A Brief Overview of Invitation Homes Stock

Invitation Homes logged a 1.1% change during today's morning session, and is now trading at a price of $34.98 per share.

Invitation Homes returned losses of -9.0% last year, with its stock price reaching a high of $40.2 and a low of $28.52. Over the same period, the stock underperformed the S&P 500 index by -18.0%. As of April 2023, the company's 50-day average price was $34.69. Invitation Homes, an S&P 500 company, 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. Based in Dallas, TX, the large-cap Real Estate company has 1,511 full time employees. Invitation Homes has offered a 2.9% dividend yield over the last 12 months.

Growing Revenues With Increasing Reinvestment in the Business:

2020-02-19 2021-02-19 2022-02-22 2023-02-22
Revenue (MM) $1,765 $1,823 $1,997 $2,238
Operating Margins 24.1% 25.7% 27.6% 29.1%
Net Margins 8.24% 10.76% 13.09% 17.13%
Net Income (MM) $145 $196 $261 $383
Net Interest Expense (MM) -$367 -$354 -$323 -$304
Depreciation & Amort. (MM) -$534 -$553 -$592 -$638
Earnings Per Share $0.27 $0.35 $0.45 $0.68
EPS Growth n/a 29.63% 28.57% 51.11%
Diluted Shares (MM) 532 555 579 612
Free Cash Flow (MM) $557 $1,491 $2,197 $1,796
Capital Expenditures (MM) $105 -$794 -$1,290 -$773
Net Current Assets (MM) -$8,841 -$8,538 -$7,880 -$7,759
Current Ratio 0.03 0.07 0.25 0.25
Long Term Debt (MM) $334 $3,211 $4,943 $6,123
LT Debt to Equity 0.04 0.38 0.5 0.59

Invitation Homes benefits from growing revenues and increasing reinvestment in the business, exceptional EPS growth, and healthy debt levels. The company's financial statements show average operating margins with a stable trend and consistent free cash flow.

Invitation Homes's Valuation Is in Line With Its Sector Averages:

Invitation Homes has a trailing twelve month P/E ratio of 51.0, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $0.79, the company has a forward P/E ratio of 43.9. Invitation Homes's PEG ratio is 4.86 on the basis of the 10.5% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. In contrast, the market is likely undervaluing Invitation Homes in terms of its equity because its P/B ratio is 2.09 while the sector average is 2.24. The company's shares are currently trading 171.7% above their Graham number. In conclusion, Invitation Homes's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.

There's an Analyst Consensus of Some Upside Potential for Invitation Homes:

The 16 analysts following Invitation Homes have set target prices ranging from $35.0 to $41.0 per share, for an average of $37.34 with a buy rating. As of April 2023, the company is trading -7.1% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Invitation Homes has an average amount of shares sold short because 2.8% of the company's shares are sold short. Institutions own 105.7% of the company's shares, and the insider ownership rate stands at 0.32%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 16% stake in the company is worth $3,447,649,222.

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.