HOST HOTELS & RESORTS INC (HST) Stock Fundamental Analysis
NASDAQ:HST - US44107P1049 - REIT
17.21 USD
-0.08 (-0.46%)
17.21 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to HST. HST was compared to 129 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.
HST had a positive operating cash flow in the past year.
In multiple years HST reported negative net income over the last 5 years.
HST had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.08%, HST belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
HST has a better Return On Equity (9.93%) than 89.15% of its industry peers.
HST has a better Return On Invested Capital (5.33%) than 93.80% of its industry peers.
HST had an Average Return On Invested Capital over the past 3 years of 5.17%. This is above the industry average of 3.06%.
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 Profit Margin of 11.12%. This is in the better half of the industry: HST outperforms 61.24% of its industry peers.
HST's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 13.80%, HST is doing worse than 69.77% 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.
Compared to 1 year ago, HST has less shares outstanding
HST has less shares outstanding than it did 5 years ago.
HST has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.73, we must say that HST is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HST (1.73) is better than 92.25% 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.
The Debt to FCF ratio of HST (6.29) is better than 95.35% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that HST is somewhat dependend on debt financing.
HST has a better Debt to Equity ratio (0.76) than 73.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6.29 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.74
WACC7.19%
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 of 1.03. This is comparable to the rest of the industry: HST outperforms 51.94% of its industry peers.
A Quick Ratio of 1.03 indicates that HST should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.03, HST perfoms like the industry average, outperforming 52.71% 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%.
The Earnings Per Share has been decreasing by -4.56% on average over the past years.
HST shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.28%.
HST shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.77% yearly.
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
The Earnings Per Share is expected to grow by 7.85% on average over the next years.
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-11.24%
EPS Next 2Y-9.85%
EPS Next 3Y-10.19%
EPS Next 5Y7.85%
Revenue Next Year6.18%
Revenue Next 2Y3.93%
Revenue Next 3Y3.46%
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 18.31, which indicates a rather expensive current valuation of HST.
Based on the Price/Earnings ratio, HST is valued cheaply inside the industry as 88.37% of the companies are valued more expensively.
HST's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.08.
HST is valuated rather expensively with a Price/Forward Earnings ratio of 21.39.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HST indicates a rather cheap valuation: HST is cheaper than 92.25% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, HST is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 21.39 |
4.2 Price Multiples
84.50% of the companies in the same industry are more expensive than HST, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HST is valued cheaper than 82.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.66 | ||
| EV/EBITDA | 10.07 |
4.3 Compensation for Growth
HST has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as HST's earnings are expected to decrease with -10.19% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.85%
EPS Next 3Y-10.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.63%, HST is a good candidate for dividend investing.
HST's Dividend Yield is comparable with the industry average which is at 6.16.
HST's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.63% |
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.
HST's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP95.3%
EPS Next 2Y-9.85%
EPS Next 3Y-10.19%
17.21
-0.08 (-0.46%)
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 Cap11.83B
Analysts78.18
Price Target18.46 (7.26%)
Short Float %6.01%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.63% |
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)1.85%
PT rev (3m)1.85%
EPS NQ rev (1m)45.45%
EPS NQ rev (3m)-48.39%
EPS NY rev (1m)13.48%
EPS NY rev (3m)15.23%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)-2.91%
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 21.39 | ||
| P/S | 2 | ||
| P/FCF | 14.66 | ||
| P/OCF | 8.28 | ||
| P/B | 1.78 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 10.07 |
EPS(TTM)0.94
EY5.46%
EPS(NY)0.8
Fwd EY4.68%
FCF(TTM)1.17
FCFY6.82%
OCF(TTM)2.08
OCFY12.08%
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 | 1.73 |
F-Score5
WACC7.19%
ROIC/WACC0.74
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 Year6.18%
Revenue Next 2Y3.93%
Revenue Next 3Y3.46%
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%