American Homes (AMH) AI Stock Analysis

377 Followers

Top Page

American Homes

(NYSE:AMH)

77Outperform

American Homes is well-positioned within the REIT - Residential industry, demonstrating strong financial performance and strategic growth plans. While technical analysis shows positive momentum, the valuation suggests potential overvaluation. The company's earnings call highlights robust performance despite some challenges, and corporate events further bolster its strategic outlook.

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

$14.18B

Dividend Yield2.82%

Average Volume (3M)2.04M

Price to Earnings (P/E)35.5

Beta (1Y)0.65

Revenue Growth6.90%

EPS Growth9.99%

CountryUS

Employees1,730

SectorReal Estate

Sector Strength66

IndustryREIT - Residential

Share Statistics

EPS (TTM)0.30

Shares Outstanding369,525,630

10 Day Avg. Volume2,202,014

30 Day Avg. Volume2,041,017

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 Cap1.35

Enterprise Value/Revenue2.78

Enterprise Value/Gross Profit19.29

Enterprise Value/Ebitda4.75

Forecast

1Y Price Target

$39.93

Price Target Upside5.97% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering15

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 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

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Very Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Technical Analysis Sentiment

Positive

Last Price37.68

Price Trends

50DMA

36.64

Positive

100DMA

36.00

Positive

200DMA

36.72

Positive

Market Momentum

MACD

0.59

Negative

RSI

52.04

Neutral

STOCH

56.07

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 37.68 is above the 20-day moving average (MA) of 37.59, above the 50-day MA of 36.64, and above the 200-day MA of 36.72, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 52.04 is Neutral, neither overbought nor oversold. The STOCH value of 56.07 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 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
AMH	77 Outperform	$14.18B	35.54	5.81%	2.82%	6.90%	9.99%
INVH	76 Outperform	$21.14B	100.38	4.92%	3.31%	6.11%	-37.43%
SUI	69 Neutral	$15.96B	197.82	1.44%	3.01%	-6.88%	-45.29%
UDR	68 Neutral	$14.10B	119.11	3.40%	4.00%	2.35%	-73.89%
CPT	68 Neutral	$16.84B	107.81	2.47%	3.48%	0.56%	-73.40%
ELS	68 Neutral	$12.74B	34.02	22.87%	3.11%	0.69%	5.67%
Sector *	60 Neutral	$2.83B	10.92	0.21%	8543.15%	5.98%	-17.76%

* Real Estate Sector Average

Performance Comparison

AMH

American Homes

37.68

2.09

5.87%

ELS

Equity Lifestyle

62.60

1.08

1.76%

SUI

Sun Communities

124.30

9.38

8.16%

UDR

41.65

3.62

9.52%

CPT

Camden Property

117.23

12.95

12.42%

INVH

Invitation Homes

33.73

-0.75

-2.18%

American Homes Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q1-2025)

% Change Since: -0.55%|

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

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.

Spark’s Take on AMH Stock

According to Spark, TipRanks’ AI Analyst, AMH is a Outperform.

American Homes is well-positioned within the REIT – Residential industry, demonstrating strong financial performance and strategic growth plans. While technical analysis shows positive momentum, the valuation suggests potential overvaluation. The company’s earnings call highlights robust performance despite some challenges, and corporate events further bolster its strategic outlook.

To see Spark’s full report on AMH stock, click here.

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.

Spark’s Take on AMH Stock

According to Spark, TipRanks’ AI Analyst, AMH is a Outperform.

To see Spark’s full report on AMH stock, click here.

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.

Spark’s Take on AMH Stock

According to Spark, TipRanks’ AI Analyst, AMH is a Outperform.

To see Spark’s full report on AMH stock, click here.

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.