American Homes 4 RentMEX:AMH 77 Return-on-Tangible-Equity is 7.66% as of Mar. 2026, which is 156% above its 10-year median of 2.99. GuruFocus rates MEX:AMH with a GF Score™ of 77/100 and a GF Value™ of MXN816.91. The stock has 9 warning signs investors should review. Among 933 REITs companies, American Homes 4 Rent ranks better than 53.8% 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. American Homes 4 Rent's annualized net income for the quarter that ended in Mar. 2026 was MXN9,467 Mil. American Homes 4 Rent's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN123,620 Mil. Therefore, American Homes 4 Rent's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.66%.
The historical rank and industry rank for American Homes 4 Rent's Return-on-Tangible-Equity or its related term are showing as below:
MEX:AMH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.19 Med: 2.99 Max: 6.76
Current: 6.76
During the past 13 years, American Homes 4 Rent's highest Return-on-Tangible-Equity was 6.76%. The lowest was 0.19%. And the median was 2.99%.
MEX:AMH's Return-on-Tangible-Equity is ranked better than 53.8% of 933
companies
in the REITs industry
Industry Median: 6.26
vs MEX:AMH: 6.76
American Homes 4 Rent (MEX:AMH) 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.
American Homes 4 Rent Return-on-Tangible-Equity Related Terms
American Homes 4 Rent Return-on-Tangible-Equity Historical Data
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The historical data trend for American Homes 4 Rent'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.
American Homes 4 Rent Return-on-Tangible-Equity Chart
MEX:AMH vs ELS, UDR, CPT: Return-on-Tangible-Equity Comparison
For the REIT - Residential subindustry, American Homes 4 Rent'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.
American Homes 4 Rent Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, American Homes 4 Rent's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where American Homes 4 Rent'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 7.66% mean?
American Homes 4 Rent (MEX:AMH) has a Return-on-Tangible-Equity of 7.66% 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 American Homes 4 Rent and its competitors. This is 156% above median its historical median of 2.99. Over the past decade, American Homes 4 Rent's Return-on-Tangible-Equity has ranged from 0.19 to 6.76. According to the industry distribution chart, American Homes 4 Rent ranks #431 out of 933 companies in the REITs industry, placing it in the top 46.2%.
Is American Homes 4 Rent's Return-on-Tangible-Equity too high?
American Homes 4 Rent's current Return-on-Tangible-Equity of 7.66% is 156% above median its 10-year median of 2.99. Over the past 10 years, this metric has ranged from a low of 0.19 to a high of 6.76. The REITs industry median Return-on-Tangible-Equity is 6.26. American Homes 4 Rent's value of 7.66% is 22.4% above this industry median. Based on the distribution chart, American Homes 4 Rent ranks #431 out of 933 companies in the REITs industry, which is above 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 Return-on-Tangible-Equity compare to ELS and UDR?
According to the REITs industry distribution chart, American Homes 4 Rent ranks #431 out of 933 companies for Return-on-Tangible-Equity. This puts American Homes 4 Rent in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.26. American Homes 4 Rent's value of 7.66% is 22.4% above this benchmark. Historically, American Homes 4 Rent's own Return-on-Tangible-Equity has ranged from 0.19 to 6.76 over the past decade. While the company's 10-year median is 2.99 vs. the industry median of 6.26, American Homes 4 Rent 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 6.26, based on 933 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. American Homes 4 Rent's current Return-on-Tangible-Equity of 7.66% is 22.4% 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 American Homes 4 Rent and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Homes 4 Rent's current Return-on-Tangible-Equity is 7.66%, which is 156% above median its own 10-year median of 2.99. 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 Return-on-Tangible-Equity of 7.66%. The stock's GF Value™ is MXN816.91, compared to a current price of MXN698.98 — trading 14.4% below its estimated fair value. The current Return-on-Tangible-Equity is 7.66%, which is 156% above median its 10-year median of 2.99 and 22.4% above the REITs industry median of 6.26. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For American Homes 4 Rent (MEX:AMH), the current Return-on-Tangible-Equity is 7.66% 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 MXN816.91.
Key valuation signals for MEX:AMH:
Return-on-Tangible-Equity: 7.66% (156% above median its 10-year median of 2.99)
GF Value™: MXN816.91 vs. price of MXN698.98 (14.4% below fair value)
Industry Position: 22.4% above the REITs median (#431 of 933)
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
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