Invitation Homes (INVH) AI Stock Analysis

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Invitation Homes

(NYSE:INVH)

Rating:71Outperform

Price Target:

$37.00

▲(11.04%Upside)

Invitation Homes' overall score reflects its strong financial performance and robust earnings call results, offset by cautionary valuation metrics and neutral technical indicators. The company's efficient operations and strategic growth initiatives are significant strengths, while high P/E ratio and market-specific challenges require close monitoring.

Positive Factors

Financial Performance

1Q25 earnings beat with better than expected blended rent spreads (+3.6%) and improving bad debt.

Insurance Costs

Insurance premium decreases year-over-year continue to provide a key upside driver 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

Earnings Guidance

The FY25 guidance is slightly below both the WFC and Street expectations.

Lease Growth

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

Peer Comparison

INVH's top-line growth is projected to be lower than its peer AMH, which is preferred due to stronger growth and a more diversified portfolio.

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

Market Cap

$20.61B

Dividend Yield3.43%

Average Volume (3M)3.21M

Price to Earnings (P/E)97.8

Beta (1Y)0.67

Revenue Growth6.11%

EPS Growth-37.43%

CountryUS

Employees1,750

SectorReal Estate

Sector Strength64

IndustryREIT - Residential

Share Statistics

EPS (TTM)0.27

Shares Outstanding612,949,340

10 Day Avg. Volume3,890,811

30 Day Avg. Volume3,206,654

Financial Highlights & Ratios

PEG Ratio-0.12

Price to Book (P/B)1.94

Price to Sales (P/S)0.00

P/FCF Ratio31.98

Enterprise Value/Market Cap1.18

Enterprise Value/Revenue2.31

Enterprise Value/Gross Profit17.25

Enterprise Value/Ebitda3.20

Forecast

1Y Price Target

$37.68

Price Target Upside13.09% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering15

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 makes money primarily through the rental income generated from its portfolio of single-family homes. The company acquires homes in desirable neighborhoods, renovates them to meet modern living standards, and leases them to tenants. The rental income forms the core revenue stream for the company. Additionally, Invitation Homes benefits from strategic partnerships with homebuilders and real estate firms to expand its property portfolio and enhance its service offerings. These partnerships, along with favorable market conditions such as rising demand for rental housing and appreciation in property values, contribute significantly to its financial performance. The company also emphasizes operational efficiency and customer satisfaction to maintain high occupancy rates and tenant retention, further bolstering its revenue.

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:Apr 30, 2025

(Q1-2025)

% Change Since: -2.54%|

Next Earnings Date:Jul 23, 2025

Earnings Call Sentiment Positive

The earnings call reflected strong financial performance, high occupancy, and strategic growth through acquisitions and developments. However, there are some concerns about renewal rent growth moderation, challenges in select markets, and potential increases in turnover during the peak leasing season.

Q1-2025 Updates

Positive Updates

Strong Financial Performance

During the first quarter, same-store portfolio delivered 97.2% average occupancy, 3.6% blended rent growth, and a 3.7% year-over-year increase in NOI. Core FFO per share grew 3.5% year-over-year, and AFFO per share grew 4%.

High Occupancy and Renewal Rates

The company reported a nearly 80% renewal rate during the first quarter with an average length of stay of 38.5 months, reflecting sustained demand and customer satisfaction.

Strong Balance Sheet

Total available liquidity stood at nearly $1.4 billion as of March 31, with a net debt to adjusted EBITDA ratio of 5.3x. The company's credit rating was reaffirmed at BBB by S&P, with an upgraded outlook from stable to positive.

Strategic Acquisitions and Developments

Acquired 577 wholly owned homes for approximately $194 million, nearly all newly built, while disposing of 454 homes. Developing nearly 2,000 additional homes in key markets, providing a reliable pipeline of future growth opportunities.

Negative Updates

Moderation in Renewal Rent Growth

Renewal rent growth dipped from 5.2% in the first quarter to 4.5% in April, indicating a potential moderation in renewal rent increases.

Challenges in Specific Markets

Phoenix, Texas, and Florida markets experienced supply pressures, although there are signs of improvement. These areas require monitoring due to ongoing challenges.

Turnover and Days to Re-Resident Concerns

While turnover has been lower than expected, there is an anticipation of increased turnover during the summer, which could affect occupancy rates and days to re-resident.

Company Guidance

During Invitation Homes' first quarter 2025 earnings call, the company reported several key metrics highlighting its strong performance. The same-store portfolio achieved an average occupancy rate of 97.2%, with a blended rent growth of 3.6% and a year-over-year increase in net operating income (NOI) of 3.7%. Core funds from operations (FFO) per share grew by 3.5%, while adjusted funds from operations (AFFO) per share increased by 4%. The firm also acquired 577 wholly owned homes for approximately $194 million and disposed of 454 homes. Turnover expenses decreased by 5.1% year-over-year, contributing to favorable expense results. The average length of stay extended to 38.5 months, with a renewal rate of nearly 80% in the first quarter. Looking ahead, the company reaffirmed its full-year 2025 guidance, emphasizing its focus on disciplined capital allocation and sustainable growth.

Invitation Homes Financial Statement Overview

Summary

Invitation Homes demonstrates strong growth and operational efficiency with high EBIT and EBITDA margins. Revenue and gross profit margins have improved, although a slight decrease in net profit margin requires attention. The balance sheet shows moderate leverage and solid equity, though high debt levels could pose risks. Cash flow generation is robust, but improving free cash flow conversion would enhance financial flexibility.

Income Statement

Very Positive

Invitation Homes has shown a consistent revenue growth with a 7.65% increase from 2023 to 2024. The gross profit margin improved to 64.28% in 2024 from 59.86% in 2023, indicating effective cost management. However, the net profit margin decreased slightly to 17.34% in 2024 from 21.37% in 2023, suggesting increased expenses or other costs impacting net income. Strong EBIT and EBITDA margins of 60.83% and 88.07% respectively highlight robust operational efficiency.

Balance Sheet

Positive

The debt-to-equity ratio stood at 0.84 in 2023, reflecting moderate leverage. The return on equity was 5.11% in 2023, indicating modest profitability relative to shareholder's equity. The equity ratio was 52.85%, demonstrating a solid equity base compared to total assets. However, high debt levels could pose risks during economic downturns.

Cash Flow

Positive

The free cash flow grew by 7.82% from 2022 to 2023, showing healthy cash generation. The operating cash flow to net income ratio was 2.13 in 2023, indicating strong cash conversion from earnings. However, the free cash flow to net income ratio of 1.71 suggests efficient capital expenditure management but could be improved for better flexibility.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.67B	2.62B	2.43B	2.23B	2.00B	1.82B
	Gross Profit
1.41B	1.55B	1.46B	1.35B	1.22B	1.08B
	EBIT
754.22M	741.24M	1.47B	642.40M	550.42M	468.44M
	EBITDA
1.80B	1.45B	1.44B	2.02B	1.81B	1.63B
	Net Income Common Stockholders
477.31M	453.92M	519.47M	383.33M	261.43M	196.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
130.90M	174.49M	700.62M	262.87M	610.17M	213.42M
	Total Assets
17.85B	18.70B	19.22B	18.54B	18.54B	17.51B
	Total Debt
9.08B	8.20B	8.55B	7.77B	8.00B	8.03B
	Net Debt
8.95B	8.03B	7.85B	7.51B	7.39B	7.82B
	Total Liabilities
9.63B	8.91B	9.03B	8.21B	8.70B	8.95B
	Stockholders Equity
8.14B	9.76B	10.16B	10.29B	9.80B	8.50B
Cash Flow		Free Cash Flow
886.56M	862.41M	885.99M	815.52M	744.83M	524.43M
	Operating Cash Flow
1.12B	1.08B	1.11B	1.02B	907.66M	696.71M
	Investing Cash Flow
-556.82M	-465.87M	-773.55M	-814.41M	-1.16B	-425.16M
	Financing Cash Flow
-1.19B	-1.09B	110.02M	-574.11M	658.99M	-146.03M

Invitation Homes Technical Analysis

Technical Analysis Sentiment

Positive

Last Price33.32

Price Trends

50DMA

33.64

Negative

100DMA

32.94

Positive

200DMA

33.12

Positive

Market Momentum

MACD

-0.16

Positive

RSI

50.32

Neutral

STOCH

54.61

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INVH, the sentiment is Positive. The current price of 33.32 is below the 20-day moving average (MA) of 33.56, below the 50-day MA of 33.64, and above the 200-day MA of 33.12, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 50.32 is Neutral, neither overbought nor oversold. The STOCH value of 54.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQR	73 Outperform	$26.60B	27.31	9.01%	3.96%	3.91%	8.78%
INVH	71 Outperform	$20.61B	97.85	4.92%	3.43%	6.11%	-37.43%
AMH	71 Outperform	$13.67B	34.27	5.81%	2.94%	6.90%	9.99%
UDR	66 Neutral	$13.90B	117.38	3.40%	4.11%	2.35%	-73.89%
ESS	63 Neutral	$18.61B	26.71	12.09%	3.57%	7.61%	27.83%
Sector *	61 Neutral	$2.85B	10.96	0.41%	8438.88%	5.73%	-21.25%
MAA	57 Neutral	$18.24B	31.61	9.37%	3.95%	1.55%	0.73%

* Real Estate Sector Average

Performance Comparison

INVH

Invitation Homes

33.32

-0.58

-1.71%

EQR

Equity Residential

69.27

5.92

9.34%

MAA

Mid-America Apartment

150.36

18.38

13.93%

ESS

Essex Property

286.19

23.93

9.12%

UDR

41.57

3.60

9.48%

AMH

American Homes

36.34

2.08

6.07%

Invitation Homes Corporate Events

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.