SUMMIT HOTEL PROPERTIES INC (INN)
US8660821005 - REIT
Overall INN gets a fundamental rating of 2 out of 10. We evaluated INN against 127 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
In the past year INN has reported negative net income.
In the past year INN had a positive cash flow from operations.
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 -0.95%. This is in the lower half of the industry: INN underperforms 67.74% of its industry peers.
With a Return On Equity value of -3.07%, INN is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 2.12%, INN is doing worse than 60.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.95% | ||
| ROE | -3.07% | ||
| ROIC | 2.12% |
ROA(3y)-1.74%
ROA(5y)-1.89%
ROE(3y)-4.55%
ROE(5y)-4.78%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
INN has a Operating Margin of 10.31%. This is in the lower half of the industry: INN underperforms 79.84% of its industry peers.
In the last couple of years the Operating Margin of INN has declined.
INN has a Gross Margin of 42.54%. This is amonst the worse of the industry: INN underperforms 86.29% 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 | 10.31% | ||
| PM (TTM) | N/A | ||
| GM | 42.54% |
OM growth 3YN/A
OM growth 5Y-7.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y11.23%
GM growth 5Y-0.76%
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
The number of shares outstanding for INN has been increased compared to 5 years ago.
The debt/assets ratio for INN is higher compared to a year ago.
2.2 Solvency
INN has an Altman-Z score of 0.35. 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 of 0.35. This is in the lower half of the industry: INN underperforms 64.52% of its industry peers.
The Debt to FCF ratio of INN is 13.12, which is on the high side as it means it would take INN, 13.12 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.12, INN is in the better half of the industry, outperforming 78.23% of the companies in the same industry.
INN has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of INN (1.57) is worse than 66.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 13.12 | ||
| Altman-Z | 0.35 |
ROIC/WACC0.29
WACC7.31%
2.3 Liquidity
A Current Ratio of 0.61 indicates that INN may have some problems paying its short term obligations.
INN has a Current ratio of 0.61. This is in the lower half of the industry: INN underperforms 79.03% of its industry peers.
INN has a Quick Ratio of 0.61. 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 worse Quick ratio (0.61) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for INN have decreased strongly by -285.71% in the last year.
Looking at the last year, INN shows a quite strong growth in Revenue. The Revenue has grown by 8.94% in the last year.
INN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.35% yearly.
EPS 1Y (TTM)-285.71%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-700%
Revenue 1Y (TTM)8.94%
Revenue growth 3Y46.42%
Revenue growth 5Y5.35%
Revenue growth Q2Q2.98%
3.2 Future
INN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.18% yearly.
The Revenue is expected to grow by 2.15% on average over the next years.
EPS Next Y25.19%
EPS Next 2Y15.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.25%
Revenue Next 2Y2.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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
The Price/Earnings Ratio is negative for INN. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for INN. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| 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 91.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INN is valued cheaply inside the industry as 95.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.17 | ||
| EV/EBITDA | 9.11 |
4.3 Compensation for Growth
A more expensive valuation may be justified as INN's earnings are expected to grow with 15.18% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y15.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.12%, INN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.85, INN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, INN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
5.2 History
The dividend of INN decreases each year by -13.51%.
INN has been paying a dividend for at least 10 years, so it has a reliable track record.
INN has decreased its dividend recently.
Dividend Growth(5Y)-13.51%
Div Incr Years1
Div Non Decr Years1
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.
DP-163.65%
EPS Next 2Y15.18%
EPS Next 3YN/A
SUMMIT HOTEL PROPERTIES INC
NYSE:INN (5/6/2024, 10:19:00 AM)
6.255
+0 (+0.08%)
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 Cap672.98M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| 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)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.95% | ||
| ROE | -3.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.31% | ||
| PM (TTM) | N/A | ||
| GM | 42.54% | ||
| 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 Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 | ||
| 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)-285.71%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y25.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.94%
Revenue growth 3Y46.42%
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