BRAEMAR HOTELS & RESORTS INC (BHR) Stock Fundamental Analysis
NYSE:BHR - US10482B1017 - REIT
2.73 USD
+0.48 (+21.33%)
2.74 USD
+0.01 (+0.37%)
Taking everything into account, BHR scores 2 out of 10 in our fundamental rating. BHR was compared to 129 industry peers in the Diversified REITs industry. Both the profitability and financial health of BHR have multiple concerns. BHR has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years BHR always reported negative net income.
BHR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
BHR has a worse Return On Assets (-2.48%) than 72.09% of its industry peers.
BHR has a worse Return On Equity (-7.90%) than 73.64% of its industry peers.
The Return On Invested Capital of BHR (1.69%) is worse than 71.32% 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 3.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.48% | ||
| ROE | -7.9% | ||
| ROIC | 1.69% |
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
BHR has a Operating Margin of 5.66%. This is amonst the worse of the industry: BHR underperforms 84.50% of its industry peers.
BHR's Operating Margin has declined in the last couple of years.
BHR has a Gross Margin (68.68%) which is comparable to the rest of the industry.
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 | 5.66% | ||
| PM (TTM) | N/A | ||
| GM | 68.68% |
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.
Compared to 1 year ago, BHR has about the same amount of shares outstanding.
BHR has more shares outstanding than it did 5 years ago.
BHR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.13, we must say that BHR is in the distress zone and has some risk of bankruptcy.
BHR has a Altman-Z score of 0.13. This is in the lower half of the industry: BHR underperforms 70.54% of its industry peers.
BHR has a Debt/Equity ratio of 1.87. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of BHR (1.87) is worse than 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.13 |
ROIC/WACC0.21
WACC8.05%
2.3 Liquidity
BHR has a Current Ratio of 0.75. This is a bad value and indicates that BHR is not financially healthy enough and could expect problems in meeting its short term obligations.
BHR has a Current ratio (0.75) which is comparable to the rest of the industry.
A Quick Ratio of 0.72 indicates that BHR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.72, BHR is doing worse than 61.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.00% over the past year.
The Revenue has decreased by -3.68% in the past year.
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)-3.68%
Revenue growth 3Y19.44%
Revenue growth 5Y8.36%
Sales Q2Q%-4.54%
3.2 Future
Based on estimates for the next years, BHR will show a very negative growth in Earnings Per Share. The EPS will decrease by -38.86% on average per year.
BHR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.87% yearly.
EPS Next Y-95.44%
EPS Next 2Y-38.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.42%
Revenue Next 2Y-0.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for BHR. In the last year negative earnings were reported.
Also next year BHR is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
BHR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BHR is cheaper than 86.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.69 |
4.3 Compensation for Growth
A cheap valuation may be justified as BHR's earnings are expected to decrease with -38.86% in the coming years.
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 9.66%, BHR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.31, BHR pays a better dividend. On top of this BHR pays more dividend than 88.37% 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.66% |
5.2 History
The dividend of BHR decreases each year by -5.40%.
BHR has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of BHR decreased in the last 3 years.
Dividend Growth(5Y)-5.4%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
The earnings of BHR are negative and hence is the payout ratio. BHR will probably not be able to sustain this dividend level.
The Dividend Rate of BHR has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-96.87%
EPS Next 2Y-38.86%
EPS Next 3YN/A
2.73
+0.48 (+21.33%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners51.02%
Inst Owner Change-1.41%
Ins Owners5.39%
Ins Owner Change61.73%
Market Cap186.24M
Analysts46.67
Price Target2.04 (-25.27%)
Short Float %1.47%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.66% |
Yearly Dividend0.77
Dividend Growth(5Y)-5.4%
DP-96.87%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)52.56%
Min EPS beat(2)41.13%
Max EPS beat(2)64%
EPS beat(4)3
Avg EPS beat(4)46.88%
Min EPS beat(4)-13.5%
Max EPS beat(4)95.87%
EPS beat(8)4
Avg EPS beat(8)25.45%
EPS beat(12)5
Avg EPS beat(12)-5.94%
EPS beat(16)9
Avg EPS beat(16)36.54%
Revenue beat(2)2
Avg Revenue beat(2)2.86%
Min Revenue beat(2)2.75%
Max Revenue beat(2)2.98%
Revenue beat(4)3
Avg Revenue beat(4)1.14%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)3.83%
Revenue beat(8)6
Avg Revenue beat(8)0.14%
Revenue beat(12)9
Avg Revenue beat(12)0.67%
Revenue beat(16)13
Avg Revenue beat(16)3.1%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.86%
EPS NY rev (1m)0%
EPS NY rev (3m)8.59%
Revenue NQ rev (1m)-2.02%
Revenue NQ rev (3m)-3.7%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.26 | ||
| P/FCF | N/A | ||
| P/OCF | 4.15 | ||
| P/B | 0.29 | ||
| P/tB | 0.29 | ||
| EV/EBITDA | 9.69 |
EPS(TTM)-0.75
EYN/A
EPS(NY)-1.48
Fwd EYN/A
FCF(TTM)-0.37
FCFYN/A
OCF(TTM)0.66
OCFY24.08%
SpS10.5
BVpS9.48
TBVpS9.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.48% | ||
| ROE | -7.9% | ||
| ROCE | 2.14% | ||
| ROIC | 1.69% | ||
| ROICexc | 1.76% | ||
| ROICexgc | 1.79% | ||
| OM | 5.66% | ||
| PM (TTM) | N/A | ||
| GM | 68.68% | ||
| 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 | 1.87 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.91 | ||
| Cap/Depr | 73.29% | ||
| Cap/Sales | 9.75% | ||
| Interest Coverage | 0.42 | ||
| Cash Conversion | 32.99% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 0.13 |
F-Score5
WACC8.05%
ROIC/WACC0.21
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)-3.68%
Revenue growth 3Y19.44%
Revenue growth 5Y8.36%
Sales Q2Q%-4.54%
Revenue Next Year-2.42%
Revenue Next 2Y-0.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-33.67%
EBIT growth 3Y366.41%
EBIT growth 5Y0.29%
EBIT Next Year59.61%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y89.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-51.08%
OCF growth 3Y1.45%
OCF growth 5Y0.16%