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American Homes 4 RentLTS:0HEJ +1.94%83 Pretax Margin % is 28.27% as of Jun. 2026, which is 89% above its 10-year median of 14.98. GuruFocus rates LTS:0HEJ with a GF Score™ of 83/100 and a GF Value™ of $39.33 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 915 REITs companies, American Homes 4 Rent ranks worse than 66.34% on this metric.
American Homes 4 Rent (LTS:0HEJ) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
American Homes 4 Rent Pretax Margin % Related Terms
American Homes 4 Rent Pretax Margin % Historical Data
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The historical data trend for American Homes 4 Rent's Pretax 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.
LTS:0HEJ vs CPT, ELS, UDR: Pretax Margin % Comparison
For the REIT - Residential subindustry, American Homes 4 Rent's Pretax Margin %, along with its competitors' market caps and Pretax 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.
American Homes 4 Rent Pretax Margin % vs REITs Industry
For the REITs industry and Real Estate sector, American Homes 4 Rent's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where American Homes 4 Rent's Pretax Margin % falls into.
* 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 (LTS:0HEJ) has a Pretax Margin % of 28.27% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on American Homes 4 Rent and its competitors. This is 89% above median its historical median of 14.98. Over the past decade, American Homes 4 Rent's Pretax Margin % has ranged from 1.19 to 28.94. According to the industry distribution chart, American Homes 4 Rent ranks #607 out of 915 companies in the REITs industry, placing it in the top 66.3%.
Is American Homes 4 Rent's Pretax Margin % too high?
American Homes 4 Rent's current Pretax Margin % of 28.27% is 89% above median its 10-year median of 14.98. Over the past 10 years, this metric has ranged from a low of 1.19 to a high of 28.94. The REITs industry median Pretax Margin % is 47.34. American Homes 4 Rent's value of 28.27% is 40.3% below this industry median. Based on the distribution chart, American Homes 4 Rent ranks #607 out of 915 companies in the REITs industry, which is below the industry midpoint. Overall, American Homes 4 Rent has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Homes 4 Rent's Pretax Margin % compare to CPT and ELS?
According to the REITs industry distribution chart, American Homes 4 Rent ranks #607 out of 915 companies for Pretax Margin %. This places American Homes 4 Rent in the lower half of its industry. The industry median Pretax Margin % is 47.34. American Homes 4 Rent's value of 28.27% is 40.3% below this benchmark. Historically, American Homes 4 Rent's own Pretax Margin % has ranged from 1.19 to 28.94 over the past decade. While the company's 10-year median is 14.98 vs. the industry median of 47.34, 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 Pretax Margin % for a REITs company?
The median Pretax Margin % among REITs companies is 47.34, based on 915 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Homes 4 Rent's current Pretax Margin % of 28.27% is 40.3% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on American Homes 4 Rent and its competitors. For the REITs industry, the median Pretax Margin % is 47.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Homes 4 Rent's current Pretax Margin % is 28.27%, which is 89% above median its own 10-year median of 14.98. 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?
Based on GuruFocus' analysis, American Homes 4 Rent (LTS:0HEJ) is currently considered Modestly Undervalued. The stock's GF Value™ is $39.33, compared to a current price of $34.27 — trading 12.9% below its estimated fair value. The current Pretax Margin % is 28.27%, which is 89% above median its 10-year median of 14.98 and 40.3% below the REITs industry median of 47.34. American Homes 4 Rent's overall GF Score™ is 83/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For American Homes 4 Rent (LTS:0HEJ), the current Pretax Margin % is 28.27% as of Jun. 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 (LTS:0HEJ) Overvalued in 2026?
Based on GuruFocus' analysis, American Homes 4 Rent stock appears to be undervalued.
The current stock price of $34.27 is trading 12.9% below its estimated GF Value™ of $39.33.
GuruFocus considers American Homes 4 Rent to be Modestly Undervalued.
Key valuation signals for LTS:0HEJ:
Pretax Margin %: 28.27% (89% above median its 10-year median of 14.98)
GF Value™: $39.33 vs. price of $34.27 (12.9% below fair value)
Industry Position: 40.3% below the REITs median (#607 of 915)
No single metric tells the full story. See the LTS:0HEJ 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.
83GF Score
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