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American Homes 4 Rent has the Financial Strength Rank of 4.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
American Homes 4 Rent's Interest Coverage for the quarter that ended in Jun. 2026 was 2.52.
American Homes 4 Rent's debt to revenue ratio for the quarter that ended in Jun. 2026 was 2.73.
As of today, American Homes 4 Rent's Altman Z-Score is 1.56.
American Homes 4 Rent (NYSE:AMH) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
American Homes 4 Rent has the Financial Strength Rank of 4.
American Homes 4 Rent Financial Strength Related Terms
AMH vs CPT, ELS, UDR: Financial Strength Comparison
For the REIT - Residential subindustry, American Homes 4 Rent's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs REITs Industry
For the REITs industry and Real Estate sector, American Homes 4 Rent's Financial Strength distribution charts can be found below:
* The bar in red indicates where American Homes 4 Rent's Financial Strength falls into.
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:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
American Homes 4 Rent has a Z-score of 1.56, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.56 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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 (AMH) has a Financial Strength of 4 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on American Homes 4 Rent and its competitors. This is 20% below median its historical median of 5.00. Over the past decade, American Homes 4 Rent's Financial Strength has ranged from 3.00 to 6.00.
Is American Homes 4 Rent's Financial Strength too high?
American Homes 4 Rent's current Financial Strength of 4 is 20% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 6.00. Overall, American Homes 4 Rent has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Homes 4 Rent's Financial Strength compare to CPT and ELS?
American Homes 4 Rent's Financial Strength of 4 can be compared against companies in the REITs industry. Historically, American Homes 4 Rent's own Financial Strength has ranged from 3.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a REITs company?
A good Financial Strength depends on the REITs industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on American Homes 4 Rent and its competitors. American Homes 4 Rent's current Financial Strength is 4, which is 20% below median its own 10-year median of 5.00. 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 (AMH) is currently considered Modestly Undervalued. The stock's GF Value™ is $39.60, compared to a current price of $34.63 — trading 12.6% below its estimated fair value. The current Financial Strength is 4, which is 20% below median its 10-year median of 5.00. American Homes 4 Rent's overall GF Score™ is 84/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For American Homes 4 Rent (AMH), the current Financial Strength is 4 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 (AMH) Overvalued in 2026?
Based on GuruFocus' analysis, American Homes 4 Rent stock appears to be undervalued.
The current stock price of $34.63 is trading 12.6% below its estimated GF Value™ of $39.60.
GuruFocus considers American Homes 4 Rent to be Modestly Undervalued.
Key valuation signals for AMH:
Financial Strength: 4 (20% below median its 10-year median of 5.00)
GF Value™: $39.60 vs. price of $34.63 (12.6% below fair value)
No single metric tells the full story. See the 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.
84GF Score
Get the complete analysis for AMH
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