RLJ LODGING TRUST (RLJ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RLJ - US74965L1017 - REIT
7.61 USD
-0.03 (-0.39%)
7.61 USD
0 (0%)
Taking everything into account, RLJ scores 3 out of 10 in our fundamental rating. RLJ was compared to 128 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.
Of the past 5 years RLJ 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.15%, RLJ perfoms like the industry average, outperforming 46.09% of the companies in the same industry.
RLJ has a Return On Equity (0.33%) which is in line with its industry peers.
RLJ has a Return On Invested Capital (2.28%) 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%.
| 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 comparable to the rest of the industry.
In the last couple of years the Profit Margin of RLJ has declined.
RLJ's Operating Margin of 9.54% is on the low side compared to the rest of the industry. RLJ is outperformed by 75.00% of its industry peers.
RLJ's Operating Margin has declined in the last couple of years.
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.
RLJ's Gross Margin has declined in the last couple of years.
| 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
RLJ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RLJ has been reduced compared to 1 year ago.
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
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: 60.16% of the companies in the same industry are doing better.
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.
With a decent Debt to FCF ratio value of 20.06, RLJ is doing good in the industry, outperforming 77.34% of the companies in the same industry.
RLJ has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of RLJ (1.01) is better 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
WACC6.29%
2.3 Liquidity
RLJ has a Current 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.
With a decent Current ratio value of 1.37, RLJ is doing good in the industry, outperforming 62.50% of the companies in the same industry.
A Quick Ratio of 1.37 indicates that RLJ should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.37, RLJ is doing good in the industry, outperforming 63.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The earnings per share for RLJ have decreased strongly by -86.21% in the last year.
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.
RLJ shows a decrease in Revenue. In the last year, the revenue decreased by -0.58%.
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
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.
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
RLJ is valuated quite expensively with a Price/Earnings ratio of 190.25.
Based on the Price/Earnings ratio, RLJ is valued a bit more expensive than the industry average as 60.16% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.15. RLJ is valued rather expensively when compared to this.
RLJ is valuated quite expensively with a Price/Forward Earnings ratio of 79.31.
RLJ's Price/Forward Earnings is on the same level as the industry average.
RLJ's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 190.25 | ||
| Fwd PE | 79.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RLJ is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RLJ indicates a rather cheap valuation: RLJ is cheaper than 89.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.38 | ||
| EV/EBITDA | 9.56 |
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 8.34%, RLJ is a good candidate for dividend investing.
RLJ's Dividend Yield is a higher than the industry average which is at 6.59.
Compared to an average S&P500 Dividend Yield of 2.41, RLJ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.34% |
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
1624.82% 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.
DP1624.82%
EPS Next 2Y-40.39%
EPS Next 3YN/A
7.61
-0.03 (-0.39%)
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 Change1.49%
Ins Owners3.11%
Ins Owner Change0%
Market Cap1.15B
Revenue(TTM)1.35B
Net Income(TTM)7.22M
Analysts54.12
Price Target8.81 (15.77%)
Short Float %14.09%
Short Ratio8.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.34% |
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)-3.68%
PT rev (3m)-3.68%
EPS NQ rev (1m)700%
EPS NQ rev (3m)76.47%
EPS NY rev (1m)-33.33%
EPS NY rev (3m)133.35%
Revenue NQ rev (1m)-2.66%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 190.25 | ||
| Fwd PE | 79.31 | ||
| P/S | 0.85 | ||
| P/FCF | 10.38 | ||
| P/OCF | 4.57 | ||
| P/B | 0.52 | ||
| P/tB | 0.52 | ||
| EV/EBITDA | 9.56 |
EPS(TTM)0.04
EY0.53%
EPS(NY)0.1
Fwd EY1.26%
FCF(TTM)0.73
FCFY9.63%
OCF(TTM)1.67
OCFY21.9%
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
WACC6.29%
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 190.25 and the Price/Book (PB) ratio is 0.52.
What is the financial health of RLJ LODGING TRUST (RLJ) stock?
The financial health rating of RLJ LODGING TRUST (RLJ) is 4 / 10.