RLJ LODGING TRUST (RLJ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RLJ - US74965L1017 - REIT
7.67 USD
-0.05 (-0.65%)
7.67 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to RLJ. RLJ was compared to 127 industry peers in the Diversified REITs industry. RLJ scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. RLJ does not seem to be growing, but still is valued expensively.
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.
The Return On Equity of RLJ (0.33%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.28%, RLJ is in line with its industry, outperforming 42.97% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RLJ is in line with the industry average of 3.06%.
| 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's Profit Margin of 0.53% is in line compared to the rest of the industry. RLJ outperforms 42.97% of its industry peers.
RLJ's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 9.54%, RLJ is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of RLJ has declined.
With a Gross Margin value of 34.68%, RLJ is not doing good in the industry: 85.94% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RLJ is destroying value.
Compared to 1 year ago, RLJ has less shares outstanding
RLJ has less shares outstanding than it did 5 years ago.
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's Altman-Z score of 0.33 is on the low side compared to the rest of the industry. RLJ is outperformed by 60.16% 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's Debt to FCF ratio of 20.06 is fine compared to the rest of the industry. RLJ outperforms 77.34% 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 better Debt to Equity ratio (1.01) than 60.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 20.06 | ||
| Altman-Z | 0.33 |
ROIC/WACC0.36
WACC6.35%
2.3 Liquidity
A Current Ratio of 1.37 indicates that RLJ should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.37, RLJ is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
RLJ has a Quick Ratio of 1.37. This is a normal value and indicates that RLJ is financially healthy and should not expect problems in meeting its short term obligations.
RLJ has a Quick ratio of 1.37. This is in the better half of the industry: RLJ outperforms 63.28% 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%.
RLJ shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.76% yearly.
The Revenue has decreased by -0.58% in the past year.
RLJ shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.65% yearly.
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
RLJ is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -41.98% yearly.
The Revenue is expected to grow by 2.59% on average over the next years.
EPS Next Y-90.65%
EPS Next 2Y-41.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.38%
Revenue Next 2Y0.4%
Revenue Next 3Y2.59%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
RLJ is valuated quite expensively with a Price/Earnings ratio of 191.75.
64.84% of the companies in the same industry are cheaper than RLJ, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.92, RLJ is valued quite expensively.
A Price/Forward Earnings ratio of 84.38 indicates a quite expensive valuation of RLJ.
RLJ's Price/Forward Earnings ratio is in line with the industry average.
RLJ is valuated expensively when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 191.75 | ||
| Fwd PE | 84.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RLJ is valued cheaply inside the industry as 86.72% of the companies are valued more expensively.
85.94% of the companies in the same industry are more expensive than RLJ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.46 | ||
| EV/EBITDA | 9.59 |
4.3 Compensation for Growth
A cheap valuation may be justified as RLJ's earnings are expected to decrease with -41.98% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-41.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RLJ has a Yearly Dividend Yield of 7.77%, which is a nice return.
Compared to an average industry Dividend Yield of 6.43, RLJ pays a bit more dividend than its industry peers.
RLJ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.77% |
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-41.98%
EPS Next 3YN/A
7.67
-0.05 (-0.65%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners92.18%
Inst Owner Change1.49%
Ins Owners3.73%
Ins Owner Change-0.19%
Market Cap1.16B
Revenue(TTM)1.35B
Net Income(TTM)7.22M
Analysts70
Price Target8.87 (15.65%)
Short Float %14.08%
Short Ratio8.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.77% |
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)-243.78%
Min EPS beat(2)-533.17%
Max EPS beat(2)45.6%
EPS beat(4)3
Avg EPS beat(4)-94.66%
Min EPS beat(4)-533.17%
Max EPS beat(4)76.43%
EPS beat(8)7
Avg EPS beat(8)466.56%
EPS beat(12)11
Avg EPS beat(12)356.28%
EPS beat(16)14
Avg EPS beat(16)273.14%
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)0.64%
PT rev (3m)-3.06%
EPS NQ rev (1m)-137.5%
EPS NQ rev (3m)-2.27%
EPS NY rev (1m)-46.43%
EPS NY rev (3m)-64.29%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-3.51%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 191.75 | ||
| Fwd PE | 84.38 | ||
| P/S | 0.86 | ||
| P/FCF | 10.46 | ||
| P/OCF | 4.6 | ||
| P/B | 0.53 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 9.59 |
EPS(TTM)0.04
EY0.52%
EPS(NY)0.09
Fwd EY1.19%
FCF(TTM)0.73
FCFY9.56%
OCF(TTM)1.67
OCFY21.74%
SpS8.94
BVpS14.53
TBVpS14.53
PEG (NY)N/A
PEG (5Y)N/A
Graham Number3.62
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
WACC6.35%
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-90.65%
EPS Next 2Y-41.98%
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-1.38%
Revenue Next 2Y0.4%
Revenue Next 3Y2.59%
Revenue Next 5YN/A
EBIT growth 1Y-12.86%
EBIT growth 3YN/A
EBIT growth 5Y-8.39%
EBIT Next Year124.48%
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 191.75 and the Price/Book (PB) ratio is 0.53.
What is the financial health of RLJ LODGING TRUST (RLJ) stock?
The financial health rating of RLJ LODGING TRUST (RLJ) is 4 / 10.