SUNSTONE HOTEL INVESTORS INC (SHO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SHO - US8678921011 - REIT
9.42 USD
+0.13 (+1.4%)
9.42 USD
0 (0%)
SHO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 127 industry peers in the Diversified REITs industry. While SHO seems to be doing ok healthwise, there are quite some concerns on its profitability. SHO is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SHO had negative earnings in the past year.
In the past year SHO had a positive cash flow from operations.
Of the past 5 years SHO 4 years were profitable.
SHO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.06%, SHO is in line with its industry, outperforming 42.52% of the companies in the same industry.
With a Return On Equity value of 0.10%, SHO perfoms like the industry average, outperforming 42.52% of the companies in the same industry.
SHO has a Return On Invested Capital of 1.86%. This is in the lower half of the industry: SHO underperforms 69.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SHO is in line with the industry average of 3.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.06% | ||
| ROE | 0.1% | ||
| ROIC | 1.86% |
ROA(3y)3.11%
ROA(5y)-0.84%
ROE(3y)4.55%
ROE(5y)-1.22%
ROIC(3y)2.7%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 0.20%, SHO perfoms like the industry average, outperforming 41.73% of the companies in the same industry.
In the last couple of years the Profit Margin of SHO has declined.
The Operating Margin of SHO (7.27%) is worse than 80.31% of its industry peers.
SHO's Operating Margin has declined in the last couple of years.
SHO has a worse Gross Margin (60.10%) than 66.93% of its industry peers.
SHO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.27% | ||
| PM (TTM) | 0.2% | ||
| GM | 60.1% |
OM growth 3YN/A
OM growth 5Y-9.81%
PM growth 3Y4.77%
PM growth 5Y-22.47%
GM growth 3Y-0.55%
GM growth 5Y-0.8%
2. Health
2.1 Basic Checks
SHO 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, SHO has less shares outstanding
The number of shares outstanding for SHO has been reduced compared to 5 years ago.
Compared to 1 year ago, SHO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that SHO is in the distress zone and has some risk of bankruptcy.
SHO has a Altman-Z score of 1.10. This is amongst the best in the industry. SHO outperforms 81.10% of its industry peers.
SHO has a debt to FCF ratio of 5.26. This is a neutral value as SHO would need 5.26 years to pay back of all of its debts.
The Debt to FCF ratio of SHO (5.26) is better than 98.43% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that SHO is not too dependend on debt financing.
SHO's Debt to Equity ratio of 0.47 is amongst the best of the industry. SHO outperforms 90.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.25
WACC7.51%
2.3 Liquidity
A Current Ratio of 1.46 indicates that SHO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.46, SHO is doing good in the industry, outperforming 70.08% of the companies in the same industry.
SHO has a Quick Ratio of 1.46. This is a normal value and indicates that SHO is financially healthy and should not expect problems in meeting its short term obligations.
SHO's Quick ratio of 1.46 is fine compared to the rest of the industry. SHO outperforms 70.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The earnings per share for SHO have decreased strongly by -100.00% in the last year.
Measured over the past years, SHO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.38% on average per year.
SHO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.04%.
Measured over the past years, SHO shows a decrease in Revenue. The Revenue has been decreasing by -4.07% on average per year.
EPS 1Y (TTM)-100%
EPS 3Y29.76%
EPS 5Y-23.38%
EPS Q2Q%-329.73%
Revenue 1Y (TTM)3.04%
Revenue growth 3Y21.17%
Revenue growth 5Y-4.07%
Sales Q2Q%1.29%
3.2 Future
Based on estimates for the next years, SHO will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.85% on average per year.
Based on estimates for the next years, SHO will show a small growth in Revenue. The Revenue will grow by 4.37% on average per year.
EPS Next Y-96.39%
EPS Next 2Y-7.93%
EPS Next 3Y14.85%
EPS Next 5YN/A
Revenue Next Year5.08%
Revenue Next 2Y5.33%
Revenue Next 3Y4.37%
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 accelerating.
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/Forward Earnings ratio of 79.38 indicates a quite expensive valuation of SHO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SHO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.88. SHO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 79.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHO indicates a somewhat cheap valuation: SHO is cheaper than 70.87% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SHO is valued cheaper than 88.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.26 | ||
| EV/EBITDA | 12.73 |
4.3 Compensation for Growth
A more expensive valuation may be justified as SHO's earnings are expected to grow with 14.85% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.93%
EPS Next 3Y14.85%
5. Dividend
5.1 Amount
SHO has a Yearly Dividend Yield of 7.39%, which is a nice return.
SHO's Dividend Yield is a higher than the industry average which is at 6.83.
Compared to an average S&P500 Dividend Yield of 1.94, SHO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.39% |
5.2 History
The dividend of SHO decreases each year by -9.74%.
SHO has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SHO decreased in the last 3 years.
Dividend Growth(5Y)-9.74%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SHO pays out 4640.68% of its income as dividend. This is not a sustainable payout ratio.
DP4640.68%
EPS Next 2Y-7.93%
EPS Next 3Y14.85%
9.42
+0.13 (+1.4%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.91%
Inst Owner Change0%
Ins Owners1.29%
Ins Owner Change0.12%
Market Cap1.79B
Revenue(TTM)937.93M
Net Income(TTM)1.88M
Analysts73.33
Price Target10.01 (6.26%)
Short Float %6.37%
Short Ratio6.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.39% |
Yearly Dividend0.45
Dividend Growth(5Y)-9.74%
DP4640.68%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-19.92%
Min EPS beat(2)-65.59%
Max EPS beat(2)25.75%
EPS beat(4)3
Avg EPS beat(4)38.11%
Min EPS beat(4)-65.59%
Max EPS beat(4)164.03%
EPS beat(8)6
Avg EPS beat(8)342.08%
EPS beat(12)10
Avg EPS beat(12)313.34%
EPS beat(16)13
Avg EPS beat(16)247.19%
Revenue beat(2)0
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)-0.05%
Revenue beat(4)1
Avg Revenue beat(4)-0.86%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)0.7%
Revenue beat(8)3
Avg Revenue beat(8)-0.95%
Revenue beat(12)6
Avg Revenue beat(12)0.4%
Revenue beat(16)9
Avg Revenue beat(16)1.56%
PT rev (1m)1.41%
PT rev (3m)2.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20%
EPS NY rev (1m)0%
EPS NY rev (3m)-60%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 79.38 | ||
| P/S | 1.91 | ||
| P/FCF | 10.26 | ||
| P/OCF | 10.19 | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 12.73 |
EPS(TTM)0
EYN/A
EPS(NY)0.12
Fwd EY1.26%
FCF(TTM)0.92
FCFY9.75%
OCF(TTM)0.92
OCFY9.82%
SpS4.94
BVpS10.32
TBVpS10.32
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.06% | ||
| ROE | 0.1% | ||
| ROCE | 2.36% | ||
| ROIC | 1.86% | ||
| ROICexc | 1.94% | ||
| ROICexgc | 1.94% | ||
| OM | 7.27% | ||
| PM (TTM) | 0.2% | ||
| GM | 60.1% | ||
| FCFM | 18.59% |
ROA(3y)3.11%
ROA(5y)-0.84%
ROE(3y)4.55%
ROE(5y)-1.22%
ROIC(3y)2.7%
ROIC(5y)N/A
ROICexc(3y)2.94%
ROICexc(5y)N/A
ROICexgc(3y)2.94%
ROICexgc(5y)N/A
ROCE(3y)3.42%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y-13.98%
ROICexc growth 3YN/A
ROICexc growth 5Y-13.98%
OM growth 3YN/A
OM growth 5Y-9.81%
PM growth 3Y4.77%
PM growth 5Y-22.47%
GM growth 3Y-0.55%
GM growth 5Y-0.8%
F-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.26 | ||
| Debt/EBITDA | 4.56 | ||
| Cap/Depr | 0.95% | ||
| Cap/Sales | 0.14% | ||
| Interest Coverage | 1.44 | ||
| Cash Conversion | 87.3% | ||
| Profit Quality | 9259.53% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 1.1 |
F-Score5
WACC7.51%
ROIC/WACC0.25
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-100%
EPS 3Y29.76%
EPS 5Y-23.38%
EPS Q2Q%-329.73%
EPS Next Y-96.39%
EPS Next 2Y-7.93%
EPS Next 3Y14.85%
EPS Next 5YN/A
Revenue 1Y (TTM)3.04%
Revenue growth 3Y21.17%
Revenue growth 5Y-4.07%
Sales Q2Q%1.29%
Revenue Next Year5.08%
Revenue Next 2Y5.33%
Revenue Next 3Y4.37%
Revenue Next 5YN/A
EBIT growth 1Y-22.35%
EBIT growth 3YN/A
EBIT growth 5Y-13.48%
EBIT Next Year190.95%
EBIT Next 3Y47.74%
EBIT Next 5YN/A
FCF growth 1Y-23.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.11%
OCF growth 3Y81.77%
OCF growth 5Y-10.15%
SUNSTONE HOTEL INVESTORS INC / SHO FAQ
Can you provide the ChartMill fundamental rating for SUNSTONE HOTEL INVESTORS INC?
ChartMill assigns a fundamental rating of 4 / 10 to SHO.
Can you provide the valuation status for SUNSTONE HOTEL INVESTORS INC?
ChartMill assigns a valuation rating of 3 / 10 to SUNSTONE HOTEL INVESTORS INC (SHO). This can be considered as Overvalued.
Can you provide the profitability details for SUNSTONE HOTEL INVESTORS INC?
SUNSTONE HOTEL INVESTORS INC (SHO) has a profitability rating of 3 / 10.
What is the financial health of SUNSTONE HOTEL INVESTORS INC (SHO) stock?
The financial health rating of SUNSTONE HOTEL INVESTORS INC (SHO) is 6 / 10.
What is the expected EPS growth for SUNSTONE HOTEL INVESTORS INC (SHO) stock?
The Earnings per Share (EPS) of SUNSTONE HOTEL INVESTORS INC (SHO) is expected to decline by -96.39% in the next year.