Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. American Homes 4 Rent's
Operating Income
for the
three
months ended in Mar. 2026 was MXN2,188 Mil. American Homes 4 Rent's Interest Expense for the
three
months ended in Mar. 2026 was MXN-870 Mil.
American Homes 4 Rent's interest coverage for the quarter that ended in Mar. 2026 was 2.52.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for American Homes 4 Rent's Interest Coverage or its related term are showing as below:
MEX:AMH'
s Interest Coverage Range Over the Past 10 Years
Min: 1.22 Med: 2.26 Max: 2.64
Current: 2.51
MEX:AMH's Interest Coverage is ranked worse than 58.71% of 700
companies
in the REITs industry
Industry Median: 3.095
vs MEX:AMH: 2.51
American Homes 4 Rent (MEX:AMH) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
American Homes 4 Rent Interest Coverage Related Terms
American Homes 4 Rent Interest Coverage Historical Data
* Premium members only.
The historical data trend for American Homes 4 Rent's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:AMH vs ELS, UDR, CPT: Interest Coverage Comparison
For the REIT - Residential subindustry, American Homes 4 Rent's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Homes 4 Rent Interest Coverage vs REITs Industry
For the REITs industry and Real Estate sector, American Homes 4 Rent's Interest Coverage distribution charts can be found below:
* The bar in red indicates where American Homes 4 Rent's Interest Coverage falls into.
American Homes 4 Rent Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
American Homes 4 Rent (MEX:AMH) has a Interest Coverage of 2.52 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on American Homes 4 Rent and its competitors. This is 12% above median its historical median of 2.26. Over the past decade, American Homes 4 Rent's Interest Coverage has ranged from 1.22 to 2.64. According to the industry distribution chart, American Homes 4 Rent ranks #411 out of 700 companies in the REITs industry, placing it in the top 58.7%.
Is American Homes 4 Rent's Interest Coverage too high?
American Homes 4 Rent's current Interest Coverage of 2.52 is 12% above median its 10-year median of 2.26. Over the past 10 years, this metric has ranged from a low of 1.22 to a high of 2.64. The REITs industry median Interest Coverage is 3.10. American Homes 4 Rent's value of 2.52 is 18.6% below this industry median. Based on the distribution chart, American Homes 4 Rent ranks #411 out of 700 companies in the REITs industry, which is below the industry midpoint. Overall, American Homes 4 Rent has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does American Homes 4 Rent's Interest Coverage compare to ELS and UDR?
According to the REITs industry distribution chart, American Homes 4 Rent ranks #411 out of 700 companies for Interest Coverage. This places American Homes 4 Rent in the lower half of its industry. The industry median Interest Coverage is 3.10. American Homes 4 Rent's value of 2.52 is 18.6% below this benchmark. Historically, American Homes 4 Rent's own Interest Coverage has ranged from 1.22 to 2.64 over the past decade. While the company's 10-year median is 2.26 vs. the industry median of 3.10, American Homes 4 Rent has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a REITs company?
The median Interest Coverage among REITs companies is 3.10, based on 700 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Homes 4 Rent's current Interest Coverage of 2.52 is 18.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on American Homes 4 Rent and its competitors. For the REITs industry, the median Interest Coverage is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Homes 4 Rent's current Interest Coverage is 2.52, which is 12% above median its own 10-year median of 2.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Homes 4 Rent stock overvalued right now?
American Homes 4 Rent (MEX:AMH) has a current Interest Coverage of 2.52. The stock's GF Value™ is MXN816.47, compared to a current price of MXN698.98 — trading 14.4% below its estimated fair value. The current Interest Coverage is 2.52, which is 12% above median its 10-year median of 2.26 and 18.6% below the REITs industry median of 3.10. American Homes 4 Rent's overall GF Score™ is 77/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For American Homes 4 Rent (MEX:AMH), the current Interest Coverage is 2.52 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is American Homes 4 Rent (MEX:AMH) Overvalued in 2026?
Based on GuruFocus' analysis, American Homes 4 Rent stock appears to be undervalued.
The current stock price of MXN698.98 is trading 14.4% below its estimated GF Value™ of MXN816.47.
Key valuation signals for MEX:AMH:
Interest Coverage: 2.52 (12% above median its 10-year median of 2.26)
GF Value™: MXN816.47 vs. price of MXN698.98 (14.4% below fair value)
Industry Position: 18.6% below the REITs median (#411 of 700)
No single metric tells the full story. See the MEX:AMH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Homes 4 Rent is a real estate investment trust focused on acquiring, operating, and leasing single-family homes as rental properties throughout the United States. The company's real estate portfolio is largely comprised of single-family properties in urban markets in the Southern and Midwestern regions of the U.S. American Homes 4 Rent's land holdings also represent a sizable percentage of its total assets in terms of value. The company derives the vast majority of its income in the form of rental revenue from single-family properties through short-term or annual leases. The firm's geographical markets include Dallas, Texas; Indianapolis, Indiana; Atlanta, Georgia; and Charlotte, North Carolina in terms of the number of properties in each.
77GF Score
Get the complete analysis for MEX:AMH
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:AMH has been successfully added to your 
