Hersha Hospitality Trust (HT)
US4278255009 - REIT
We assign a fundamental rating of 4 out of 10 to HT. HT was compared to 126 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
In the past year HT was profitable.
HT had a positive operating cash flow in the past year.
In the past 5 years HT reported 4 times negative net income.
Of the past 5 years HT 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HT (0.66%) is comparable to the rest of the industry.
HT has a Return On Equity of 1.40%. This is comparable to the rest of the industry: HT outperforms 45.74% of its industry peers.
HT has a Return On Invested Capital of 1.68%. This is in the lower half of the industry: HT underperforms 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 has a Profit Margin (2.54%) which is comparable to the rest of the industry.
HT's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 7.75%, HT is not doing good in the industry: 83.72% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of HT has declined.
The Gross Margin of HT (30.04%) is worse than 90.70% of its industry peers.
HT's Gross Margin has been stable in the last couple of years.
| 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.
HT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.22, we must say that HT is in the distress zone and 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.
HT has a Debt to FCF ratio of 25.66. This is in the better half of the industry: HT outperforms 62.79% of its industry peers.
HT has a Debt/Equity ratio of 0.88. This is a neutral value indicating HT is somewhat dependend on debt financing.
The Debt to Equity ratio of HT (0.88) is better 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
HT has a Current Ratio of 2.39. This indicates that HT is financially healthy and has no problem in meeting its short term obligations.
HT's Current ratio of 2.39 is amongst the best of the industry. HT outperforms 82.95% of its industry peers.
HT has a Quick Ratio of 2.39. This indicates that HT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.39, HT belongs to the best 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
HT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 110.56%, which is quite impressive.
Measured over the past years, HT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.73% on average per year.
The Revenue for HT has decreased by -10.28% in the past year. This is quite bad
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 growth Q2Q81.67%
Revenue 1Y (TTM)-10.28%
Revenue growth 3Y-8.51%
Revenue growth 5Y-4.02%
Revenue growth Q2Q-11.71%
3.2 Future
The Earnings Per Share is expected to grow by 64.16% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -0.82% on average over the next years.
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.
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
A Price/Earnings ratio of 58.76 indicates a quite expensive valuation of HT.
HT's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.20. HT is valued rather expensively when compared to this.
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
HT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HT is cheaper than 89.15% of the companies in the same industry.
74.42% of the companies in the same industry are more expensive than HT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.74 | ||
| EV/EBITDA | 9.78 |
4.3 Compensation for Growth
HT's earnings are expected to grow with 64.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)5.48
EPS Next 2Y-13.42%
EPS Next 3Y64.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.00%, HT has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.00, HT pays less dividend than the industry average, which is at 6.12. 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 2.44, 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 been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-19.88%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
HT pays out 618.48% of its income as dividend. 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, 7:12:15 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 Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap402.60M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.76 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)5.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 1.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.75% | ||
| PM (TTM) | 2.54% | ||
| GM | 30.04% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)110.56%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-41.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.28%
Revenue growth 3Y-8.51%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y