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 2 out of 10. The analysis compared the fundamentals 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.
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
The Return On Assets of INN (-0.35%) is worse than 62.02% of its industry peers.
The Return On Equity of INN (-1.11%) is worse than 62.02% of its industry peers.
With a Return On Invested Capital value of 2.08%, INN is not doing good in the industry: 61.24% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for INN is in line with the industry average of 3.07%.
The 3 year average ROIC (2.00%) for INN is below the current ROIC(2.08%), indicating increased profibility in the last year.
| 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
INN's Profit Margin has declined in the last couple of years.
INN has a Operating Margin of 9.99%. This is in the lower half of the industry: INN underperforms 78.29% of its industry peers.
INN's Operating Margin has declined in the last couple of years.
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
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.
INN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for INN has been reduced compared to a year ago.
2.2 Solvency
INN has an Altman-Z score of 0.32. This is a bad value and indicates that INN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.32, INN is doing worse than 63.57% of the companies in the same industry.
The Debt to FCF ratio of INN is 21.54, which is on the high side as it means it would take INN, 21.54 years of fcf income to pay off all of its debts.
INN has a better Debt to FCF ratio (21.54) than 75.97% 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's Debt to Equity ratio of 1.59 is on the low side compared to the rest of the industry. INN is outperformed by 63.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 21.54 | ||
| Altman-Z | 0.32 |
ROIC/WACC0.29
WACC7.07%
2.3 Liquidity
A Current Ratio of 0.67 indicates that INN may have some problems paying its short term obligations.
INN has a worse Current ratio (0.67) than 68.99% of its industry peers.
A Quick Ratio of 0.67 indicates that INN may have some problems paying its short term obligations.
INN has a Quick ratio of 0.67. This is in the lower half of the industry: INN underperforms 66.67% 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
The Revenue has been growing slightly by 5.90% on average over the past years.
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
The Earnings Per Share is expected to decrease by -58.27% on average over the next years. This is quite bad
Based on estimates for the next years, INN will show a small growth in Revenue. The Revenue will grow by 1.61% on average per year.
EPS Next Y-111.22%
EPS Next 2Y-58.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.69%
Revenue Next 2Y1.99%
Revenue Next 3Y1.61%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
INN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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
Based on the Enterprise Value to EBITDA ratio, INN is valued cheaper than 92.25% of the companies in the same industry.
INN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. INN is cheaper than 92.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.73 | ||
| EV/EBITDA | 8.99 |
4.3 Compensation for Growth
A cheap valuation may be justified as INN's earnings are expected to decrease with -58.27% in the coming years.
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 7.81%, which is a nice return.
INN's Dividend Yield is a higher than the industry average which is at 6.54.
Compared to an average S&P500 Dividend Yield of 2.36, INN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.81% |
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
INN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The Dividend Rate of INN has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-584.4%
EPS Next 2Y-58.27%
EPS Next 3YN/A
5.15
-0.15 (-2.83%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners89.37%
Inst Owner Change5.47%
Ins Owners3.58%
Ins Owner Change27.43%
Market Cap577.93M
Analysts72
Price Target6.82 (32.43%)
Short Float %5.02%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.81% |
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)-2.73%
PT rev (3m)-6.14%
EPS NQ rev (1m)-75%
EPS NQ rev (3m)12.5%
EPS NY rev (1m)0%
EPS NY rev (3m)33.33%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.79 | ||
| P/FCF | 8.73 | ||
| P/OCF | 3.56 | ||
| P/B | 0.65 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 8.99 |
EPS(TTM)-0.09
EYN/A
EPS(NY)-0.09
Fwd EYN/A
FCF(TTM)0.59
FCFY11.46%
OCF(TTM)1.45
OCFY28.12%
SpS6.48
BVpS7.98
TBVpS7.98
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
WACC7.07%
ROIC/WACC0.29
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-111.22%
EPS Next 2Y-58.27%
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 Year1.69%
Revenue Next 2Y1.99%
Revenue Next 3Y1.61%
Revenue Next 5YN/A
EBIT growth 1Y-32.93%
EBIT growth 3YN/A
EBIT growth 5Y1.23%
EBIT Next Year136.58%
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%