BRAEMAR HOTELS & RESORTS INC (BHR) Stock Fundamental Analysis
NYSE:BHR - New York Stock Exchange, Inc. - US10482B1017 - REIT - Currency: USD
Overall BHR gets a fundamental rating of 2 out of 10. We evaluated BHR against 130 industry peers in the Diversified REITs industry. Both the profitability and financial health of BHR have multiple concerns. BHR does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
BHR had negative earnings in the past year.
BHR had a positive operating cash flow in the past year.
BHR had negative earnings in each of the past 5 years.
Of the past 5 years BHR 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -2.72%, BHR is not doing good in the industry: 73.85% of the companies in the same industry are doing better.
BHR's Return On Equity of -8.48% is on the low side compared to the rest of the industry. BHR is outperformed by 74.62% of its industry peers.
BHR's Return On Invested Capital of 1.43% is on the low side compared to the rest of the industry. BHR is outperformed by 79.23% of its industry peers.
BHR had an Average Return On Invested Capital over the past 3 years of 2.18%. This is in line with the industry average of 3.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.72% | ||
| ROE | -8.48% | ||
| ROIC | 1.43% |
ROA(3y)-2.05%
ROA(5y)-3.03%
ROE(3y)-5.99%
ROE(5y)-11.2%
ROIC(3y)2.18%
ROIC(5y)N/A
1.3 Margins
The Operating Margin of BHR (4.81%) is worse than 86.15% of its industry peers.
In the last couple of years the Operating Margin of BHR has declined.
BHR has a Gross Margin of 68.81%. This is comparable to the rest of the industry: BHR outperforms 56.15% of its industry peers.
In the last couple of years the Gross Margin of BHR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.81% | ||
| PM (TTM) | N/A | ||
| GM | 68.81% |
OM growth 3Y290.5%
OM growth 5Y-7.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.38%
GM growth 5Y-0.18%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BHR is destroying value.
The number of shares outstanding for BHR remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BHR has more shares outstanding
Compared to 1 year ago, BHR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.12, we must say that BHR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.12, BHR is doing worse than 71.54% of the companies in the same industry.
A Debt/Equity ratio of 1.79 is on the high side and indicates that BHR has dependencies on debt financing.
BHR has a worse Debt to Equity ratio (1.79) than 66.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.12 |
ROIC/WACC0.18
WACC7.81%
2.3 Liquidity
BHR has a Current Ratio of 0.79. This is a bad value and indicates that BHR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.79, BHR is in line with its industry, outperforming 40.77% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that BHR may have some problems paying its short term obligations.
The Quick ratio of BHR (0.76) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
BHR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.00%, which is quite impressive.
BHR shows a decrease in Revenue. In the last year, the revenue decreased by -1.48%.
The Revenue has been growing by 8.36% on average over the past years. This is quite good.
EPS 1Y (TTM)40%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
Revenue 1Y (TTM)-1.48%
Revenue growth 3Y19.44%
Revenue growth 5Y8.36%
Sales Q2Q%-4.54%
3.2 Future
The Earnings Per Share is expected to decrease by -38.86% on average over the next years. This is quite bad
BHR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.27% yearly.
EPS Next Y-95.44%
EPS Next 2Y-38.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.74%
Revenue Next 2Y0.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for BHR. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for BHR. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BHR indicates a rather cheap valuation: BHR is cheaper than 85.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.63 |
4.3 Compensation for Growth
BHR's earnings are expected to decrease with -38.86% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-38.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.62%, BHR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.57, BHR pays a better dividend. On top of this BHR pays more dividend than 88.46% of the companies listed in the same industry.
BHR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.62% |
5.2 History
The dividend of BHR decreases each year by -5.40%.
BHR has paid a dividend for at least 10 years, which is a reliable track record.
BHR has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-5.4%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
BHR has negative earnings and hence a negative payout ratio. The dividend may be in danger.
BHR's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-88.82%
EPS Next 2Y-38.86%
EPS Next 3YN/A
2.18
+0.1 (+4.81%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners50.42%
Inst Owner Change-0.23%
Ins Owners2.22%
Ins Owner Change61.73%
Market Cap146.17M
Analysts46.67
Price Target2.04 (-6.42%)
Short Float %1.65%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.62% |
Yearly Dividend0.77
Dividend Growth(5Y)-5.4%
DP-88.82%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)25.25%
Min EPS beat(2)-13.5%
Max EPS beat(2)64%
EPS beat(4)2
Avg EPS beat(4)24.46%
Min EPS beat(4)-48.51%
Max EPS beat(4)95.87%
EPS beat(8)4
Avg EPS beat(8)23.64%
EPS beat(12)5
Avg EPS beat(12)-1.86%
EPS beat(16)8
Avg EPS beat(16)28.57%
Revenue beat(2)2
Avg Revenue beat(2)3.4%
Min Revenue beat(2)2.98%
Max Revenue beat(2)3.83%
Revenue beat(4)3
Avg Revenue beat(4)0.54%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)3.83%
Revenue beat(8)6
Avg Revenue beat(8)-0.17%
Revenue beat(12)9
Avg Revenue beat(12)1.35%
Revenue beat(16)13
Avg Revenue beat(16)3.31%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.13%
EPS NY rev (1m)0%
EPS NY rev (3m)5.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.2 | ||
| P/FCF | N/A | ||
| P/OCF | 3.18 | ||
| P/B | 0.22 | ||
| P/tB | 0.22 | ||
| EV/EBITDA | 9.63 |
EPS(TTM)-0.75
EYN/A
EPS(NY)-1.48
Fwd EYN/A
FCF(TTM)-0.25
FCFYN/A
OCF(TTM)0.68
OCFY31.42%
SpS10.81
BVpS10.03
TBVpS9.99
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.72% | ||
| ROE | -8.48% | ||
| ROCE | 1.81% | ||
| ROIC | 1.43% | ||
| ROICexc | 1.49% | ||
| ROICexgc | 1.51% | ||
| OM | 4.81% | ||
| PM (TTM) | N/A | ||
| GM | 68.81% | ||
| FCFM | N/A |
ROA(3y)-2.05%
ROA(5y)-3.03%
ROE(3y)-5.99%
ROE(5y)-11.2%
ROIC(3y)2.18%
ROIC(5y)N/A
ROICexc(3y)2.37%
ROICexc(5y)N/A
ROICexgc(3y)2.4%
ROICexgc(5y)N/A
ROCE(3y)2.76%
ROCE(5y)N/A
ROICexcg growth 3Y336.52%
ROICexcg growth 5Y-3.32%
ROICexc growth 3Y337.41%
ROICexc growth 5Y-3.32%
OM growth 3Y290.5%
OM growth 5Y-7.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.38%
GM growth 5Y-0.18%
F-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 9.14 | ||
| Cap/Depr | 64.7% | ||
| Cap/Sales | 8.63% | ||
| Interest Coverage | 0.34 | ||
| Cash Conversion | 34.91% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.12 |
F-Score5
WACC7.81%
ROIC/WACC0.18
Cap/Depr(3y)223.65%
Cap/Depr(5y)152.9%
Cap/Sales(3y)26.8%
Cap/Sales(5y)20.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)40%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%33.33%
EPS Next Y-95.44%
EPS Next 2Y-38.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.48%
Revenue growth 3Y19.44%
Revenue growth 5Y8.36%
Sales Q2Q%-4.54%
Revenue Next Year-1.74%
Revenue Next 2Y0.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-47.43%
EBIT growth 3Y366.41%
EBIT growth 5Y0.29%
EBIT Next Year55.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y91.74%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-62.66%
OCF growth 3Y1.45%
OCF growth 5Y0.16%