HOST HOTELS & RESORTS INC (HST) Stock Fundamental Analysis
NASDAQ:HST - Nasdaq - US44107P1049 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to HST. HST was compared to 129 industry peers in the Diversified REITs industry. HST has an average financial health and profitability rating. HST has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HST was profitable.
HST had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HST reported negative net income in multiple years.
HST had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HST's Return On Assets of 5.23% is amongst the best of the industry. HST outperforms 94.57% of its industry peers.
HST has a Return On Equity of 10.18%. This is amongst the best in the industry. HST outperforms 88.37% of its industry peers.
The Return On Invested Capital of HST (5.12%) is better than 91.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HST is above the industry average of 3.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 10.18% | ||
| ROIC | 5.12% |
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
The Profit Margin of HST (11.66%) is better than 62.79% of its industry peers.
In the last couple of years the Profit Margin of HST has declined.
HST's Operating Margin of 13.54% is on the low side compared to the rest of the industry. HST is outperformed by 68.99% of its industry peers.
HST's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.54% | ||
| PM (TTM) | 11.66% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HST is destroying value.
HST has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HST has been reduced compared to 5 years ago.
HST has a worse debt/assets ratio than last year.
2.2 Solvency
HST has an Altman-Z score of 1.64. This is a bad value and indicates that HST is not financially healthy and even has some risk of bankruptcy.
HST has a Altman-Z score of 1.64. This is amongst the best in the industry. HST outperforms 92.25% of its industry peers.
The Debt to FCF ratio of HST is 6.00, which is on the high side as it means it would take HST, 6.00 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 6.00, HST belongs to the best of the industry, outperforming 96.90% of the companies in the same industry.
A Debt/Equity ratio of 0.76 indicates that HST is somewhat dependend on debt financing.
The Debt to Equity ratio of HST (0.76) is better than 71.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.7
WACC7.27%
2.3 Liquidity
HST has a Current Ratio of 0.99. This is a bad value and indicates that HST is not financially healthy enough and could expect problems in meeting its short term obligations.
HST has a Current ratio (0.99) which is comparable to the rest of the industry.
HST has a Quick Ratio of 0.99. This is a bad value and indicates that HST is not financially healthy enough and could expect problems in meeting its short term obligations.
HST has a Quick ratio (0.99) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The earnings per share for HST have decreased by -5.88% in the last year.
Measured over the past years, HST shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.56% on average per year.
The Revenue has been growing slightly by 7.52% in the past year.
The Revenue has been growing slightly by 0.77% on average over the past years.
EPS 1Y (TTM)-5.88%
EPS 3Y114.72%
EPS 5Y-4.56%
EPS Q2Q%-7.89%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y25.29%
Revenue growth 5Y0.77%
Sales Q2Q%8.36%
3.2 Future
The Earnings Per Share is expected to grow by 7.85% on average over the next years.
HST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.40% yearly.
EPS Next Y-21.78%
EPS Next 2Y-10.99%
EPS Next 3Y-3.53%
EPS Next 5Y7.85%
Revenue Next Year5.03%
Revenue Next 2Y3.45%
Revenue Next 3Y3.3%
Revenue Next 5Y3.4%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.75, which indicates a correct valuation of HST.
Based on the Price/Earnings ratio, HST is valued cheaper than 88.37% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.46, HST is valued a bit cheaper.
HST is valuated rather expensively with a Price/Forward Earnings ratio of 20.50.
HST's Price/Forward Earnings ratio is rather cheap when compared to the industry. HST is cheaper than 92.25% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, HST is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.75 | ||
| Fwd PE | 20.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HST is valued cheaply inside the industry as 82.95% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HST is valued cheaply inside the industry as 87.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.17 | ||
| EV/EBITDA | 9.97 |
4.3 Compensation for Growth
A cheap valuation may be justified as HST's earnings are expected to decrease with -3.53% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.99%
EPS Next 3Y-3.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.98%, HST is a good candidate for dividend investing.
HST's Dividend Yield is comparable with the industry average which is at 6.66.
Compared to an average S&P500 Dividend Yield of 2.34, HST pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
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
93.21% of the earnings are spent on dividend by HST. This is not a sustainable payout ratio.
The dividend of HST is growing, but earnings are growing more, so the dividend growth is sustainable.
DP93.21%
EPS Next 2Y-10.99%
EPS Next 3Y-3.53%
16.08
-0.06 (-0.37%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners110.97%
Inst Owner Change-0.44%
Ins Owners1.37%
Ins Owner Change8.42%
Market Cap11.15B
Analysts79.13
Price Target18.12 (12.69%)
Short Float %5.88%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
Yearly Dividend1.05
Dividend Growth(5Y)4.32%
DP93.21%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.86%
Min EPS beat(2)17.25%
Max EPS beat(2)26.47%
EPS beat(4)3
Avg EPS beat(4)14.87%
Min EPS beat(4)-0.99%
Max EPS beat(4)26.47%
EPS beat(8)5
Avg EPS beat(8)13.16%
EPS beat(12)8
Avg EPS beat(12)17.24%
EPS beat(16)12
Avg EPS beat(16)247.14%
Revenue beat(2)2
Avg Revenue beat(2)2.68%
Min Revenue beat(2)2.11%
Max Revenue beat(2)3.25%
Revenue beat(4)3
Avg Revenue beat(4)1.28%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)3.25%
Revenue beat(8)5
Avg Revenue beat(8)0.63%
Revenue beat(12)7
Avg Revenue beat(12)1.5%
Revenue beat(16)11
Avg Revenue beat(16)3.03%
PT rev (1m)0.33%
PT rev (3m)-8.62%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)-6.03%
EPS NY rev (1m)1.32%
EPS NY rev (3m)6.88%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.75 | ||
| Fwd PE | 20.5 | ||
| P/S | 1.92 | ||
| P/FCF | 13.17 | ||
| P/OCF | 7.76 | ||
| P/B | 1.68 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 9.97 |
EPS(TTM)0.96
EY5.97%
EPS(NY)0.78
Fwd EY4.88%
FCF(TTM)1.22
FCFY7.59%
OCF(TTM)2.07
OCFY12.89%
SpS8.37
BVpS9.59
TBVpS9.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 10.18% | ||
| ROCE | 6.48% | ||
| ROIC | 5.12% | ||
| ROICexc | 5.43% | ||
| ROICexgc | 5.69% | ||
| OM | 13.54% | ||
| PM (TTM) | 11.66% | ||
| GM | N/A | ||
| FCFM | 14.59% |
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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6 | ||
| Debt/EBITDA | 3.25 | ||
| Cap/Depr | 75.96% | ||
| Cap/Sales | 10.18% | ||
| Interest Coverage | 4.16 | ||
| Cash Conversion | 91.94% | ||
| Profit Quality | 125.11% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 1.64 |
F-Score5
WACC7.27%
ROIC/WACC0.7
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)-5.88%
EPS 3Y114.72%
EPS 5Y-4.56%
EPS Q2Q%-7.89%
EPS Next Y-21.78%
EPS Next 2Y-10.99%
EPS Next 3Y-3.53%
EPS Next 5Y7.85%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y25.29%
Revenue growth 5Y0.77%
Sales Q2Q%8.36%
Revenue Next Year5.03%
Revenue Next 2Y3.45%
Revenue Next 3Y3.3%
Revenue Next 5Y3.4%
EBIT growth 1Y4.38%
EBIT growth 3YN/A
EBIT growth 5Y-0.74%
EBIT Next Year93.45%
EBIT Next 3Y29.3%
EBIT Next 5Y20.16%
FCF growth 1Y-9.41%
FCF growth 3YN/A
FCF growth 5Y6.54%
OCF growth 1Y-1.71%
OCF growth 3Y72.47%
OCF growth 5Y3.69%