# American Homes 4 Rent (AMH.US)

Canonical: https://gigainvestors.com/s/AMH

Analysis as of: 2026-10-16T07:26:28.388Z. Financial observations: FY2013–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $30.97 per share; close as of 2026-10-15.

Estimated value: low $24.09 per share, central $27.40 per share, high $31.80 per share. Buy at or below the central value $27.40 per share. Valuation as of 2026-10-16T07:26:28.388Z; scenarios are not confidence intervals.

Expected annual return: 9.2% at the stated quote. About 9.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.16×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.51×

- FY2017: 0.52×

- FY2018: 0.51×

- FY2019: 0.50×

- FY2020: 0.49×

- FY2021: 0.49×

- FY2022: 0.49×

- FY2023: 0.50×

- FY2024: 0.51×

- FY2025: 0.24×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 50.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 4.4%

- ROIC, second-lowest year: 3.0%

- Typical minus recent gross margin: 50.6 pp

- Typical gross margin (annual median): 54.0%

- Recent gross margin (lower of latest and 3-year median): 3.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.4%

- ROIC including acquisitions, ten-year median: 4.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 3.0%

- FY2017: 6.7%

- FY2018: 6.6%

- FY2019: 4.1%

- FY2020: 4.5%

- FY2021: 4.3%

- FY2022: 4.3%

- FY2023: 7.6%

- FY2024: 6.3%

- FY2025: 3.0%

### economics: pass

- Owner earnings / net income, 5-yr: 1.94×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $3.3B

- Net income, five-year total: $1.7B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 1.9 pp

- Working capital / revenue, change between three-year averages: 6.0 pp

- Working capital / revenue, final three-year average: 1.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 2.32×

- FY2022: 2.05×

- FY2023: 1.85×

- FY2024: 1.86×

- FY2025: 1.85×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 6.6% vs 6.3%

- Per-share earnings: 0.03 to 1.12 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 5.8%

- Ordinary dilution, 5-year annual growth: 3.8%

- Market cap gain: $7.0B

- Cumulative retained earnings: -$9.1M

- Diluted shares, 10-year annual growth: 5.8%

- Diluted shares, 5-year annual growth: 3.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 58.2%

- Per-share value change: $1.09

- Per-share value, starting three-year median: $0.03

- Per-share value, ending three-year median: $1.12

- Buybacks concentrated in cheaper years (correlation): -0.33

- Average buyback yield: 1.2%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: $43M

- Cumulative net income, 10 years: $2.2B

- ROIC, first three-year median: 6.6%

- ROIC, last three-year median: 6.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.03

- FY2017: $0.31

- FY2018: $0.37

- FY2019: $0.47

- FY2020: $0.46

- FY2021: $0.58

- FY2022: $0.78

- FY2023: $1.05

- FY2024: $1.12

- FY2025: $1.22

### accounting: pass

- Sloan accruals: -3.1%

- Receivables to sales index (DSRI): 0.82×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 3.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.91×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.4%

- FY2017: -3.5%

- FY2018: -3.4%

- FY2019: -3.5%

- FY2020: -3.5%

- FY2021: -3.7%

- FY2022: -3.2%

- FY2023: -3.0%

- FY2024: -3.0%

- FY2025: -3.1%

## Holders

- [Christopher Davis](https://gigainvestors.com/DAV): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Martin Whitman](https://gigainvestors.com/TA): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 29% since Dec 2021 · "American Homes 4 Rent (AMH) Draws Cautious Analyst Views amid Softening Rental Trends" (finance.yahoo.com, Mar 2026) · sales +8%

Story as of 2026-10-16T09:58:17.826Z; price observation 2026-10-15.

Price needs cash profits to grow 2.4% a year for ten years

- 2026-03-05: American Homes 4 Rent (AMH) Draws Cautious Analyst Views amid Softening Rental Trends ([finance.yahoo.com](https://finance.yahoo.com/news/american-homes-4-rent-amh-012233140.html))

### Sales · FY2024–2025

sales +8%; source https://www.sec.gov/Archives/edgar/data/1562401/000156240126000010/amh-20251231.htm; observed 2026-02-20.

- FY2016: $879M 

- FY2017: $960M 

- FY2018: $1.1B 

- FY2019: $1.1B 

- FY2020: $1.2B 

- FY2021: $1.3B 

- FY2022: $1.5B 

- FY2023: $1.6B 

- FY2024: $1.7B 

- FY2025: $1.9B 

### Gross margin · FY2025

gross margin 3.4%; source https://www.sec.gov/Archives/edgar/data/1562401/000156240126000010/amh-20251231.htm; observed 2026-02-20.

- FY2016: 55.2% 

- FY2017: 55.3% 

- FY2018: 54.1% 

- FY2019: 53.7% 

- FY2020: 53.1% 

- FY2021: 53.8% 

- FY2022: 53.8% 

- FY2023: 54.4% 

- FY2024: 55.6% 

- FY2025: 3.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in property rentals; annual sales are USD 1.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1562401/000156240126000010/amh-20251231.htm (filed 2026-02-20); FY2025: revenue 1866169000; grossProfit 62815000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 3.4% to 55.6% during 2023–25; it earns 4.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 54.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 55.6%.

- Source: https://www.sec.gov/Archives/edgar/data/1562401/000156240126000010/amh-20251231.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 3.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2016,0.029780026296974228],[2017,0.06653071604933637],[2018,0.06621696603826273],[2019,0.04126224419693552],[2020,0.04462668968837641],[2021,0.042797724685517645],[2022,0.043414397248640976],[2023,0.07614790011614578],[2024,0.06271069975103347],[2025,0.029920568964489757]]; median 0.04402054346850869. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 54% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1562401/000156240126000010/amh-20251231.htm (filed 2026-02-20); Gross margin observations: [[2021,0.5376736545178168],[2022,0.5382587716885358],[2023,0.5443891833296892]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 150.1 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2016: growth capex 0; upkeep 67719000; owner earnings 237653000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2017: growth capex 0; upkeep 37540000; owner earnings 340749000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2018: growth capex 0; upkeep 54465000; owner earnings 372493000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2019: growth capex 0; upkeep 71481000; owner earnings 373738005.9388199. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2020: growth capex 0; upkeep 104819000; owner earnings 356456884.44671214. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2021: growth capex 0; upkeep 122551000; owner earnings 439389000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2022: growth capex 0; upkeep 138779000; owner earnings 560890000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: growth capex 0; upkeep 134176000; owner earnings 702542000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: growth capex 0; upkeep 121751000; owner earnings 767685000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1562401/000156240126000010/amh-20251231.htm (filed 2026-02-20); FY2025: growth capex 0; upkeep 118211000; owner earnings 839104000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,88408000],[2017,85023000],[2018,125553000],[2019,114960000],[2020,116195000],[2021,184166000],[2022,269587000],[2023,333442000],[2024,397479000],[2025,460236000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1562401/000156240126000010/amh-20251231.htm (filed 2026-02-20); FY2025: cash repurchases 150093000 USD.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/1562401/000156240126000010/amh-20251231.htm (filed 2026-02-20); lts of operations and financial condition include the pace at which we identify and acquire suitable land, the pace and cost of our property developments, the time it takes to lease our properties at acceptable rental rates, occupancy levels, rates of tenant turnover, the length of vacancy in properties between tenant leases, our expense ratios, property taxes including changes in rates and valuation assessments of our properties, our ability to raise capital and our capital structure. Additionally, labor shortages, supply chain disruptions and inflationary pressures, including as a result of tariffs, have impacted and may in the future impact certain aspects of our business, including our AMH Development Program, our renovation program and our maintenance program. We may also face challenges from new laws and regulations that attempt to restrict institutional ownership of single-family homes, such as by imposing limits on acquisitions or ownership, tax or other financial disincentives, or adverse zoning restrictions.

Property Development, Acquisitions and Dispositions

Since our formation, we have rapidly but systematically grown our portfolio of single-family properties. We are primarily focused on developing “built-for-rental” homes through our internal AMH Development Program. In addition, we evaluate opportunities to acquire newly constructed homes from third-party developers through our National Builder Program. Opportunities from these new construction channels are impacted by the availability of vacant developed lots, development land assets and inventory of homes currently under construction or newly developed. Our level of investment activity has fluctuated based on the number of suitable

27

opportunities and the level of capital available to invest. We have strategically scaled back acquisitions of single-family properties through broker sales via the MLS and our National Builder Program as the housing market adjusts to the current macroeconomic environment. In the past, our ability to identify and acquire homes through traditional channels that met our investment criteria was impacted by home prices in our target markets, the inventory of properties available, the availability of bulk portfolio acquisition opportunities, competition for our target assets and our available capital.

During the year ended December 31, 2025, we developed or acquired 1,962 homes, including 1,879 newly constructed homes delivered to our operating portfolio through our AMH Development Program and 83 homes acquired through our National Builder Program and traditional acquisition channel, partially offset by 2,156 homes identified for sale. During the year ended December 31, 2025, we also developed an additional 443 newly constructed homes which were delivered to our unconsolidated joint ventures, aggregating to 2,322 total home deliveries through our AMH De

### What the price says

The price assumes cash profits grow 2.4% yearly over ten years; actual growth was 56%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate 0.021930927442117866. Price 30.97; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.026566937564434616 → FY2025 2.2623054988007736. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $21.11 per share

- 2016-11: $21.07 per share

- 2016-12: $20.98 per share

- 2017-01: $22.28 per share

- 2017-02: $23.77 per share

- 2017-03: $22.96 per share

- 2017-04: $23.05 per share

- 2017-05: $22.47 per share

- 2017-06: $22.57 per share

- 2017-07: $23.01 per share

- 2017-08: $22.16 per share

- 2017-09: $21.71 per share

- 2017-10: $21.28 per share

- 2017-11: $21.48 per share

- 2017-12: $21.84 per share

- 2018-01: $20.79 per share

- 2018-02: $19.19 per share

- 2018-03: $20.08 per share

- 2018-04: $20.20 per share

- 2018-05: $19.92 per share

- 2018-06: $22.18 per share

- 2018-07: $22.14 per share

- 2018-08: $23.20 per share

- 2018-09: $21.89 per share

- 2018-10: $21.07 per share

- 2018-11: $20.83 per share

- 2018-12: $19.85 per share

- 2019-01: $22.11 per share

- 2019-02: $21.84 per share

- 2019-03: $22.72 per share

- 2019-04: $23.98 per share

- 2019-05: $24.41 per share

- 2019-06: $24.31 per share

- 2019-07: $24.21 per share

- 2019-08: $25.58 per share

- 2019-09: $25.89 per share

- 2019-10: $26.47 per share

- 2019-11: $26.71 per share

- 2019-12: $26.21 per share

- 2020-01: $27.33 per share

- 2020-02: $25.89 per share

- 2020-03: $23.20 per share

- 2020-04: $24.14 per share

- 2020-05: $25.24 per share

- 2020-06: $26.90 per share

- 2020-07: $29.00 per share

- 2020-08: $28.64 per share

- 2020-09: $28.48 per share

- 2020-10: $28.27 per share

- 2020-11: $28.72 per share

- 2020-12: $30.00 per share

- 2021-01: $30.23 per share

- 2021-02: $31.14 per share

- 2021-03: $33.34 per share

- 2021-04: $37.04 per share

- 2021-05: $38.07 per share

- 2021-06: $38.85 per share

- 2021-07: $42.00 per share

- 2021-08: $41.94 per share

- 2021-09: $38.12 per share

- 2021-10: $40.60 per share

- 2021-11: $40.09 per share

- 2021-12: $43.61 per share

- 2022-01: $39.13 per share

- 2022-02: $38.01 per share

- 2022-03: $40.03 per share

- 2022-04: $39.61 per share

- 2022-05: $36.96 per share

- 2022-06: $35.44 per share

- 2022-07: $37.88 per share

- 2022-08: $35.56 per share

- 2022-09: $32.81 per share

- 2022-10: $31.94 per share

- 2022-11: $33.07 per share

- 2022-12: $30.14 per share

- 2023-01: $34.29 per share

- 2023-02: $31.02 per share

- 2023-03: $31.45 per share

- 2023-04: $33.26 per share

- 2023-05: $34.28 per share

- 2023-06: $35.45 per share

- 2023-07: $37.48 per share

- 2023-08: $36.04 per share

- 2023-09: $33.69 per share

- 2023-10: $32.74 per share

- 2023-11: $36.27 per share

- 2023-12: $35.96 per share

- 2024-01: $35.05 per share

- 2024-02: $37.01 per share

- 2024-03: $36.78 per share

- 2024-04: $35.80 per share

- 2024-05: $36.04 per share

- 2024-06: $37.16 per share

- 2024-07: $36.09 per share

- 2024-08: $39.77 per share

- 2024-09: $38.39 per share

- 2024-10: $35.24 per share

- 2024-11: $38.29 per share

- 2024-12: $37.42 per share

- 2025-01: $34.63 per share

- 2025-02: $37.01 per share

- 2025-03: $37.81 per share

- 2025-04: $37.39 per share

- 2025-05: $37.85 per share

- 2025-06: $36.07 per share

- 2025-07: $34.69 per share

- 2025-08: $35.82 per share

- 2025-09: $33.25 per share

- 2025-10: $31.60 per share

- 2025-11: $32.12 per share

- 2025-12: $32.10 per share

- 2026-01: $31.32 per share

- 2026-02: $30.00 per share

- 2026-03: $27.92 per share

- 2026-04: $31.84 per share

- 2026-05: $32.08 per share

- 2026-06: $33.52 per share

- 2026-07: $33.42 per share

- 2026-08: $33.30 per share

- 2026-09: $30.39 per share

- 2026-10: $30.97 per share

## Annual estimated value (USD per share)

- FY2017: low $0.44 per share, central $0.49 per share, high $0.56 per share

- FY2018: low $10.80 per share, central $12.29 per share, high $14.27 per share

- FY2019: low $13.67 per share, central $15.54 per share, high $18.04 per share

- FY2020: low $14.11 per share, central $16.01 per share, high $18.54 per share

- FY2021: low $14.81 per share, central $16.85 per share, high $19.56 per share

- FY2022: low $15.81 per share, central $17.97 per share, high $20.85 per share

- FY2023: low $16.57 per share, central $18.85 per share, high $21.88 per share

- FY2024: low $19.77 per share, central $22.43 per share, high $25.98 per share

- FY2025: low $23.99 per share, central $27.27 per share, high $31.64 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1562401/000156240126000010/amh-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.