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American Homes (AMH)
NYSE:AMH
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American Homes
(NYSE:AMH)
Rating:75Outperform
Price Target:
$42.00
▲(10.91%Upside)
Positive Factors
Earnings
Earnings beat the Street with SSRev/NOI also ahead of expectations, and bad debt improved.
Market Position
American Homes 4 Rent is positioned to benefit from a dropoff in supply from apartment delivery, commercial SFR developments, and lower homebuilding activity due to lack of affordability.
Operational Performance
The company's strong operational performance, a clean balance sheet, and superior rental product contribute to its relative premium.
Negative Factors
Churn
Churn increased to 7.0%, which raises some concerns.
Guidance
The guidance for FY2025 Core FFO/sh is slightly softer-than-expected, with the midpoint currently below both analyst estimates and consensus.
Lease Trends
The stock is expected to face modest pressure in light of weak new lease rate concerns and slowing core trends.
American Homes (AMH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.02B
Dividend Yield2.85%
Average Volume (3M)1.91M
Price to Earnings (P/E)35.1
Beta (1Y)0.64
Revenue Growth6.90%
EPS Growth9.99%
CountryUS
Employees1,730
SectorReal Estate
Sector Strength68
IndustryREIT - Residential
Share Statistics
EPS (TTM)0.30
Shares Outstanding369,525,630
10 Day Avg. Volume1,853,510
30 Day Avg. Volume1,913,394
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)2.00
Price to Sales (P/S)0.00
P/FCF Ratio20.31
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue2.78
Enterprise Value/Gross Profit19.29
Enterprise Value/Ebitda4.75
Forecast
1Y Price Target
$40.96Price Target Upside8.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
American Homes Business Overview & Revenue Model
Company DescriptionAmerican 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 MoneyAmerican Homes 4 Rent generates revenue primarily through the leasing of its single-family homes. The company's key revenue stream is rental income from tenants who occupy its properties. AMH strategically selects properties in desirable locations, ensuring consistent demand and occupancy rates. Additional revenue may come from ancillary services provided to tenants and potential property appreciation. The company also benefits from economies of scale in property management and maintenance, optimizing operational efficiency. Strategic partnerships with local real estate agents and contractors further enhance its service offerings and operational capabilities.
American Homes Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -0.05%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong start to 2025 with significant growth in key financial metrics, recognition as a leading home builder, and successful revenue optimization strategies. However, challenges such as increased turnover due to strategic initiatives and potential cost impacts from tariffs present areas to monitor.Q1-2025 Updates
Positive Updates
Strong Start to 2025
AMH reported $0.46 of core FFO per share for the first quarter, representing a 6.6% growth over the same period last year. This was driven by the acceleration of top-line metrics each month since the start of the year.
Recognition as a Leading Home Builder
AMH was recognized as the 37th largest home builder in the country by Builder Magazine, up from 39th last year.
High Resident Retention and Demand
AMH's resident retention remains above 70%, and demand for high-quality, well-located homes remains strong, as evidenced by a national Google score of 4.7 out of 5 stars.
Successful Revenue Optimization
AMH successfully began aligning lease expirations with peak leasing season demand and grew occupancy by 50 basis points.
S&P Global Credit Rating Improvement
S&P Global revised AMH's credit rating to a Positive Outlook, highlighting the company's prudent balance sheet management.
Negative Updates
Impact of Tariffs on Development Costs
AMH anticipates a 2% to 3% increase in development costs due to tariffs, which could affect long-term pricing and new home deliveries.
Increased Turnover Due to Lease Expiration Management
The lease expiration management initiative led to higher turnover in Q1, although retention remained consistent. This may continue to affect turnover into Q2.
Challenges in Certain Markets
AMH experienced some challenges in the San Antonio and Austin markets due to increased build-to-rent supply and for-sale market dynamics.
Company Guidance
During the AMH First Quarter 2025 Earnings Conference Call, CEO Bryan Smith highlighted several key metrics and strategic initiatives that demonstrate the company's strong performance and future prospects. AMH reported a core FFO per share of $0.46 for the first quarter, marking a 6.6% increase compared to the same period last year. The company's same-home average occupied days strengthened to 95.9%, with rental rate spreads for new, renewal, and blended leases at 1.4%, 4.5%, and 3.6%, respectively. This drove a same-home core revenue growth of 4.3% and core NOI growth of 4.4% for the quarter. AMH successfully increased occupancy by 50 basis points and maintained a resident retention rate exceeding 70%. Additionally, the company was recognized as the 37th largest home builder by Builder Magazine and achieved a national Google score of 4.7 out of 5 stars. CFO Chris Lau noted a net income attributable to common shareholders of $110 million, or $0.30 per diluted share, and emphasized the company's strong balance sheet with a net debt to adjusted EBITDA ratio of 5.3 times. Despite market uncertainties, AMH maintained its 2025 guidance, citing strong sector fundamentals and a proven business model.American Homes Financial Statement Overview
Summary
American Homes exhibits strong financial health with consistent revenue and profit growth, efficient operational performance, and solid cash flow management. The company maintains a stable balance sheet with moderate leverage and a strong equity base, positioning it well within the REIT - Residential industry.Income Statement
American Homes has demonstrated consistent revenue growth, with a notable increase from $1.18 billion in 2020 to $1.77 billion in TTM (Trailing-Twelve-Months) 2025. The gross profit margin is robust, remaining around 56% over the periods, indicating effective cost management. Net profit margin improved significantly from 3.2% in 2020 to 23.1% in TTM 2025, highlighting enhanced profitability. EBIT and EBITDA margins are strong, with TTM figures at 24.0% and 49.2% respectively, showcasing operational efficiency.85
Very Positive
Balance Sheet
The balance sheet is solid with a debt-to-equity ratio of approximately 0.57 in TTM 2025, reflecting moderate leverage. Return on Equity is impressive, rising from 1.3% in 2020 to 5.7% in TTM 2025, indicating effective use of equity to generate profits. The equity ratio stands at 57.5% in TTM 2025, suggesting a stable financial structure with a sizable equity base.78
Positive
Cash Flow
Cash flow generation is strong, with free cash flow growing from $369 million in 2020 to $735 million in TTM 2025. The operating cash flow to net income ratio is robust at 2.03 in TTM 2025, indicating high cash generation from operations relative to net income. Free cash flow to net income ratio is also healthy, further underscoring efficient cash management.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.77B | 1.75B | 1.62B | 1.49B | 1.30B | 1.18B | Gross Profit |
| 994.12M | 991.19M | 883.87M | 825.75M | 716.81M | 642.68M | EBIT |
| 425.55M | 412.89M | 352.71M | 338.02M | 291.50M | 236.97M | EBITDA |
| 871.17M | 877.71M | 1.03B | 764.55M | 664.35M | 580.12M | Net Income Common Stockholders |
| 409.62M | 398.48M | 380.17M | 175.15M | 70.21M | 37.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 69.70M | 199.41M | 59.38M | 69.16M | 48.20M | 137.06M | Total Assets |
| 13.29B | 13.38B | 12.69B | 12.18B | 10.96B | 9.59B | Total Debt |
| 4.94B | 5.03B | 4.48B | 4.52B | 3.88B | 2.82B | Net Debt |
| 4.87B | 4.83B | 4.42B | 4.45B | 3.83B | 2.68B | Total Liabilities |
| 5.45B | 5.53B | 5.04B | 5.00B | 4.22B | 3.12B | Stockholders Equity |
| 7.15B | 7.16B | 6.97B | 6.50B | 6.06B | 5.79B |
| Cash Flow | Free Cash Flow | ||||
| 704.27M | 689.78M | 604.51M | 526.74M | 472.65M | 369.28M | Operating Cash Flow |
| 833.16M | 811.53M | 738.69M | 665.52M | 595.20M | 474.10M | Investing Cash Flow |
| -865.82M | -825.88M | -692.58M | -1.43B | -1.73B | -642.92M | Financing Cash Flow |
| -32.17M | 142.70M | -42.21M | 786.18M | 1.06B | 269.78M |
American Homes Technical Analysis
Positive
37.87
Price Trends
37.21
Positive
36.19
Positive
36.81
Positive
Market Momentum
0.12
Positive
51.80
Neutral
40.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMH, the sentiment is Positive. The current price of 37.87 is below the 20-day moving average (MA) of 38.13, above the 50-day MA of 37.21, and above the 200-day MA of 36.81, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 51.80 is Neutral, neither overbought nor oversold. The STOCH value of 40.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMH.
American Homes Risk Analysis
American Homes disclosed 45 risk factors in its most recent earnings report. American Homes reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Our use of artificial intelligence could expose us to various risks. Q4, 2024
2.
New laws and regulations could impede our ability to operate or grow our business. Q4, 2024
American Homes Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $14.02B | 35.14 | 5.81% | 2.85% | 6.90% | 9.99% | |
72 Outperform | $16.68B | 108.36 | 2.47% | 3.48% | 0.56% | -73.40% | |
71 Outperform | $20.64B | 97.99 | 4.92% | 3.38% | 6.11% | -37.43% | |
70 Outperform | $13.72B | 115.86 | 3.40% | 4.12% | 2.35% | -73.89% | |
70 Neutral | $15.80B | 195.86 | 1.44% | 3.05% | -6.88% | -45.29% | |
68 Neutral | $12.73B | 34.01 | 22.87% | 3.06% | 0.69% | 5.67% | |
61 Neutral | $2.82B | 10.77 | 0.50% | 8439.01% | 5.72% | -20.80% |
* Real Estate Sector Average
Performance Comparison
AMH
American Homes
37.87
2.54
7.19%
ELS
Equity Lifestyle
63.41
1.37
2.21%
SUI
Sun Communities
123.82
12.61
11.34%
UDR
UDR
41.41
3.41
8.97%
CPT
Camden Property
117.83
15.12
14.72%
INVH
Invitation Homes
33.67
-0.13
-0.38%
American Homes Corporate Events
Business Operations and StrategyFinancial Disclosures
American Homes Releases Strategic Investor Highlights
Positive
May 29, 2025
On May 29, 2025, American Homes 4 Rent released its ‘Investor Highlights’ presentation, detailing its strategic initiatives and financial outlook. The company expects to deliver between 2,200 and 2,400 new homes in 2025 and has a robust land pipeline for future growth. AMH reported strong financial health with a high-quality investment-grade balance sheet and significant undrawn credit capacity. The company also highlighted favorable market conditions, including a national shortage of single-family homes and a growing renter cohort, which support its long-term growth strategy.
The most recent analyst rating on (AMH) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on American Homes stock, see the AMH Stock Forecast page.
Private Placements and FinancingRegulatory Filings and Compliance
American Homes Completes $650M Senior Notes Offering
Neutral
May 13, 2025
On May 13, 2025, American Homes 4 Rent, L.P. completed an offering of $650 million in Senior Notes due 2030, with a 4.950% coupon rate. The Notes, issued at 99.444% of par value, are unsecured and unsubordinated obligations, with interest payable semi-annually starting December 15, 2025. The Indenture includes covenants limiting the Operating Partnership’s ability to incur additional debt and requires maintaining total unencumbered assets of at least 150% of total unsecured indebtedness. The offering was made under a registration statement filed with the SEC.
The most recent analyst rating on (AMH) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on American Homes stock, see the AMH Stock Forecast page.
Executive/Board ChangesShareholder Meetings
American Homes Holds 2025 Annual Shareholders Meeting
Neutral
May 7, 2025
On May 7, 2025, American Homes 4 Rent held its virtual-only 2025 Annual Meeting of Shareholders, where three key proposals were voted on. Shareholders elected eleven board members, ratified Ernst & Young, LLP as the independent public accounting firm for 2025, and approved executive officer compensation. These decisions are crucial for the company’s governance and financial oversight, potentially impacting its operational strategies and stakeholder relations.
Private Placements and FinancingBusiness Operations and Strategy
American Homes Issues $650 Million in Senior Notes
Neutral
May 7, 2025
On May 6, 2025, American Homes 4 Rent’s operating partnership entered into an underwriting agreement to issue and sell $650 million in senior notes due 2030, with a coupon rate of 4.950% per annum. The proceeds, estimated at $641 million after expenses, will be used to repay outstanding debts and for general corporate purposes, including property acquisitions and improvements, potentially impacting the company’s financial strategy and market positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.