Invitation Homes (INVH) AI Stock Analysis

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Invitation Homes

(NYSE:INVH)

Rating:66Neutral

Price Target:

$33.00

▲(9.89% Upside)

The overall stock score of 66 reflects strong financial performance and positive elements from the earnings call, countered by bearish technical indicators and potential overvaluation concerns. The company's strategic acquisitions and effective cost management are significant strengths, but high debt levels and market challenges require cautious optimism.

Positive Factors

Earnings Performance

AFFO of $0.41 beat the Street/BMOe at $0.39.

Occupancy and Rent

Higher occupancy and accelerating renewals should be viewed positively for INVH.

Valuation

INVH trades at an attractive relative valuation, with a discount to its long-term average and parity to all REITs.

Negative Factors

Competition

The widening gap between INVH and AMH's new lease growth to about 200bps in May could raise concerns.

Lease Growth

New lease growth deceleration suggests that the peak may have been earlier this year.

Occupancy

Implied May occupancy dipped slightly from April, which might be a concern.

Invitation Homes (INVH) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$18.41B

Dividend Yield3.83%

Average Volume (3M)3.41M

Price to Earnings (P/E)66.9

Beta (1Y)0.62

Revenue Growth4.41%

EPS Growth-0.16%

CountryUS

Employees1,750

SectorReal Estate

Sector Strength56

IndustryREIT - Residential

Share Statistics

EPS (TTM)0.23

Shares Outstanding613,008,240

10 Day Avg. Volume4,496,315

30 Day Avg. Volume3,407,188

Financial Highlights & Ratios

PEG Ratio-3.33

Price to Book (P/B)2.01

Price to Sales (P/S)7.48

P/FCF Ratio22.71

Enterprise Value/Market Cap1.53

Enterprise Value/Revenue10.50

Enterprise Value/Gross Profit17.82

Enterprise Value/Ebitda17.18

Forecast

1Y Price Target

$36.46

Price Target Upside21.41% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering14

Invitation Homes Business Overview & Revenue Model

Company DescriptionInvitation Homes is the nation's premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, Together with you, we make a house a home, reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.

How the Company Makes MoneyInvitation Homes generates revenue primarily through rental income from its extensive portfolio of single-family homes. The company purchases homes, invests in renovations to enhance their appeal and functionality, and then leases them to tenants at competitive market rates. Additionally, Invitation Homes benefits from economies of scale in property management, allowing for efficient operations and reduced costs. The company also occasionally engages in home sales, contributing supplementary income. Its strategic partnerships with local real estate agents and contractors for property acquisition and management further enhance its operational efficiency and revenue generation capabilities.

Invitation Homes Key Performance Indicators (KPIs)

Any

Average Monthly Rent

Average Monthly Rent
Shows the average rent collected per property, providing insight into revenue generation and pricing power in the rental market.

Chart InsightsInvitation Homes' average monthly rent has shown consistent growth, reflecting strong demand and effective pricing strategies. The latest earnings call highlights robust financial performance with high occupancy rates and strategic acquisitions. However, there are concerns about moderation in renewal rent growth and challenges in select markets like Phoenix, Texas, and Florida. Despite these challenges, the company's focus on disciplined capital allocation and sustainable growth positions it well for future expansion, though investors should watch for potential impacts from increased turnover during peak leasing seasons.

Data provided by:

Main Street Data

Invitation Homes Earnings Call Summary

Earnings Call Date:Jul 30, 2025

(Q2-2025)

% Change Since: -4.30%|

Next Earnings Date:Oct 22, 2025

Earnings Call Sentiment Positive

The earnings call reflected a generally positive outlook with strong operational and financial performance. Highlights included high resident retention, a robust acquisition strategy, and effective cost management. However, there were challenges noted in certain markets due to supply pressures and a moderate growth in new lease rates.

Q2-2025 Updates

Positive Updates

Strong Resident Tenure and Renewal Rates

The average resident tenure was 40 months, and the renewal rate approached 80%, indicating high resident satisfaction and quality of service.

Robust Acquisition Pipeline

Invitation Homes acquired just under 1,000 wholly owned homes, with a focus on high-quality, newly built homes in strategic markets.

Solid Financial Position

The company reported core FFO of $0.48 per share for the quarter, with robust liquidity of approximately $1.3 billion and a strong capital structure.

Positive Leasing Performance

Blended rent growth was 4%, driven by 4.7% renewal rent growth and 2.2% growth in new leases.

Effective Cost Management

Core operating expenses rose by only 2.2%, with maintenance and repair costs well managed, leading to a 2.5% NOI growth.

Negative Updates

Challenges in Key Markets

Some markets, particularly Central Florida and Texas, are experiencing supply pressure, affecting occupancy and new lease rates.

Moderate New Lease Growth

New lease rate growth was lower than expected at 2.2%, with July's new lease growth at only 1.3%.

Seasonal Occupancy Decline

Occupancy guidance suggests a decline to around 96% in the second half of the year due to seasonal turnover.

Company Guidance

In the second quarter of 2025, Invitation Homes reported strong performance metrics, demonstrating resilience and strategic execution. The company's average resident tenure reached 40 months with a renewal rate close to 80%, reflecting resident satisfaction and the efficacy of their service platform. Financially, they achieved a 2.4% year-over-year growth in same-store core revenue, while core operating expenses increased by 2.2%, leading to a net operating income (NOI) growth of 2.5%. The blended rent growth was 4%, supported by a 4.7% renewal rent increase and a 2.2% rise in new leases. Occupancy for July stood at 96.6%, with July's blended lease rate growth at 3.8%. On the acquisition front, they purchased nearly 1,000 homes, predominantly newly built, and maintained a robust pipeline targeting attractive yields. The company remains poised to meet or exceed its acquisition guidance of $500 million to $700 million for the year. Financially, they reported a core FFO of $0.48 per share for the quarter, with year-to-date core FFO at $0.97 per share. Their balance sheet remains strong with a net debt to trailing 12-month adjusted EBITDA ratio of 5.3x, supported by $1.3 billion in liquidity.

Invitation Homes Financial Statement Overview

Summary

Invitation Homes demonstrates strong financial performance with consistent revenue growth, efficient cost management, and solid cash flow generation. The balance sheet is stable, though relatively high debt levels could pose risks, especially in a rising interest rate environment.

Income Statement

Very Positive

The income statement shows strong financial performance with a consistent increase in revenue over the years, reaching $2.65 billion in TTM. The gross profit margin is healthy at 59.0%, and the net profit margin is 18.0%. EBIT and EBITDA margins are robust at 28.1% and 59.0%, respectively, indicating efficient cost management and strong operating performance. Revenue growth has been steady, reflecting positive business momentum.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.83, indicating a balanced approach to leveraging. The return on equity stands at 4.9%, showing moderate profitability relative to equity. The equity ratio of 52.3% suggests a solid capital structure. However, the relatively high level of debt could pose risks in a rising interest rate environment.

Cash Flow

Positive

Cash flow analysis reveals strong operational cash generation with an operating cash flow to net income ratio of 2.34, indicating excellent cash conversion efficiency. Free cash flow growth is positive, and the free cash flow to net income ratio is 1.86, highlighting effective cash management and capacity to fund operations and investments. However, negative investing cash flow suggests substantial capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.68B	2.62B	2.43B	2.24B	2.00B	1.82B
Gross Profit	1.58B	1.55B	1.46B	1.36B	1.22B	1.08B
EBITDA	1.64B	1.54B	1.53B	1.33B	1.18B	1.10B
Net Income	545.01M	453.92M	519.47M	383.33M	261.43M	196.21M
Balance Sheet
Total Assets	555.93M	18.70B	19.22B	18.54B	18.54B	17.51B
Cash, Cash Equivalents and Short-Term Investments	65.11M	174.49M	700.62M	262.87M	610.17M	213.42M
Total Debt	0.00	8.20B	8.55B	7.77B	8.00B	8.03B
Total Liabilities	8.96B	8.91B	9.03B	8.21B	8.70B	8.95B
Stockholders Equity	9.67B	9.76B	10.16B	10.29B	9.80B	8.50B
Cash Flow
Free Cash Flow	898.28M	862.41M	885.99M	815.52M	744.83M	524.43M
Operating Cash Flow	1.13B	1.08B	1.11B	1.02B	907.66M	696.71M
Investing Cash Flow	-682.59M	-465.87M	-773.55M	-814.41M	-1.16B	-425.16M
Financing Cash Flow	-1.13B	-1.09B	110.02M	-574.11M	658.99M	-146.03M

Invitation Homes Technical Analysis

Technical Analysis Sentiment

Negative

Last Price30.03

Price Trends

50DMA

32.21

Negative

100DMA

32.82

Negative

200DMA

32.36

Negative

Market Momentum

MACD

-0.69

Positive

RSI

31.89

Neutral

STOCH

9.60

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INVH, the sentiment is Negative. The current price of 30.03 is below the 20-day moving average (MA) of 31.22, below the 50-day MA of 32.21, and below the 200-day MA of 32.36, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 31.89 is Neutral, neither overbought nor oversold. The STOCH value of 9.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INVH.

Invitation Homes Risk Analysis

Invitation Homes disclosed 70 risk factors in its most recent earnings report. Invitation Homes reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Invitation 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
EQR	78 Outperform	$23.95B	23.99	9.20%	4.39%	4.49%	5.87%
AMH	71 Outperform	$12.70B	30.82	5.99%	3.27%	7.19%	15.70%
UDR	70 Neutral	$12.43B	97.81	3.74%	4.52%	2.29%	-4.89%
MAA	69 Neutral	$16.62B	28.52	9.58%	4.35%	1.19%	10.52%
ESS	68 Neutral	$16.93B	20.42	14.40%	3.95%	7.56%	54.15%
INVH	66 Neutral	$18.41B	66.94	5.65%	3.83%	4.41%	-0.16%
Sector *	63 Neutral	$6.82B	13.38	-0.62%	7.30%	3.67%	-27.09%

* Real Estate Sector Average

Performance Comparison

INVH

Invitation Homes

30.03

-3.91

-11.52%

EQR

Equity Residential

62.70

-5.83

-8.51%

MAA

Mid-America Apartment

138.38

-9.03

-6.13%

ESS

Essex Property

253.99

-22.48

-8.13%

UDR

37.83

-2.26

-5.64%

AMH

American Homes

34.25

-2.91

-7.83%

Invitation Homes Corporate Events

Executive/Board Changes

Invitation Homes President Resigns, CEO Assumes Role

Neutral

Jul 23, 2025

On July 20, 2025, Charles D. Young resigned as President of Invitation Homes Inc., effective September 1, 2025, to pursue other opportunities. The company’s CEO, Dallas B. Tanner, will take over the President’s responsibilities without any new compensatory arrangements, indicating a seamless transition without internal conflicts.

The most recent analyst rating on (INVH) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Invitation Homes stock, see the INVH Stock Forecast page.

Shareholder Meetings

Invitation Homes Holds Annual Stockholders Meeting

Neutral

May 19, 2025

On May 15, 2025, Invitation Homes Inc. held its annual meeting of stockholders, where key decisions were made regarding the election of directors, ratification of the accounting firm, and executive compensation. Stockholders elected directors for a one-year term, ratified Deloitte & Touche LLP as the independent accounting firm, and approved executive compensation in a non-binding vote. Additionally, stockholders decided that the advisory vote on executive compensation should occur annually, aligning with the board’s recommendation.

The most recent analyst rating on (INVH) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Invitation Homes stock, see the INVH 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.Date of analysis: Aug 01, 2025