company background image
AMH

American Homes 4 Rent NYSE:AMH Stock Report

Last Price

US$32.70

Market Cap

US$13.1b

7D

-3.9%

1Y

-14.2%

Updated

29 Sep, 2022

Data

Company Financials +
AMH fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health1/6
Dividends3/6

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

Summary of all time highs, changes and price drops for American Homes 4 Rent
Historical stock prices
Current Share PriceUS$32.70
52 Week HighUS$44.07
52 Week LowUS$32.19
Beta0.60
1 Month Change-6.92%
3 Month Change-8.02%
1 Year Change-14.22%
3 Year Change26.11%
5 Year Change50.00%
Change since IPO109.62%

Recent News & Updates

Sep 16

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.

Shareholder Returns

AMHUS REITsUS Market
7D-3.9%-6.4%-3.1%
1Y-14.2%-20.3%-21.5%

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.

Price Volatility

Is AMH's price volatile compared to industry and market?
AMH volatility
AMH Average Weekly Movement3.0%
REITs Industry Average Movement4.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
20121,538David Singelynhttps://www.americanhomes4rent.com

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

How do American Homes 4 Rent's earnings and revenue compare to its market cap?
AMH fundamental statistics
Market CapUS$13.09b
Earnings (TTM)US$197.09m
Revenue (TTM)US$1.40b

57.8x

P/E Ratio

8.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AMH income statement (TTM)
RevenueUS$1.40b
Cost of RevenueUS$644.97m
Gross ProfitUS$750.67m
Other ExpensesUS$553.59m
EarningsUS$197.09m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.57
Gross Margin53.79%
Net Profit Margin14.12%
Debt/Equity Ratio63.1%

How did AMH perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

40%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is AMH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

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

  • Analyst Forecast

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.

AMH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue11.8x
Enterprise Value/EBITDA24x
PEG Ratio6.7x

Price to Earnings Ratio vs Peers

How does AMH's PE Ratio compare to its peers?

AMH PE Ratio vs Peers
The above table shows the PE ratio for AMH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average46.5x
CPT Camden Property Trust
15.4x-47.0%US$12.8b
ELS Equity LifeStyle Properties
41.3x3.9%US$12.2b
UDR UDR
89.2x27.2%US$14.2b
ESS Essex Property Trust
40.3x14.2%US$16.1b
AMH American Homes 4 Rent
57.8x8.6%US$13.1b

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.

AMH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio57.8x
Fair PE Ratio41.7x

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.


Discover undervalued companies

Future Growth

How is American Homes 4 Rent forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.6%

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%).


Discover growth companies

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


53.2%

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.


Discover strong past performing companies

Financial Health

How is American Homes 4 Rent's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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).


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.20%

Current Dividend Yield

Dividend Yield vs Market

American Homes 4 Rent Dividend Yield vs Market
How does American Homes 4 Rent dividend yield compare to the market?
SegmentDividend Yield
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.


Discover strong dividend paying companies

Management

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

4.2yrs

Average management tenure


CEO

David Singelyn (61 yo)

9.92yrs

Tenure

US$4,592,060

Compensation

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
How has David Singelyn's remuneration changed compared to American Homes 4 Rent's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$197m

Mar 31 2022n/an/a

US$160m

Dec 31 2021US$5mUS$700k

US$135m

Sep 30 2021n/an/a

US$114m

Jun 30 2021n/an/a

US$100m

Mar 31 2021n/an/a

US$95m

Dec 31 2020US$3mUS$570k

US$85m

Sep 30 2020n/an/a

US$82m

Jun 30 2020n/an/a

US$83m

Mar 31 2020n/an/a

US$90m

Dec 31 2019US$1mUS$550k

US$86m

Sep 30 2019n/an/a

US$80m

Jun 30 2019n/an/a

US$71m

Mar 31 2019n/an/a

US$34m

Dec 31 2018US$473kUS$450k

US$23m

Sep 30 2018n/an/a

-US$16m

Jun 30 2018n/an/a

-US$30m

Mar 31 2018n/an/a

-US$15m

Dec 31 2017US$268kUS$250k

-US$22m

Sep 30 2017n/an/a

US$2m

Jun 30 2017n/an/a

-US$20m

Mar 31 2017n/an/a

-US$31m

Dec 31 2016US$272kUS$250k

-US$34m

Sep 30 2016n/an/a

-US$56m

Jun 30 2016n/an/a

-US$64m

Mar 31 2016n/an/a

-US$71m

Dec 31 2015US$282kUS$260k

-US$85m

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.


Leadership Team

Experienced Management: AMH's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: AMH's board of directors are considered experienced (6.5 years average tenure).


Ownership

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

NYSE:AMH Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
15 Sep 22SellUS$196,865Bryan SmithIndividual5,519US$35.67
08 Sep 22BuyUS$15,430,415Tamara GustavsonIndividual422,203US$36.84
13 May 22BuyUS$27,659,009Tamara GustavsonIndividual755,000US$37.01
13 May 22BuyUS$6,300Anita Mayala-McintyreIndividual170US$37.06
08 Dec 21SellUS$1,058,750John CorriganIndividual25,000US$42.35

Ownership Breakdown

What is the ownership structure of AMH?
Owner TypeNumber of SharesOwnership Percentage
State or Government128,3030.04%
Individual Insiders28,914,2768.1%
Institutions329,858,85991.9%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.8%.


Top Shareholders

Top 25 shareholders own 72.24% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.69%
The Vanguard Group, Inc.
40,732,703$1.3b-6.16%0.03%
6.63%
BlackRock, Inc.
23,086,688$754.9m3.22%0.02%
6.15%
Tamara Gustavson
21,418,798$700.4m2.01%no data
5.43%
Norges Bank Investment Management
18,917,160$618.6m17.65%0.09%
5.18%
Principal Global Investors, LLC
18,032,573$589.7m-0.25%0.42%
4.05%
State Street Global Advisors, Inc.
14,094,837$460.9m9.59%0.03%
2.81%
FMR LLC
9,781,601$319.9m24.82%0.03%
2.59%
J.P. Morgan Asset Management, Inc.
9,020,790$295.0m5.76%0.06%
2.42%
PGGM
8,417,661$275.3m0%1.67%
2.06%
CI Global Asset Management
7,173,752$234.6m-6.05%0.6%
2.01%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
7,007,911$229.2m-4.37%0.08%
2%
David Singelyn
6,957,884$227.5m-0.57%no data
1.86%
Victory Capital Management Inc.
6,492,840$212.3m-13.6%0.24%
1.78%
Invesco Ltd.
6,215,049$203.2m15.59%0.07%
1.73%
Echo Street Capital Management, LLC
6,030,048$197.2m-1.41%1.84%
1.66%
Security Capital Research & Management Incorporated
5,769,459$188.7m-2.83%6.63%
1.52%
CenterSquare Investment Management LLC
5,281,960$172.7m37.69%2.44%
1.4%
T. Rowe Price Group, Inc.
4,876,063$159.4m5494.45%0.02%
1.39%
Ceredex Value Advisors LLC
4,845,800$158.5m46.76%2.45%
1.36%
RREEF America L.L.C.
4,735,380$154.8m83.04%0.77%
1.33%
Geode Capital Management, LLC
4,636,682$151.6m1.65%0.02%
1.32%
Boston Partners Global Investors, Inc.
4,607,936$150.7m2.23%0.13%
1.32%
Dimensional Fund Advisors LP
4,584,415$149.9m-0.28%0.04%
1.29%
Zimmer Partners, LP
4,507,500$147.4m-1.43%3.23%
1.28%
Massachusetts Financial Services Company
4,442,876$145.3m21.84%0.04%

Company Information

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


Key Information

  • 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


Location

  • American Homes 4 Rent
  • 23975 Park Sorrento
  • Suite 300
  • Calabasas
  • California
  • 91302
  • 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.PRGNYSE (New York Stock Exchange)5.875% CUM PFD GUSUSDJul 2017
AMH.PRHNYSE (New York Stock Exchange)6.25% CUM PFD HUSUSDSep 2018

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.