One-glance verdict
Undervalued
$49.44 our estimate vs market $26.75
Wall Street consensus: $32.83 (-33.6% lower than our fair-value estimate)
46% below our estimate, below the bear case
Fundamentals snapshot
Invitation Homes Inc.
INVH · NYQ · Real Estate · REIT - Residential
Current price
$26.75
52-week range
$24.25 - $30.89
Market cap
$15.80B
Balance sheet
Stretched
2.13x Stretched
Net debt $8.47B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 4.6% last year.
- Reward Returns 7.1% on equity, ahead of 20% of its peers.
- Risk Forward P/E (36.6x) is higher than trailing (24.5x) - earnings are expected to drop.
- Risk Net debt grew 9.9% over 3 years.
What this company does
Invitation Homes Inc.
Invitation Homes Inc. rents out single-family houses across the country, essentially acting like a giant landlord managing many homes. The money they make primarily comes from the rent people pay to live in these homes, which is a reliable source of income (recurring revenue) that helps the company operate smoothly and grow. This business model matters because it addresses the need for more housing options in America by providing rental homes for people who prefer leasing.
How the company got here
Invitation Homes was founded in 2012 with the goal of providing a better rental housing experience. It started by acquiring distressed homes after the 2008 financial crisis, helping to stabilize local housing markets. The company grew rapidly, merging with Starwood Waypoint Homes in 2017 and going public that same year. This expansion was fueled by a strategy to acquire and manage single-family homes at an institutional scale, focusing on desirable neighborhoods in high-growth areas. Invitation Homes has since become a leading player in the single-family rental (SFR) market, offering a professionalized alternative to traditional individual landlords.
What it actually does
Invitation Homes essentially acts as a large-scale landlord for single-family homes. Instead of buying a house, people rent one from the company. This includes not just the house itself, but also the flexibility of renting, professional management services, and access to desirable neighborhoods. The company manages the entire process, from finding and acquiring homes to renovating them, leasing them to residents, and handling ongoing maintenance and services. They aim to provide a high-quality living experience that offers an alternative to homeownership or renting an apartment.
Single-Family Home Leasing and Management
This is the core business of Invitation Homes. The company acquires, renovates, leases, and manages a large portfolio of single-family homes across the United States. They generate revenue primarily through monthly rental income paid by residents. This segment is the entirety of the company's operations, as Invitation Homes is officially reported as having only one business segment focused on leasing and managing single-family homes. They focus on markets with strong rental demand, aiming to provide a consistent and professional rental experience.
What management is betting on now
Invitation Homes is focused on driving growth through strategic capital allocation, which includes acquiring more homes, potentially through partnerships with homebuilders, and also through stock repurchases. They are also heavily investing in technology and innovation to improve the resident experience, making the leasing and maintenance processes more seamless and efficient. The company aims to increase rental revenue from its existing homes by optimizing pricing and resident retention, while also expanding its portfolio in high-demand markets.
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
$305.23M
FY2024 Q4
$125.03M
FY2025 Q1
$293.31M
FY2025 Q2
$374.36M
FY2025 Q3
$387.84M
FY2025 Q4
$122.39M
Revenue
$747.55M
Net income
$218.85M
Diluted EPS
0.37
Operating cash flow
$383.62M
Free cash flow
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Sources
Revenue
$734.11M
Net income
$160.51M
Diluted EPS
0.26
Operating cash flow
$293.05M
Free cash flow
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Sources
Revenue
$685.25M
Net income
$144.55M
Diluted EPS
0.24
Operating cash flow
$128.65M
Free cash flow
$122.39M
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Sources
Revenue
$688.17M
Net income
$136.74M
Diluted EPS
0.22
Operating cash flow
$394.60M
Free cash flow
$387.84M
Fetching…
Sources
Revenue
$681.40M
Net income
$140.89M
Diluted EPS
0.23
Operating cash flow
$382.46M
Free cash flow
$374.36M
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Sources
Revenue
$674.48M
Net income
$165.75M
Diluted EPS
0.27
Operating cash flow
$300.52M
Free cash flow
$293.31M
Fetching…
Sources
Revenue
$659.13M
Net income
$143.11M
Diluted EPS
0.24
Operating cash flow
$132.81M
Free cash flow
$125.03M
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Sources
Revenue
$660.32M
Net income
$95.27M
Diluted EPS
0.15
Operating cash flow
$313.62M
Free cash flow
$305.23M
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Sources
Is it cheap or expensive?
Fair value $49.44 vs current price $26.75
Wall Street consensus is the average analyst price target: $32.83 (-33.6% lower than our fair-value estimate).
Our most-likely fair value is $49.44 a share — about 84.8% above today's price of $26.75, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $8.5B. Interest coverage 2.1x.
Net debt
$8.47B
Interest coverage
2.13x
Invitation Homes Inc.'s profit covers its interest bill about 2.1 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
INVH
BASELINE
Invitation Homes Inc.
Total debt $8.59B Interest coverage 2.13x This is the baseline the peer rows are being compared against.
Total debt $5.15B Interest coverage 2.51x +18% vs INVH Carries about 1.2x more debt cushion than INVH.
Total debt $9.19B Interest coverage 3.55x +67% vs INVH Carries about 1.7x more debt cushion than INVH.
Total debt $8.57B Interest coverage 2.83x +33% vs INVH Carries about 1.3x more debt cushion than INVH.
Total debt $5.72B Interest coverage 3.34x +57% vs INVH Carries about 1.6x more debt cushion than INVH.
What you should know
The case for and against INVH
3 Rewards
3 Risks
Rewards
-
Revenue grew 4.6% last year.
-
Returns 7.1% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (36.6x) is higher than trailing (24.5x) - earnings are expected to drop.
-
Net debt grew 9.9% over 3 years.
-
Operating margin compressed from 29.1% to 25.1% 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)
24.54x
Forward P/E
36.58x
P/B
1.74x
P/S
5.55x
EV/EBITDA
16.20x
PEG ratio
13.14x
Profitability
How much profit each dollar creates
Gross margin
56.3%
Operating margin
25.1%
Net margin
23.2%
ROE
7.1%
ROA
2.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.94x
Current ratio
0.43x
Quick ratio
0.14x
Total debt
$8.59B
Total cash
$113.06M
Growth
How the business has been compounding
Revenue TTM
$2.86B
Revenue 5Y CAGR
8.1%
EPS TTM
1.09
EPS 5Y CAGR
15.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.20B
Free CF TTM
$1.18B
FCF margin
41.3%
Dividend
Shareholder payout
Yield
4.4%
Payout ratio
109.2%
Last ex-div date
2026-09-24