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Invitation Homes

NYSE:INVH
Snowflake Description

Moderate growth potential second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
INVH
NYSE
$14B
Imp Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

Invitation Homes is a leading owner and operator of single-family rental homes, offering residents high-quality homes across America. The last earnings update was 19 days ago. More info.


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INVH Share Price and Events
7 Day Returns
1.7%
NYSE:INVH
0.1%
US REITs
-1.4%
US Market
1 Year Returns
18.1%
NYSE:INVH
13.9%
US REITs
1.6%
US Market
INVH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Invitation Homes (INVH) 1.7% 3.1% 12% 18.1% - -
US REITs 0.1% 2.1% 3.4% 13.9% 11.4% 25.6%
US Market -1.4% -3.9% 0.2% 1.6% 33.2% 38.2%
1 Year Return vs Industry and Market
  • INVH outperformed the REITs industry which returned 13.9% over the past year.
  • INVH outperformed the Market in United States of America which returned 1.6% over the past year.
Price Volatility
INVH
Industry
5yr Volatility vs Market

INVH Value

 Is Invitation Homes undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Invitation Homes to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Invitation Homes.

NYSE:INVH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:INVH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.53
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.529 (1 + (1- 21%) (66.56%))
0.871
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.871 * 5.96%)
7.92%

Discounted Cash Flow Calculation for NYSE:INVH using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for Invitation Homes is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Invitation Homes is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

NYSE:INVH DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (USD, Millions) Source Present Value
Discounted (@ 7.92%)
2019 549.27 Analyst x10 508.97
2020 593.88 Analyst x9 509.92
2021 609.30 Analyst x3 484.77
2022 636.19 Est @ 4.41% 469.02
2023 661.06 Est @ 3.91% 451.59
2024 684.56 Est @ 3.56% 433.33
2025 707.20 Est @ 3.31% 414.81
2026 729.37 Est @ 3.13% 396.42
2027 751.35 Est @ 3.01% 378.39
2028 773.35 Est @ 2.93% 360.89
Present value of next 10 years cash flows $4,408.10
NYSE:INVH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $773.35 × (1 + 2.73%) ÷ (7.92% – 2.73%)
$15,309.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $15,309.25 ÷ (1 + 7.92%)10
$7,144.28
NYSE:INVH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,408.10 + $7,144.28
$11,552.38
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $11,552.38 / 530.45
$21.78
NYSE:INVH Discount to Share Price
Calculation Result
Value per share (USD) From above. $21.78
Current discount Discount to share price of $25.77
= -1 x ($25.77 - $21.78) / $21.78
-18.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Invitation Homes is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Invitation Homes's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Invitation Homes's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:INVH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.06
NYSE:INVH Share Price ** NYSE (2019-05-24) in USD $25.77
United States of America REITs Industry PE Ratio Median Figure of 155 Publicly-Listed REITs Companies 32.61x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 17.44x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Invitation Homes.

NYSE:INVH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:INVH Share Price ÷ EPS (both in USD)

= 25.77 ÷ 0.06

413.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Invitation Homes is overvalued based on earnings compared to the US REITs industry average.
  • Invitation Homes is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Invitation Homes's expected growth come at a high price?
Raw Data
NYSE:INVH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 413.44x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
54.1%per year
United States of America REITs Industry PEG Ratio Median Figure of 141 Publicly-Listed REITs Companies 2.41x
United States of America Market PEG Ratio Median Figure of 2,121 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

NYSE:INVH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 413.44x ÷ 54.1%

7.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Invitation Homes is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Invitation Homes's assets?
Raw Data
NYSE:INVH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $15.50
NYSE:INVH Share Price * NYSE (2019-05-24) in USD $25.77
United States of America REITs Industry PB Ratio Median Figure of 191 Publicly-Listed REITs Companies 1.89x
United States of America Market PB Ratio Median Figure of 5,207 Publicly-Listed Companies 1.8x
NYSE:INVH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:INVH Share Price ÷ Book Value per Share (both in USD)

= 25.77 ÷ 15.50

1.66x

* Primary Listing of Invitation Homes.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Invitation Homes is good value based on assets compared to the US REITs industry average.
X
Value checks
We assess Invitation Homes's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Invitation Homes has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

INVH Future Performance

 How is Invitation Homes expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
54.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Invitation Homes expected to grow at an attractive rate?
  • Invitation Homes's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Invitation Homes's earnings growth is expected to exceed the United States of America market average.
  • Invitation Homes's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:INVH Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:INVH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 54.1%
NYSE:INVH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 3.6%
United States of America REITs Industry Earnings Growth Rate Market Cap Weighted Average 5.8%
United States of America REITs Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:INVH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:INVH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,900 992 195 5
2020-12-31 1,842 804 120 14
2019-12-31 1,773 773 72 15
NYSE:INVH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,735 624 32
2018-12-31 1,723 561 -6
2018-09-30 1,620 506 -77
2018-06-30 1,430 403 -101
2018-03-31 1,239 317 -81
2017-12-31 1,054 263 -89
2017-09-30 959 273 -69
2017-06-30 949 264 -69
2017-03-31 937 249 -94
2016-12-31 923 256 -78
2016-09-30 905 249 -90
2016-06-30 885 240 -100

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Invitation Homes's earnings are expected to grow significantly at over 20% yearly.
  • Invitation Homes's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:INVH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Invitation Homes Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:INVH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.26 0.31 0.21 3.00
2020-12-31 0.20 0.27 0.14 8.00
2019-12-31 0.12 0.16 0.08 8.00
NYSE:INVH Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.06
2018-12-31 -0.01
2018-09-30 -0.16
2018-06-30 -0.23
2018-03-31 -0.21
2017-12-31 -0.26
2017-09-30 -0.22
2017-06-30 -0.22
2017-03-31 -0.30
2016-12-31 -0.25
2016-09-30
2016-06-30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Invitation Homes is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Invitation Homes's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Invitation Homes has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

INVH Past Performance

  How has Invitation Homes performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Invitation Homes's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Invitation Homes has delivered over 20% year on year earnings growth in the past 5 years.
  • Invitation Homes has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Invitation Homes has become profitable in the last year making it difficult to compare the US REITs industry average.
Earnings and Revenue History
Invitation Homes's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Invitation Homes Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:INVH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,734.79 32.46 74.11
2018-12-31 1,722.96 -5.74 73.63
2018-09-30 1,620.30 -77.06 84.95
2018-06-30 1,429.59 -100.63 83.32
2018-03-31 1,239.38 -81.05 83.02
2017-12-31 1,054.46 -89.07 118.02
2017-09-30 959.05 -69.49 101.55
2017-06-30 948.56 -68.69 102.05
2017-03-31 936.84 -93.78 99.03
2016-12-31 922.59 -78.24 56.12
2016-09-30 904.72 -90.13 65.39
2016-06-30 885.02 -99.52 60.57
2016-03-31 857.54 -125.02 69.98
2015-12-31 836.05 -160.21 79.43
2014-12-31 658.72 -269.86 88.18

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Invitation Homes has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Invitation Homes used its assets less efficiently than the US REITs industry average last year based on Return on Assets.
  • Invitation Homes has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Invitation Homes's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Invitation Homes has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

INVH Health

 How is Invitation Homes's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Invitation Homes's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Invitation Homes is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Invitation Homes's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Invitation Homes's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Invitation Homes Company Filings, last reported 1 month ago.

NYSE:INVH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 8,221.37 9,098.99 168.55
2018-12-31 8,369.19 9,340.78 220.35
2018-09-30 8,564.65 9,457.02 287.43
2018-06-30 8,583.58 9,675.27 304.11
2018-03-31 8,636.90 9,668.85 250.02
2017-12-31 8,649.88 9,651.66 237.49
2017-09-30 3,602.01 5,652.34 139.97
2017-06-30 3,643.97 5,655.07 161.89
2017-03-31 3,658.04 5,714.39 198.36
2016-12-31 1,957.42 7,578.96 198.12
2016-09-30 1,986.47 7,680.96 274.14
2016-06-30 2,003.70 7,693.83 299.55
2016-03-31 1,887.03 7,725.96 274.82
2015-12-31 1,887.03 7,725.96 274.82
2014-12-31 2,456.60 6,564.64 285.60
  • Invitation Homes's level of debt (110.7%) compared to net worth is high (greater than 40%).
  • Unable to establish if Invitation Homes's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (6.9%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Invitation Homes's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Invitation Homes has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

INVH Dividends

 What is Invitation Homes's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.02%
Current annual income from Invitation Homes dividends. Estimated to be 2.09% next year.
If you bought $2,000 of Invitation Homes shares you are expected to receive $40 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Invitation Homes's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • Invitation Homes's dividend is below the markets top 25% of dividend payers in United States of America (3.75%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:INVH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United States of America REITs Industry Average Dividend Yield Market Cap Weighted Average of 184 Stocks 3.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2007 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:INVH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.58 6.00
2020-12-31 0.55 13.00
2019-12-31 0.51 14.00
NYSE:INVH Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-03 0.520 2.075
2019-02-01 0.520 2.188
2018-11-02 0.440 2.097
2018-08-03 0.440 1.932
2018-05-04 0.440 1.934
2018-02-02 0.440 1.976
2017-10-13 0.320 1.388
2017-08-04 0.320 1.418
2017-05-05 0.240 1.116

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Invitation Homes has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Invitation Homes only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Invitation Homes's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (1315.8x coverage).
X
Income/ dividend checks
We assess Invitation Homes's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Invitation Homes afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Invitation Homes has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

INVH Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dallas Tanner
COMPENSATION $3,342,458
AGE 37
TENURE AS CEO 0.3 years
CEO Bio

Mr. Dallas B. Tanner has been President, Chief Executive Officer and Director of Invitation Homes Inc since January 16, 2019. He served as Interim President and Interim Chief Executive Officer of Invitation Homes Inc since August 27, 2018 until January 16, 2019. Mr. Tanner is the Co-Founder of Invitation Homes Inc. He served as the Chief Investment Officer of Invitation Homes Inc. since April 2012 until January 16, 2019 and was its Executive Vice President since April 2012 until August 27, 2018. Mr. Tanner has over 18 years of real estate experience through the establishment of numerous real estate platforms prior to Invitation Homes. In 2005, he founded Treehouse Group, for which he privately sourced funds for platform investments, including single-family homes, multifamily properties, manufactured housing, residential land, bridge financing and property management. In addition, Mr. Tanner was a Partner in a successful acquisition of First Scottsdale Bank of Arizona. He served as a Director of Invitation Homes Inc. since April 2012. He continues to serves on the board of Treehouse Group’s Pathfinder Ventures, a Southwest-focused commercial real estate fund established in 2011. Mr. Tanner served on the Maricopa County Flood Control board in Phoenix, Arizona and on the advisory board of First Scottsdale Bank. He is actively involved in American Indian Services and served as a missionary in the Netherlands and Belgium.

CEO Compensation
  • Dallas's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dallas's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Invitation Homes management team in years:

2.2
Average Tenure
50
Average Age
  • The tenure for the Invitation Homes management team is about average.
Management Team

Bryce Blair

TITLE
Chairperson of the Board
COMPENSATION
$740K
AGE
59

Dallas Tanner

TITLE
Co-Founder
COMPENSATION
$3M
AGE
37
TENURE
0.3 yrs

Ernie Freedman

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
47
TENURE
3.6 yrs

Charles Young

TITLE
Executive VP & COO
COMPENSATION
$3M
AGE
50
TENURE
1.5 yrs

Mark Solls

TITLE
Executive VP
COMPENSATION
$2M
AGE
61
TENURE
3.8 yrs

Kimberly Norrell

TITLE
Senior VP & Chief Accounting Officer

Larry Gorman

TITLE
Executive VP & CTO
AGE
50

Greg Winkle

TITLE
Senior Director of Investor Relations
TENURE
2.8 yrs

Kristi DesJarlais

TITLE
Senior Vice President of Communications
TENURE
0.7 yrs

John Gibson

TITLE
Senior VP of Asset Management
TENURE
2.2 yrs
Board of Directors Tenure

Average tenure and age of the Invitation Homes board of directors in years:

1.9
Average Tenure
56.5
Average Age
  • The average tenure for the Invitation Homes board of directors is less than 3 years, this suggests a new board.
Board of Directors

Dallas Tanner

TITLE
Co-Founder
COMPENSATION
$3M
AGE
37
TENURE
0.3 yrs

John Rhea

TITLE
Director
COMPENSATION
$200K
AGE
52
TENURE
2.3 yrs

Bryce Blair

TITLE
Chairperson of the Board
COMPENSATION
$740K
AGE
59
TENURE
2.3 yrs

Janice Sears

TITLE
Director
COMPENSATION
$200K
AGE
57
TENURE
2.3 yrs

Bill Stein

TITLE
Director
AGE
56
TENURE
2.3 yrs

Rob Harper

TITLE
Director
AGE
40
TENURE
2.3 yrs

Ken Caplan

TITLE
Director
AGE
45
TENURE
1 yrs

Barry Sternlicht

TITLE
Director
COMPENSATION
$180K
AGE
57
TENURE
1.5 yrs

Jeffrey Kelter

TITLE
Director
COMPENSATION
$180K
AGE
64
TENURE
1.5 yrs

Skip Bronson

TITLE
Director
COMPENSATION
$180K
AGE
73
TENURE
1.5 yrs
Who owns this company?
Recent Insider Trading
  • Invitation Homes insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. May 19 Sell Charles Young Individual 13. May 19 13. May 19 -29,925 $24.83 $-743,038
14. Sep 18 Sell Starwood Capital Operations, LLC Company 14. Sep 18 14. Sep 18 -199,374 $23.55 $-4,695,258
27. Mar 19 Sell The Blackstone Group L.P. Company 25. Mar 19 25. Mar 19 -40,000,000 $23.22 $-928,800,000
14. Sep 18 Sell Barry Sternlicht Individual 14. Sep 18 14. Sep 18 -1,110,475 $23.55 $-26,151,686
X
Management checks
We assess Invitation Homes's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Invitation Homes has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

INVH News

Simply Wall St News

Is Invitation Homes Inc. (NYSE:INVH) A Smart Choice For Dividend Investors?

(NYSE:INVH) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. Some readers mightn't know much about Invitation Homes's 2.1% dividend, as it has only been paying distributions for the last two years. A low dividend might not be a bad thing, if the company is reinvesting heavily and growing its sales and profits. Some simple research can reduce the risk of buying Invitation Homes for its dividend - read on to learn more. Explore this interactive chart for our latest analysis on Invitation Homes! NYSE:INVH Historical Dividend Yield, May 17th 2019 Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Looking at the data, we can see that 46% of Invitation Homes's profits were paid out as dividends in the last 12 months. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Of the free cash flow it generated last year, Invitation Homes paid out 37% as dividends, suggesting the dividend is affordable. REITs like Invitation Homes often have different rules governing their distributions, so a higher payout ratio on its own is not unusual. Is Invitation Homes's Balance Sheet Risky? As Invitation Homes has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … With net debt of more than 5x EBITDA, Invitation Homes could be described as a highly leveraged company. … It's great to see that Invitation Homes is paying out a low percentage of its earnings and cash flow.

Simply Wall St -

Read This Before Buying Invitation Homes Inc. (NYSE:INVH) Shares

So we'll take a look at whether insiders have been buying or selling shares in Invitation Homes Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … That means that an insider was selling shares at slightly below the current price (US$24.50).

Simply Wall St -

Invitation Homes Inc. (NYSE:INVH) Insiders Have Been Selling

So we'll take a look at whether insiders have been buying or selling shares in Invitation Homes Inc. … That means that an insider was selling shares at around the current price of US$20.75. … We usually pause to reflect on the potential that a stock has a high valuation, if insiders have been selling at around the current price

Simply Wall St -

What You Need To Know Before Investing In Invitation Homes Inc (NYSE:INVH)

real estate investment trust (REIT) based in Dallas, United States. … REITs are basically a portfolio of income-producing real estate investments, which are owned and operated by management of that trust company. … They have to meet certain requirements in order to become a REIT, meaning they should be analyzed a different way.

Simply Wall St -

Is Invitation Homes Inc (NYSE:INVH) A Healthy REIT?

real estate investment trust (REIT) based in Dallas, United States. … REITs are basically a portfolio of income-producing real estate investments, which are owned and operated by management of that trust company. … They have to meet certain requirements in order to become a REIT, meaning they should be analyzed a different way

Simply Wall St -

Beyond Invitation Homes Inc's (NYSE:INVH) Growth

Invitation Homes Inc (NYSE:INVH) continues to post impressive revenue growth and its prospects have never been brighter. … I will conduct a high level fundamental analysis on the company by looking at its past financials and growth prospects moving forward. … NYSE:INVH Future Profit May 14th 18 The company is growing incredibly fast, with a year-on-year revenue growth of 14.29% over the past financial year.

Simply Wall St -

3 Days Left To Cash In On Invitation Homes Inc (NYSE:INVH) Dividend, Should Investors Buy?

Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Invitation Homes's latest financial data to analyse its dividend attributes. … View our latest analysis for Invitation Homes 5 questions I ask before picking a dividend stock When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is its annual yield among the top 25% of dividend-paying companies? … Invitation Homes has a negative payout ratio, which means that it is loss-making, and paying its dividend from its retained earnings.

Simply Wall St -

Only 3 Days Left Before Invitation Homes Inc (NYSE:INVH) Will Start Trading Ex-Dividend, Should Investors Buy?

See our latest analysis for Invitation Homes 5 questions to ask before buying a dividend stock When researching a dividend stock, I always follow the following screening criteria: Is it the top 25% annual dividend yield payer? … NYSE:INVH Historical Dividend Yield Feb 8th 18 How does Invitation Homes fare? … Unfortunately, it is really too early to view Invitation Homes as a dividend investment.

Simply Wall St -

Is Invitation Homes Inc's (INVH) CEO Paid At A Competitive Rate?

See our latest analysis for INVH What has been the trend in INVH's earnings? … In the past year, INVH produced negative earnings of -$69.5M. … Typically I'd use market cap and profit as factors determining performance, however, INVH's negative earnings lower the effectiveness of this method.

Simply Wall St -

Who Owns Most Of Invitation Homes Inc (INVH)?

In this analysis, my focus will be on developing a perspective on Invitation Homes Inc’s (NYSE:INVH) latest ownership structure, a less discussed, but important factor. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … View our latest analysis for Invitation Homes NYSE:INVH Ownership Summary Nov 21st 17 Institutional Ownership With an institutional ownership of 35.24%, INVH can face volatile stock price movements if institutions execute block trades on the open market, more so, when there are relatively small amounts of shares available on the market to trade Although INVH has a high institutional ownership, such stock moves, in the short-term, are more commonly linked to a particular type of active institutional investors – hedge funds.

Simply Wall St -

INVH Company Info

Description

Invitation Homes is a leading owner and operator of single-family rental homes, offering residents high-quality homes across America. With over 80,000 homes for lease in 17 markets across the country, Invitation Homes is meeting changing lifestyle demands by providing residents access to updated homes with features they value, such as close proximity to jobs and access to good schools. The Company's mission statement, "Together with you, we make a house a home," reflects its commitment to high-touch service that continuously enhances residents' living experiences and provides homes where individuals and families can thrive.

Details
Name: Invitation Homes Inc.
INVH
Exchange: NYSE
Founded: 2012
$13,669,805,764
$13,529,016,910
530,454,240
Website: http://www.InvitationHomes.com
Address: Invitation Homes Inc.
1717 Main Street,
Suite 2000,
Dallas,
Texas, 75201,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE INVH Common Stock New York Stock Exchange US USD 01. Feb 2017
DB 4IV Common Stock Deutsche Boerse AG DE EUR 01. Feb 2017
BMV INVH * Common Stock Bolsa Mexicana de Valores MX MXN 01. Feb 2017
Number of employees
Current staff
Staff numbers
1,231
Invitation Homes employees.
Industry
Residential REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/26 00:50
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/24
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.