RLJ LODGING TRUST (RLJ) Stock Fundamental Analysis
USA - NYSE:RLJ - US74965L1017 - REIT
6.95 USD
-0.2 (-2.8%)
6.95 USD
0 (0%)
RLJ gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 127 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
RLJ had positive earnings in the past year.
In the past year RLJ had a positive cash flow from operations.
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
The Return On Assets of RLJ (0.66%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 1.42%, RLJ is in line with its industry, outperforming 48.03% of the companies in the same industry.
With a Return On Invested Capital value of 2.60%, RLJ perfoms like the industry average, outperforming 48.03% 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 3.04%.
The last Return On Invested Capital (2.60%) for RLJ is above the 3 year average (2.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 1.42% | ||
| ROIC | 2.6% |
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 (2.31%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of RLJ has declined.
With a Operating Margin value of 10.83%, RLJ is not doing good in the industry: 70.08% of the companies in the same industry are doing better.
RLJ's Operating Margin has declined in the last couple of years.
The Gross Margin of RLJ (35.42%) is worse than 85.83% of its industry peers.
RLJ's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.83% | ||
| PM (TTM) | 2.31% | ||
| GM | 35.42% |
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.
Compared to 1 year ago, RLJ has less shares outstanding
Compared to 5 years ago, RLJ has less shares outstanding
Compared to 1 year ago, RLJ has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.33, we must say that RLJ is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.33, RLJ is not doing good in the industry: 62.99% of the companies in the same industry are doing better.
RLJ has a debt to FCF ratio of 18.10. This is a negative value and a sign of low solvency as RLJ would need 18.10 years to pay back of all of its debts.
RLJ has a Debt to FCF ratio of 18.10. This is in the better half of the industry: RLJ outperforms 77.17% of its industry peers.
A Debt/Equity ratio of 1.00 indicates that RLJ is somewhat dependend on debt financing.
RLJ has a better Debt to Equity ratio (1.00) than 60.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 18.1 | ||
| Altman-Z | 0.33 |
ROIC/WACC0.41
WACC6.29%
2.3 Liquidity
A Current Ratio of 1.38 indicates that RLJ should not have too much problems paying its short term obligations.
RLJ has a better Current ratio (1.38) than 62.99% of its industry peers.
A Quick Ratio of 1.38 indicates that RLJ should not have too much problems paying its short term obligations.
The Quick ratio of RLJ (1.38) is better than 63.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for RLJ have decreased strongly by -23.08% in the last year.
RLJ shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.76% yearly.
Looking at the last year, RLJ shows a small growth in Revenue. The Revenue has grown by 1.42% 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)-23.08%
EPS 3YN/A
EPS 5Y-14.76%
EPS Q2Q%-25%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y20.35%
Revenue growth 5Y-2.65%
Sales Q2Q%-1.68%
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 -43.28% on average per year.
Based on estimates for the next years, RLJ will show a small growth in Revenue. The Revenue will grow by 2.59% on average per year.
EPS Next Y-73.81%
EPS Next 2Y-43.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.65%
Revenue Next 2Y0.83%
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
A Price/Earnings ratio of 34.75 indicates a quite expensive valuation of RLJ.
Compared to the rest of the industry, the Price/Earnings ratio of RLJ is on the same level as its industry peers.
RLJ is valuated rather expensively when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
RLJ is valuated quite expensively with a Price/Forward Earnings ratio of 80.01.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RLJ is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.33. RLJ is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.75 | ||
| Fwd PE | 80.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RLJ is valued cheaply inside the industry as 92.91% of the companies are valued more expensively.
RLJ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RLJ is cheaper than 93.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.56 | ||
| EV/EBITDA | 8.77 |
4.3 Compensation for Growth
A cheap valuation may be justified as RLJ's earnings are expected to decrease with -43.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-43.28%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RLJ has a Yearly Dividend Yield of 8.71%, which is a nice return.
RLJ's Dividend Yield is rather good when compared to the industry average which is at 6.23. RLJ pays more dividend than 85.04% of the companies in the same industry.
RLJ's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.71% |
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
348.34% 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.
DP348.34%
EPS Next 2Y-43.28%
EPS Next 3YN/A
6.95
-0.2 (-2.8%)
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 Change0.01%
Ins Owners3.11%
Ins Owner Change1.34%
Market Cap1.05B
Revenue(TTM)1.37B
Net Income(TTM)31.61M
Analysts70
Price Target9.15 (31.65%)
Short Float %12.98%
Short Ratio8.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.71% |
Yearly Dividend0.62
Dividend Growth(5Y)-16.05%
DP348.34%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)39.05%
Min EPS beat(2)32.49%
Max EPS beat(2)45.6%
EPS beat(4)4
Avg EPS beat(4)904.72%
Min EPS beat(4)32.49%
Max EPS beat(4)3464.36%
EPS beat(8)8
Avg EPS beat(8)537.59%
EPS beat(12)12
Avg EPS beat(12)405.96%
EPS beat(16)14
Avg EPS beat(16)276.92%
Revenue beat(2)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-1.49%
Max Revenue beat(2)-0.87%
Revenue beat(4)1
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-1.49%
Max Revenue beat(4)0.59%
Revenue beat(8)3
Avg Revenue beat(8)-0.05%
Revenue beat(12)5
Avg Revenue beat(12)0.01%
Revenue beat(16)9
Avg Revenue beat(16)0.22%
PT rev (1m)0%
PT rev (3m)-3.37%
EPS NQ rev (1m)3.85%
EPS NQ rev (3m)-600%
EPS NY rev (1m)250%
EPS NY rev (3m)33.33%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-3.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.75 | ||
| Fwd PE | 80.01 | ||
| P/S | 0.77 | ||
| P/FCF | 8.56 | ||
| P/OCF | 3.91 | ||
| P/B | 0.47 | ||
| P/tB | 0.47 | ||
| EV/EBITDA | 8.77 |
EPS(TTM)0.2
EY2.88%
EPS(NY)0.09
Fwd EY1.25%
FCF(TTM)0.81
FCFY11.68%
OCF(TTM)1.78
OCFY25.58%
SpS9.04
BVpS14.73
TBVpS14.73
PEG (NY)N/A
PEG (5Y)N/A
Graham Number8.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.66% | ||
| ROE | 1.42% | ||
| ROCE | 3.29% | ||
| ROIC | 2.6% | ||
| ROICexc | 2.84% | ||
| ROICexgc | 2.84% | ||
| OM | 10.83% | ||
| PM (TTM) | 2.31% | ||
| GM | 35.42% | ||
| FCFM | 8.97% |
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 | ||
| Debt/FCF | 18.1 | ||
| Debt/EBITDA | 6.72 | ||
| Cap/Depr | 80.08% | ||
| Cap/Sales | 10.69% | ||
| Interest Coverage | 1.41 | ||
| Cash Conversion | 81.33% | ||
| Profit Quality | 388.05% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 0.33 |
F-Score5
WACC6.29%
ROIC/WACC0.41
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)-23.08%
EPS 3YN/A
EPS 5Y-14.76%
EPS Q2Q%-25%
EPS Next Y-73.81%
EPS Next 2Y-43.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.42%
Revenue growth 3Y20.35%
Revenue growth 5Y-2.65%
Sales Q2Q%-1.68%
Revenue Next Year-0.65%
Revenue Next 2Y0.83%
Revenue Next 3Y2.59%
Revenue Next 5YN/A
EBIT growth 1Y4.12%
EBIT growth 3YN/A
EBIT growth 5Y-8.39%
EBIT Next Year128.06%
EBIT Next 3Y35.6%
EBIT Next 5YN/A
FCF growth 1Y54.68%
FCF growth 3YN/A
FCF growth 5Y-9.09%
OCF growth 1Y-3.09%
OCF growth 3Y87.93%
OCF growth 5Y-6.4%