SUMMIT HOTEL PROPERTIES INC (INN) Stock Fundamental Analysis
USA - NYSE:INN - US8660821005 - REIT
5.41 USD
-0.11 (-1.99%)
5.41 USD
0 (0%)
Overall INN gets a fundamental rating of 2 out of 10. We evaluated INN against 129 industry peers in the Diversified REITs industry. Both the profitability and financial health of INN have multiple concerns. INN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
INN had negative earnings in the past year.
INN had a positive operating cash flow in the past year.
INN had negative earnings in 4 of the past 5 years.
INN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of INN (-0.35%) is worse than 61.24% of its industry peers.
With a Return On Equity value of -1.11%, INN is not doing good in the industry: 61.24% of the companies in the same industry are doing better.
INN has a Return On Invested Capital (2.08%) which is comparable to the rest of the 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 3.01%.
The last Return On Invested Capital (2.08%) for INN is above the 3 year average (2.00%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.35% | ||
| ROE | -1.11% | ||
| ROIC | 2.08% |
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
In the last couple of years the Profit Margin of INN has declined.
The Operating Margin of INN (9.99%) is worse than 75.97% of its industry peers.
In the last couple of years the Operating Margin of INN has declined.
With a Gross Margin value of 42.02%, INN is not doing good in the industry: 82.95% of the companies in the same industry are doing better.
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 | 9.99% | ||
| PM (TTM) | N/A | ||
| GM | 42.02% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INN is destroying value.
Compared to 1 year ago, INN has more shares outstanding
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
Based on the Altman-Z score of 0.32, we must say that INN is in the distress zone and has some risk of bankruptcy.
INN's Altman-Z score of 0.32 is on the low side compared to the rest of the industry. INN is outperformed by 62.79% of its industry peers.
INN has a debt to FCF ratio of 21.54. This is a negative value and a sign of low solvency as INN would need 21.54 years to pay back of all of its debts.
INN has a better Debt to FCF ratio (21.54) than 75.19% of its industry peers.
A Debt/Equity ratio of 1.59 is on the high side and indicates that INN has dependencies on debt financing.
INN has a Debt to Equity ratio of 1.59. This is in the lower half of the industry: INN underperforms 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 21.54 | ||
| Altman-Z | 0.32 |
ROIC/WACC0.3
WACC7.05%
2.3 Liquidity
INN has a Current Ratio of 0.67. This is a bad value and indicates that INN is not financially healthy enough and could expect problems in meeting its short term obligations.
INN has a Current ratio of 0.67. This is in the lower half of the industry: INN underperforms 69.77% of its industry peers.
INN has a Quick Ratio of 0.67. This is a bad value and indicates that INN is not financially healthy enough and could expect problems in meeting its short term obligations.
INN has a Quick ratio of 0.67. This is in the lower half of the industry: INN underperforms 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The earnings per share for INN have decreased strongly by -648518346341351552.00% in the last year.
The earnings per share for INN have been decreasing by -22.65% on average. This is quite bad
The Revenue for INN has decreased by -21.77% in the past year. This is quite bad
INN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.90% yearly.
EPS 1Y (TTM)-648518346341351600%
EPS 3YN/A
EPS 5Y-22.65%
EPS Q2Q%-108.7%
Revenue 1Y (TTM)-21.77%
Revenue growth 3Y26.45%
Revenue growth 5Y5.9%
Sales Q2Q%-0.51%
3.2 Future
Based on estimates for the next years, INN will show a very negative growth in Earnings Per Share. The EPS will decrease by -76.70% on average per year.
The Revenue is expected to grow by 1.61% on average over the next years.
EPS Next Y-178.56%
EPS Next 2Y-76.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.65%
Revenue Next 2Y1.6%
Revenue Next 3Y1.61%
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
INN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year INN is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INN is valued cheaply inside the industry as 92.25% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, INN is valued cheaper than 93.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.89 | ||
| EV/EBITDA | 8.97 |
4.3 Compensation for Growth
A cheap valuation may be justified as INN's earnings are expected to decrease with -76.70% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-76.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
INN has a Yearly Dividend Yield of 8.02%, which is a nice return.
Compared to an average industry Dividend Yield of 6.68, INN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, INN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.02% |
5.2 History
The dividend of INN decreases each year by -9.83%.
INN has paid a dividend for at least 10 years, which is a reliable track record.
INN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.83%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
The earnings of INN are negative and hence is the payout ratio. INN will probably not be able to sustain this dividend level.
INN's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-584.4%
EPS Next 2Y-76.7%
EPS Next 3YN/A
5.41
-0.11 (-1.99%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners99.48%
Inst Owner Change0%
Ins Owners3.69%
Ins Owner Change2.26%
Market Cap588.66M
Analysts72
Price Target6.57 (21.44%)
Short Float %4.49%
Short Ratio5.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.02% |
Yearly Dividend0.52
Dividend Growth(5Y)-9.83%
DP-584.4%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-177.23%
Min EPS beat(2)-296.04%
Max EPS beat(2)-58.42%
EPS beat(4)2
Avg EPS beat(4)-52.64%
Min EPS beat(4)-296.04%
Max EPS beat(4)109.9%
EPS beat(8)4
Avg EPS beat(8)55.35%
EPS beat(12)7
Avg EPS beat(12)38.79%
EPS beat(16)9
Avg EPS beat(16)42.72%
Revenue beat(2)0
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-2.08%
Max Revenue beat(2)-0.75%
Revenue beat(4)0
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)-0.5%
Revenue beat(8)1
Avg Revenue beat(8)-0.99%
Revenue beat(12)4
Avg Revenue beat(12)-0.67%
Revenue beat(16)7
Avg Revenue beat(16)0.55%
PT rev (1m)0%
PT rev (3m)-6.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-125%
EPS NY rev (1m)0%
EPS NY rev (3m)-600%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)-2.55%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.81 | ||
| P/FCF | 8.89 | ||
| P/OCF | 3.62 | ||
| P/B | 0.66 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 8.97 |
EPS(TTM)-0.09
EYN/A
EPS(NY)-0.2
Fwd EYN/A
FCF(TTM)0.61
FCFY11.25%
OCF(TTM)1.49
OCFY27.61%
SpS6.68
BVpS8.23
TBVpS8.23
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.35% | ||
| ROE | -1.11% | ||
| ROCE | 2.64% | ||
| ROIC | 2.08% | ||
| ROICexc | 2.11% | ||
| ROICexgc | 2.13% | ||
| OM | 9.99% | ||
| PM (TTM) | N/A | ||
| GM | 42.02% | ||
| FCFM | 9.1% |
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-Score2
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 21.54 | ||
| Debt/EBITDA | 6.47 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.98 | ||
| Cash Conversion | 73.78% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 0.32 |
F-Score2
WACC7.05%
ROIC/WACC0.3
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)-648518346341351600%
EPS 3YN/A
EPS 5Y-22.65%
EPS Q2Q%-108.7%
EPS Next Y-178.56%
EPS Next 2Y-76.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-21.77%
Revenue growth 3Y26.45%
Revenue growth 5Y5.9%
Sales Q2Q%-0.51%
Revenue Next Year0.65%
Revenue Next 2Y1.6%
Revenue Next 3Y1.61%
Revenue Next 5YN/A
EBIT growth 1Y-32.93%
EBIT growth 3YN/A
EBIT growth 5Y1.23%
EBIT Next Year131.98%
EBIT Next 3Y34.26%
EBIT Next 5YN/A
FCF growth 1Y-41.62%
FCF growth 3Y114.42%
FCF growth 5YN/A
OCF growth 1Y0.45%
OCF growth 3Y36.01%
OCF growth 5Y2.29%