American Homes EBITDA vs. Return On Equity
| AMH Stock | USD 37.66 0.03 0.08% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 809.3 M | Current Value 495.9 M | Quarterly Volatility 286 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.41 | 0.5548 |
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For American Homes profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Homes to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Homes 4 utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Homes's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Homes 4 over time as well as its relative position and ranking within its peers.
American |
American Homes' Revenue Breakdown by Earning Segment
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Is Single-Family Residential REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Homes. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Homes listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Dividend Share 1 | Earnings Share 0.96 | Revenue Per Share 4.649 | Quarterly Revenue Growth 0.055 | Return On Assets 0.0192 |
The market value of American Homes 4 is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Homes' value that differs from its market value or its book value, called intrinsic value, which is American Homes' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Homes' market value can be influenced by many factors that don't directly affect American Homes' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Homes' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Homes is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Homes' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
American Homes 4 Return On Equity vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining American Homes's current stock value. Our valuation model uses many indicators to compare American Homes value to that of its competitors to determine the firm's financial worth. American Homes 4 is rated below average in ebitda category among its peers. It also is rated below average in return on equity category among its peers . The ratio of EBITDA to Return On Equity for American Homes 4 is about 14,848,770,642 . As of now, American Homes' EBITDA is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the American Homes' earnings, one of the primary drivers of an investment's value.American Return On Equity vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
American Homes |
| = | 809.26 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
American Homes |
| = | 0.0545 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
American Return On Equity Comparison
American Homes is currently under evaluation in return on equity category among its peers.
American Homes Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in American Homes, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American Homes will eventually generate negative long term returns. The profitability progress is the general direction of American Homes' change in net profit over the period of time. It can combine multiple indicators of American Homes, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 843 K | 800.9 K | |
| Operating Income | 352.7 M | 370.3 M | |
| Income Before Tax | 432.1 M | 453.7 M | |
| Total Other Income Expense Net | 79.4 M | 83.4 M | |
| Net Income | 379.1 M | 398 M | |
| Income Tax Expense | 53.1 M | 57.5 M | |
| Net Income From Continuing Ops | 445 M | 235.1 M | |
| Non Operating Income Net Other | 156.9 M | 164.8 M | |
| Net Income Applicable To Common Shares | 287.5 M | 301.9 M | |
| Net Interest Income | -141.4 M | -148.4 M | |
| Change To Netincome | -95.9 M | -91.1 M | |
| Net Income Per Share | 1.05 | 1.10 | |
| Income Quality | 1.95 | 2.61 | |
| Net Income Per E B T | 0.88 | 0.91 |
American Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on American Homes. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of American Homes position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the American Homes' important profitability drivers and their relationship over time.
Use American Homes in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Homes position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Homes will appreciate offsetting losses from the drop in the long position's value.American Homes Pair Trading
American Homes 4 Pair Trading Analysis
The ability to find closely correlated positions to American Homes could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Homes when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Homes - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Homes 4 to buy it.
The correlation of American Homes is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Homes moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Homes 4 moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Homes can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your American Homes position
In addition to having American Homes in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project American Homes' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of American Homes 4 at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include American Homes' income statement, its balance sheet, and the statement of cash flows.