SUNSTONE HOTEL INVESTORS INC (SHO) Stock Fundamental Analysis
USA - NYSE:SHO - US8678921011 - REIT
9.78 USD
+0.36 (+3.82%)
9.78 USD
0 (0%)
Overall SHO gets a fundamental rating of 4 out of 10. We evaluated SHO 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 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SHO was profitable.
SHO had a positive operating cash flow in the past year.
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
SHO's Return On Assets of 0.14% is in line compared to the rest of the industry. SHO outperforms 44.19% of its industry peers.
SHO has a Return On Equity (0.21%) which is in line with its industry peers.
With a Return On Invested Capital value of 2.00%, SHO is not doing good in the industry: 64.34% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for SHO is in line with the industry average of 3.04%.
| 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
Looking at the Profit Margin, with a value of 0.44%, SHO is in line with its industry, outperforming 44.19% of the companies in the same industry.
SHO's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 7.77%, SHO is not doing good in the industry: 81.40% of the companies in the same industry are doing better.
SHO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 60.49%, SHO is doing worse than 65.89% of the companies in the same industry.
SHO's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHO is destroying value.
SHO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SHO has less shares outstanding
SHO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.17, we must say that SHO is in the distress zone and has some risk of bankruptcy.
SHO's Altman-Z score of 1.17 is amongst the best of the industry. SHO outperforms 81.40% of its industry peers.
The Debt to FCF ratio of SHO is 5.18, which is a neutral value as it means it would take SHO, 5.18 years of fcf income to pay off all of its debts.
SHO has a better Debt to FCF ratio (5.18) 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.
Looking at the Debt to Equity ratio, with a value of 0.44, SHO belongs to the top of the industry, outperforming 91.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.27
WACC7.42%
2.3 Liquidity
SHO has a Current 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 has a Current ratio of 1.30. This is comparable to the rest of the industry: SHO outperforms 58.14% of its industry peers.
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.
The Revenue has been decreasing by -4.07% on average over the past years.
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
The Earnings Per Share is expected to grow by 13.00% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.27% on average over the next years.
EPS Next Y-69.34%
EPS Next 2Y-10.92%
EPS Next 3Y13%
EPS Next 5YN/A
Revenue Next Year6.12%
Revenue Next 2Y4.91%
Revenue Next 3Y4.27%
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
SHO is valuated quite expensively with a Price/Earnings ratio of 489.00.
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.
SHO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 88.03, SHO can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as SHO.
The average S&P500 Price/Forward Earnings ratio is at 22.73. SHO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 489 | ||
| Fwd PE | 88.03 |
4.2 Price Multiples
72.09% of the companies in the same industry are more expensive than SHO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SHO is valued cheaply inside the industry as 88.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.07 | ||
| EV/EBITDA | 12.71 |
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-10.92%
EPS Next 3Y13%
5. Dividend
5.1 Amount
SHO has a Yearly Dividend Yield of 3.75%.
Compared to an average industry Dividend Yield of 6.63, SHO is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.45, SHO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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
2126.95% of the earnings are spent on dividend by SHO. This is not a sustainable payout ratio.
DP2126.95%
EPS Next 2Y-10.92%
EPS Next 3Y13%
9.78
+0.36 (+3.82%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners102.6%
Inst Owner Change-4.41%
Ins Owners1.21%
Ins Owner Change1.7%
Market Cap1.86B
Analysts73.33
Price Target9.83 (0.51%)
Short Float %8.18%
Short Ratio6.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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%
PT rev (3m)-2.17%
EPS NQ rev (1m)-159.99%
EPS NQ rev (3m)-122.47%
EPS NY rev (1m)-68.9%
EPS NY rev (3m)-59.72%
Revenue NQ rev (1m)-2.45%
Revenue NQ rev (3m)-5.4%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 489 | ||
| Fwd PE | 88.03 | ||
| P/S | 1.99 | ||
| P/FCF | 11.07 | ||
| P/OCF | 11.07 | ||
| P/B | 0.94 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)0.02
EY0.2%
EPS(NY)0.11
Fwd EY1.14%
FCF(TTM)0.88
FCFY9.04%
OCF(TTM)0.88
OCFY9.04%
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 | 1.17 |
F-Score5
WACC7.42%
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-69.34%
EPS Next 2Y-10.92%
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 Year6.12%
Revenue Next 2Y4.91%
Revenue Next 3Y4.27%
Revenue Next 5YN/A
EBIT growth 1Y-25.98%
EBIT growth 3YN/A
EBIT growth 5Y-13.48%
EBIT Next Year206.36%
EBIT Next 3Y51.43%
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%