Hersha Hospitality Trust (HT) Stock Fundamental Analysis
NYSE:HT - New York Stock Exchange, Inc. - US4278255009 - REIT - Currency: USD
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. While showing a medium growth rate, HT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year HT was profitable.
In the past year HT had a positive cash flow from operations.
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
HT has a Return On Assets (0.66%) which is in line with its industry peers.
The Return On Equity of HT (1.40%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 1.68%, HT is not doing good in the industry: 69.77% of the companies in the same industry are doing better.
| 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.
HT has a Operating Margin of 7.75%. This is amonst the worse of the industry: HT underperforms 83.72% of its industry peers.
In the last couple of years the Operating Margin of HT has declined.
HT has a worse Gross Margin (30.04%) than 90.70% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HT is destroying value.
HT has more shares outstanding than it did 1 year ago.
HT has a better debt/assets ratio than last year.
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.
A Debt/Equity ratio of 0.88 indicates that HT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.88, HT is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
| 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 has a Current ratio of 2.39. This is amongst the best in the industry. HT outperforms 82.95% of its industry peers.
A Quick Ratio of 2.39 indicates that HT has no problem at all paying its short term obligations.
HT's Quick ratio of 2.39 is amongst the best of the industry. HT outperforms 82.95% of its industry peers.
| 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
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
A Price/Earnings ratio of 58.76 indicates a quite expensive valuation of HT.
Compared to the rest of the industry, the Price/Earnings ratio of HT is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.45, HT is valued quite expensively.
HT is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.76 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HT is valued cheaply inside the industry as 89.15% of the companies are valued more expensively.
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
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%.
With a Dividend Yield of 2.00, HT pays less dividend than the industry average, which is at 6.64. 85.27% of the companies listed in the same industry pay a better dividend than HT!
HT's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| 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%
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% |
Yearly Dividend0.67
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%