SUNSTONE HOTEL INVESTORS INC (SHO) Stock Fundamental Analysis
USA - NYSE:SHO - US8678921011 - REIT
9.08 USD
+0.11 (+1.23%)
9.08 USD
0 (0%)
SHO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. SHO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SHO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SHO was profitable.
In the past year SHO had a positive cash flow from operations.
Of the past 5 years SHO 4 years were profitable.
Of the past 5 years SHO 4 years had a positive operating cash flow.
1.2 Ratios
SHO has a Return On Assets of 0.14%. This is comparable to the rest of the industry: SHO outperforms 44.19% of its industry peers.
SHO's Return On Equity of 0.21% is in line compared to the rest of the industry. SHO outperforms 44.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.00%, SHO is doing worse than 64.34% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SHO is in line with the industry average of 3.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 0.21% | ||
| ROIC | 2% |
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
SHO's Profit Margin of 0.44% is in line compared to the rest of the industry. SHO outperforms 44.19% of its industry peers.
SHO's Profit Margin has declined in the last couple of years.
SHO has a Operating Margin of 7.77%. This is amonst the worse of the industry: SHO underperforms 80.62% of its industry peers.
SHO's Operating Margin has declined in the last couple of years.
SHO has a Gross Margin of 60.49%. This is in the lower half of the industry: SHO underperforms 65.89% of its industry peers.
In the last couple of years the Gross Margin of SHO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.77% | ||
| PM (TTM) | 0.44% | ||
| GM | 60.49% |
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
SHO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SHO has a worse debt to assets ratio.
2.2 Solvency
SHO has an Altman-Z score of 1.13. This is a bad value and indicates that SHO is not financially healthy and even has some risk of bankruptcy.
SHO has a better Altman-Z score (1.13) than 80.62% of its industry peers.
SHO has a debt to FCF ratio of 5.18. This is a neutral value as SHO would need 5.18 years to pay back of all of its debts.
The Debt to FCF ratio of SHO (5.18) is better than 98.45% of its industry peers.
SHO has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
SHO has a Debt to Equity ratio of 0.44. This is amongst the best in the industry. SHO outperforms 91.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 1.13 |
ROIC/WACC0.27
WACC7.38%
2.3 Liquidity
A Current Ratio of 1.30 indicates that SHO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.30, SHO is in line with its industry, outperforming 58.14% of the companies in the same industry.
SHO has a Quick Ratio of 1.30. 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 1.30 is in line compared to the rest of the industry. SHO outperforms 58.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The earnings per share for SHO have decreased strongly by -90.91% in the last year.
The earnings per share for SHO have been decreasing by -23.38% on average. This is quite bad
Looking at the last year, SHO shows a small growth in Revenue. The Revenue has grown by 0.37% in the last year.
SHO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.07% yearly.
EPS 1Y (TTM)-90.91%
EPS 3Y29.76%
EPS 5Y-23.38%
EPS Q2Q%-72.73%
Revenue 1Y (TTM)0.37%
Revenue growth 3Y21.17%
Revenue growth 5Y-4.07%
Sales Q2Q%4.97%
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 13.00% on average per year.
Based on estimates for the next years, SHO will show a small growth in Revenue. The Revenue will grow by 4.44% on average per year.
EPS Next Y-90.98%
EPS Next 2Y-7.93%
EPS Next 3Y13%
EPS Next 5YN/A
Revenue Next Year5.1%
Revenue Next 2Y5.43%
Revenue Next 3Y4.44%
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/Earnings ratio of 454.00 indicates a quite expensive valuation of SHO.
SHO's Price/Earnings ratio is a bit more expensive when compared to the industry. SHO is more expensive than 61.24% of the companies in the same industry.
When comparing the Price/Earnings ratio of SHO to the average of the S&P500 Index (27.50), we can say SHO is valued expensively.
A Price/Forward Earnings ratio of 76.51 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.
When comparing the Price/Forward Earnings ratio of SHO to the average of the S&P500 Index (22.99), we can say SHO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 454 | ||
| Fwd PE | 76.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHO is valued a bit cheaper than 71.32% of the companies in the same industry.
SHO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SHO is cheaper than 89.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.28 | ||
| EV/EBITDA | 12.39 |
4.3 Compensation for Growth
A more expensive valuation may be justified as SHO's earnings are expected to grow with 13.00% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.93%
EPS Next 3Y13%
5. Dividend
5.1 Amount
SHO has a Yearly Dividend Yield of 4.00%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.01, SHO is paying slightly less dividend.
SHO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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.
SHO has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.74%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
2126.95% of the earnings are spent on dividend by SHO. This is not a sustainable payout ratio.
DP2126.95%
EPS Next 2Y-7.93%
EPS Next 3Y13%
9.08
+0.11 (+1.23%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.99%
Inst Owner Change-0.01%
Ins Owners1.26%
Ins Owner Change1.7%
Market Cap1.72B
Analysts73.33
Price Target9.74 (7.27%)
Short Float %7.4%
Short Ratio5.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Yearly Dividend0.45
Dividend Growth(5Y)-9.74%
DP2126.95%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)49.22%
Min EPS beat(2)-65.59%
Max EPS beat(2)164.03%
EPS beat(4)2
Avg EPS beat(4)6.67%
Min EPS beat(4)-100%
Max EPS beat(4)164.03%
EPS beat(8)6
Avg EPS beat(8)345.59%
EPS beat(12)10
Avg EPS beat(12)313.01%
EPS beat(16)13
Avg EPS beat(16)247%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-3.82%
Max Revenue beat(2)-0.05%
Revenue beat(4)1
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)0.7%
Revenue beat(8)4
Avg Revenue beat(8)-0.69%
Revenue beat(12)7
Avg Revenue beat(12)0.76%
Revenue beat(16)10
Avg Revenue beat(16)1.95%
PT rev (1m)-0.94%
PT rev (3m)-3.09%
EPS NQ rev (1m)-166.7%
EPS NQ rev (3m)-259.99%
EPS NY rev (1m)-70.59%
EPS NY rev (3m)-90.85%
Revenue NQ rev (1m)-1.72%
Revenue NQ rev (3m)-4.42%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 454 | ||
| Fwd PE | 76.51 | ||
| P/S | 1.84 | ||
| P/FCF | 10.28 | ||
| P/OCF | 10.28 | ||
| P/B | 0.87 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 12.39 |
EPS(TTM)0.02
EY0.22%
EPS(NY)0.12
Fwd EY1.31%
FCF(TTM)0.88
FCFY9.73%
OCF(TTM)0.88
OCFY9.73%
SpS4.92
BVpS10.42
TBVpS10.42
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 0.21% | ||
| ROCE | 2.54% | ||
| ROIC | 2% | ||
| ROICexc | 2.06% | ||
| ROICexgc | 2.06% | ||
| OM | 7.77% | ||
| PM (TTM) | 0.44% | ||
| GM | 60.49% | ||
| FCFM | 17.95% |
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
ROICexcg growth 3YN/A
ROICexcg 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 | 0.44 | ||
| Debt/FCF | 5.18 | ||
| Debt/EBITDA | 4.27 | ||
| Cap/Depr | 0% | ||
| Cap/Sales | 0% | ||
| Interest Coverage | 1.57 | ||
| Cash Conversion | 82.51% | ||
| Profit Quality | 4053.66% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 1.13 |
F-Score5
WACC7.38%
ROIC/WACC0.27
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)-90.91%
EPS 3Y29.76%
EPS 5Y-23.38%
EPS Q2Q%-72.73%
EPS Next Y-90.98%
EPS Next 2Y-7.93%
EPS Next 3Y13%
EPS Next 5YN/A
Revenue 1Y (TTM)0.37%
Revenue growth 3Y21.17%
Revenue growth 5Y-4.07%
Sales Q2Q%4.97%
Revenue Next Year5.1%
Revenue Next 2Y5.43%
Revenue Next 3Y4.44%
Revenue Next 5YN/A
EBIT growth 1Y-25.98%
EBIT growth 3YN/A
EBIT growth 5Y-13.48%
EBIT Next Year193.94%
EBIT Next 3Y48.3%
EBIT Next 5YN/A
FCF growth 1Y-25.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-25.63%
OCF growth 3Y81.77%
OCF growth 5Y-10.15%