HOST HOTELS & RESORTS INC (HST) Stock Fundamental Analysis
NASDAQ:HST - Nasdaq - US44107P1049 - REIT - Currency: USD
HST gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HST was profitable.
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
Looking at the Return On Assets, with a value of 5.08%, HST belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
The Return On Equity of HST (9.93%) is better than 88.46% of its industry peers.
HST has a better Return On Invested Capital (5.33%) than 93.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HST is above the industry average of 3.14%.
The last Return On Invested Capital (5.33%) for HST is above the 3 year average (5.17%), which is a sign of increasing profitability.
| 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
HST has a better Profit Margin (11.12%) than 61.54% of its industry peers.
In the last couple of years the Profit Margin of HST has declined.
HST has a worse Operating Margin (13.80%) than 68.46% of its industry peers.
HST's Operating Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HST is destroying value.
Compared to 1 year ago, HST has less shares outstanding
Compared to 5 years ago, HST has less shares outstanding
HST has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that HST is in the distress zone and has some risk of bankruptcy.
HST's Altman-Z score of 1.62 is amongst the best of the industry. HST outperforms 91.54% 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.
Looking at the Debt to FCF ratio, with a value of 6.29, HST belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
HST has a Debt/Equity ratio of 0.76. This is a neutral value indicating HST is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, HST is in the better half of the industry, outperforming 74.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6.29 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.75
WACC7.09%
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.
HST has a Quick Ratio of 1.03. This is a normal value and indicates that HST is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.03, HST is in line with its industry, outperforming 53.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
HST shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.15%.
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.
The Revenue has been growing slightly by 0.77% on average over the past years.
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.
Based on estimates for the next years, HST will show a small growth in Revenue. The Revenue will grow by 3.40% on average per year.
EPS Next Y-21.78%
EPS Next 2Y-10.99%
EPS Next 3Y-3.53%
EPS Next 5Y7.85%
Revenue Next Year5.19%
Revenue Next 2Y3.51%
Revenue Next 3Y3.29%
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
The Price/Earnings ratio is 16.33, which indicates a correct valuation of HST.
Based on the Price/Earnings ratio, HST is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
HST is valuated rather cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.57, which indicates a rather expensive current valuation of HST.
HST's Price/Forward Earnings ratio is rather cheap when compared to the industry. HST is cheaper than 93.08% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HST to the average of the S&P500 Index (34.09), we can say HST is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.33 | ||
| Fwd PE | 19.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HST is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HST is valued cheaper than 86.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.2 | ||
| EV/EBITDA | 9.33 |
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 -3.53% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.99%
EPS Next 3Y-3.53%
5. Dividend
5.1 Amount
HST has a Yearly Dividend Yield of 5.24%, which is a nice return.
HST's Dividend Yield is comparable with the industry average which is at 6.39.
Compared to an average S&P500 Dividend Yield of 2.40, HST pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
5.2 History
The dividend of HST has a limited annual growth rate of 4.32%.
HST has paid a dividend for at least 10 years, which is 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.
HST's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP95.3%
EPS Next 2Y-10.99%
EPS Next 3Y-3.53%
15.35
+0.08 (+0.52%)
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-1.87%
Ins Owners1.37%
Ins Owner Change5.55%
Market Cap10.65B
Analysts78.18
Price Target18.39 (19.8%)
Short Float %5.69%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
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)1.94%
PT rev (3m)1.5%
EPS NQ rev (1m)-23.53%
EPS NQ rev (3m)-66.45%
EPS NY rev (1m)0%
EPS NY rev (3m)6.88%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.33%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.33 | ||
| Fwd PE | 19.57 | ||
| P/S | 1.8 | ||
| P/FCF | 13.2 | ||
| P/OCF | 7.45 | ||
| P/B | 1.6 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 9.33 |
EPS(TTM)0.94
EY6.12%
EPS(NY)0.78
Fwd EY5.11%
FCF(TTM)1.16
FCFY7.58%
OCF(TTM)2.06
OCFY13.42%
SpS8.54
BVpS9.57
TBVpS9.57
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 | 1.62 |
F-Score5
WACC7.09%
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-21.78%
EPS Next 2Y-10.99%
EPS Next 3Y-3.53%
EPS Next 5Y7.85%
Revenue 1Y (TTM)8.28%
Revenue growth 3Y25.29%
Revenue growth 5Y0.77%
Sales Q2Q%8.19%
Revenue Next Year5.19%
Revenue Next 2Y3.51%
Revenue Next 3Y3.29%
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%