Invitation Homes — The Essentials

Now trading at a price of $29.8, Invitation Homes has moved 0.5% so far today on a volume of 167,869, compared to its average of 3,911,885. In contrast, the S&P 500 index moved 0.9%.

Invitation Homes shares moved -34.3% over the last 52 weeks, with a high of $45.72 and a low of $29.07. During this time, the stock lagged the S&P 500 index by -14.4%. As of January 2022, the company's 50-day average price is $31.3292. 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. The large-cap Real Estate company has 1,240 full time employees and is based in Dallas, TX. Invitation Homes has returned a 3.0% dividend yield over the last 12 months.

Overview of the Company's Worrying Use of Leverage:

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $1,765 $1,823 $1,997
Revenue Growth n/a 3.29% 9.53%
Operating Margins 24.1% 25.7% 27.6%
Operating Margins Growth n/a 6.64% 7.39%
Net Margins 8.24% 10.76% 13.09%
Net Margins Growth n/a 30.58% 21.65%
Earnings Per Share $0.27 $0.35 $0.45
EPS Growth n/a 29.63% 28.57%
Free Cash Flow (MM) $498 $524 $745
FCF Growth n/a 5.33% 42.03%
Capital Expenditures (MM) -$164 -$172 -$163
Net Debt / EBITDA 10.86 7.66 6.51

Although it is on a downwards trend, the Net Debt / EBITDA ratio suggests that earnings are being obtained on usually high levels of leverage (debt). Most quality companies have a ratio under 3.

Invitation Homes Is Overvalued:

Compared to the Real Estate sector's average of 27.16, Invitation Homes has a trailing twelve month price to earnings (P/E) ratio of 51.4 and, based on its EPS guidance of 0.7, an expected P/E ratio of 42.6.

The firm's price to earnings growth (PEG) is 3.21, which indicates that it is overvalued in terms of its expected rate of earnings growth.

Invitation Homes is undervalued in terms of its assets because its price to book (P/B) ratio is 1.8 compared to its sector average of 2.39. The company's shares are currently trading 154.9% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 0.36 * 16.871) = $11.69

Invitation Homes Is the Subject of Mixed Market Indicators:

20 analysts are following Invitation Homes and have set target prices ranging from $31 to $44 per share. On average, they have given the company a rating of buy. At the current price of $29.8, INVH is trading -18.26% away from its average analyst target price of $36.45 per share, implying an analyst consensus of some upside potential for the stock.

The company has an average amount of shares sold short since 4.3% of the company's shares are tied to short positions. Institutions own 105.7% of Invitation Homes's shares, while the insider ownership rate stands at 0.22%. The biggest shareholder is the Vanguard Group, Inc. with a 16% stake in the company worth approximately $2,928,239,878.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.