Invitation HomesFRA:4IV +1.54%81 Return-on-Tangible-Equity is 7.18% as of Mar. 2026, which is 168% above its 10-year median of 2.68. GuruFocus rates FRA:4IV with a GF Score™ of 81/100 and a GF Value™ of €32.40 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 931 REITs companies, Invitation Homes ranks better than 50.48% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Invitation Homes's annualized net income for the quarter that ended in Mar. 2026 was €555 Mil. Invitation Homes's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €7,730 Mil. Therefore, Invitation Homes's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.18%.
The historical rank and industry rank for Invitation Homes's Return-on-Tangible-Equity or its related term are showing as below:
FRA:4IV'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.07 Med: 2.68 Max: 6.3
Current: 6.3
During the past 12 years, Invitation Homes's highest Return-on-Tangible-Equity was 6.30%. The lowest was -4.07%. And the median was 2.68%.
FRA:4IV's Return-on-Tangible-Equity is ranked better than 50.48% of 931
companies
in the REITs industry
Industry Median: 6.25
vs FRA:4IV: 6.30
Invitation Homes (FRA:4IV) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Invitation Homes Return-on-Tangible-Equity Related Terms
Invitation Homes Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Invitation Homes's Return-on-Tangible-Equity 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.
FRA:4IV vs ESS, MAA, SUI: Return-on-Tangible-Equity Comparison
For the REIT - Residential subindustry, Invitation Homes's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Invitation Homes's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Invitation Homes's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.18% mean?
Invitation Homes (FRA:4IV) has a Return-on-Tangible-Equity of 7.18% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Invitation Homes and its competitors. This is 168% above median its historical median of 2.68. According to the industry distribution chart, Invitation Homes ranks #461 out of 931 companies in the REITs industry, placing it in the top 49.5%.
Is Invitation Homes' Return-on-Tangible-Equity too high?
Invitation Homes' current Return-on-Tangible-Equity of 7.18% is 168% above median its 10-year median of 2.68. The REITs industry median Return-on-Tangible-Equity is 6.25. Invitation Homes' value of 7.18% is 14.9% above this industry median. Based on the distribution chart, Invitation Homes ranks #461 out of 931 companies in the REITs industry, which is above the industry midpoint. Overall, Invitation Homes has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Invitation Homes' Return-on-Tangible-Equity compare to ESS and MAA?
According to the REITs industry distribution chart, Invitation Homes ranks #461 out of 931 companies for Return-on-Tangible-Equity. This puts Invitation Homes in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.25. Invitation Homes' value of 7.18% is 14.9% above this benchmark. While the company's 10-year median is 2.68 vs. the industry median of 6.25, Invitation Homes has consistently been above 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 Return-on-Tangible-Equity for a REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.25, based on 931 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Invitation Homes's current Return-on-Tangible-Equity of 7.18% is 14.9% above 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Invitation Homes and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Invitation Homes's current Return-on-Tangible-Equity is 7.18%, which is 168% above median its own 10-year median of 2.68. 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 (FRA:4IV) is currently considered Modestly Undervalued. The stock's GF Value™ is €32.40, compared to a current price of €26.40 — trading 18.5% below its estimated fair value. The current Return-on-Tangible-Equity is 7.18%, which is 168% above median its 10-year median of 2.68 and 14.9% above the REITs industry median of 6.25. Invitation Homes' overall GF Score™ is 81/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Invitation Homes (FRA:4IV), the current Return-on-Tangible-Equity is 7.18% 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 (FRA:4IV) Overvalued in 2026?
Based on GuruFocus' analysis, Invitation Homes stock appears to be undervalued.
The current stock price of €26.40 is trading 18.5% below its estimated GF Value™ of €32.40.
GuruFocus considers Invitation Homes to be Modestly Undervalued.
Key valuation signals for FRA:4IV:
Return-on-Tangible-Equity: 7.18% (168% above median its 10-year median of 2.68)
GF Value™: €32.40 vs. price of €26.40 (18.5% below fair value)
Industry Position: 14.9% above the REITs median (#461 of 931)
No single metric tells the full story. See the FRA:4IV 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.
81GF Score
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