PEBBLEBROOK HOTEL TRUST (PEB)
US70509V1008 - REIT
We assign a fundamental rating of 2 out of 10 to PEB. PEB was compared to 126 industry peers in the Diversified REITs industry. Both the profitability and financial health of PEB have multiple concerns. PEB does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year PEB has reported negative net income.
In the past year PEB had a positive cash flow from operations.
PEB had negative earnings in 4 of the past 5 years.
PEB had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
PEB's Return On Assets of -1.95% is on the low side compared to the rest of the industry. PEB is outperformed by 78.86% of its industry peers.
PEB has a Return On Equity of -4.11%. This is in the lower half of the industry: PEB underperforms 71.54% of its industry peers.
With a Return On Invested Capital value of 1.05%, PEB is not doing good in the industry: 82.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.95% | ||
| ROE | -4.11% | ||
| ROIC | 1.05% |
ROA(3y)-2.57%
ROA(5y)-2.69%
ROE(3y)-5.23%
ROE(5y)-5.29%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Operating Margin value of 4.85%, PEB is not doing good in the industry: 87.80% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of PEB has declined.
With a Gross Margin value of 33.72%, PEB is not doing good in the industry: 90.24% of the companies in the same industry are doing better.
PEB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.85% | ||
| PM (TTM) | N/A | ||
| GM | 33.72% |
OM growth 3YN/A
OM growth 5Y-21.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y32.99%
GM growth 5Y-2.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PEB is destroying value.
The number of shares outstanding for PEB has been increased compared to 1 year ago.
Compared to 5 years ago, PEB has more shares outstanding
The debt/assets ratio for PEB is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.25, we must say that PEB is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PEB (0.25) is worse than 69.92% of its industry peers.
PEB has a debt to FCF ratio of 65.23. This is a negative value and a sign of low solvency as PEB would need 65.23 years to pay back of all of its debts.
With a Debt to FCF ratio value of 65.23, PEB perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
A Debt/Equity ratio of 0.84 indicates that PEB is somewhat dependend on debt financing.
PEB has a Debt to Equity ratio of 0.84. This is in the better half of the industry: PEB outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 65.23 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.15
WACC7.08%
2.3 Liquidity
A Current Ratio of 0.50 indicates that PEB may have some problems paying its short term obligations.
The Current ratio of PEB (0.50) is worse than 86.18% of its industry peers.
PEB has a Quick Ratio of 0.50. This is a bad value and indicates that PEB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PEB (0.50) is worse than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
PEB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -94.00%.
The Revenue for PEB has decreased by -13.94% in the past year. This is quite bad
The Revenue has been growing by 11.37% on average over the past years. This is quite good.
EPS 1Y (TTM)-94%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-8.82%
Revenue 1Y (TTM)-13.94%
Revenue growth 3Y47.45%
Revenue growth 5Y11.37%
Revenue growth Q2Q4.53%
3.2 Future
Based on estimates for the next years, PEB will show a very strong growth in Earnings Per Share. The EPS will grow by 28.55% on average per year.
The Revenue is expected to grow by 4.75% on average over the next years.
EPS Next Y20.45%
EPS Next 2Y18.86%
EPS Next 3Y24.67%
EPS Next 5Y28.55%
Revenue Next Year3.44%
Revenue Next 2Y3.66%
Revenue Next 3Y3.68%
Revenue Next 5Y4.75%
3.3 Evolution
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
PEB reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year PEB 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
PEB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PEB is cheaper than 65.85% of the companies in the same industry.
PEB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.69 | ||
| EV/EBITDA | 12.73 |
4.3 Compensation for Growth
A more expensive valuation may be justified as PEB's earnings are expected to grow with 24.67% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.86%
EPS Next 3Y24.67%
5. Dividend
5.1 Amount
With a yearly dividend of 0.27%, PEB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.06, PEB's dividend is way lower than its industry peers. On top of this 93.50% of the companies listed in the same industry pay a better dividend than PEB!
Compared to an average S&P500 Dividend Yield of 2.41, PEB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
5.2 History
The dividend of PEB decreases each year by -20.40%.
PEB has paid a dividend for at least 10 years, which is a reliable track record.
PEB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-20.4%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
PEB has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-47.17%
EPS Next 2Y18.86%
EPS Next 3Y24.67%
PEBBLEBROOK HOTEL TRUST
NYSE:PEB (4/26/2024, 7:09:25 PM)
After market: 14.96 0 (0%)14.96
-0.04 (-0.27%)
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 Cap1.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
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 | -1.95% | ||
| ROE | -4.11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.85% | ||
| PM (TTM) | N/A | ||
| GM | 33.72% | ||
| 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 Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 | ||
| 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)-94%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y20.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.94%
Revenue growth 3Y47.45%
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