RLJ LODGING TRUST (RLJ) Stock Fundamental Analysis
NYSE:RLJ • US74965L1017
8.38 USD
+0.09 (+1.09%)
Last: Feb 18, 2026, 12:23 PM
RLJ gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 123 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
- RLJ had positive earnings in the past year.
- 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
- RLJ has a Return On Assets (0.15%) which is comparable to the rest of the 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 in line with its industry peers.
- 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's Profit Margin of 0.53% is in line compared to the rest of the industry. RLJ outperforms 42.28% of its industry peers.
- In the last couple of years the Profit Margin of RLJ has declined.
- The Operating Margin of RLJ (9.54%) is worse than 72.36% of its industry peers.
- RLJ's Operating Margin has declined in the last couple of years.
- The Gross Margin of RLJ (34.68%) is worse than 84.55% of its industry peers.
- 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.
- RLJ has less shares outstanding than it did 1 year ago.
- RLJ has less shares outstanding than it did 5 years ago.
- RLJ has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.35, we must say that RLJ is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.35, RLJ is in line with its industry, outperforming 41.46% of the companies in the same industry.
- 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 77.24% 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.
- With a decent Debt to Equity ratio value of 1.01, RLJ is doing good in the industry, outperforming 60.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 20.06 | ||
| Altman-Z | 0.35 |
ROIC/WACC0.36
WACC6.31%
2.3 Liquidity
- A Current Ratio of 1.37 indicates that RLJ should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.37, RLJ is doing good in the industry, outperforming 67.48% 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.
- The Quick ratio of RLJ (1.37) is better than 68.29% 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.
- Looking at the last year, RLJ shows a decrease in Revenue. The Revenue has decreased by -0.58% in the last year.
- The Revenue has been decreasing by -2.65% on average over the past years.
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 -31.75% yearly.
- The Revenue is expected to grow by 1.68% on average over the next years.
EPS Next Y-100.94%
EPS Next 2Y-68.81%
EPS Next 3Y-31.75%
EPS Next 5YN/A
Revenue Next Year-1.6%
Revenue Next 2Y0.36%
Revenue Next 3Y1.05%
Revenue Next 5Y1.68%
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
- Based on the Price/Earnings ratio of 209.50, the valuation of RLJ can be described as expensive.
- RLJ's Price/Earnings ratio is a bit more expensive when compared to the industry. RLJ is more expensive than 64.23% of the companies in the same industry.
- RLJ is valuated expensively when we compare the Price/Earnings ratio to 27.16, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 319.12, which means the current valuation is very expensive for RLJ.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RLJ is on the same level as its industry peers.
- RLJ is valuated expensively when we compare the Price/Forward Earnings ratio to 28.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 209.5 | ||
| Fwd PE | 319.12 |
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 88.62% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RLJ indicates a rather cheap valuation: RLJ is cheaper than 86.99% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.43 | ||
| EV/EBITDA | 9.89 |
4.3 Compensation for Growth
- RLJ's earnings are expected to decrease with -31.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-68.81%
EPS Next 3Y-31.75%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.30%, RLJ is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 6.84, RLJ pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, RLJ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.3% |
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
- 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-68.81%
EPS Next 3Y-31.75%
NYSE:RLJ (2/18/2026, 12:23:44 PM)
8.38
+0.09 (+1.09%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-26 2026-02-26/amc
Inst Owners92.57%
Inst Owner Change-5.26%
Ins Owners9.58%
Ins Owner Change-0.19%
Market Cap1.27B
Revenue(TTM)1.35B
Net Income(TTM)7.22M
Analysts55.56
Price Target8.59 (2.51%)
Short Float %10.55%
Short Ratio6.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.3% |
Yearly Dividend0.62
Dividend Growth(5Y)-16.05%
DP1624.82%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
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)-3.1%
PT rev (3m)-4.06%
EPS NQ rev (1m)-17.33%
EPS NQ rev (3m)-340%
EPS NY rev (1m)-110%
EPS NY rev (3m)-105.36%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-4.49%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 209.5 | ||
| Fwd PE | 319.12 | ||
| P/S | 0.94 | ||
| P/FCF | 11.43 | ||
| P/OCF | 5.03 | ||
| P/B | 0.58 | ||
| P/tB | 0.58 | ||
| EV/EBITDA | 9.89 |
EPS(TTM)0.04
EY0.48%
EPS(NY)0.03
Fwd EY0.31%
FCF(TTM)0.73
FCFY8.75%
OCF(TTM)1.67
OCFY19.9%
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 | 0.35 |
F-Score5
WACC6.31%
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-100.94%
EPS Next 2Y-68.81%
EPS Next 3Y-31.75%
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-1.6%
Revenue Next 2Y0.36%
Revenue Next 3Y1.05%
Revenue Next 5Y1.68%
EBIT growth 1Y-12.86%
EBIT growth 3YN/A
EBIT growth 5Y-8.39%
EBIT Next Year124.14%
EBIT Next 3Y33.12%
EBIT Next 5Y23.96%
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 for 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.
What is the earnings growth outlook for RLJ LODGING TRUST?
The Earnings per Share (EPS) of RLJ LODGING TRUST (RLJ) is expected to decline by -100.94% in the next year.
Is the dividend of RLJ LODGING TRUST sustainable?
The dividend rating of RLJ LODGING TRUST (RLJ) is 5 / 10 and the dividend payout ratio is 1624.82%.