RLJ LODGING TRUST (RLJ) Stock Fundamental Analysis
NYSE:RLJ - New York Stock Exchange, Inc. - US74965L1017 - REIT - Currency: USD
RLJ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RLJ had positive earnings in the past year.
RLJ had a positive operating cash flow in the past year.
In multiple years RLJ reported negative net income over the last 5 years.
Of the past 5 years RLJ 4 years had a positive operating cash flow.
1.2 Ratios
RLJ has a Return On Assets (0.84%) which is comparable to the rest of the industry.
With a Return On Equity value of 1.80%, RLJ perfoms like the industry average, outperforming 51.54% of the companies in the same industry.
RLJ has a Return On Invested Capital (2.67%) which is in line with 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 3.16%.
The last Return On Invested Capital (2.67%) for RLJ is above the 3 year average (2.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 1.8% | ||
| ROIC | 2.67% |
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 (2.93%) which is comparable to the rest of the industry.
RLJ's Profit Margin has declined in the last couple of years.
RLJ's Operating Margin of 11.09% is on the low side compared to the rest of the industry. RLJ is outperformed by 75.38% of its industry peers.
RLJ's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 35.80%, RLJ is not doing good in the industry: 85.38% 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 | 11.09% | ||
| PM (TTM) | 2.93% | ||
| GM | 35.8% |
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
RLJ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RLJ has less shares outstanding
The number of shares outstanding for RLJ has been reduced compared to 5 years ago.
RLJ has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.36, we must say that RLJ is in the distress zone and has some risk of bankruptcy.
RLJ has a worse Altman-Z score (0.36) than 60.00% of its industry peers.
The Debt to FCF ratio of RLJ is 16.90, which is on the high side as it means it would take RLJ, 16.90 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 16.90, RLJ belongs to the best of the industry, outperforming 83.85% of the companies in the same industry.
A Debt/Equity ratio of 0.99 indicates that RLJ is somewhat dependend on debt financing.
RLJ has a Debt to Equity ratio of 0.99. This is comparable to the rest of the industry: RLJ outperforms 58.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 16.9 | ||
| Altman-Z | 0.36 |
ROIC/WACC0.34
WACC7.82%
2.3 Liquidity
RLJ has a Current Ratio of 1.40. This is a normal value and indicates that RLJ is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.40, RLJ is doing good in the industry, outperforming 68.46% of the companies in the same industry.
RLJ has a Quick Ratio of 1.40. This is a normal value and indicates that RLJ is financially healthy and should not expect problems in meeting its short term obligations.
RLJ's Quick ratio of 1.40 is fine compared to the rest of the industry. RLJ outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
RLJ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.71%.
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 small growth in Revenue. The Revenue has grown by 2.82% in the last year.
The Revenue has been decreasing by -2.65% on average over the past years.
EPS 1Y (TTM)-10.71%
EPS 3YN/A
EPS 5Y-14.76%
EPS Q2Q%-200%
Revenue 1Y (TTM)2.82%
Revenue growth 3Y20.35%
Revenue growth 5Y-2.65%
Sales Q2Q%1.14%
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 -54.64% yearly.
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-80.36%
EPS Next 2Y-54.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.22%
Revenue Next 2Y0.87%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.00, which means the current valuation is very expensive for RLJ.
Based on the Price/Earnings ratio, RLJ is valued a bit cheaper than 63.85% of the companies in the same industry.
RLJ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.98.
With a Price/Forward Earnings ratio of 135.01, RLJ can be considered very expensive at the moment.
RLJ's Price/Forward Earnings is on the same level as the industry average.
RLJ is valuated expensively when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30 | ||
| Fwd PE | 135.01 |
4.2 Price Multiples
90.00% of the companies in the same industry are more expensive than RLJ, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RLJ indicates a rather cheap valuation: RLJ is cheaper than 94.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.65 | ||
| EV/EBITDA | 9.05 |
4.3 Compensation for Growth
A cheap valuation may be justified as RLJ's earnings are expected to decrease with -54.64% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-54.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.97%, RLJ is a good candidate for dividend investing.
RLJ's Dividend Yield is a higher than the industry average which is at 6.64.
RLJ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.97% |
5.2 History
The dividend of RLJ decreases each year by -16.05%.
RLJ has been paying a dividend for at least 10 years, so it has 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
255.98% of the earnings are spent on dividend by RLJ. This is not a sustainable payout ratio.
RLJ's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP255.98%
EPS Next 2Y-54.64%
EPS Next 3YN/A
7.5
-0.03 (-0.4%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.32%
Inst Owner Change-3.03%
Ins Owners2.95%
Ins Owner Change9.4%
Market Cap1.14B
Analysts70
Price Target9.34 (24.53%)
Short Float %7.54%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.97% |
Yearly Dividend0.62
Dividend Growth(5Y)-16.05%
DP255.98%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)54.46%
Min EPS beat(2)32.49%
Max EPS beat(2)76.43%
EPS beat(4)4
Avg EPS beat(4)901.88%
Min EPS beat(4)32.49%
Max EPS beat(4)3464.36%
EPS beat(8)8
Avg EPS beat(8)533.23%
EPS beat(12)12
Avg EPS beat(12)406.71%
EPS beat(16)14
Avg EPS beat(16)274.59%
Revenue beat(2)1
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)0.59%
Revenue beat(4)1
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-0.87%
Max Revenue beat(4)0.59%
Revenue beat(8)3
Avg Revenue beat(8)0.06%
Revenue beat(12)6
Avg Revenue beat(12)0.27%
Revenue beat(16)10
Avg Revenue beat(16)0.64%
PT rev (1m)-8.72%
PT rev (3m)-19.28%
EPS NQ rev (1m)20%
EPS NQ rev (3m)-38.36%
EPS NY rev (1m)275%
EPS NY rev (3m)-63.54%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)-2.47%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)-2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30 | ||
| Fwd PE | 135.01 | ||
| P/S | 0.83 | ||
| P/FCF | 8.65 | ||
| P/OCF | 4.05 | ||
| P/B | 0.51 | ||
| P/tB | 0.51 | ||
| EV/EBITDA | 9.05 |
EPS(TTM)0.25
EY3.33%
EPS(NY)0.06
Fwd EY0.74%
FCF(TTM)0.87
FCFY11.55%
OCF(TTM)1.85
OCFY24.69%
SpS9.05
BVpS14.73
TBVpS14.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 1.8% | ||
| ROCE | 3.38% | ||
| ROIC | 2.67% | ||
| ROICexc | 2.89% | ||
| ROICexgc | 2.89% | ||
| OM | 11.09% | ||
| PM (TTM) | 2.93% | ||
| GM | 35.8% | ||
| FCFM | 9.57% |
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 16.9 | ||
| Debt/EBITDA | 6.67 | ||
| Cap/Depr | 82.8% | ||
| Cap/Sales | 10.89% | ||
| Interest Coverage | 1.45 | ||
| Cash Conversion | 84.4% | ||
| Profit Quality | 326.73% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 0.36 |
F-Score5
WACC7.82%
ROIC/WACC0.34
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)-10.71%
EPS 3YN/A
EPS 5Y-14.76%
EPS Q2Q%-200%
EPS Next Y-80.36%
EPS Next 2Y-54.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.82%
Revenue growth 3Y20.35%
Revenue growth 5Y-2.65%
Sales Q2Q%1.14%
Revenue Next Year0.22%
Revenue Next 2Y0.87%
Revenue Next 3Y2.59%
Revenue Next 5YN/A
EBIT growth 1Y4.51%
EBIT growth 3YN/A
EBIT growth 5Y-8.39%
EBIT Next Year132.64%
EBIT Next 3Y35.6%
EBIT Next 5YN/A
FCF growth 1Y36.52%
FCF growth 3YN/A
FCF growth 5Y-9.09%
OCF growth 1Y-2.51%
OCF growth 3Y87.93%
OCF growth 5Y-6.4%