RLJ LODGING TRUST (RLJ) Stock Fundamental Analysis
USA - NYSE:RLJ - US74965L1017 - REIT
7.43 USD
-0.05 (-0.67%)
7.43 USD
0 (0%)
Overall RLJ gets a fundamental rating of 3 out of 10. We evaluated RLJ against 128 industry peers in the Diversified REITs industry. While RLJ seems to be doing ok healthwise, there are quite some concerns on its profitability. RLJ is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RLJ was profitable.
In the past year RLJ had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: RLJ reported negative net income in multiple years.
RLJ had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of RLJ (0.15%) is comparable to the rest of the industry.
RLJ has a Return On Equity (0.33%) which is comparable to the rest of the industry.
RLJ's Return On Invested Capital of 2.28% is in line compared to the rest of the industry. RLJ outperforms 44.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RLJ is in line with the industry average of 3.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.15% | ||
| ROE | 0.33% | ||
| ROIC | 2.28% |
ROA(3y)0.74%
ROA(5y)-2.37%
ROE(3y)1.57%
ROE(5y)-5.03%
ROIC(3y)2.42%
ROIC(5y)N/A
1.3 Margins
RLJ has a Profit Margin (0.53%) which is in line with its industry peers.
In the last couple of years the Profit Margin of RLJ has declined.
RLJ has a worse Operating Margin (9.54%) than 76.56% of its industry peers.
RLJ's Operating Margin has declined in the last couple of years.
The Gross Margin of RLJ (34.68%) is worse than 85.94% of its industry peers.
In the last couple of years the Gross Margin of RLJ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.54% | ||
| PM (TTM) | 0.53% | ||
| GM | 34.68% |
OM growth 3YN/A
OM growth 5Y-5.9%
PM growth 3YN/A
PM growth 5Y-13.88%
GM growth 3Y0.95%
GM growth 5Y-1.59%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RLJ is destroying value.
RLJ has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RLJ has less shares outstanding
The debt/assets ratio for RLJ is higher compared to a year ago.
2.2 Solvency
RLJ has an Altman-Z score of 0.33. This is a bad value and indicates that RLJ is not financially healthy and even has some risk of bankruptcy.
RLJ has a Altman-Z score of 0.33. This is comparable to the rest of the industry: RLJ outperforms 40.63% of its industry peers.
RLJ has a debt to FCF ratio of 20.06. This is a negative value and a sign of low solvency as RLJ would need 20.06 years to pay back of all of its debts.
RLJ has a better Debt to FCF ratio (20.06) than 78.13% of its industry peers.
A Debt/Equity ratio of 1.01 is on the high side and indicates that RLJ has dependencies on debt financing.
RLJ has a Debt to Equity ratio of 1.01. This is in the better half of the industry: RLJ outperforms 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 20.06 | ||
| Altman-Z | 0.33 |
ROIC/WACC0.36
WACC6.32%
2.3 Liquidity
A Current Ratio of 1.37 indicates that RLJ should not have too much problems paying its short term obligations.
The Current ratio of RLJ (1.37) is better than 64.06% of its industry peers.
A Quick Ratio of 1.37 indicates that RLJ should not have too much problems paying its short term obligations.
RLJ's Quick ratio of 1.37 is fine compared to the rest of the industry. RLJ outperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
RLJ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -86.21%.
Measured over the past years, RLJ shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.76% on average per year.
Looking at the last year, RLJ shows a decrease in Revenue. The Revenue has decreased by -0.58% in the last year.
Measured over the past years, RLJ shows a decrease in Revenue. The Revenue has been decreasing by -2.65% on average per year.
EPS 1Y (TTM)-86.21%
EPS 3YN/A
EPS 5Y-14.76%
EPS Q2Q%-177.78%
Revenue 1Y (TTM)-0.58%
Revenue growth 3Y20.35%
Revenue growth 5Y-2.65%
Sales Q2Q%-4.54%
3.2 Future
Based on estimates for the next years, RLJ will show a very negative growth in Earnings Per Share. The EPS will decrease by -40.39% on average per year.
RLJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.59% yearly.
EPS Next Y-82.54%
EPS Next 2Y-40.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.94%
Revenue Next 2Y0.76%
Revenue Next 3Y2.59%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 185.75, RLJ can be considered very expensive at the moment.
60.94% of the companies in the same industry are cheaper than RLJ, based on the Price/Earnings ratio.
RLJ is valuated expensively when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
RLJ is valuated quite expensively with a Price/Forward Earnings ratio of 77.44.
The rest of the industry has a similar Price/Forward Earnings ratio as RLJ.
The average S&P500 Price/Forward Earnings ratio is at 34.59. RLJ is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 185.75 | ||
| Fwd PE | 77.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RLJ is valued cheaper than 86.72% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RLJ indicates a rather cheap valuation: RLJ is cheaper than 90.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.14 | ||
| EV/EBITDA | 9.5 |
4.3 Compensation for Growth
RLJ's earnings are expected to decrease with -40.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-40.39%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.74%, RLJ is a good candidate for dividend investing.
RLJ's Dividend Yield is a higher than the industry average which is at 6.31.
Compared to an average S&P500 Dividend Yield of 2.36, RLJ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.74% |
5.2 History
The dividend of RLJ decreases each year by -16.05%.
RLJ has paid a dividend for at least 10 years, which is a reliable track record.
RLJ has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-16.05%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
RLJ pays out 1624.82% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of RLJ has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP1624.82%
EPS Next 2Y-40.39%
EPS Next 3YN/A
7.43
-0.05 (-0.67%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners92.68%
Inst Owner Change-0.23%
Ins Owners3.11%
Ins Owner Change0%
Market Cap1.12B
Revenue(TTM)1.35B
Net Income(TTM)7.22M
Analysts54.12
Price Target8.96 (20.59%)
Short Float %14.39%
Short Ratio8.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.74% |
Yearly Dividend0.62
Dividend Growth(5Y)-16.05%
DP1624.82%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.74%
Min EPS beat(2)-63.08%
Max EPS beat(2)45.6%
EPS beat(4)3
Avg EPS beat(4)22.86%
Min EPS beat(4)-63.08%
Max EPS beat(4)76.43%
EPS beat(8)7
Avg EPS beat(8)525.32%
EPS beat(12)11
Avg EPS beat(12)395.45%
EPS beat(16)14
Avg EPS beat(16)302.52%
Revenue beat(2)1
Avg Revenue beat(2)-0.72%
Min Revenue beat(2)-1.49%
Max Revenue beat(2)0.05%
Revenue beat(4)2
Avg Revenue beat(4)-0.43%
Min Revenue beat(4)-1.49%
Max Revenue beat(4)0.59%
Revenue beat(8)3
Avg Revenue beat(8)-0.21%
Revenue beat(12)5
Avg Revenue beat(12)-0.07%
Revenue beat(16)9
Avg Revenue beat(16)0.22%
PT rev (1m)-2.09%
PT rev (3m)-5.39%
EPS NQ rev (1m)-70%
EPS NQ rev (3m)-365.62%
EPS NY rev (1m)-33.33%
EPS NY rev (3m)-11.1%
Revenue NQ rev (1m)-1.15%
Revenue NQ rev (3m)-5.04%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 185.75 | ||
| Fwd PE | 77.44 | ||
| P/S | 0.83 | ||
| P/FCF | 10.14 | ||
| P/OCF | 4.46 | ||
| P/B | 0.51 | ||
| P/tB | 0.51 | ||
| EV/EBITDA | 9.5 |
EPS(TTM)0.04
EY0.54%
EPS(NY)0.1
Fwd EY1.29%
FCF(TTM)0.73
FCFY9.87%
OCF(TTM)1.67
OCFY22.43%
SpS8.94
BVpS14.52
TBVpS14.52
PEG (NY)N/A
PEG (5Y)N/A
Graham Number3.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.15% | ||
| ROE | 0.33% | ||
| ROCE | 2.88% | ||
| ROIC | 2.28% | ||
| ROICexc | 2.49% | ||
| ROICexgc | 2.49% | ||
| OM | 9.54% | ||
| PM (TTM) | 0.53% | ||
| GM | 34.68% | ||
| FCFM | 8.2% |
ROA(3y)0.74%
ROA(5y)-2.37%
ROE(3y)1.57%
ROE(5y)-5.03%
ROIC(3y)2.42%
ROIC(5y)N/A
ROICexc(3y)2.7%
ROICexc(5y)N/A
ROICexgc(3y)2.7%
ROICexgc(5y)N/A
ROCE(3y)3.07%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y-6.39%
ROICexc growth 3YN/A
ROICexc growth 5Y-6.39%
OM growth 3YN/A
OM growth 5Y-5.9%
PM growth 3YN/A
PM growth 5Y-13.88%
GM growth 3Y0.95%
GM growth 5Y-1.59%
F-Score5
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 20.06 | ||
| Debt/EBITDA | 7.09 | ||
| Cap/Depr | 76.49% | ||
| Cap/Sales | 10.45% | ||
| Interest Coverage | 1.24 | ||
| Cash Conversion | 80.37% | ||
| Profit Quality | 1534.63% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 0.33 |
F-Score5
WACC6.32%
ROIC/WACC0.36
Cap/Depr(3y)83.09%
Cap/Depr(5y)81.14%
Cap/Sales(3y)11.78%
Cap/Sales(5y)15.84%
Profit Quality(3y)384.24%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-86.21%
EPS 3YN/A
EPS 5Y-14.76%
EPS Q2Q%-177.78%
EPS Next Y-82.54%
EPS Next 2Y-40.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.58%
Revenue growth 3Y20.35%
Revenue growth 5Y-2.65%
Sales Q2Q%-4.54%
Revenue Next Year-0.94%
Revenue Next 2Y0.76%
Revenue Next 3Y2.59%
Revenue Next 5YN/A
EBIT growth 1Y-12.86%
EBIT growth 3YN/A
EBIT growth 5Y-8.39%
EBIT Next Year128.06%
EBIT Next 3Y35.6%
EBIT Next 5YN/A
FCF growth 1Y-20.46%
FCF growth 3YN/A
FCF growth 5Y-9.09%
OCF growth 1Y-9.7%
OCF growth 3Y87.93%
OCF growth 5Y-6.4%
RLJ LODGING TRUST / RLJ FAQ
Can you provide the ChartMill fundamental rating for RLJ LODGING TRUST?
ChartMill assigns a fundamental rating of 3 / 10 to RLJ.
What is the valuation status of RLJ LODGING TRUST (RLJ) stock?
ChartMill assigns a valuation rating of 3 / 10 to RLJ LODGING TRUST (RLJ). This can be considered as Overvalued.
Can you provide the profitability details for RLJ LODGING TRUST?
RLJ LODGING TRUST (RLJ) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for RLJ stock?
The Price/Earnings (PE) ratio for RLJ LODGING TRUST (RLJ) is 185.75 and the Price/Book (PB) ratio is 0.51.
What is the financial health of RLJ LODGING TRUST (RLJ) stock?
The financial health rating of RLJ LODGING TRUST (RLJ) is 4 / 10.