HOST HOTELS & RESORTS INC (HST)
US44107P1049 - REIT
Taking everything into account, HST scores 5 out of 10 in our fundamental rating. HST was compared to 130 industry peers in the Diversified REITs industry. While HST has a great health rating, its profitability is only average at the moment. HST has a correct valuation and a medium growth rate.
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
Looking at the Return On Assets, with a value of 6.14%, HST belongs to the top of the industry, outperforming 96.09% of the companies in the same industry.
With an excellent Return On Equity value of 10.99%, HST belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
HST has a better Return On Invested Capital (5.32%) than 95.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.14% | ||
| ROE | 10.99% | ||
| ROIC | 5.32% |
ROA(3y)-0.21%
ROA(5y)3.17%
ROE(3y)-0.78%
ROE(5y)4.95%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 14.38%, HST is doing good in the industry, outperforming 67.19% of the companies in the same industry.
In the last couple of years the Profit Margin of HST has grown nicely.
With a Operating Margin value of 14.76%, HST is not doing good in the industry: 63.28% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of HST has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.76% | ||
| PM (TTM) | 14.38% | ||
| GM | N/A |
OM growth 3Y1.83%
OM growth 5Y4.68%
PM growth 3Y-8.47%
PM growth 5Y4.26%
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.
Compared to 1 year ago, HST has about the same amount of shares outstanding.
The number of shares outstanding for HST has been reduced compared to 5 years ago.
The debt/assets ratio for HST has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.01 indicates that HST is not a great score, but indicates only limited risk for bankruptcy at the moment.
HST's Altman-Z score of 2.01 is amongst the best of the industry. HST outperforms 95.31% of its industry peers.
HST has a debt to FCF ratio of 4.81. This is a neutral value as HST would need 4.81 years to pay back of all of its debts.
HST has a better Debt to FCF ratio (4.81) than 97.66% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that HST is somewhat dependend on debt financing.
HST has a Debt to Equity ratio of 0.61. This is amongst the best in the industry. HST outperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.72
WACC7.42%
2.3 Liquidity
A Current Ratio of 1.93 indicates that HST should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.93, HST is doing good in the industry, outperforming 72.66% of the companies in the same industry.
A Quick Ratio of 1.93 indicates that HST should not have too much problems paying its short term obligations.
HST has a Quick ratio of 1.93. This is in the better half of the industry: HST outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
The earnings per share for HST have decreased by -7.08% in the last year.
Measured over the past 5 years, HST shows a small growth in Earnings Per Share. The EPS has been growing by 3.25% on average per year.
The Revenue has grown by 13.12% in the past year. This is quite good.
Measured over the past years, HST shows a decrease in Revenue. The Revenue has been decreasing by -1.85% on average per year.
EPS 1Y (TTM)-7.08%
EPS 3Y-11.04%
EPS 5Y3.25%
EPS growth Q2Q0%
Revenue 1Y (TTM)13.12%
Revenue growth 3Y-3.55%
Revenue growth 5Y-1.85%
Revenue growth Q2Q2.1%
3.2 Future
The Earnings Per Share is expected to grow by 14.17% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.86% on average over the next years.
EPS Next Y23.31%
EPS Next 2Y6.64%
EPS Next 3Y12.68%
EPS Next 5Y14.17%
Revenue Next Year7.57%
Revenue Next 2Y5.21%
Revenue Next 3Y4.35%
Revenue Next 5Y5.86%
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.
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 16.88, which indicates a correct valuation of HST.
Compared to the rest of the industry, the Price/Earnings ratio of HST indicates a rather cheap valuation: HST is cheaper than 86.72% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HST to the average of the S&P500 Index (25.05), we can say HST is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.71, 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 93.75% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.08. HST is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.88 | ||
| Fwd PE | 17.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HST is valued a bit cheaper than 78.13% of the companies in the same industry.
79.69% of the companies in the same industry are more expensive than HST, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.41 | ||
| EV/EBITDA | 10.68 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HST's earnings are expected to grow with 12.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)5.19
EPS Next 2Y6.64%
EPS Next 3Y12.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.14%, HST is a good candidate for dividend investing.
HST's Dividend Yield is slightly below the industry average, which is at 6.56.
Compared to an average S&P500 Dividend Yield of 2.63, HST pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
5.2 History
The dividend of HST decreases each year by -23.48%.
HST has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-23.48%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
HST pays out 66.89% of its income as dividend. This is not a sustainable payout ratio.
DP66.89%
EPS Next 2Y6.64%
EPS Next 3Y12.68%
HOST HOTELS & RESORTS INC
NASDAQ:HST (12/1/2023, 7:02:27 PM)
After market: 17.72 0 (0%)17.72
+0.25 (+1.43%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-01 2023-11-01/amc
Earnings (Next)02-13 2024-02-13/amc
Inst Owners100.45%
Inst Owner Change-1.79%
Ins Owners1%
Ins Owner Change-0.05%
Market Cap12.61B
Analysts78.46
Price Target20.83 (17.55%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
Dividend Growth(5Y)-23.48%
DP66.89%
Div Incr Years0
Div Non Decr Years0
Ex-Date09-28 2023-09-28 (0.18)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.7%
Min EPS beat(2)-12.61%
Max EPS beat(2)44.01%
EPS beat(4)3
Avg EPS beat(4)25.11%
Min EPS beat(4)-12.61%
Max EPS beat(4)65.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-3.13%
Max Revenue beat(2)-0.41%
Revenue beat(4)1
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-3.13%
Max Revenue beat(4)4.23%
PT rev (1m)0.16%
PT rev (3m)0.34%
EPS NQ rev (1m)4.93%
EPS NQ rev (3m)3.47%
EPS NY rev (1m)0%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.88 | ||
| Fwd PE | 17.71 | ||
| P/S | 2.4 | ||
| P/FCF | 14.41 | ||
| P/OCF | 8.44 | ||
| P/B | 1.84 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 10.68 |
EPS(TTM)1.05
EY5.93%
EPS(NY)1
Fwd EY5.65%
FCF(TTM)1.23
FCFY6.94%
OCF(TTM)2.1
OCFY11.85%
SpS7.38
BVpS9.65
TBVpS9.65
PEG (NY)0.72
PEG (5Y)5.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.14% | ||
| ROE | 10.99% | ||
| ROCE | 6.74% | ||
| ROIC | 5.32% | ||
| ROICexc | 5.91% | ||
| ROICexgc | 6.13% | ||
| OM | 14.76% | ||
| PM (TTM) | 14.38% | ||
| GM | N/A | ||
| FCFM | 16.66% |
ROA(3y)-0.21%
ROA(5y)3.17%
ROE(3y)-0.78%
ROE(5y)4.95%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-3.4%
ROICexcg growth 5Y2.87%
ROICexc growth 3Y-3.69%
ROICexc growth 5Y2.81%
OM growth 3Y1.83%
OM growth 5Y4.68%
PM growth 3Y-8.47%
PM growth 5Y4.26%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.81 | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | 91.43% | ||
| Cap/Sales | 11.79% | ||
| Interest Coverage | 4.53 | ||
| Cash Conversion | 102.89% | ||
| Profit Quality | 115.89% | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z | 2.01 |
F-Score6
WACC7.42%
ROIC/WACC0.72
Cap/Depr(3y)68.99%
Cap/Depr(5y)67.95%
Cap/Sales(3y)18.62%
Cap/Sales(5y)14.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
Growth
EPS 1Y (TTM)-7.08%
EPS 3Y-11.04%
EPS 5Y3.25%
EPS growth Q2Q0%
EPS Next Y23.31%
EPS Next 2Y6.64%
EPS Next 3Y12.68%
EPS Next 5Y14.17%
Revenue 1Y (TTM)13.12%
Revenue growth 3Y-3.55%
Revenue growth 5Y-1.85%
Revenue growth Q2Q2.1%
Revenue Next Year7.57%
Revenue Next 2Y5.21%
Revenue Next 3Y4.35%
Revenue Next 5Y5.86%
EBIT growth 1Y18.14%
EBIT growth 3Y-1.78%
EBIT growth 5Y2.75%
EBIT Next Year97.96%
EBIT Next 3Y27.74%
EBIT Next 5Y21.95%
FCF growth 1Y284.99%
FCF growth 3Y9.64%
FCF growth 5Y-0.88%
OCF growth 1Y2398.46%
OCF growth 3Y4.24%
OCF growth 5Y2.86%