Hersha Hospitality Trust (HT)
US4278255009 - REIT
We assign a fundamental rating of 4 out of 10 to HT. HT was compared to 130 industry peers in the Diversified REITs industry. While HT seems to be doing ok healthwise, there are quite some concerns on its profitability. HT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
HT had positive earnings in the past year.
In the past year HT had a positive cash flow from operations.
HT had negative earnings in 4 of the past 5 years.
HT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of HT (0.66%) is comparable to the rest of the industry.
HT's Return On Equity of 1.40% is in line compared to the rest of the industry. HT outperforms 45.74% of its industry peers.
HT's Return On Invested Capital of 1.68% is on the low side compared to the rest of the industry. HT is outperformed by 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 1.4% | ||
| ROIC | 1.68% |
ROA(3y)-1.59%
ROA(5y)-1.35%
ROE(3y)-7.91%
ROE(5y)-5.77%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HT's Profit Margin of 2.54% is in line compared to the rest of the industry. HT outperforms 44.19% of its industry peers.
HT's Profit Margin has improved in the last couple of years.
HT has a Operating Margin of 7.75%. This is amonst the worse of the industry: HT underperforms 83.72% of its industry peers.
HT's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 30.04%, HT is not doing good in the industry: 90.70% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of HT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.75% | ||
| PM (TTM) | 2.54% | ||
| GM | 30.04% |
OM growth 3Y5.9%
OM growth 5Y-2.93%
PM growth 3YN/A
PM growth 5Y14.8%
GM growth 3Y1.03%
GM growth 5Y-0.4%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HT is destroying value.
The number of shares outstanding for HT has been increased compared to 1 year ago.
The debt/assets ratio for HT has been reduced compared to a year ago.
2.2 Solvency
HT has an Altman-Z score of 0.22. This is a bad value and indicates that HT is not financially healthy and even has some risk of bankruptcy.
HT has a Altman-Z score of 0.22. This is in the lower half of the industry: HT underperforms 71.32% of its industry peers.
HT has a debt to FCF ratio of 25.66. This is a negative value and a sign of low solvency as HT would need 25.66 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 25.66, HT is doing good in the industry, outperforming 62.79% of the companies in the same industry.
HT has a Debt/Equity ratio of 0.88. This is a neutral value indicating HT is somewhat dependend on debt financing.
HT has a better Debt to Equity ratio (0.88) than 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 25.66 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.24
WACC7.12%
2.3 Liquidity
A Current Ratio of 2.39 indicates that HT has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.39, HT belongs to the best of the industry, outperforming 82.95% of the companies in the same industry.
A Quick Ratio of 2.39 indicates that HT has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.39, HT belongs to the top of the industry, outperforming 82.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 110.56% over the past year.
HT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.73% yearly.
Looking at the last year, HT shows a very negative growth in Revenue. The Revenue has decreased by -10.28% in the last year.
The Revenue has been decreasing by -4.02% on average over the past years.
EPS 1Y (TTM)110.56%
EPS 3YN/A
EPS 5Y10.73%
EPS Q2Q%81.67%
Revenue 1Y (TTM)-10.28%
Revenue growth 3Y-8.51%
Revenue growth 5Y-4.02%
Sales Q2Q%-11.71%
3.2 Future
Based on estimates for the next years, HT will show a very strong growth in Earnings Per Share. The EPS will grow by 64.16% on average per year.
HT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.82% yearly.
EPS Next Y-41.37%
EPS Next 2Y-13.42%
EPS Next 3Y64.16%
EPS Next 5YN/A
Revenue Next Year-10.87%
Revenue Next 2Y-3.54%
Revenue Next 3Y-0.82%
Revenue Next 5YN/A
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 58.76, HT can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as HT.
Compared to an average S&P500 Price/Earnings ratio of 26.91, HT is valued quite expensively.
The Forward Price/Earnings Ratio is negative for HT. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.76 | ||
| Fwd PE | N/A |
4.2 Price Multiples
89.15% of the companies in the same industry are more expensive than HT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HT indicates a somewhat cheap valuation: HT is cheaper than 74.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.74 | ||
| EV/EBITDA | 9.78 |
4.3 Compensation for Growth
A more expensive valuation may be justified as HT's earnings are expected to grow with 64.16% in the coming years.
PEG (NY)N/A
PEG (5Y)5.48
EPS Next 2Y-13.42%
EPS Next 3Y64.16%
5. Dividend
5.1 Amount
HT has a Yearly Dividend Yield of 2.00%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.00, HT pays less dividend than the industry average, which is at 15.23. 85.27% of the companies listed in the same industry pay a better dividend than HT!
Compared to an average S&P500 Dividend Yield of 2.34, HT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
5.2 History
The dividend of HT decreases each year by -19.88%.
HT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-19.88%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
618.48% of the earnings are spent on dividend by HT. This is not a sustainable payout ratio.
DP618.48%
EPS Next 2Y-13.42%
EPS Next 3Y64.16%
Hersha Hospitality Trust
NYSE:HT (11/27/2023, 8:12:15 PM)
After market: 9.995 +0 (+0.05%)9.99
-0.01 (-0.1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners0.13%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change0%
Market Cap402.60M
Analysts49.41
Price Target9.88 (-1.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Dividend Growth(5Y)-19.88%
DP618.48%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)365.77%
Min EPS beat(2)54.84%
Max EPS beat(2)676.7%
EPS beat(4)4
Avg EPS beat(4)388.16%
Min EPS beat(4)4.5%
Max EPS beat(4)816.6%
EPS beat(8)7
Avg EPS beat(8)183.57%
EPS beat(12)10
Avg EPS beat(12)122.52%
EPS beat(16)10
Avg EPS beat(16)84.32%
Revenue beat(2)0
Avg Revenue beat(2)-2.09%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)-1.71%
Revenue beat(4)0
Avg Revenue beat(4)-2.76%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)-1.71%
Revenue beat(8)2
Avg Revenue beat(8)-2.03%
Revenue beat(12)4
Avg Revenue beat(12)-2.82%
Revenue beat(16)4
Avg Revenue beat(16)-5.43%
PT rev (1m)0%
PT rev (3m)1.31%
EPS NQ rev (1m)23.08%
EPS NQ rev (3m)23.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.53%
Revenue NQ rev (1m)-4.26%
Revenue NQ rev (3m)-4.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.76 | ||
| Fwd PE | N/A | ||
| P/S | 1.11 | ||
| P/FCF | 17.74 | ||
| P/OCF | 6.97 | ||
| P/B | 0.61 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 9.78 |
EPS(TTM)0.17
EY1.7%
EPS(NY)-0.66
Fwd EYN/A
FCF(TTM)0.56
FCFY5.64%
OCF(TTM)1.43
OCFY14.36%
SpS8.97
BVpS16.34
TBVpS16.32
PEG (NY)N/A
PEG (5Y)5.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 1.4% | ||
| ROCE | 2.12% | ||
| ROIC | 1.68% | ||
| ROICexc | 1.88% | ||
| ROICexgc | 1.91% | ||
| OM | 7.75% | ||
| PM (TTM) | 2.54% | ||
| GM | 30.04% | ||
| FCFM | 6.28% |
ROA(3y)-1.59%
ROA(5y)-1.35%
ROE(3y)-7.91%
ROE(5y)-5.77%
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 3Y16.11%
ROICexcg growth 5Y4.4%
ROICexc growth 3Y15.5%
ROICexc growth 5Y4.24%
OM growth 3Y5.9%
OM growth 5Y-2.93%
PM growth 3YN/A
PM growth 5Y14.8%
GM growth 3Y1.03%
GM growth 5Y-0.4%
F-Score5
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 25.66 | ||
| Debt/EBITDA | 6.79 | ||
| Cap/Depr | 60.73% | ||
| Cap/Sales | 9.71% | ||
| Interest Coverage | 0.63 | ||
| Cash Conversion | 67.37% | ||
| Profit Quality | 246.74% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.39 | ||
| Altman-Z | 0.22 |
F-Score5
WACC7.12%
ROIC/WACC0.24
Cap/Depr(3y)24.22%
Cap/Depr(5y)56.3%
Cap/Sales(3y)8.13%
Cap/Sales(5y)12.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)110.56%
EPS 3YN/A
EPS 5Y10.73%
EPS Q2Q%81.67%
EPS Next Y-41.37%
EPS Next 2Y-13.42%
EPS Next 3Y64.16%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.28%
Revenue growth 3Y-8.51%
Revenue growth 5Y-4.02%
Sales Q2Q%-11.71%
Revenue Next Year-10.87%
Revenue Next 2Y-3.54%
Revenue Next 3Y-0.82%
Revenue Next 5YN/A
EBIT growth 1Y-19.54%
EBIT growth 3Y-3.11%
EBIT growth 5Y-6.83%
EBIT Next Year194.17%
EBIT Next 3Y50.08%
EBIT Next 5YN/A
FCF growth 1Y191.9%
FCF growth 3Y-1.25%
FCF growth 5YN/A
OCF growth 1Y566.13%
OCF growth 3Y-9.82%
OCF growth 5Y-6.73%