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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. American Homes 4 Rent's annualized ROCE % for the quarter that ended in Jun. 2026 was 5.92%.
American Homes 4 Rent (LTS:0HEJ) ROCE % Explanation
ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.
Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.
* 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.
(1) Note:
The EBIT data used here is four times the quarterly (Jun. 2026) EBIT data.
* 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 ROCE % of 5.92% as of Jun. 2026.
Is American Homes 4 Rent's ROCE % too high?
American Homes 4 Rent's current ROCE % is 5.92%. The REITs industry median ROCE % is 5.03. American Homes 4 Rent's value of 5.92% is 17.7% above this industry median. 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 ROCE % compare to CPT and ELS?
American Homes 4 Rent's ROCE % of 5.92% can be compared against companies in the REITs industry. The industry median ROCE % is 5.03. American Homes 4 Rent's value of 5.92% is 17.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a REITs company?
The median ROCE % among REITs companies is 5.03, based on 740 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Homes 4 Rent's current ROCE % of 5.92% is 17.7% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the REITs industry, the median ROCE % is 5.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Homes 4 Rent's current ROCE % is 5.92%. 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 ROCE % is 5.92% and 17.7% above the REITs industry median of 5.03. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For American Homes 4 Rent (LTS:0HEJ), the current ROCE % is 5.92% 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:
ROCE %: 5.92%
GF Value™: $39.33 vs. price of $34.27 (12.9% below fair value)
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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