SUNSTONE HOTEL INVESTORS INC (SHO) Fundamental Analysis & Valuation

NYSE:SHO • US8678921011

Current stock price

9.26 USD
+0.17 (+1.87%)
At close:
9.26 USD
0 (0%)
After Hours:

This SHO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. SHO Profitability Analysis

1.1 Basic Checks

  • SHO had positive earnings in the past year.
  • SHO had a positive operating cash flow in the past year.
  • SHO had positive earnings in each of the past 5 years.
  • In the past 5 years SHO always reported a positive cash flow from operatings.
SHO Yearly Net Income VS EBIT VS OCF VS FCFSHO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M -400M

1.2 Ratios

  • SHO's Return On Assets of 0.27% is in line compared to the rest of the industry. SHO outperforms 46.34% of its industry peers.
  • SHO has a Return On Equity (0.42%) which is in line with its industry peers.
  • With a Return On Invested Capital value of 2.08%, SHO is not doing good in the industry: 61.79% of the companies in the same industry are doing better.
  • SHO had an Average Return On Invested Capital over the past 3 years of 2.43%. This is in line with the industry average of 3.13%.
Industry RankSector Rank
ROA 0.27%
ROE 0.42%
ROIC 2.08%
ROA(3y)2.42%
ROA(5y)2.01%
ROE(3y)3.53%
ROE(5y)2.94%
ROIC(3y)2.43%
ROIC(5y)N/A
SHO Yearly ROA, ROE, ROICSHO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 -10 -15 -20

1.3 Margins

  • SHO has a Profit Margin (0.86%) which is comparable to the rest of the industry.
  • SHO's Profit Margin has declined in the last couple of years.
  • SHO has a Operating Margin of 7.89%. This is in the lower half of the industry: SHO underperforms 77.24% of its industry peers.
  • In the last couple of years the Operating Margin of SHO has declined.
  • SHO has a Gross Margin of 60.06%. This is in the lower half of the industry: SHO underperforms 67.48% of its industry peers.
  • In the last couple of years the Gross Margin of SHO has grown nicely.
Industry RankSector Rank
OM 7.89%
PM (TTM) 0.86%
GM 60.06%
OM growth 3Y-10.21%
OM growth 5YN/A
PM growth 3Y-52.46%
PM growth 5YN/A
GM growth 3Y-1.28%
GM growth 5Y6.01%
SHO Yearly Profit, Operating, Gross MarginsSHO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 -100 -150

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6

2. SHO Health Analysis

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.
  • The number of shares outstanding for SHO has been reduced compared to 1 year ago.
  • SHO has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, SHO has a worse debt to assets ratio.
SHO Yearly Shares OutstandingSHO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
SHO Yearly Total Debt VS Total AssetsSHO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • SHO has an Altman-Z score of 1.10. This is a bad value and indicates that SHO is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of SHO (1.10) is better than 79.67% of its industry peers.
  • The Debt to FCF ratio of SHO is 5.09, which is a neutral value as it means it would take SHO, 5.09 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 5.09, SHO belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
  • A Debt/Equity ratio of 0.47 indicates that SHO is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.47, SHO belongs to the top of the industry, outperforming 88.62% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 5.09
Altman-Z 1.1
ROIC/WACC0.28
WACC7.44%
SHO Yearly LT Debt VS Equity VS FCFSHO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • SHO has a Current Ratio of 1.44. This is a normal value and indicates that SHO is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of SHO (1.44) is better than 71.54% of its industry peers.
  • A Quick Ratio of 1.44 indicates that SHO should not have too much problems paying its short term obligations.
  • The Quick ratio of SHO (1.44) is better than 73.17% of its industry peers.
Industry RankSector Rank
Current Ratio 1.44
Quick Ratio 1.44
SHO Yearly Current Assets VS Current LiabilitesSHO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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5

3. SHO Growth Analysis

3.1 Past

  • The earnings per share for SHO have decreased strongly by -71.43% 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 -51.47% on average per year.
  • SHO shows a small growth in Revenue. In the last year, the Revenue has grown by 6.00%.
  • Measured over the past years, SHO shows a very strong growth in Revenue. The Revenue has been growing by 29.08% on average per year.
EPS 1Y (TTM)-71.43%
EPS 3Y-51.47%
EPS 5YN/A
EPS Q2Q%200%
Revenue 1Y (TTM)6%
Revenue growth 3Y1.73%
Revenue growth 5Y29.08%
Sales Q2Q%10.33%

3.2 Future

  • SHO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 124.72% yearly.
  • Based on estimates for the next years, SHO will show a small growth in Revenue. The Revenue will grow by 3.77% on average per year.
EPS Next Y304%
EPS Next 2Y124.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.32%
Revenue Next 2Y3.16%
Revenue Next 3Y3.77%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
SHO Yearly Revenue VS EstimatesSHO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
SHO Yearly EPS VS EstimatesSHO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 1 -1 -2

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4

4. SHO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 231.50, the valuation of SHO can be described as expensive.
  • SHO's Price/Earnings ratio is a bit more expensive when compared to the industry. SHO is more expensive than 60.98% 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 25.61.
  • SHO is valuated quite expensively with a Price/Forward Earnings ratio of 57.30.
  • 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 (22.79), we can say SHO is valued expensively.
Industry RankSector Rank
PE 231.5
Fwd PE 57.3
SHO Price Earnings VS Forward Price EarningsSHO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SHO is valued a bit cheaper than 63.41% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHO indicates a rather cheap valuation: SHO is cheaper than 88.62% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 9.72
EV/EBITDA 12.2
SHO Per share dataSHO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • SHO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as SHO's earnings are expected to grow with 124.72% in the coming years.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y124.72%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. SHO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.95%, SHO has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 7.32, SHO is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.89, SHO pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.95%

5.2 History

  • The dividend of SHO decreases each year by -9.02%.
  • SHO has been paying a dividend for at least 10 years, so it has a reliable track record.
  • SHO has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.02%
Div Incr Years2
Div Non Decr Years2
SHO Yearly Dividends per shareSHO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • SHO pays out 1052.29% of its income as dividend. This is not a sustainable payout ratio.
DP1052.29%
EPS Next 2Y124.72%
EPS Next 3YN/A
SHO Yearly Income VS Free CF VS DividendSHO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M -400M
SHO Dividend Payout.SHO Dividend Payout, showing the Payout Ratio.SHO Dividend Payout.PayoutRetained Earnings

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SHO Fundamentals: All Metrics, Ratios and Statistics

SUNSTONE HOTEL INVESTORS INC

NYSE:SHO (3/25/2026, 8:04:00 PM)

After market: 9.26 0 (0%)

9.26

+0.17 (+1.87%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)02-27
Earnings (Next)05-04
Inst Owners93.51%
Inst Owner Change-2.91%
Ins Owners1.43%
Ins Owner Change5.37%
Market Cap1.75B
Revenue(TTM)960.13M
Net Income(TTM)8.21M
Analysts72
Price Target10.11 (9.18%)
Short Float %4.85%
Short Ratio4.29
Dividend
Industry RankSector Rank
Dividend Yield 3.95%
Yearly Dividend0.44
Dividend Growth(5Y)-9.02%
DP1052.29%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-31
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)128.88%
Min EPS beat(2)25.75%
Max EPS beat(2)232.01%
EPS beat(4)3
Avg EPS beat(4)89.05%
Min EPS beat(4)-65.59%
Max EPS beat(4)232.01%
EPS beat(8)6
Avg EPS beat(8)358.58%
EPS beat(12)10
Avg EPS beat(12)312.41%
EPS beat(16)14
Avg EPS beat(16)269.07%
Revenue beat(2)1
Avg Revenue beat(2)1.83%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)3.93%
Revenue beat(4)1
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)3.93%
Revenue beat(8)3
Avg Revenue beat(8)-0.47%
Revenue beat(12)6
Avg Revenue beat(12)0.21%
Revenue beat(16)10
Avg Revenue beat(16)2%
PT rev (1m)0%
PT rev (3m)2.35%
EPS NQ rev (1m)200.08%
EPS NQ rev (3m)139.95%
EPS NY rev (1m)9.09%
EPS NY rev (3m)36.17%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)-1.21%
Valuation
Industry RankSector Rank
PE 231.5
Fwd PE 57.3
P/S 1.83
P/FCF 9.72
P/OCF 9.66
P/B 0.9
P/tB 0.9
EV/EBITDA 12.2
EPS(TTM)0.04
EY0.43%
EPS(NY)0.16
Fwd EY1.75%
FCF(TTM)0.95
FCFY10.28%
OCF(TTM)0.96
OCFY10.36%
SpS5.07
BVpS10.26
TBVpS10.26
PEG (NY)0.76
PEG (5Y)N/A
Graham Number3.04
Profitability
Industry RankSector Rank
ROA 0.27%
ROE 0.42%
ROCE 2.63%
ROIC 2.08%
ROICexc 2.16%
ROICexgc 2.16%
OM 7.89%
PM (TTM) 0.86%
GM 60.06%
FCFM 18.8%
ROA(3y)2.42%
ROA(5y)2.01%
ROE(3y)3.53%
ROE(5y)2.94%
ROIC(3y)2.43%
ROIC(5y)N/A
ROICexc(3y)2.65%
ROICexc(5y)N/A
ROICexgc(3y)2.65%
ROICexgc(5y)N/A
ROCE(3y)3.07%
ROCE(5y)N/A
ROICexgc growth 3Y-10.53%
ROICexgc growth 5YN/A
ROICexc growth 3Y-10.53%
ROICexc growth 5YN/A
OM growth 3Y-10.21%
OM growth 5YN/A
PM growth 3Y-52.46%
PM growth 5YN/A
GM growth 3Y-1.28%
GM growth 5Y6.01%
F-Score5
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 5.09
Debt/EBITDA 4.37
Cap/Depr 0.94%
Cap/Sales 0.13%
Interest Coverage 1.55
Cash Conversion 86.46%
Profit Quality 2198.43%
Current Ratio 1.44
Quick Ratio 1.44
Altman-Z 1.1
F-Score5
WACC7.44%
ROIC/WACC0.28
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)-71.43%
EPS 3Y-51.47%
EPS 5YN/A
EPS Q2Q%200%
EPS Next Y304%
EPS Next 2Y124.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6%
Revenue growth 3Y1.73%
Revenue growth 5Y29.08%
Sales Q2Q%10.33%
Revenue Next Year4.32%
Revenue Next 2Y3.16%
Revenue Next 3Y3.77%
Revenue Next 5YN/A
EBIT growth 1Y-3.66%
EBIT growth 3Y-8.66%
EBIT growth 5YN/A
EBIT Next Year228.06%
EBIT Next 3Y53.11%
EBIT Next 5YN/A
FCF growth 1Y406.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y6.68%
OCF growth 3Y-4.61%
OCF growth 5YN/A

SUNSTONE HOTEL INVESTORS INC / SHO Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for SUNSTONE HOTEL INVESTORS INC?

ChartMill assigns a fundamental rating of 5 / 10 to SHO.


Can you provide the valuation status for SUNSTONE HOTEL INVESTORS INC?

ChartMill assigns a valuation rating of 4 / 10 to SUNSTONE HOTEL INVESTORS INC (SHO). This can be considered as Fairly Valued.


Can you provide the profitability details for SUNSTONE HOTEL INVESTORS INC?

SUNSTONE HOTEL INVESTORS INC (SHO) has a profitability rating of 4 / 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 grow by 304% in the next year.