RLJ LODGING TRUST (RLJ) Stock Fundamental Analysis
NYSE:RLJ - US74965L1017 - REIT
7.7 USD
-0.01 (-0.13%)
7.7 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to RLJ. RLJ was compared to 129 industry peers in the Diversified REITs industry. The financial health of RLJ is average, but there are quite some concerns on its profitability. 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.
RLJ had a positive operating cash flow in the past year.
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
With a Return On Assets value of 0.66%, RLJ perfoms like the industry average, outperforming 50.39% of the companies in the same industry.
RLJ has a Return On Equity (1.42%) which is comparable to the rest of the industry.
RLJ has a Return On Invested Capital (2.60%) which is comparable to the rest of the industry.
RLJ had an Average Return On Invested Capital over the past 3 years of 2.42%. This is in line with the industry average of 3.06%.
The 3 year average ROIC (2.42%) for RLJ is below the current ROIC(2.60%), indicating increased profibility in the last year.
| 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 in line with its industry peers.
In the last couple of years the Profit Margin of RLJ has declined.
The Operating Margin of RLJ (10.83%) is worse than 73.64% of its industry peers.
RLJ's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 35.42%, RLJ is doing worse than 86.05% of the companies in the same industry.
In the last couple of years the Gross Margin of RLJ has declined.
| 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
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
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 0.36. This is a bad value and indicates that RLJ is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.36, RLJ is not doing good in the industry: 60.47% of the companies in the same industry are doing better.
The Debt to FCF ratio of RLJ is 18.10, which is on the high side as it means it would take RLJ, 18.10 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 18.10, RLJ is doing good in the industry, outperforming 78.29% of the companies in the same industry.
RLJ has a Debt/Equity ratio of 1.00. This is a neutral value indicating RLJ is somewhat dependend on debt financing.
RLJ has a Debt to Equity ratio of 1.00. This is in the better half of the industry: RLJ outperforms 61.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 18.1 | ||
| Altman-Z | 0.36 |
ROIC/WACC0.39
WACC6.64%
2.3 Liquidity
RLJ has a Current Ratio of 1.38. 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 Current ratio of 1.38 is fine compared to the rest of the industry. RLJ outperforms 61.24% of its industry peers.
RLJ has a Quick Ratio of 1.38. This is a normal value and indicates that RLJ is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.38, RLJ is in the better half of the industry, outperforming 62.02% of the companies in the same industry.
| 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.
The earnings per share for RLJ have been decreasing by -14.76% on average. This is quite bad
RLJ shows a small growth in Revenue. In the last year, the Revenue has grown by 1.42%.
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
The Earnings Per Share is expected to decrease by -64.34% on average over the next years. This is quite bad
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-92.52%
EPS Next 2Y-64.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.22%
Revenue Next 2Y0.72%
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
With a Price/Earnings ratio of 38.50, RLJ can be considered very expensive at the moment.
RLJ's Price/Earnings ratio is in line with the industry average.
RLJ's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.08.
Based on the Price/Forward Earnings ratio of 224.23, the valuation of RLJ can be described as expensive.
RLJ's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.72. RLJ is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.5 | ||
| Fwd PE | 224.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RLJ indicates a rather cheap valuation: RLJ is cheaper than 91.47% of the companies listed in the same industry.
89.92% 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 | 9.49 | ||
| EV/EBITDA | 9.12 |
4.3 Compensation for Growth
A cheap valuation may be justified as RLJ's earnings are expected to decrease with -64.34% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-64.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RLJ has a Yearly Dividend Yield of 7.92%, which is a nice return.
RLJ's Dividend Yield is a higher than the industry average which is at 6.16.
Compared to an average S&P500 Dividend Yield of 2.35, RLJ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.92% |
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
RLJ pays out 348.34% 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.
DP348.34%
EPS Next 2Y-64.34%
EPS Next 3YN/A
7.7
-0.01 (-0.13%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.82%
Inst Owner Change-3.94%
Ins Owners2.95%
Ins Owner Change11.28%
Market Cap1.16B
Analysts70
Price Target9.15 (18.83%)
Short Float %7.83%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.92% |
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)-3.37%
PT rev (3m)-10.59%
EPS NQ rev (1m)-137.5%
EPS NQ rev (3m)-109.37%
EPS NY rev (1m)-61.9%
EPS NY rev (3m)166.67%
Revenue NQ rev (1m)-1.18%
Revenue NQ rev (3m)-4.1%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.5 | ||
| Fwd PE | 224.23 | ||
| P/S | 0.85 | ||
| P/FCF | 9.49 | ||
| P/OCF | 4.33 | ||
| P/B | 0.52 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | 9.12 |
EPS(TTM)0.2
EY2.6%
EPS(NY)0.03
Fwd EY0.45%
FCF(TTM)0.81
FCFY10.54%
OCF(TTM)1.78
OCFY23.09%
SpS9.04
BVpS14.73
TBVpS14.73
PEG (NY)N/A
PEG (5Y)N/A
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
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 Turnover0.28
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 | 0.36 |
F-Score5
WACC6.64%
ROIC/WACC0.39
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-92.52%
EPS Next 2Y-64.34%
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-0.22%
Revenue Next 2Y0.72%
Revenue Next 3Y2.59%
Revenue Next 5YN/A
EBIT growth 1Y4.12%
EBIT growth 3YN/A
EBIT growth 5Y-8.39%
EBIT Next Year130.59%
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%