PEB gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 124 industry peers in the Diversified REITs industry. Both the profitability and financial health of PEB have multiple concerns. PEB has a expensive valuation and it also scores bad on growth.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

PEB had negative earnings in the past year.
In the past year PEB had a positive cash flow from operations.
In the past 5 years PEB always reported negative net income.
PEB had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

PEB has a Return On Assets of -2.53%. This is in the lower half of the industry: PEB underperforms 75.81% of its industry peers.
PEB has a worse Return On Equity (-5.59%) than 70.97% of its industry peers.
With a Return On Invested Capital value of 1.09%, PEB is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
PEB had an Average Return On Invested Capital over the past 3 years of 1.30%. This is in line with the industry average of 3.05%.

		Industry Rank	Sector Rank
ROA	-2.53%
ROE	-5.59%
ROIC	1.09%

ROA(3y)-1.6%

ROA(5y)-3.11%

ROE(3y)-3.33%

ROE(5y)-6.09%

ROIC(3y)1.3%

ROIC(5y)N/A

1.3 Margins

Looking at the Operating Margin, with a value of 4.61%, PEB is doing worse than 83.87% of the companies in the same industry.
PEB's Operating Margin has declined in the last couple of years.
The Gross Margin of PEB (33.04%) is worse than 85.48% of its industry peers.
PEB's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	4.61%
PM (TTM)	N/A
GM	33.04%

OM growth 3YN/A

OM growth 5Y-16.65%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.64%

GM growth 5Y-3.06%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

PEB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PEB has less shares outstanding than it did 1 year ago.
PEB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PEB has been reduced compared to a year ago.

2.2 Solvency

PEB has an Altman-Z score of 0.13. This is a bad value and indicates that PEB is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.13, PEB is doing worse than 71.77% of the companies in the same industry.
The Debt to FCF ratio of PEB is 12.08, which is on the high side as it means it would take PEB, 12.08 years of fcf income to pay off all of its debts.
PEB's Debt to FCF ratio of 12.08 is amongst the best of the industry. PEB outperforms 87.90% of its industry peers.
PEB has a Debt/Equity ratio of 0.91. This is a neutral value indicating PEB is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.91, PEB is in the better half of the industry, outperforming 66.94% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.91
Debt/FCF	12.08
Altman-Z	0.13

ROIC/WACC0.17

WACC6.25%

2.3 Liquidity

A Current Ratio of 0.56 indicates that PEB may have some problems paying its short term obligations.
PEB has a Current ratio of 0.56. This is in the lower half of the industry: PEB underperforms 78.23% of its industry peers.
A Quick Ratio of 0.56 indicates that PEB may have some problems paying its short term obligations.
The Quick ratio of PEB (0.56) is worse than 78.23% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.56
Quick Ratio	0.56

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

PEB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -231.03%.
Looking at the last year, PEB shows a very negative growth in Revenue. The Revenue has decreased by -16.99% in the last year.
The Revenue has been decreasing by -2.05% on average over the past years.

EPS 1Y (TTM)-231.03%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-254.17%

Revenue 1Y (TTM)-16.99%

Revenue growth 3Y25.63%

Revenue growth 5Y-2.05%

Sales Q2Q%-1.44%

3.2 Future

The Earnings Per Share is expected to grow by 31.21% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.87% on average over the next years.

EPS Next Y-239.59%

EPS Next 2Y-60.05%

EPS Next 3Y-31.26%

EPS Next 5Y31.21%

Revenue Next Year1.57%

Revenue Next 2Y0.51%

Revenue Next 3Y1.13%

Revenue Next 5Y2.87%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

PEB 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 PEB. No positive earnings are expected for the next year.

		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 78.23% of the companies in the same industry.
PEB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PEB is cheaper than 95.97% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	6.8
EV/EBITDA	11.36

4.3 Compensation for Growth

PEB's earnings are expected to decrease with -31.26% in the coming years. This may justify a cheaper valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-60.05%

EPS Next 3Y-31.26%

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5. Dividend

5.1 Amount

With a yearly dividend of 0.33%, PEB is not a good candidate for dividend investing.
With a Dividend Yield of 0.33, PEB pays less dividend than the industry average, which is at 6.82. 94.35% of the companies listed in the same industry pay a better dividend than PEB!
Compared to an average S&P500 Dividend Yield of 1.82, PEB's dividend is way lower than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	0.33%

5.2 History

The dividend of PEB decreases each year by -23.57%.
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)-23.57%

Div Incr Years0

Div Non Decr Years4

5.3 Sustainability

PEB has negative earnings and hence a negative payout ratio. The dividend may be in danger.

DP-36.98%

EPS Next 2Y-60.05%

EPS Next 3Y-31.26%

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PEBBLEBROOK HOTEL TRUST / PEB FAQ

Can you provide the ChartMill fundamental rating for PEBBLEBROOK HOTEL TRUST?

ChartMill assigns a fundamental rating of 2 / 10 to PEB.

Can you provide the valuation status for PEBBLEBROOK HOTEL TRUST?

ChartMill assigns a valuation rating of 2 / 10 to PEBBLEBROOK HOTEL TRUST (PEB). This can be considered as Overvalued.

How profitable is PEBBLEBROOK HOTEL TRUST (PEB) stock?

PEBBLEBROOK HOTEL TRUST (PEB) has a profitability rating of 1 / 10.

How financially healthy is PEBBLEBROOK HOTEL TRUST?

The financial health rating of PEBBLEBROOK HOTEL TRUST (PEB) is 3 / 10.

Can you provide the expected EPS growth for PEB stock?

The Earnings per Share (EPS) of PEBBLEBROOK HOTEL TRUST (PEB) is expected to decline by -239.59% in the next year.