SUMMIT HOTEL PROPERTIES INC (INN) Stock Fundamental Analysis
NYSE:INN - New York Stock Exchange, Inc. - US8660821005 - REIT - Currency: USD
Taking everything into account, INN scores 3 out of 10 in our fundamental rating. INN was compared to 128 industry peers in the Diversified REITs industry. Both the profitability and financial health of INN have multiple concerns. INN 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 INN was profitable.
In the past year INN had a positive cash flow from operations.
INN had negative earnings in 4 of the past 5 years.
Of the past 5 years INN 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.70%, INN perfoms like the industry average, outperforming 52.34% of the companies in the same industry.
INN has a Return On Equity (2.19%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 2.87%, INN is in line with its industry, outperforming 57.81% of the companies in the same industry.
INN had an Average Return On Invested Capital over the past 3 years of 2.00%. This is in line with the industry average of 3.14%.
The 3 year average ROIC (2.00%) for INN is below the current ROIC(2.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 2.19% | ||
| ROIC | 2.87% |
ROA(3y)-0.22%
ROA(5y)-2.29%
ROE(3y)-0.7%
ROE(5y)-5.39%
ROIC(3y)2%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 2.20%, INN perfoms like the industry average, outperforming 46.09% of the companies in the same industry.
INN's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 11.04%, INN is not doing good in the industry: 75.78% of the companies in the same industry are doing better.
INN's Operating Margin has declined in the last couple of years.
INN has a Gross Margin of 42.86%. This is amonst the worse of the industry: INN underperforms 82.03% of its industry peers.
In the last couple of years the Gross Margin of INN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.04% | ||
| PM (TTM) | 2.2% | ||
| GM | 42.86% |
OM growth 3YN/A
OM growth 5Y-4.42%
PM growth 3YN/A
PM growth 5Y-22.69%
GM growth 3Y1.41%
GM growth 5Y-0.69%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so INN is destroying value.
Compared to 1 year ago, INN has more shares outstanding
INN has more shares outstanding than it did 5 years ago.
INN has a better debt/assets ratio than last year.
2.2 Solvency
INN has an Altman-Z score of 0.42. This is a bad value and indicates that INN is not financially healthy and even has some risk of bankruptcy.
INN's Altman-Z score of 0.42 is in line compared to the rest of the industry. INN outperforms 44.53% of its industry peers.
The Debt to FCF ratio of INN is 20.94, which is on the high side as it means it would take INN, 20.94 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 20.94, INN is in the better half of the industry, outperforming 77.34% of the companies in the same industry.
INN has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.54, INN is not doing good in the industry: 63.28% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 20.94 | ||
| Altman-Z | 0.42 |
ROIC/WACC0.37
WACC7.65%
2.3 Liquidity
A Current Ratio of 0.78 indicates that INN may have some problems paying its short term obligations.
INN has a worse Current ratio (0.78) than 62.50% of its industry peers.
INN has a Quick Ratio of 0.78. This is a bad value and indicates that INN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.78, INN perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
INN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 166.67%, which is quite impressive.
Measured over the past years, INN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -22.65% on average per year.
The Revenue has grown by 23.51% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 5.90% on average over the past years.
EPS 1Y (TTM)166.67%
EPS 3YN/A
EPS 5Y-22.65%
EPS Q2Q%-100%
Revenue 1Y (TTM)23.51%
Revenue growth 3Y26.45%
Revenue growth 5Y5.9%
Sales Q2Q%-1.95%
3.2 Future
INN is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -58.27% yearly.
Based on estimates for the next years, INN will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y-111.22%
EPS Next 2Y-58.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.02%
Revenue Next 2Y2.26%
Revenue Next 3YN/A
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 31.00, the valuation of INN can be described as expensive.
Based on the Price/Earnings ratio, INN is valued a bit cheaper than 62.50% of the companies in the same industry.
INN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.69, which is the current average of the S&P500 Index.
INN is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INN is valued cheaply inside the industry as 96.09% of the companies are valued more expensively.
INN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. INN is cheaper than 95.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.22 | ||
| EV/EBITDA | 7.8 |
4.3 Compensation for Growth
INN's earnings are expected to decrease with -58.27% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-58.27%
EPS Next 3YN/A
5. Dividend
5.1 Amount
INN has a Yearly Dividend Yield of 6.61%, which is a nice return.
Compared to an average industry Dividend Yield of 6.72, INN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, INN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.61% |
5.2 History
The dividend of INN decreases each year by -9.83%.
INN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of INN decreased in the last 3 years.
Dividend Growth(5Y)-9.83%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
289.26% of the earnings are spent on dividend by INN. This is not a sustainable payout ratio.
INN's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP289.26%
EPS Next 2Y-58.27%
EPS Next 3YN/A
4.96
-0.08 (-1.59%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners91.14%
Inst Owner Change2.49%
Ins Owners3.58%
Ins Owner Change27.43%
Market Cap556.61M
Analysts72
Price Target7.01 (41.33%)
Short Float %4.44%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.61% |
Yearly Dividend0.52
Dividend Growth(5Y)-9.83%
DP289.26%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)25.74%
Min EPS beat(2)-58.42%
Max EPS beat(2)109.9%
EPS beat(4)3
Avg EPS beat(4)172.88%
Min EPS beat(4)-58.42%
Max EPS beat(4)606.05%
EPS beat(8)4
Avg EPS beat(8)78.9%
EPS beat(12)8
Avg EPS beat(12)81.42%
EPS beat(16)10
Avg EPS beat(16)62.16%
Revenue beat(2)0
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)-0.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.42%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)-0.5%
Revenue beat(8)2
Avg Revenue beat(8)-0.73%
Revenue beat(12)5
Avg Revenue beat(12)-0.39%
Revenue beat(16)8
Avg Revenue beat(16)0.95%
PT rev (1m)-3.51%
PT rev (3m)-15.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)300%
EPS NY rev (1m)33.33%
EPS NY rev (3m)85.71%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31 | ||
| Fwd PE | N/A | ||
| P/S | 0.61 | ||
| P/FCF | 8.22 | ||
| P/OCF | 3.39 | ||
| P/B | 0.6 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | 7.8 |
EPS(TTM)0.16
EY3.23%
EPS(NY)-0.09
Fwd EYN/A
FCF(TTM)0.6
FCFY12.16%
OCF(TTM)1.46
OCFY29.47%
SpS8.16
BVpS8.2
TBVpS8.2
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 2.19% | ||
| ROCE | 3.63% | ||
| ROIC | 2.87% | ||
| ROICexc | 2.92% | ||
| ROICexgc | 2.95% | ||
| OM | 11.04% | ||
| PM (TTM) | 2.2% | ||
| GM | 42.86% | ||
| FCFM | 7.39% |
ROA(3y)-0.22%
ROA(5y)-2.29%
ROE(3y)-0.7%
ROE(5y)-5.39%
ROIC(3y)2%
ROIC(5y)N/A
ROICexc(3y)2.03%
ROICexc(5y)N/A
ROICexgc(3y)2.05%
ROICexgc(5y)N/A
ROCE(3y)2.54%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-2.78%
ROICexc growth 3YN/A
ROICexc growth 5Y-2.8%
OM growth 3YN/A
OM growth 5Y-4.42%
PM growth 3YN/A
PM growth 5Y-22.69%
GM growth 3Y1.41%
GM growth 5Y-0.69%
F-Score6
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 20.94 | ||
| Debt/EBITDA | 5.72 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.35 | ||
| Cash Conversion | 66.14% | ||
| Profit Quality | 335.97% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 0.42 |
F-Score6
WACC7.65%
ROIC/WACC0.37
Cap/Depr(3y)95.41%
Cap/Depr(5y)68.38%
Cap/Sales(3y)20.55%
Cap/Sales(5y)15.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)166.67%
EPS 3YN/A
EPS 5Y-22.65%
EPS Q2Q%-100%
EPS Next Y-111.22%
EPS Next 2Y-58.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)23.51%
Revenue growth 3Y26.45%
Revenue growth 5Y5.9%
Sales Q2Q%-1.95%
Revenue Next Year2.02%
Revenue Next 2Y2.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y24.72%
EBIT growth 3YN/A
EBIT growth 5Y1.23%
EBIT Next Year139.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-58.21%
FCF growth 3Y114.42%
FCF growth 5YN/A
OCF growth 1Y-6.86%
OCF growth 3Y36.01%
OCF growth 5Y2.29%