NYSE:AMH

Stock Analysis Report

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

Fundamentals

Questionable track record and overvalued.

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


Market Performance


7 Day Return

-1.7%

AMH

-0.3%

US REITs

1.8%

US Market


1 Year Return

23.6%

AMH

19.5%

US REITs

7.3%

US Market

Return vs Industry: AMH exceeded the US REITs industry which returned 19.5% over the past year.

Return vs Market: AMH exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

AMHIndustryMarket
7 Day-1.7%-0.3%1.8%
30 Day2.8%0.9%-0.7%
90 Day3.1%7.0%0.06%
1 Year24.6%23.6%24.9%19.5%9.7%7.3%
3 Year23.7%20.4%34.5%17.4%46.3%36.9%
5 Year59.1%51.1%63.3%28.9%64.5%46.5%

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

Valuation

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

106.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: AMH ($25.65) is trading above our estimate of fair value ($25.12)

Significantly Undervalued: AMH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AMH is poor value based on its PE Ratio (106.7x) compared to the REITs industry average (36.2x).

PE vs Market: AMH is poor value based on its PE Ratio (106.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: AMH is poor value based on its PEG Ratio (9.5x)


Price to Book Ratio

PB vs Industry: AMH is good value based on its PB Ratio (1.5x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMH's forecast earnings growth (11.2% per year) is above the savings rate (2.7%).

Earnings vs Market: AMH's earnings (11.2% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: AMH's earnings are forecast to grow, but not significantly.

Revenue vs Market: AMH's revenue (4.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: AMH's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: AMH's Return on Equity is forecast to be low in 3 years time (1.2%).


Next Steps

Past Performance

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

48.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AMH has become profitable over the past 5 years, growing earnings by 48.5% per year.

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

Earnings vs Industry: AMH has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (17.6%).


Return on Equity

High ROE: AMH's Return on Equity (2.3%) is considered low.


Return on Assets

ROA vs Industry: AMH's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: AMH has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is American Homes 4 Rent'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: AMH has a high level of physical assets or inventory.

Debt Coverage by Assets: AMH's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

0.78%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.5%markettop25%3.7%industryaverage3.6%forecastin3Years0.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AMH's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: AMH's dividend (0.78%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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

Growing Dividend: AMH 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 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's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of American Homes 4 Rent's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

David Singelyn (58yo)

7yrs

Tenure

US$473,000

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 ($USD473.00K) is about average for companies of similar size in the US market ($USD6.79M).

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


Management Age and Tenure

6.8yrs

Average Tenure

57.5yo

Average Age

Experienced Management: AMH's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

64yo

Average Age

Experienced Board: AMH's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$2,569,80003 Sep 19
John Corrigan
EntityIndividual
Role
Member of the Board of Directors
Chief Investment Officer & Trustee
Shares100,000
Max PriceUS$25.76
SellUS$511,00028 Aug 19
John Corrigan
EntityIndividual
Role
Member of the Board of Directors
Chief Investment Officer & Trustee
Shares20,000
Max PriceUS$25.60
SellUS$2,053,75026 Aug 19
John Corrigan
EntityIndividual
Role
Member of the Board of Directors
Chief Investment Officer & Trustee
Shares80,000
Max PriceUS$25.68
SellUS$257,08428 May 19
Bryan Smith
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares10,519
Max PriceUS$24.44
SellUS$4,178,56320 May 19
David Singelyn
EntityIndividual
Role
Chief Executive Officer
CEO & Trustee
Shares174,734
Max PriceUS$24.01
SellUS$21,390,00014 May 19
John Corrigan
EntityIndividual
Role
Member of the Board of Directors
Chief Investment Officer & Trustee
Shares900,000
Max PriceUS$23.80
SellUS$1,742,25010 May 19
John Corrigan
EntityIndividual
Role
Member of the Board of Directors
Chief Investment Officer & Trustee
Shares73,327
Max PriceUS$23.76
SellUS$22,210,43410 May 19
David Singelyn
EntityIndividual
Role
Chief Executive Officer
CEO & Trustee
Shares940,000
Max PriceUS$24.05
SellUS$7,945,65015 Mar 19
John Corrigan
EntityIndividual
Role
Member of the Board of Directors
Chief Investment Officer & Trustee
Shares350,000
Max PriceUS$22.71
SellUS$102,79314 Mar 19
Bryan Smith
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares4,544
Max PriceUS$22.62
SellUS$5,969,26013 Mar 19
John Corrigan
EntityIndividual
Role
Member of the Board of Directors
Chief Investment Officer & Trustee
Shares265,000
Max PriceUS$22.65
SellUS$2,438,37008 Mar 19
John Corrigan
EntityIndividual
Role
Member of the Board of Directors
Chief Investment Officer & Trustee
Shares110,000
Max PriceUS$22.17
SellUS$1,645,00228 Feb 19
David Goldberg
EntityIndividual
Role
Member of the Board of Directors
Shares74,586
Max PriceUS$22.06
BuyUS$7,505,48026 Nov 18
B. Hughes
EntityIndividual
Role
Top Key Executive
Shares379,400
Max PriceUS$19.80
BuyUS$7,505,48026 Nov 18
Tamara Gustavson
EntityIndividual
Role
Chairman of the Board
Chairman
Shares379,400
Max PriceUS$19.80
BuyUS$2,841,46821 Nov 18
Tamara Gustavson
EntityIndividual
Role
Chairman of the Board
Chairman
Shares144,138
Max PriceUS$19.73
BuyUS$2,841,44821 Nov 18
B. Hughes
EntityIndividual
Role
Top Key Executive
Shares144,137
Max PriceUS$19.73
BuyUS$6,186,69916 Nov 18
B. Hughes
EntityIndividual
Role
Top Key Executive
Shares308,845
Max PriceUS$20.35
BuyUS$6,186,68016 Nov 18
Tamara Gustavson
EntityIndividual
Role
Chairman of the Board
Chairman
Shares308,844
Max PriceUS$20.35
BuyUS$7,292,23213 Nov 18
Tamara Gustavson
EntityIndividual
Role
Chairman of the Board
Chairman
Shares355,998
Max PriceUS$20.50
BuyUS$7,292,23213 Nov 18
B. Hughes
EntityIndividual
Role
Top Key Executive
Shares355,998
Max PriceUS$20.50
BuyUS$19,999,36708 Nov 18
B. Hughes
EntityIndividual
Role
Top Key Executive
Shares991,100
Max PriceUS$20.29
BuyUS$19,999,36708 Nov 18
Tamara Gustavson
EntityIndividual
Role
Chairman of the Board
Chairman
Shares991,100
Max PriceUS$20.29

Ownership Breakdown


Management Team

  • David Singelyn (58yo)

    CEO & Trustee

    • Tenure: 7yrs
    • Compensation: US$473.00k
  • B. Hughes (85yo)

    • Tenure: 0yrs
  • Ray Huning

    Executive Vice President of Corporate Tax

    • Tenure: 6.3yrs
  • Stephanie Heim (64yo)

    Executive VP of Counsel & Assistant Secretary

    • Tenure: 6.8yrs
    • Compensation: US$880.23k
  • Tamara Gustavson (57yo)

    Chairman

    • Tenure: 0.4yrs
    • Compensation: US$105.32k
  • Sara Vogt-Lowell (44yo)

    Chief Legal Officer & Secretary

    • Tenure: 7yrs
    • Compensation: US$880.23k
  • Jack Corrigan (59yo)

    Chief Investment Officer & Trustee

    • Tenure: 7yrs
    • Compensation: US$442.00k
  • Bryan Smith (45yo)

    Chief Operating Officer

    • Tenure: 0yrs
    • Compensation: US$1.05m
  • Chris Lau (37yo)

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: US$1.05m
  • Brian Reitz

    Senior Vice President of Accounting

    • Tenure: 0yrs

Board Members

  • Matt Hart (67yo)

    Independent Presiding Trustee

    • Tenure: 0yrs
    • Compensation: US$105.32k
  • David Singelyn (58yo)

    CEO & Trustee

    • Tenure: 7yrs
    • Compensation: US$473.00k
  • David Goldberg (69yo)

    • Tenure: 0.4yrs
    • Compensation: US$714.54k
  • Ken Woolley (73yo)

    Independent Trustee

    • Tenure: 6.9yrs
    • Compensation: US$112.82k
  • Jim Kropp (70yo)

    Independent Trustee

    • Tenure: 6.9yrs
    • Compensation: US$115.32k
  • Doug Benham (62yo)

    Independent Trustee

    • Tenure: 3.6yrs
    • Compensation: US$105.32k
  • Wendy Webb (61yo)

    Independent Trustee

    • Tenure: 0.8yrs
  • J. Lynch (66yo)

    Advisory Board Member

    • Tenure: 0yrs
  • Tamara Gustavson (57yo)

    Chairman

    • Tenure: 0.4yrs
    • Compensation: US$105.32k
  • Jack Corrigan (59yo)

    Chief Investment Officer & Trustee

    • Tenure: 7yrs
    • Compensation: US$442.00k

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
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: US$9.082b
  • Market Cap: US$7.707b
  • Shares outstanding: 352.70m
  • 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,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:11
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.