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 Analysis

Slightly overvalued with limited growth.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

AMH

-0.07%

US REITs

-1.1%

US Market


1 Year Return

32.0%

AMH

16.6%

US REITs

17.8%

US Market

Return vs Industry: AMH exceeded the US REITs industry which returned 16.6% over the past year.

Return vs Market: AMH exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

AMHIndustryMarket
7 Day-2.5%-0.07%-1.1%
30 Day5.1%3.6%1.5%
90 Day6.3%6.9%6.6%
1 Year33.1%32.0%21.3%16.6%20.2%17.8%
3 Year24.9%21.5%37.4%20.2%47.5%38.1%
5 Year81.2%72.4%59.8%26.8%71.2%52.4%

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

Valuation

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

3.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMH ($28.77) is trading below our estimate of fair value ($29.78)

Significantly Below Fair Value: AMH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AMH is poor value based on its PE Ratio (107.6x) compared to the REITs industry average (37.2x).

PE vs Market: AMH is poor value based on its PE Ratio (107.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: AMH is poor value based on its PEG Ratio (6.6x)


Price to Book Ratio

PB vs Industry: AMH is good value based on its PB Ratio (1.6x) compared to the US REITs industry average (2.1x).


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?

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMH's forecast earnings growth (16.3% per year) is above the savings rate (1.7%).

Earnings vs Market: AMH's earnings (16.3% per year) are forecast to grow faster than the US market (14.1% per year).

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

Revenue vs Market: AMH's revenue (5.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: AMH's revenue (5.5% 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 (1.2%).


Next Steps

Past Performance

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

57.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMH has a large one-off gain of $33.6M impacting its September 30 2019 financial results.

Growing Profit Margin: AMH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AMH has become profitable over the past 5 years, growing earnings by 57.7% 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 (7.6%).


Return on Equity

High ROE: AMH's Return on Equity (2.5%) is considered low.


Return on Assets


Return on Capital Employed


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).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AMH is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: AMH is profitable, therefore cash runway is not a concern.


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?

0.69%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: AMH's dividend (0.7%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: AMH's dividend (0.7%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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

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

6.9yrs

Average management tenure


CEO

David Singelyn (58yo)

7.3yrs

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 ($USD473.00K) is below average for companies of similar size in the US market ($USD10.81M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tamara Gustavson
Chairman0.8yrsUS$105.32k6.01% $609.7m
David Singelyn
CEO & Trustee7.3yrsUS$473.00k2.31% $234.3m
B. Hughes
0yrsno data5.46% $553.8m
Christopher Lau
Chief Financial Officer1.6yrsUS$1.05m0.0040% $400.9k
Bryan Smith
Chief Operating Officer0.3yrsUS$1.05m0.0013% $127.9k
John Corrigan
Chief Investment Officer & Trustee7.3yrsUS$442.00k0.00079% $80.2k
Sara Vogt-Lowell
Chief Legal Officer & Secretary7.3yrsUS$880.23k0.0056% $573.4k
Stephanie Heim
Chief Governance Officer & Executive VP7.1yrsUS$880.23k0.0060% $603.8k
Brian Reitz
Senior Vice President of Accounting0yrsno datano data
Raymond Huning
Executive Vice President of Corporate Tax6.7yrsno datano data

6.9yrs

Average Tenure

57.5yo

Average Age

Experienced Management: AMH's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tamara Gustavson
Chairman0.8yrsUS$105.32k6.01% $609.7m
David Singelyn
CEO & Trustee7.3yrsUS$473.00k2.31% $234.3m
John Corrigan
Chief Investment Officer & Trustee7.3yrsUS$442.00k0.00079% $80.2k
Matthew Hart
Lead Independent Trustee0yrsUS$105.32k0.0058% $590.6k
David Goldberg
0.8yrsUS$714.54k0.011% $1.1m
Kenneth Woolley
Independent Trustee7.3yrsUS$112.82k0.0021% $214.1k
James Kropp
Independent Trustee7.3yrsUS$115.32k0.0061% $618.0k
Douglas Benham
Independent Trustee3.9yrsUS$105.32k0.0060% $607.9k
Winifred Webb
Independent Trustee1.1yrsno datano data
J. Lynch
Advisory Board Member0yrsno datano data

5.6yrs

Average Tenure

64yo

Average Age

Experienced Board: AMH's board of directors are considered experienced (5.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


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
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: US$10.148b
  • Market Cap: US$8.651b
  • Shares outstanding: 352.74m
  • 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 September 30, 2019, we owned 52,537 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 Analysis2020/02/24 03:17
End of Day Share Price2020/02/21 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.