Hersha Hospitality Trust (HT)

US4278255009 - REIT

9.99  -0.01 (-0.1%)

After market: 9.995 +0 (+0.05%)

Fundamental Rating

4

Taking everything into account, HT scores 4 out of 10 in our fundamental rating. HT was compared to 128 industry peers in the Diversified REITs industry. HT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. While showing a medium growth rate, HT is valued expensive at the moment.



3

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

HT has a Return On Assets (0.66%) which is in line with its industry peers.
HT has a Return On Equity (1.40%) which is in line with its industry peers.
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 RankSector 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 of 2.54%. This is comparable 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.
Looking at the Operating Margin, with a value of 7.75%, HT is doing worse than 83.72% of the companies in the same industry.
In the last couple of years the Operating Margin of HT has declined.
HT has a Gross Margin of 30.04%. This is amonst the worse of the industry: HT underperforms 90.70% of its industry peers.
HT's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
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.
A Debt/Equity ratio of 0.88 indicates that 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 RankSector 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.
HT has a better Current ratio (2.39) than 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.
The Quick ratio of HT (2.39) is better than 82.95% of its industry peers.
Industry RankSector Rank
Current Ratio 2.39
Quick Ratio 2.39

4

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
HT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.02% yearly.
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

HT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 64.16% yearly.
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

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.

3

4. Valuation

4.1 Price/Earnings Ratio

HT is valuated quite expensively with a Price/Earnings ratio of 58.76.
The rest of the industry has a similar Price/Earnings ratio as HT.
Compared to an average S&P500 Price/Earnings ratio of 25.81, HT is valued quite expensively.
The Forward Price/Earnings Ratio is negative for HT. No positive earnings are expected for the next year.
Industry RankSector 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.
Based on the Price/Free Cash Flow ratio, HT is valued a bit cheaper than 74.42% of the companies in the same industry.
Industry RankSector 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%

2

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 5.83. 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 2.45.
Industry RankSector 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

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 RankSector Rank
Dividend Yield 2%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS 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)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector 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 RankSector 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 RankSector 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