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Invitation Homes (Invitation Homes) Operating Margin % : 28.03% (As of Dec. 2023)


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What is Invitation Homes Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Invitation Homes's Operating Income for the three months ended in Dec. 2023 was $175 Mil. Invitation Homes's Revenue for the three months ended in Dec. 2023 was $624 Mil. Therefore, Invitation Homes's Operating Margin % for the quarter that ended in Dec. 2023 was 28.03%.

Good Sign:

Invitation Homes Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Invitation Homes's Operating Margin % or its related term are showing as below:

INVH' s Operating Margin % Range Over the Past 10 Years
Min: -4.32   Med: 22.61   Max: 29.12
Current: 28.76


INVH's Operating Margin % is ranked worse than
73.62% of 690 companies
in the REITs industry
Industry Median: 51.59 vs INVH: 28.76

Invitation Homes's 5-Year Average Operating Margin % Growth Rate was 7.40% per year.

Invitation Homes's Operating Income for the three months ended in Dec. 2023 was $175 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $700 Mil.


Invitation Homes Operating Margin % Historical Data

The historical data trend for Invitation Homes's Operating Margin % 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.

* Premium members only.

Invitation Homes Operating Margin % Chart

Invitation Homes Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.09 25.67 27.59 29.12 28.76

Invitation Homes Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.84 29.78 29.55 27.75 28.03

Competitive Comparison of Invitation Homes's Operating Margin %

For the REIT - Residential subindustry, Invitation Homes's Operating Margin %, along with its competitors' market caps and Operating Margin % 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's Operating Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Invitation Homes's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Invitation Homes's Operating Margin % falls into.



Invitation Homes Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Invitation Homes's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=699.503 / 2432.278
=28.76 %

Invitation Homes's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=174.987 / 624.321
=28.03 %

* 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.


Invitation Homes  (NYSE:INVH) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Invitation Homes Operating Margin % Related Terms

Thank you for viewing the detailed overview of Invitation Homes's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Invitation Homes (Invitation Homes) Business Description

Traded in Other Exchanges
Address
1717 Main Street, Suite 2000, Dallas, TX, USA, 75201
Invitation Homes owns a portfolio of nearly 83,000 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 around $300,000 and generally less than 1,800 square feet. The portfolio is spread across 16 target markets that feature high employment and household formation growth with over 70% of the portfolio in the Western U.S. and Florida; 15 of the 16 markets featuring average rents lower than homeownership costs.
Executives
Scott G. Eisen officer: EVP, Chief Investment Officer 1717 MAIN STREET, SUITE 2000, DALLAS TX 75201
Jonathan S. Olsen officer: EVP & CFO 1717 MAIN STREET, SUITE 2000, DALLAS TX 75201
Keith D Taylor director 301 VELOCITY WAY, 5TH FLOOR, FOSTER CITY CA 94404
Frances Aldrich Sevilla-sacasa director 3 GREENWAY PLAZA, SUITE 1300, HOUSTON TX 77046
Dallas B Tanner officer: See Remarks C/O INVITATION HOMES INC., 1717 MAIN STREET, SUITE 2000, DALLAS TX 75201
Janice L. Sears director 1100 PARK PLACE, SUITE 200, SAN MATEO CA 94403
Charles D. Young officer: Chief Operating Officer C/O STARWOOD WAYPOINT RESIDENTIAL TRUST, 1999 HARRISON STREET, 24TH FLOOR, OAKLAND CA 94612
Bryce Blair director
Ernest Michael Freedman officer: See Remarks 1717 MAIN STREET, SUITE 2000, DALLAS TX 75201
Kimberly K Norrell officer: See Remarks C/O INVITATION HOMES INC., 1717 MAIN STREET, SUITE 2000, DALLAS TX 75201
Roizen Jo Ann Heidi director
Joseph D Margolis director C/O ARSENAL REAL ESTATE FUNDS, 117 ON THE GREEN, 67 PARK PLACE EAST, MORRISTOWN NJ 07960
Brep Ih6 Holdings Llc 10 percent owner C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154
Ih3 Holdco Gp Llc 10 percent owner C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154
Brep Vii-nq Side-by-side Gp L.l.c. 10 percent owner C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154

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