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American Homes (AMH)
NYSE:AMH
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American Homes
(NYSE:AMH)
78Outperform
Positive Factors
Earnings
Earnings beat the Street with SSRev/NOI also ahead of expectations, and bad debt improved.
Occupancy
Occupancy increased sequentially throughout the quarter to 95.6%, an unusual trend for this time of year.
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. S&P 500 (SPY)
Market Cap
$14.03B
Dividend Yield2.85%
Average Volume (3M)2.09M
Price to Earnings (P/E)35.1
Beta (1Y)0.61
Revenue Growth6.28%
EPS Growth7.07%
CountryUS
Employees1,730
SectorReal Estate
Sector Strength80
IndustryREIT - Residential
Share Statistics
EPS (TTM)1.08
Shares Outstanding369,525,120
10 Day Avg. Volume1,720,451
30 Day Avg. Volume2,090,490
Financial Highlights & Ratios
PEG Ratio4.97
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.37
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit19.73
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$38.93Price Target Upside-0.97% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering14
American Homes Business Overview & Revenue Model
Company DescriptionAmerican Homes 4 Rent (AMH) is a leading provider of high-quality single-family rental homes across the United States. The company focuses on acquiring, developing, and managing residential properties, offering families and individuals well-maintained homes in desirable neighborhoods. AMH operates within the real estate sector, emphasizing long-term rentals and providing a hassle-free living experience for their tenants.
How the Company Makes MoneyAmerican Homes 4 Rent generates revenue primarily through rental income from its portfolio of single-family homes. The company owns and manages thousands of properties across various states, collecting monthly rent payments from its tenants. AMH's revenue model is largely dependent on occupancy rates, rental pricing, and the efficient management of property expenses. Additionally, the company may benefit from property value appreciation over time, which can enhance asset value and potential rental income. Strategic partnerships with construction companies and local real estate professionals help AMH optimize its property acquisition and development processes, contributing to its overall profitability.
American Homes Financial Statement Overview
Summary
American Homes demonstrates strong financial health with consistent revenue growth and profitability improvements. The balance sheet is stable with manageable leverage, but attention to cash flow due to high-capital expenditures is needed.Income Statement
American Homes shows a positive trend in revenue growth, achieving consistent year-over-year increases. The net profit margin has improved significantly, reflecting better cost management and operational efficiency. However, the absence of total revenue data for the latest year introduces uncertainty in assessing recent performance.78
Positive
Balance Sheet
The balance sheet is solid with a healthy equity ratio, indicating strong financial stability. The debt-to-equity ratio is moderate, suggesting manageable leverage levels. However, there is a slight decline in total assets and stockholders' equity, which needs monitoring.72
Positive
Cash Flow
The company exhibits robust operating cash flow, with positive free cash flow growth over the years. The operating cash flow to net income ratio implies efficient cash generation relative to earnings. Yet, the high investing cash outflows could signal significant capital expenditures or investment activities, which might impact future liquidity.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.73B | 1.62B | 1.49B | 1.30B | 1.18B | Gross Profit |
| 973.49M | 883.87M | 825.75M | 716.81M | 642.68M | EBIT |
| 0.00 | 352.71M | 338.02M | 291.50M | 236.97M | EBITDA |
| 1.11B | 1.03B | 764.55M | 664.35M | 580.12M | Net Income Common Stockholders |
| 398.48M | 380.17M | 175.15M | 70.21M | 37.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 199.41M | 59.38M | 69.16M | 48.20M | 137.06M | Total Assets |
| 13.38B | 12.69B | 12.18B | 10.96B | 9.59B | Total Debt |
| 4.09B | 4.48B | 4.52B | 3.88B | 2.82B | Net Debt |
| 3.89B | 4.42B | 4.45B | 3.83B | 2.68B | Total Liabilities |
| 5.53B | 5.04B | 5.00B | 4.22B | 3.12B | Stockholders Equity |
| 7.16B | 6.97B | 6.50B | 6.06B | 5.79B |
| Cash Flow | Free Cash Flow | |||
| 811.53M | 604.51M | 526.74M | 472.65M | 369.28M | Operating Cash Flow |
| 811.53M | 738.69M | 665.52M | 595.20M | 474.10M | Investing Cash Flow |
| -825.88M | -692.58M | -1.43B | -1.73B | -642.92M | Financing Cash Flow |
| 142.70M | -42.21M | 786.18M | 1.06B | 269.78M |
American Homes Technical Analysis
Positive
39.31
Price Trends
36.23
Positive
35.90
Positive
36.60
Positive
Market Momentum
0.54
Negative
66.51
Neutral
85.30
Negative
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 39.31 is above the 20-day moving average (MA) of 36.25, above the 50-day MA of 36.23, and above the 200-day MA of 36.60, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 66.51 is Neutral, neither overbought nor oversold. The STOCH value of 85.30 is Negative, 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 0 New Risks
American Homes Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $14.03B | 35.11 | 5.82% | 2.85% | 6.28% | 7.07% | |
76 Outperform | $21.52B | 103.26 | 5.81% | 3.25% | 5.69% | -37.43% | |
72 Outperform | $16.64B | 184.67 | 1.39% | 2.88% | 0.02% | -33.99% | |
69 Neutral | $16.24B | 76.51 | 3.38% | 3.48% | 0.55% | -59.48% | |
68 Neutral | $14.11B | 165.95 | 3.40% | 4.00% | 2.35% | -73.89% | |
68 Neutral | $12.98B | 34.66 | 22.87% | 3.00% | 0.69% | 5.67% | |
60 Neutral | $2.78B | 11.39 | 0.16% | 8531.54% | 5.92% | -14.67% |
* Real Estate Sector Average
Performance Comparison
AMH
American Homes
39.31
4.59
13.22%
ELS
Equity Lifestyle
65.68
4.16
6.76%
SUI
Sun Communities
132.25
18.39
16.15%
UDR
UDR
43.81
7.12
19.41%
CPT
Camden Property
120.87
19.42
19.14%
INVH
Invitation Homes
35.47
2.21
6.64%
American Homes Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 3.75%|
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 Corporate Events
Business Operations and StrategyFinancial Disclosures
American Homes Outlines 2025 Growth and Financial Plans
Positive
Feb 28, 2025
On February 28, 2025, American Homes 4 Rent released its ‘Investor Highlights’ presentation, detailing its strategic plans and financial outlook for the year. The company anticipates continued growth through its acquisition and homebuilding programs, with an expected delivery of 2,200 to 2,400 homes in 2025. AMH’s strong market position is supported by a high-quality investment-grade balance sheet and a diversified portfolio, with a focus on maintaining high occupancy rates and strong renewal rates. The company also plans to refinance its remaining securitizations to fully unencumber its balance sheet, enhancing its financial flexibility.
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.