American Homes (AMH) AI Stock Analysis

• Market Cap: $12.12B
• Dividend Yield: 3.55%
• Average Volume (3M): 2.74M
• Price to Earnings (P/E): 29.5
• Beta (1Y): 0.51
• Revenue Growth: 7.19%
• EPS Growth: 15.70%
• Country: US
• Employees: 1,730
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.28
• Shares Outstanding: 370,275,300
• 10 Day Avg. Volume: 3,304,577
• 30 Day Avg. Volume: 2,741,939
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 10.44
• Enterprise Value/Gross Profit: 18.64
• Enterprise Value/Ebitda: 19.19
• 1Y Price Target: $39.79
• Price Target Upside: 21.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 74 Outperform
• Price Target: $39.00 ▲(19.49% Upside)

American Homes' strong financial performance and positive earnings call guidance are significant strengths, contributing to a high score. However, technical analysis indicates bearish trends, and valuation metrics suggest potential overvaluation. The strategic focus on growth and strong balance sheet are positive, but the challenging acquisition environment poses a risk.

Positive Factors

Revenue Growth

Consistent revenue growth and strong profit margins indicate a robust business model, supporting long-term financial stability and investor confidence.

Strong Balance Sheet

A strong balance sheet with low leverage and ample liquidity enhances financial flexibility, enabling strategic investments and weathering economic fluctuations.

Development Program

Successful execution of the development program showcases operational efficiency and supports growth by expanding the portfolio in a challenging market.

Negative Factors

Challenging Acquisition Environment

A difficult acquisition environment limits growth opportunities, potentially impacting future revenue expansion and market share in the competitive real estate sector.

Rising Debt Levels

Increasing debt levels can strain financial resources, potentially affecting cash flow and limiting the company's ability to invest in growth initiatives.

Decline in Free Cash Flow Growth

A significant decline in free cash flow growth may hinder future investments and strategic initiatives, affecting long-term growth prospects and financial health.

American Homes Business Overview & Revenue Model

Company Description

American 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 Money

American 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 Financial Statement Overview

Summary

American Homes demonstrates solid financial health with strong revenue growth and profitability. The balance sheet reflects a stable capital structure, though rising debt levels warrant attention. Cash flow generation is strong, but recent declines in free cash flow growth could affect future investments.

Income Statement

American Homes shows strong revenue growth with a TTM increase of 1.93% and consistent gross profit margins around 56%. The net profit margin is healthy at 23.52%, indicating effective cost management. However, the slight decline in EBITDA margin from 63.37% in 2023 to 50.22% in TTM suggests some pressure on operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.72, reflecting a balanced approach to leverage. Return on equity is stable at 5.94%, showing consistent profitability. The equity ratio stands at 52.72%, indicating a solid capital structure. However, the increasing debt levels over the years could pose a risk if not managed carefully.

Cash Flow

Operating cash flow to net income ratio is strong at 1.72, suggesting robust cash generation relative to earnings. However, free cash flow growth has declined significantly by 94.8% in TTM, which could impact future investment capabilities. The free cash flow to net income ratio remains healthy at 83.94%, indicating good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.80B	1.73B	1.62B	1.49B	1.30B	1.17B
Gross Profit	1.01B	961.30M	883.87M	802.29M	701.06M	623.06M
EBITDA	978.48M	874.31M	806.26M	731.54M	640.72M	570.44M
Net Income	426.52M	412.43M	380.17M	273.14M	189.09M	140.37M
Balance Sheet
Total Assets	13.59B	13.38B	12.69B	12.18B	10.96B	9.59B
Cash, Cash Equivalents and Short-Term Investments	323.26M	199.41M	59.38M	69.16M	48.20M	137.06M
Total Debt	5.17B	5.03B	4.48B	4.54B	3.90B	2.86B
Total Liabilities	5.75B	5.53B	5.04B	5.00B	4.22B	3.12B
Stockholders Equity	7.17B	7.16B	6.97B	6.50B	6.06B	5.79B
Cash Flow
Free Cash Flow	697.59M	689.78M	604.51M	526.74M	472.65M	369.28M
Operating Cash Flow	831.02M	811.53M	738.69M	665.52M	595.20M	474.10M
Investing Cash Flow	-946.37M	-825.88M	-692.58M	-1.43B	-1.73B	-642.92M
Financing Cash Flow	-300.09M	142.70M	-42.21M	786.18M	1.06B	269.78M

American Homes Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMH, the sentiment is Negative. The current price of 32.64 is below the 20-day moving average (MA) of 33.32, below the 50-day MA of 34.17, and below the 200-day MA of 35.30, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 37.89 is Neutral, neither overbought nor oversold. The STOCH value of 28.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMH.

American Homes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUI	75 Outperform	$16.11B	12.58	17.52%	6.12%	-14.17%	1097.53%
MAA	75 Outperform	$16.35B	28.07	9.67%	4.40%	1.19%	10.52%
AMH	74 Outperform	$12.12B	29.54	5.99%	3.55%	7.19%	15.70%
INVH	69 Neutral	$17.59B	63.98	5.64%	4.05%	4.41%	-0.16%
UDR	68 Neutral	$12.06B	94.94	3.97%	4.70%	2.29%	-4.89%
CPT	67 Neutral	$14.78B	72.87	3.40%	4.01%	0.76%	-60.70%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

American Homes Corporate Events

American Homes Releases Strategic Investor Highlights

On September 3, 2025, American Homes 4 Rent released its ‘Investor Highlights’ presentation, detailing its strategic focus and operational performance. The company emphasized its growth through a robust development pipeline and a strong balance sheet, with plans to deliver between 2,200 and 2,400 homes in 2025. AMH’s strategy includes geographic diversification, leveraging technology for superior resident experiences, and maintaining high occupancy rates. The company is positioned for sustainable growth amid a national housing shortage and increasing demand for single-family rentals, with a focus on optimizing its portfolio and capital management.