HOST HOTELS & RESORTS INC (HST) Stock Fundamental Analysis
USA - NASDAQ:HST - US44107P1049 - REIT
17.17 USD
-0.25 (-1.44%)
17.17 USD
0 (0%)
Overall HST gets a fundamental rating of 5 out of 10. We evaluated HST against 130 industry peers in the Diversified REITs industry. Both the profitability and the financial health of HST get a neutral evaluation. Nothing too spectacular is happening here. HST has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HST had positive earnings in the past year.
In the past year HST had a positive cash flow from operations.
In multiple years HST reported negative net income over the last 5 years.
Of the past 5 years HST 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.08%, HST belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
With an excellent Return On Equity value of 9.93%, HST belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.33%, HST belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HST is above the industry average of 3.05%.
The 3 year average ROIC (5.17%) for HST is below the current ROIC(5.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 9.93% | ||
| ROIC | 5.33% |
ROA(3y)5.52%
ROA(5y)2.15%
ROE(3y)10.38%
ROE(5y)3.87%
ROIC(3y)5.17%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 11.12%, HST is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Profit Margin of HST has declined.
Looking at the Operating Margin, with a value of 13.80%, HST is doing worse than 70.00% of the companies in the same industry.
In the last couple of years the Operating Margin of HST has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.8% | ||
| PM (TTM) | 11.12% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y-1.5%
PM growth 3YN/A
PM growth 5Y-6.13%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HST has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HST has been reduced compared to 1 year ago.
Compared to 5 years ago, HST has less shares outstanding
The debt/assets ratio for HST is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that HST is in the distress zone and has some risk of bankruptcy.
HST has a better Altman-Z score (1.74) than 93.08% of its industry peers.
The Debt to FCF ratio of HST is 6.29, which is on the high side as it means it would take HST, 6.29 years of fcf income to pay off all of its debts.
HST has a Debt to FCF ratio of 6.29. This is amongst the best in the industry. HST outperforms 95.38% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that HST is somewhat dependend on debt financing.
HST has a Debt to Equity ratio of 0.76. This is in the better half of the industry: HST outperforms 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6.29 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.75
WACC7.13%
2.3 Liquidity
A Current Ratio of 1.03 indicates that HST should not have too much problems paying its short term obligations.
HST has a Current ratio (1.03) which is in line with its industry peers.
A Quick Ratio of 1.03 indicates that HST should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.03, HST is in line with its industry, outperforming 52.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The earnings per share for HST have decreased strongly by -12.15% in the last year.
HST shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.56% yearly.
The Revenue has grown by 8.28% in the past year. This is quite good.
Measured over the past years, HST shows a small growth in Revenue. The Revenue has been growing by 0.77% on average per year.
EPS 1Y (TTM)-12.15%
EPS 3Y114.72%
EPS 5Y-4.56%
EPS Q2Q%-5.88%
Revenue 1Y (TTM)8.28%
Revenue growth 3Y25.29%
Revenue growth 5Y0.77%
Sales Q2Q%8.19%
3.2 Future
HST is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.85% yearly.
The Revenue is expected to grow by 3.40% on average over the next years.
EPS Next Y-11.24%
EPS Next 2Y-9.85%
EPS Next 3Y-10.19%
EPS Next 5Y7.85%
Revenue Next Year5.91%
Revenue Next 2Y3.77%
Revenue Next 3Y3.36%
Revenue Next 5Y3.4%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.27, HST is valued on the expensive side.
Based on the Price/Earnings ratio, HST is valued cheaper than 87.69% of the companies in the same industry.
HST is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.34, HST is valued on the expensive side.
HST's Price/Forward Earnings ratio is rather cheap when compared to the industry. HST is cheaper than 90.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HST to the average of the S&P500 Index (22.87), we can say HST is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 21.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HST indicates a rather cheap valuation: HST is cheaper than 83.85% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HST indicates a rather cheap valuation: HST is cheaper than 83.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.63 | ||
| EV/EBITDA | 10.16 |
4.3 Compensation for Growth
HST has a very decent profitability rating, which may justify a higher PE ratio.
HST's earnings are expected to decrease with -10.19% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.85%
EPS Next 3Y-10.19%
5. Dividend
5.1 Amount
HST has a Yearly Dividend Yield of 4.55%, which is a nice return.
Compared to an average industry Dividend Yield of 6.58, HST has a dividend in line with its industry peers.
HST's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
5.2 History
The dividend of HST has a limited annual growth rate of 4.32%.
HST has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.32%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
HST pays out 95.30% of its income as dividend. This is not a sustainable payout ratio.
The dividend of HST is growing, but earnings are growing more, so the dividend growth is sustainable.
DP95.3%
EPS Next 2Y-9.85%
EPS Next 3Y-10.19%
17.17
-0.25 (-1.44%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners109.97%
Inst Owner Change-2.11%
Ins Owners1.37%
Ins Owner Change0.21%
Market Cap11.81B
Analysts78.18
Price Target18.77 (9.32%)
Short Float %6.57%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
Yearly Dividend1.05
Dividend Growth(5Y)4.32%
DP95.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)36.58%
Min EPS beat(2)26.47%
Max EPS beat(2)46.68%
EPS beat(4)4
Avg EPS beat(4)26.79%
Min EPS beat(4)16.77%
Max EPS beat(4)46.68%
EPS beat(8)6
Avg EPS beat(8)20.58%
EPS beat(12)8
Avg EPS beat(12)17.79%
EPS beat(16)12
Avg EPS beat(16)246.28%
Revenue beat(2)2
Avg Revenue beat(2)3.02%
Min Revenue beat(2)2.11%
Max Revenue beat(2)3.93%
Revenue beat(4)4
Avg Revenue beat(4)2.54%
Min Revenue beat(4)0.84%
Max Revenue beat(4)3.93%
Revenue beat(8)6
Avg Revenue beat(8)1.51%
Revenue beat(12)7
Avg Revenue beat(12)1.09%
Revenue beat(16)11
Avg Revenue beat(16)3%
PT rev (1m)2.08%
PT rev (3m)4.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.67%
EPS NY rev (1m)0%
EPS NY rev (3m)14.98%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 21.34 | ||
| P/S | 1.99 | ||
| P/FCF | 14.63 | ||
| P/OCF | 8.26 | ||
| P/B | 1.78 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 10.16 |
EPS(TTM)0.94
EY5.47%
EPS(NY)0.8
Fwd EY4.69%
FCF(TTM)1.17
FCFY6.84%
OCF(TTM)2.08
OCFY12.1%
SpS8.62
BVpS9.65
TBVpS9.65
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 9.93% | ||
| ROCE | 6.74% | ||
| ROIC | 5.33% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 5.96% | ||
| OM | 13.8% | ||
| PM (TTM) | 11.12% | ||
| GM | N/A | ||
| FCFM | 13.62% |
ROA(3y)5.52%
ROA(5y)2.15%
ROE(3y)10.38%
ROE(5y)3.87%
ROIC(3y)5.17%
ROIC(5y)N/A
ROICexc(3y)5.67%
ROICexc(5y)N/A
ROICexgc(3y)5.92%
ROICexgc(5y)N/A
ROCE(3y)6.54%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-3.28%
ROICexc growth 3YN/A
ROICexc growth 5Y-3.47%
OM growth 3YN/A
OM growth 5Y-1.5%
PM growth 3YN/A
PM growth 5Y-6.13%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6.29 | ||
| Debt/EBITDA | 3.17 | ||
| Cap/Depr | 79.24% | ||
| Cap/Sales | 10.49% | ||
| Interest Coverage | 4.09 | ||
| Cash Conversion | 89.15% | ||
| Profit Quality | 122.46% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 1.74 |
F-Score5
WACC7.13%
ROIC/WACC0.75
Cap/Depr(3y)80.17%
Cap/Depr(5y)74.32%
Cap/Sales(3y)10.69%
Cap/Sales(5y)15.53%
Profit Quality(3y)129.27%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.15%
EPS 3Y114.72%
EPS 5Y-4.56%
EPS Q2Q%-5.88%
EPS Next Y-11.24%
EPS Next 2Y-9.85%
EPS Next 3Y-10.19%
EPS Next 5Y7.85%
Revenue 1Y (TTM)8.28%
Revenue growth 3Y25.29%
Revenue growth 5Y0.77%
Sales Q2Q%8.19%
Revenue Next Year5.91%
Revenue Next 2Y3.77%
Revenue Next 3Y3.36%
Revenue Next 5Y3.4%
EBIT growth 1Y10.09%
EBIT growth 3YN/A
EBIT growth 5Y-0.74%
EBIT Next Year96.65%
EBIT Next 3Y27.26%
EBIT Next 5Y20.16%
FCF growth 1Y-14.24%
FCF growth 3YN/A
FCF growth 5Y6.54%
OCF growth 1Y-6.48%
OCF growth 3Y72.47%
OCF growth 5Y3.69%