NYSE:INVH

Stock Analysis Report

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Executive Summary

Invitation Homes is the nation's premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools.


Snowflake Analysis

Proven track record second-rate dividend payer.


Similar Companies

Share Price & News

How has Invitation Homes's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: INVH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.0%

INVH

3.9%

US REITs

2.4%

US Market


1 Year Return

4.8%

INVH

-7.4%

US REITs

9.2%

US Market

Return vs Industry: INVH exceeded the US REITs industry which returned -8.6% over the past year.

Return vs Market: INVH underperformed the US Market which returned 8.5% over the past year.


Shareholder returns

INVHIndustryMarket
7 Day5.0%3.9%2.4%
30 Day21.1%9.7%10.2%
90 Day-8.6%-11.9%3.4%
1 Year6.9%4.8%-3.6%-7.4%11.6%9.2%
3 Year37.2%29.5%16.0%1.8%33.7%24.9%
5 Yearn/a47.1%17.0%59.7%41.8%

Price Volatility Vs. Market

How volatile is Invitation Homes's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Invitation Homes undervalued compared to its fair value and its price relative to the market?

84.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INVH ($27.59) is trading above our estimate of fair value ($23.14)

Significantly Below Fair Value: INVH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: INVH is poor value based on its PE Ratio (85x) compared to the REITs industry average (28x).

PE vs Market: INVH is poor value based on its PE Ratio (85x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: INVH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: INVH is overvalued based on its PB Ratio (1.9x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is Invitation Homes forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INVH's earnings are forecast to decline over the next 3 years (-8.1% per year).

Earnings vs Market: INVH's earnings are forecast to decline over the next 3 years (-8.1% per year).

High Growth Earnings: INVH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: INVH's revenue (3.5% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: INVH's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INVH's Return on Equity is forecast to be low in 3 years time (1%).


Next Steps

Past Performance

How has Invitation Homes performed over the past 5 years?

70.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INVH has a large one-off gain of $88.4M impacting its March 31 2020 financial results.

Growing Profit Margin: INVH's current net profit margins (9.8%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: INVH has become profitable over the past 5 years, growing earnings by 70.1% per year.

Accelerating Growth: INVH's earnings growth over the past year (427.2%) exceeds its 5-year average (70.1% per year).

Earnings vs Industry: INVH earnings growth over the past year (427.2%) exceeded the REITs industry 5.3%.


Return on Equity

High ROE: INVH's Return on Equity (2.2%) is considered low.


Next Steps

Financial Health

How is Invitation Homes's financial position?


Financial Position Analysis

Short Term Liabilities: INVH's short term assets ($690.0M) do not cover its short term liabilities ($1.1B).

Long Term Liabilities: INVH's short term assets ($690.0M) do not cover its long term liabilities ($8.6B).


Debt to Equity History and Analysis

Debt Level: INVH's debt to equity ratio (116.2%) is considered high.

Reducing Debt: INVH's debt to equity ratio has reduced from 296.5% to 116.2% over the past 5 years.

Debt Coverage: INVH's debt is not well covered by operating cash flow (7%).

Interest Coverage: INVH's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: INVH's dividend (2.17%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: INVH's dividend (2.17%) is low compared to the top 25% of dividend payers in the US market (4.48%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, INVH has been paying a dividend for less than 10 years.

Growing Dividend: INVH's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.4%), INVH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INVH's dividends in 3 years are forecast to be thoroughly covered by earnings (0.09% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Dallas Tanner (38yo)

1.42yrs

Tenure

US$6,291,215

Compensation

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 Invitatio ...


CEO Compensation Analysis

Compensation vs Market: Dallas's total compensation ($USD6.29M) is below average for companies of similar size in the US market ($USD11.58M).

Compensation vs Earnings: Dallas's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dallas Tanner
Co-Founder1.42yrsUS$6.29m0.034% $5.1m
Ernest Freedman
Executive VP & CFO4.67yrsUS$4.76m0.048% $7.3m
Charles Young
Executive VP & COO2.58yrsUS$4.54m0.018% $2.7m
Mark Solls
Executive VP4.83yrsUS$2.51m0.014% $2.2m
Kimberly Norrell
Executive VP & Chief Accounting Officer5.42yrsno data0.016% $2.4m
Lawrence Gorman
Executive VP & CTOno datano datano data
Virginia Suliman
Executive VP & Chief Information Officer0.50yrno datano data
Greg Winkle
Vice President of Investor Relations3.92yrsno datano data
Kristi DesJarlais
Senior Vice President of Communications1.75yrsno datano data
Jiggs Foster
Senior Vice President of Marketing4.17yrsno datano data

3.9yrs

Average Tenure

51yo

Average Age

Experienced Management: INVH's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dallas Tanner
Co-Founder1.42yrsUS$6.29m0.034% $5.1m
Jo Ann Roizen
Independent Director0.083yrno datano data
William Stein
Independent Director7.67yrsno data0.0060% $910.3k
Bryce Blair
Chairperson of the Board3.42yrsUS$740.01k0.062% $9.4m
Jeffrey Kelter
Independent Director2.58yrsUS$210.86k0.010% $1.6m
Michael Fascitelli
Independent Director2.58yrsUS$230.86k0.0090% $1.4m
Richard Bronson
Independent Director2.58yrsUS$210.86k0.0072% $1.1m
Janice Sears
Independent Director3.42yrsUS$230.86k0.0055% $833.9k
John Rhea
Independent Director4.67yrsUS$230.86k0.0056% $861.4k
Jana Barbe
Independent Director1.58yrsUS$210.86k0.0016% $250.5k

2.6yrs

Average Tenure

59yo

Average Age

Experienced Board: INVH's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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 5.9%.


Top Shareholders

Company Information

Invitation Homes Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Invitation Homes Inc.
  • Ticker: INVH
  • Exchange: NYSE
  • Founded: 2012
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: US$15.273b
  • Market Cap: US$15.403b
  • Shares outstanding: 547.23m
  • Website: https://www.InvitationHomes.com

Number of Employees


Location

  • Invitation Homes Inc.
  • 1717 Main Street
  • Suite 2000
  • Dallas
  • Texas
  • 75201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4IVDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2017
INVHNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2017
INVH *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 2017

Biography

Invitation Homes is the nation's premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, "Together with you, we make a house a home," reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 05:02
End of Day Share Price2020/06/02 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.