuyUS$27,659,009||Tamara Gustavson||Individual||755,000||US$37.01|
|13 May 22||BuyUS$6,300||Anita Mayala-Mcintyre||Individual||170||US$37.06|
|08 Dec 21||SellUS$1,058,750||John Corrigan||Individual||25,000||US$42.35|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||128,303||0.04%|
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.8%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
American Homes 4 Rent's employee growth, exchange listings and data sources
- Name: American Homes 4 Rent
- Ticker: AMH
- Exchange: NYSE
- Founded: 2012
- Industry: Residential REITs
- Sector: Real Estate
- Implied Market Cap: US$13.092b
- Market Cap: US$11.392b
- Shares outstanding: 399.75m
- Website: https://www.americanhomes4rent.com
Number of Employees
- American Homes 4 Rent
- 23975 Park Sorrento
- Suite 300
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|AMH||NYSE (New York Stock Exchange)||Yes||Class A Common Shares||US||USD||Aug 2013|
|A4XA||DB (Deutsche Boerse AG)||Yes||Class A Common Shares||DE||EUR||Aug 2013|
|0HEJ||LSE (London Stock Exchange)||Yes||Class A Common Shares||GB||USD||Aug 2013|
|AMH.PRG||NYSE (New York Stock Exchange)||5.875% CUM PFD G||US||USD||Jul 2017|
|AMH.PRH||NYSE (New York Stock Exchange)||6.25% CUM PFD H||US||USD||Sep 2018|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/29 00:00|
|End of Day Share Price||2022/09/29 00:00|
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.