One-glance verdict
Undervalued
$51.42 our estimate vs market $31.20
Wall Street consensus: $36.52 (-29.0% lower than our fair-value estimate)
39% below our estimate, below the bear case
Fundamentals snapshot
American Homes 4 Rent
AMH · NYQ · Real Estate · REIT - Residential
Current price
$31.20
52-week range
$27.22 - $35.07
Market cap
$12.79B
Balance sheet
Stretched
2.51x Stretched
Net debt $5.07B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.5% last year.
- Reward Returns 7.1% on equity, ahead of 40% of its peers.
- Risk Forward P/E (46.5x) is higher than trailing (24.8x) - earnings are expected to drop.
- Risk Net debt grew 12.0% over 3 years.
What this company does
American Homes 4 Rent
American Homes 4 Rent owns and rents out a large number of single-family houses, mainly in the southern, midwestern, and western United States. The money they make comes from the rent people pay to live in these homes, and this steady stream of rental income is important because it helps them continue to buy and manage more houses.
How the company got here
American Homes 4 Rent (AMH) was founded in 2012 by B. Wayne Hughes, the founder of Public Storage, during a time when the single-family rental market was largely dominated by small landlords. AMH was one of the first large companies to invest heavily in single-family homes, especially in the wake of the 2008 financial crisis when many properties became available. The company went public in 2013 and has since grown significantly, including through a merger with American Residential Properties in 2016. In 2023, it rebranded from American Homes 4 Rent to AMH to reflect its shorter, more familiar name. AMH has evolved from primarily buying existing homes to also focusing on developing new rental communities.
What it actually does
AMH operates as a real estate investment trust (REIT), which is a company that owns, operates, or finances income-generating real estate. Essentially, AMH buys, develops, renovates, leases, and manages single-family homes. They provide rental housing to individuals and families who are looking for the space and amenities of a detached home but prefer the flexibility of renting over owning. AMH aims to offer professional management, maintenance, and a convenient digital experience for its residents.
Single-Family Homes
This is AMH's core business and the primary source of its revenue. The company owns a large portfolio of single-family rental homes, typically in desirable suburban neighborhoods across the United States. These homes are leased to residents, providing AMH with a steady stream of rental income. The company focuses on acquiring and managing properties that appeal to families seeking more space, privacy, and quality of life than typically offered by apartments, especially those who may be priced out of immediate homeownership. This segment represents the vast majority of AMH's operations and income.
Development and New Communities
AMH is increasingly focused on developing new homes and entire rental communities specifically designed for long-term renters. This 'build-to-rent' strategy allows the company to create standardized, efficient properties and to strategically place them in high-growth markets. By building homes from the ground up, AMH can better control quality, reduce maintenance complexities, and create clusters of homes that are easier to manage. This segment is a key part of AMH's growth strategy, aiming to expand its portfolio with modern, purpose-built rental housing.
What management is betting on now
AMH's management is focused on several key priorities to drive future growth and profitability. They are emphasizing the development of new rental homes and communities to expand their portfolio with purpose-built properties. Simultaneously, they are working to increase revenue from their existing homes through smart leasing strategies and rent increases, while also improving operational efficiency by integrating technology and data analytics. AMH is also actively managing its capital, including share repurchases, to enhance shareholder value.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$225.33M
FY2024 Q4
$97.91M
FY2025 Q1
$215.95M
FY2025 Q2
$257.74M
FY2025 Q3
$214.53M
FY2025 Q4
$135.47M
FY2026 Q1
$193.65M
FY2026 Q2
$276.96M
Revenue
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Net income
—
Diluted EPS
0.31
Operating cash flow
$292.63M
Free cash flow
$276.96M
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Sources
Revenue
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Net income
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Diluted EPS
0.35
Operating cash flow
$203.06M
Free cash flow
$193.65M
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Sources
Revenue
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Net income
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Diluted EPS
0.33
Operating cash flow
$145.81M
Free cash flow
$135.47M
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Sources
Revenue
—
Net income
—
Diluted EPS
0.27
Operating cash flow
$223.25M
Free cash flow
$214.53M
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Sources
Revenue
—
Net income
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Diluted EPS
0.28
Operating cash flow
$271.86M
Free cash flow
$257.74M
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Sources
Revenue
—
Net income
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Diluted EPS
0.30
Operating cash flow
$223.40M
Free cash flow
$215.95M
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Revenue
—
Net income
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Diluted EPS
0.33
Operating cash flow
$102.19M
Free cash flow
$97.91M
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Revenue
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Net income
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Diluted EPS
0.20
Operating cash flow
$233.57M
Free cash flow
$225.33M
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Sources
Is it cheap or expensive?
Fair value $51.42 vs current price $31.20
Wall Street consensus is the average analyst price target: $36.52 (-29.0% lower than our fair-value estimate).
Our most-likely fair value is $51.42 a share — about 64.8% above today's price of $31.20, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $5.1B. Interest coverage 2.5x.
Net debt
$5.07B
Interest coverage
2.51x
American Homes 4 Rent's profit covers its interest bill about 2.5 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
AMH
BASELINE
American Homes 4 Rent
Total debt $5.15B Interest coverage 2.51x This is the baseline the peer rows are being compared against.
Total debt $8.59B Interest coverage 2.13x -15% vs AMH Carries about 1.2x less debt cushion than AMH.
Total debt $9.19B Interest coverage 3.55x +42% vs AMH Carries about 1.4x more debt cushion than AMH.
Total debt $8.57B Interest coverage 2.83x +13% vs AMH Has roughly the same debt cushion as AMH.
Total debt $791.89M Interest coverage 1.61x -36% vs AMH Carries about 1.6x less debt cushion than AMH.
What you should know
The case for and against AMH
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.5% last year.
-
Returns 7.1% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (46.5x) is higher than trailing (24.8x) - earnings are expected to drop.
-
Net debt grew 12.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
24.76x
Forward P/E
46.52x
P/B
1.65x
P/S
6.82x
EV/EBITDA
17.44x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
56.6%
Operating margin
25.9%
Net margin
25.5%
ROE
7.1%
ROA
2.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.69x
Current ratio
1.67x
Quick ratio
0.26x
Total debt
$5.15B
Total cash
$83.67M
Growth
How the business has been compounding
Revenue TTM
$1.18B
Revenue 5Y CAGR
7.2%
EPS TTM
1.26
EPS 5Y CAGR
18.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$864.75M
Free CF TTM
$823.68M
FCF margin
69.6%
Dividend
Shareholder payout
Yield
4.1%
Payout ratio
100.0%
Last ex-div date
2026-09-15