Invitation HomesINVH +0.59%84 Operating Margin % is 24.39% as of Mar. 2026, which is 8% below its 10-year median of 26.62. GuruFocus rates INVH with a GF Score™ of 84/100 and a GF Value™ of $37.04 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 747 REITs companies, Invitation Homes ranks worse than 76.57% on this metric.
Invitation Homes (NYSE:INVH) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Invitation Homes Operating Margin % Related Terms
Invitation Homes Operating Margin % Historical Data
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The historical data trend for Invitation Homes's Operating Margin % 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.
INVH vs ESS, MAA, SUI: Operating Margin % Comparison
For the REIT - Residential subindustry, Invitation Homes's Operating Margin %, along with its competitors' market caps and Operating Margin % 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.
Invitation Homes Operating Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Invitation Homes's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Invitation Homes's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Invitation Homes's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Invitation Homes (INVH) has a Operating Margin % of 24.39% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Invitation Homes and its competitors. This is near median its historical median of 26.62. Over the past decade, Invitation Homes' Operating Margin % has ranged from 13.50 to 29.12. According to the industry distribution chart, Invitation Homes ranks #572 out of 747 companies in the REITs industry, placing it in the top 76.6%.
Is Invitation Homes' Operating Margin % too high?
Invitation Homes' current Operating Margin % of 24.39% is near median its 10-year median of 26.62. Over the past 10 years, this metric has ranged from a low of 13.50 to a high of 29.12. The REITs industry median Operating Margin % is 52.63. Invitation Homes' value of 24.39% is 53.7% below this industry median. Based on the distribution chart, Invitation Homes ranks #572 out of 747 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Invitation Homes has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Invitation Homes' Operating Margin % compare to ESS and MAA?
According to the REITs industry distribution chart, Invitation Homes ranks #572 out of 747 companies for Operating Margin %. This places Invitation Homes in the lower half of its industry. The industry median Operating Margin % is 52.63. Invitation Homes' value of 24.39% is 53.7% below this benchmark. Historically, Invitation Homes' own Operating Margin % has ranged from 13.50 to 29.12 over the past decade. While the company's 10-year median is 26.62 vs. the industry median of 52.63, Invitation Homes 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 Operating Margin % for a REITs company?
The median Operating Margin % among REITs companies is 52.63, based on 747 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Invitation Homes's current Operating Margin % of 24.39% is 53.7% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Invitation Homes and its competitors. For the REITs industry, the median Operating Margin % is 52.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Invitation Homes's current Operating Margin % is 24.39%, which is near median its own 10-year median of 26.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Invitation Homes stock overvalued right now?
Based on GuruFocus' analysis, Invitation Homes (INVH) is currently considered Modestly Undervalued. The stock's GF Value™ is $37.04, compared to a current price of $30.53 — trading 17.6% below its estimated fair value. The current Operating Margin % is 24.39%, which is near median its 10-year median of 26.62 and 53.7% below the REITs industry median of 52.63. Invitation Homes' overall GF Score™ is 84/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Invitation Homes (INVH), the current Operating Margin % is 24.39% 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 Invitation Homes (INVH) Overvalued in 2026?
Based on GuruFocus' analysis, Invitation Homes stock appears to be undervalued.
The current stock price of $30.53 is trading 17.6% below its estimated GF Value™ of $37.04.
GuruFocus considers Invitation Homes to be Modestly Undervalued.
Key valuation signals for INVH:
Operating Margin %: 24.39% (near median its 10-year median of 26.62)
GF Value™: $37.04 vs. price of $30.53 (17.6% below fair value)
Industry Position: 53.7% below the REITs median (#572 of 747)
No single metric tells the full story. See the INVH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Invitation Homes owns a portfolio of over 86,000 single-family rental homes. The company focuses on owning homes in the starter and move-up segments of the housing market with an average sale price of around $350,000 and generally less than 1,800 square feet. The portfolio is spread across 17 target markets that feature high employment and household formation growth, with over 70% of the portfolio in the Western US and Florida; 15 of the 17 markets feature average rents lower than homeownership costs.
84GF Score
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