AMH Intrinsic Value Calculation – “Is American Homes 4 Rent Falling Behind Other Finance Stocks This Year?
November 18, 2023
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American Homes 4 ($NYSE:AMH) Rent (AMH) is a real estate investment trust (REIT) headquartered in Agoura Hills, California. The company acquires, develops, renovates, and manages single-family rental homes in the United States. It is one of the largest providers of single-family rental homes in the nation and is listed on the New York Stock Exchange. This year, however, it seems as though finance stocks have been outperforming American Homes 4 Rent. Despite this drop in stock price, American Homes 4 Rent appears to be weathering the storm better than most other companies in the industry.
The company is continuing to make investments in its portfolio and has increased occupancy levels to record highs. Furthermore, it appears to be well positioned to handle any economic downturns that may come its way. The stock has definitely taken a hit due to the current market conditions, but it appears to be well positioned to handle any future economic downturns. Investors would be wise to keep an eye on this stock and consider adding it to their portfolios if the price continues to decline further.
Share Price
On Tuesday, AMH opened at $35.9 and closed at $36.6, a rise of 5.2% from its last closing price of $34.8. This increase was a welcome change of pace for investors, but it wasn’t enough to make up for the losses that AMH has seen over the course of the year. The question remains whether AMH will be able to turn its fortunes around and catch up to other finance stocks, or whether this year will be a lost cause for the company’s investors. With the continued uncertainty in the markets, it may be some time before we know the answer. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AMH. More…
| Total Revenues | Net Income | Net Margin |
| 1.6k | 376.96 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AMH. More…
| Operations | Investing | Financing |
| 702.2 | -1.43k | 786.18 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AMH. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.56k | 5.01k | 18.96 |
Key Ratios Snapshot
Some of the financial key ratios for AMH are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 22.4% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – AMH Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of AMERICAN HOMES 4 RENT’s financials. Our proprietary Valuation Line suggested that the intrinsic value of an AMERICAN HOMES 4 RENT share is around $53.5. Currently, AMERICAN HOMES 4 RENT stock is traded at $36.6 – meaning it is undervalued by 31.6%. This presents a great opportunity for investors to take advantage of a potential upside in the stock’s price. More…
Peers
The competition among American Homes 4 Rent and its competitors, Invitation Homes Inc, Sun Communities Inc, and Mid-America Apartment Communities Inc, is fierce. All four companies are vying for a share of the market for rental homes in the United States. American Homes 4 Rent has a slight advantage over its competitors in terms of size, but all four companies are well-positioned to compete for the business of American renters.
– Invitation Homes Inc ($NYSE:INVH)
Invitation Homes Inc is a real estate investment trust that focuses on the single-family home rental market. As of December 31, 2020, the Company owned 86,247 homes in 17 metropolitan areas across the United States.
– Sun Communities Inc ($NYSE:SUI)
Sun Communities Inc is a real estate investment trust that owns, operates, and develops manufactured home communities in the United States. As of December 31, 2020, the company owned, operated, or had an interest in a portfolio of 384 manufactured home communities containing approximately 111,900 developed sites. Sun Communities Inc is headquartered in Southfield, Michigan.
– Mid-America Apartment Communities Inc ($NYSE:MAA)
As of 2022, Mid-America Apartment Communities Inc has a market cap of 17.04B. The company is a real estate investment trust that owns, operates, and develops apartment communities in the United States.
Summary
American Homes 4 Rent (AMH) is an attractive investment for investors looking for a reliable source of income. The company is a Real Estate Investment Trust (REIT) and has delivered steady dividends and capital appreciation in the past. This outperformance is largely due to the company’s strategy of acquiring and managing single-family rental homes, which has helped them maintain steady rental income.
On top of that, AMH has also been expanding its portfolio to include larger properties such as apartments. With strong cash flow and balance sheet, AMH is well-positioned to capitalize on future opportunities.
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