American Homes (AMH) AI Stock Analysis

• Market Cap: $11.44B
• Dividend Yield: 3.76%
• Average Volume (3M): 2.85M
• Price to Earnings (P/E): 26.2
• Beta (1Y): 0.29
• Revenue Growth: 7.63%
• EPS Growth: 23.16%
• Country: US
• Employees: 1,730
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.27
• Shares Outstanding: 370,470,830
• 10 Day Avg. Volume: 2,284,545
• 30 Day Avg. Volume: 2,851,829
• PEG Ratio: 4.81
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 7.95
• P/FCF Ratio: 19.93
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 9.67
• Enterprise Value/Gross Profit: 17.16
• Enterprise Value/Ebitda: 16.84
• 1Y Price Target: $37.85
• Price Target Upside: 22.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 0.94
• Revenue Forecast (FY): $1.85B

• Rating: 66 Neutral
• Price Target: $33.00 ▲(7.04% Upside)

American Homes 4 Rent shows strong financial performance and a positive outlook from recent corporate events, which are significant strengths. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The earnings call provided a balanced view with both strengths and challenges, contributing to a moderate overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for rental properties and effective pricing strategies, supporting long-term financial stability.

Cash Flow Generation

Robust cash flow generation relative to earnings ensures liquidity and supports reinvestment in property acquisitions and renovations.

Balance Sheet Strength

A strong balance sheet with no near-term debt obligations enhances financial flexibility and reduces risk, allowing for strategic growth initiatives.

Negative Factors

Rising Debt Levels

Rising debt levels, if not managed carefully, could strain financial resources and limit the company's ability to invest in growth opportunities.

Decline in Free Cash Flow Growth

A significant decline in free cash flow growth may impact the company's ability to fund future investments and maintain operational flexibility.

Operational Efficiency Pressure

Declining EBITDA margins suggest increasing operational costs, which could pressure profitability if not addressed through cost management.

American Homes Business Overview & Revenue Model

Company Description

American Homes 4 Rent (NYSE: AMH) is a leader in the single-family home rental industry and American Homes 4 Rent is fast becoming a nationally recognized brand for rental homes, known for high-quality, good value and tenant satisfaction. We are an internally managed Maryland real estate investment trust, or REIT, focused on acquiring, developing, renovating, leasing, and operating attractive, single-family homes as rental properties. As of September 30, 2020, we owned 53,229 single-family properties in selected submarkets in 22 states.

How the Company Makes Money

American Homes generates revenue primarily through the leasing of its single-family rental properties. The company earns rental income from tenants who occupy its homes, which constitutes the bulk of its revenue stream. Additionally, AMH may benefit from property appreciation, allowing for profitable sales of owned homes over time. The company also focuses on operational efficiencies and cost management to maximize profitability. Significant partnerships with property management and maintenance service providers help ensure the upkeep of their properties, contributing to tenant satisfaction and retention. Other potential revenue streams include ancillary services such as lease renewals and tenant fees.

American Homes Financial Statement Overview

Summary

American Homes demonstrates solid financial health with strong revenue growth and profitability. The balance sheet reflects a stable capital structure, though rising debt levels warrant attention. Cash flow generation is strong, but recent declines in free cash flow growth could affect future investments.

Income Statement

American Homes shows strong revenue growth with a TTM increase of 1.93% and consistent gross profit margins around 56%. The net profit margin is healthy at 23.52%, indicating effective cost management. However, the slight decline in EBITDA margin from 63.37% in 2023 to 50.22% in TTM suggests some pressure on operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.72, reflecting a balanced approach to leverage. Return on equity is stable at 5.94%, showing consistent profitability. The equity ratio stands at 52.72%, indicating a solid capital structure. However, the increasing debt levels over the years could pose a risk if not managed carefully.

Cash Flow

Operating cash flow to net income ratio is strong at 1.72, suggesting robust cash generation relative to earnings. However, free cash flow growth has declined significantly by 94.8% in TTM, which could impact future investment capabilities. The free cash flow to net income ratio remains healthy at 83.94%, indicating good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.83B	1.73B	1.62B	1.49B	1.30B	1.17B
Gross Profit	1.03B	961.30M	883.87M	802.29M	701.06M	623.06M
EBITDA	1.05B	874.31M	806.26M	731.54M	640.72M	570.44M
Net Income	452.08M	412.43M	380.17M	273.14M	189.09M	140.37M
Balance Sheet
Total Assets	13.25B	13.38B	12.69B	12.18B	10.96B	9.59B
Cash, Cash Equivalents and Short-Term Investments	45.63M	199.41M	59.38M	69.16M	48.20M	137.06M
Total Debt	4.86B	5.03B	4.48B	4.54B	3.90B	2.86B
Total Liabilities	5.42B	5.53B	5.04B	5.00B	4.22B	3.12B
Stockholders Equity	7.16B	7.16B	6.97B	6.50B	6.06B	5.79B
Cash Flow
Free Cash Flow	661.88M	689.78M	604.51M	526.74M	472.65M	369.28M
Operating Cash Flow	820.70M	811.53M	738.69M	665.52M	595.20M	474.10M
Investing Cash Flow	-813.46M	-825.88M	-692.58M	-1.43B	-1.73B	-642.92M
Financing Cash Flow	-149.36M	142.70M	-42.21M	786.18M	1.06B	269.78M

American Homes Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMH, the sentiment is Negative. The current price of 30.83 is below the 20-day moving average (MA) of 31.85, below the 50-day MA of 32.30, and below the 200-day MA of 34.74, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 34.09 is Neutral, neither overbought nor oversold. The STOCH value of 5.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMH.

American Homes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPT	73 Outperform	$14.66B	42.01	5.79%	3.96%	1.41%	-21.93%
SUI	72 Outperform	$15.86B	16.05	-5.55%	6.21%	-20.69%	330.60%
MAA	71 Outperform	$15.82B	27.90	9.41%	4.60%	0.91%	6.55%
INVH	68 Neutral	$16.64B	52.20	5.99%	4.27%	6.82%	27.91%
AMH	66 Neutral	$11.44B	26.15	6.36%	3.76%	7.63%	23.16%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
UDR	64 Neutral	$18.67B	80.55	4.41%	4.87%	2.38%	17.42%

American Homes Corporate Events

American Homes Unveils Strategic Plans and Financial Outlook

On December 3, 2025, American Homes 4 Rent released its ‘Investor Highlights’ presentation, detailing its strategic plans and financial outlook for the year. The company emphasized its robust development and disposition programs, which are expected to drive continued growth and optimize its portfolio. AMH reported a strong financial position with a fully unencumbered balance sheet and significant undrawn credit capacity. The company also highlighted its leadership in the residential sector with a projected Core FFO per share growth of 5.6% for 2025, supported by strong renewal rates and a growing demand for high-quality rental housing.