SUMMIT HOTEL PROPERTIES INC (INN) Stock Fundamental Analysis
NYSE:INN - New York Stock Exchange, Inc. - US8660821005 - REIT - Currency: USD
INN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. INN has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, INN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year INN was profitable.
INN had a positive operating cash flow in the past year.
In the past 5 years INN reported 4 times negative net income.
INN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
INN has a Return On Assets of 0.70%. This is comparable to the rest of the industry: INN outperforms 52.71% of its industry peers.
Looking at the Return On Equity, with a value of 2.19%, INN is in line with its industry, outperforming 53.49% of the companies in the same industry.
With a Return On Invested Capital value of 2.87%, INN perfoms like the industry average, outperforming 58.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for INN is in line with the industry average of 3.15%.
The last Return On Invested Capital (2.87%) for INN is above the 3 year average (2.00%), which is a sign of increasing profitability.
| 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 46.51% of the companies in the same industry.
INN's Profit Margin has declined in the last couple of years.
INN's Operating Margin of 11.04% is on the low side compared to the rest of the industry. INN is outperformed by 75.97% of its industry peers.
INN's Operating Margin has declined in the last couple of years.
INN's Gross Margin of 42.86% is on the low side compared to the rest of the industry. INN is outperformed by 82.17% 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
INN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
INN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for INN has been increased compared to 5 years ago.
Compared to 1 year ago, INN has an improved debt to assets ratio.
2.2 Solvency
INN has an Altman-Z score of 0.40. This is a bad value and indicates that INN is not financially healthy and even has some risk of bankruptcy.
INN has a Altman-Z score (0.40) which is comparable to the rest of the industry.
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 76.74% 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.
INN has a worse Debt to Equity ratio (1.54) than 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 20.94 | ||
| Altman-Z | 0.4 |
ROIC/WACC0.41
WACC7%
2.3 Liquidity
A Current Ratio of 0.78 indicates that INN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.78, INN is doing worse than 62.02% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that INN may have some problems paying its short term obligations.
The Quick ratio of INN (0.78) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 166.67% over the past year.
The earnings per share for INN have been decreasing by -22.65% on average. This is quite bad
INN shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.51%.
INN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.90% yearly.
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
The Earnings Per Share is expected to decrease by -57.38% on average over the next years. This is quite bad
INN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.41% yearly.
EPS Next Y-116.83%
EPS Next 2Y-57.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.29%
Revenue Next 2Y2.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 27.38, INN can be considered very expensive at the moment.
Based on the Price/Earnings ratio, INN is valued a bit cheaper than the industry average as 69.77% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.25, INN is valued at the same level.
INN is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.38 | ||
| Fwd PE | N/A |
4.2 Price Multiples
INN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INN is cheaper than 97.67% of the companies in the same industry.
95.35% of the companies in the same industry are more expensive than INN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.26 | ||
| EV/EBITDA | 7.51 |
4.3 Compensation for Growth
INN's earnings are expected to decrease with -57.38% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-57.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
INN has a Yearly Dividend Yield of 7.27%, which is a nice return.
The stock price of INN dropped by -32.30% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 6.93, INN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, INN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.27% |
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
INN pays out 289.26% of its income as dividend. 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-57.38%
EPS Next 3YN/A
4.38
-0.02 (-0.45%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.29%
Inst Owner Change2.49%
Ins Owners3.03%
Ins Owner Change27.43%
Market Cap491.52M
Analysts72
Price Target7.27 (65.98%)
Short Float %3.66%
Short Ratio3.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.27% |
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)-12.31%
PT rev (3m)-12.31%
EPS NQ rev (1m)-20%
EPS NQ rev (3m)100%
EPS NY rev (1m)0%
EPS NY rev (3m)78.57%
Revenue NQ rev (1m)-1.88%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.38 | ||
| Fwd PE | N/A | ||
| P/S | 0.54 | ||
| P/FCF | 7.26 | ||
| P/OCF | 3 | ||
| P/B | 0.53 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 7.51 |
EPS(TTM)0.16
EY3.65%
EPS(NY)-0.09
Fwd EYN/A
FCF(TTM)0.6
FCFY13.77%
OCF(TTM)1.46
OCFY33.37%
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 | 0.4 |
F-Score6
WACC7%
ROIC/WACC0.41
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-116.83%
EPS Next 2Y-57.38%
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 Year2.29%
Revenue Next 2Y2.41%
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%