American Homes 4 Rent cash flow to debt ratio of 16.86% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

American Homes 4 Rent's free cash flow has increased 8.17% from $689.78M last year to $746.12M, signaling increasing performance

American Homes 4 Rent's debt to equity ratio is 0.76, which means that the company's assets are unhealthy financed, signaling financial risk.

American Homes 4 Rent's debt has increased relative to shareholder equity from 0.70 last year to 0.76 today, signaling weakened financials

American Homes 4 Rent has a net debt to EBITDA ratio of 4.17x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

American Homes 4 Rent's interest coverage ratio of 2.33 indicates that earnings with margin can cover interest payments on company debt

American Homes 4 Rent's profit margin has increased (6.70%) in the last year from 23.86% to 25.46%, signaling increasing performance

American Homes 4 Rent's short-term assets of $273.81M exceed its short-term liabilities of $4.35M

American Homes 4 Rent's return on assets of 3.65% is lower than the 5.00% threshold, indicating inefficient asset utilization

American Homes 4 Rent's return on equity of 6.85%, is lower than 15.00%, indicating bad performance

American Homes 4 Rent's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

American Homes 4 Rent had positive net income in 5 out of 5 years, indicating stable and consistent earnings

American Homes 4 Rent has positive free cash flow, indicating the company generates cash after capital expenditures

American Homes 4 Rent has a free cash flow yield of 6.09%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

American Homes 4 Rent's yearly earnings has increased 9.83% since last year from $412.43M to $452.97M, signaling increasing performance

American Homes 4 Rent's yearly revenue has increased 7.95% since last year from $1.73B to $1.87B, signaling increasing performance

ROIC 3.74% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

American Homes 4 Rent's 3-year revenue CAGR of 7.78% is positive, indicating growing revenue over the past 3 years

American Homes 4 Rent had revenue growth in 5 out of 5 years, indicating consistent revenue performance

American Homes 4 Rent had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

American Homes 4 Rent is overvalued relative to its fair value price of 22.66 based on Discounted Cash Flow model

American Homes 4 Rent has an earnings yield of 3.87%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

American Homes 4 Rent is overvalued relative to its fair value price of 9.38 based on EBITDA multiple model

American Homes 4 Rent has an EV/EBITDA ratio of 14.36x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

American Homes 4 Rent has insufficient data to evaluate this check.

American Homes 4 Rent has a PEG-ratio under 1 which is considered undervalued

American Homes 4 Rent has a price-to-book ratio of 1.66x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

American Homes 4 Rent has a price-to-sales ratio of 6.58x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue