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Invitation HomesFRA:4IV +1.55%83 3-Year ROIIC % is 41.18 as of Dec. 2025, which is 897% above its 10-year median of 4.13. GuruFocus rates FRA:4IV with a GF Score™ of 83/100 and a GF Value™ of €32.25 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 692 REITs companies, Invitation Homes ranks better than 95.23% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Invitation Homes's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 41.18%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Invitation Homes's 3-Year ROIIC % or its related term are showing as below:
FRA:4IV's 3-Year ROIIC % is ranked better than 95.23% of 692
companies
in the REITs industry
Industry Median: 3.555
vs FRA:4IV: 41.18
Invitation Homes (FRA:4IV) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Invitation Homes 3-Year ROIIC % Related Terms
Invitation Homes 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Invitation Homes's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the REIT - Residential subindustry, Invitation Homes's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs REITs Industry
For the REITs industry and Real Estate sector, Invitation Homes's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Invitation Homes's 3-Year ROIIC % falls into.
Invitation Homes's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 642.546 (Dec. 2025) - 615.2 (Dec. 2022) )
/
( 15645.254 (Dec. 2025) - 17063.192 (Dec. 2022) )
=
27.346
/
-1417.938
=
-1.93%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Invitation Homes (FRA:4IV) has a 3-Year ROIIC % of 41.18 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Invitation Homes and its competitors. This is 897% above median its historical median of 4.13. According to the industry distribution chart, Invitation Homes ranks #33 out of 692 companies in the REITs industry, placing it in the top 4.8%.
Is Invitation Homes' 3-Year ROIIC % too high?
Invitation Homes' current 3-Year ROIIC % of 41.18 is 897% above median its 10-year median of 4.13. The REITs industry median 3-Year ROIIC % is 3.56. Invitation Homes' value of 41.18 is 1058.4% above this industry median. Based on the distribution chart, Invitation Homes ranks #33 out of 692 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Invitation Homes has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Invitation Homes' 3-Year ROIIC % compare to ESS and MAA?
According to the REITs industry distribution chart, Invitation Homes ranks #33 out of 692 companies for 3-Year ROIIC %. This places Invitation Homes in the top 5% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 3.56. Invitation Homes' value of 41.18 is 1058.4% above this benchmark. While the company's 10-year median is 4.13 vs. the industry median of 3.56, 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 3-Year ROIIC % for a REITs company?
The median 3-Year ROIIC % among REITs companies is 3.56, based on 692 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Invitation Homes's current 3-Year ROIIC % of 41.18 is 1058.4% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Invitation Homes and its competitors. For the REITs industry, the median 3-Year ROIIC % is 3.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Invitation Homes's current 3-Year ROIIC % is 41.18, which is 897% above median its own 10-year median of 4.13. 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 €32.25, compared to a current price of €26.20 — trading 18.8% below its estimated fair value. The current 3-Year ROIIC % is 41.18, which is 897% above median its 10-year median of 4.13 and 1058.4% above the REITs industry median of 3.56. Invitation Homes' 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Invitation Homes (FRA:4IV), the current 3-Year ROIIC % is 41.18 as of Dec. 2025. 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 €26.20 is trading 18.8% below its estimated GF Value™ of €32.25.
GuruFocus considers Invitation Homes to be Modestly Undervalued.
Key valuation signals for FRA:4IV:
3-Year ROIIC %: 41.18 (897% above median its 10-year median of 4.13)
GF Value™: €32.25 vs. price of €26.20 (18.8% below fair value)
Industry Position: 1058.4% above the REITs median (#33 of 692)
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.
83GF Score
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3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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