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American Homes (AMH)
NYSE:AMH
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American Homes
(NYSE:AMH)
Rating:71Outperform
Price Target:
$38.00
â–²(8.91% Upside)
Positive Factors
Earnings
Earnings exceeded expectations, with important revenue and net operating income figures performing well.
Financial Performance
Core funds from operations were above expectations, indicating strong financial performance.
Operational Performance
The company's strategic Midwest presence and diversity contributed to its financial outperformance.
Negative Factors
Guidance
'25 guidance was maintained below expectations due to macro uncertainty.
Lease Rates
The stock is expected to face modest pressure in light of weak new lease rate concerns and slowing core trends.
Market Conditions
The single-family rental players have been negatively impacted by supply over the past year, causing lease rate growth to weaken.
American Homes (AMH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.70B
Dividend Yield3.21%
Average Volume (3M)2.02M
Price to Earnings (P/E)30.8
Beta (1Y)0.56
Revenue Growth7.19%
EPS Growth15.70%
CountryUS
Employees1,730
SectorReal Estate
Sector Strength54
IndustryREIT - Residential
Share Statistics
EPS (TTM)0.28
Shares Outstanding370,275,300
10 Day Avg. Volume2,183,814
30 Day Avg. Volume2,022,461
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.48
Enterprise Value/Revenue10.61
Enterprise Value/Gross Profit18.88
Enterprise Value/Ebitda21.55
Forecast
1Y Price Target
$40.50Price Target Upside16.08% 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 generates revenue primarily through rental income from its portfolio of single-family homes. The company acquires homes in strategic markets, renovates them to meet quality standards, and leases them to tenants, thus creating a steady cash flow from monthly rental payments. Additionally, AMH benefits from economies of scale in property management and maintenance, which helps to optimize operational costs. The company may also engage in ancillary revenue streams, such as lease-up fees and service fees related to property management. Significant partnerships with real estate brokers and investment firms can enhance its acquisition capabilities and investor outreach, contributing to overall earnings growth.
American Homes Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: 0.58%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
AMH demonstrated strong financial performance with increased guidance and robust leasing activity. Favorable property tax developments and successful development programs further highlight the positive outlook. However, challenges in acquisitions and supply pressures in certain markets remain concerns.Q2-2025 Updates
Positive Updates
Increased Full Year Core FFO Guidance
AMH increased its full year Core FFO per share guidance by $0.03 to $1.86 at the midpoint, representing a 5.1% growth. This positions AMH at the top of the residential sector.
Strong Leasing and Revenue Growth
Second quarter foot traffic was up more than 5% year-over-year, driving solid leasing and rate growth. Same-Home average occupied days were 96.3% with new, renewal, and blended rental rate spreads of 4.1%, 4.4%, and 4.3%, respectively.
Favorable Property Tax Developments
The state of Texas passed new property tax relief for 2025 and 2026, positively impacting AMH's updated full year outlook.
Successful AMH Development Program
AMH Development delivered 636 homes in Q2, on track with expectations, demonstrating value creation in a challenging acquisition environment.
Improved Balance Sheet and Capital Activity
Net debt, including preferred shares to adjusted EBITDA, was down to 5.2x. AMH raised $650 million in a 5-year bond offering at a coupon of 4.95%.
Negative Updates
Challenges in Acquisition Environment
The vast majority of reviewed assets did not meet AMH's buy box, with only 5 homes acquired in the quarter.
Pressure in Certain Markets
Some markets, such as Phoenix and certain areas in Florida, face supply pressures, though AMH's portfolio remains resilient.
Slow Portfolio Optimization
Despite reviewing thousands of assets, AMH only sold 370 properties in the second quarter, suggesting a slow pace in optimizing the portfolio.
Company Guidance
During the AMH Second Quarter 2025 Earnings Conference Call, management provided updated guidance that reflects positive operational performance. AMH increased its full-year Core FFO per share guidance by $0.03 to $1.86 at the midpoint, representing a 5.1% growth. The company reported a year-to-date Core FFO growth of 4.9% and adjusted FFO growth of 6.3%. Same-Home core revenue growth was 3.9%, supported by a Same-Home average occupied days of 96.3% and new, renewal, and blended rental rate spreads of 4.1%, 4.4%, and 4.3%, respectively. Core operating expense growth was 3.6%, leading to a Same-Home Core NOI growth of 4.1%. The company also benefited from favorable property tax developments in Texas, which contributed to the updated guidance. AMH's net debt to adjusted EBITDA was 5.2x, with a fully undrawn $1.25 billion revolving credit facility, reflecting strong balance sheet management.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 | 701.06M | 633.38M |
| EBITDA | 871.17M | 877.71M | 1.03B | 871.43M | 644.62M | 570.44M |
| Net Income | 409.62M | 398.48M | 380.17M | 273.14M | 189.09M | 140.37M |
Balance Sheet | ||||||
| Total Assets | 13.29B | 13.38B | 12.69B | 12.18B | 10.96B | 9.59B |
| Cash, Cash Equivalents and Short-Term Investments | 69.70M | 199.41M | 59.38M | 69.16M | 48.20M | 137.06M |
| Total Debt | 4.94B | 5.03B | 4.48B | 4.54B | 3.90B | 2.82B |
| 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
Neutral
34.89
Price Trends
35.85
Negative
36.38
Negative
36.02
Negative
Market Momentum
-0.42
Positive
44.67
Neutral
19.85
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMH, the sentiment is Neutral. The current price of 34.89 is below the 20-day moving average (MA) of 35.44, below the 50-day MA of 35.85, and below the 200-day MA of 36.02, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 44.67 is Neutral, neither overbought nor oversold. The STOCH value of 19.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $12.70B | 30.82 | 5.99% | 3.21% | 7.19% | 15.70% | |
70 Neutral | $15.76B | 12.31 | -1.51% | 6.14% | -14.17% | 1097.53% | |
70 Neutral | $12.53B | 98.67 | 3.74% | 4.52% | 2.29% | -4.89% | |
68 Neutral | $14.84B | 73.17 | 3.30% | 3.89% | 0.76% | -60.70% | |
67 Neutral | $12.22B | 32.60 | 23.16% | 3.30% | -0.03% | 1.00% | |
66 Neutral | $18.41B | 66.94 | 5.65% | 3.77% | 4.41% | -0.16% | |
63 Neutral | $6.82B | 13.21 | -0.71% | 7.17% | 3.67% | -27.43% |
* Real Estate Sector Average
Performance Comparison
AMH
American Homes
34.89
-2.39
-6.41%
ELS
Equity Lifestyle
60.93
-7.32
-10.73%
SUI
Sun Communities
128.00
5.43
4.43%
UDR
UDR
38.50
-1.44
-3.61%
CPT
Camden Property
107.00
-8.69
-7.51%
INVH
Invitation Homes
30.54
-3.54
-10.39%
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.