* Note: Prices are in Million (M) USD.
Description:
Invitation Homes is the nation's leading single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, renovated homes with valuable features like proximity to jobs and access to good schools.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $174 M
Debt : $7,632 M
EBITDA : $1,440 M
Net Debt (Debt - Cash): $7,458 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Real Estate
Industry: REIT - Residential
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 15.52
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $722 M
Average Revenue: $1,643 M
Revenue Converted To Free Cash FLow(%): 44%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 12.57%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $2,619 M
Revenue 4 Years Ago (2020-12-31): $1,823 M
Last 5 Years Average Revenue Growth: 9%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $614 M
Share Count 5 Years Ago (2020-12-31): $555 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.99
Trailing 12-Month Earnings Per Share (EPS): $1.92
Average Earnings Per Share (EPS): $1.96
Dividend Per Share (DPS): $1
Payout Ratio: 58%
Dividend Yield: 4%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 3, 3 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: -0%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $30
52-Week Low: $29
Threshold Price (15% Above 52-Week Low): $33
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $19,780 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 24 points to above Invitation Homes Inc (INVH) stock.
Last 8 Years Avg PE (Limited to last 8 years of EPS data) 40, Fair Value PE 15, Industry Based PE is 20 and Growth based PE is 10. Based on these all values average assigned is 21.25.
Value-Trades has assined P/E value 21.25. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.955.
The fair value of Invitation Homes Inc (INVH) stock should be (21.25 x $1.955) = $41.54
