SUNSTONE HOTEL INVESTORS INC (SHO) Stock Fundamental Analysis
USA - NYSE:SHO - US8678921011 - REIT
9.49 USD
+0.06 (+0.64%)
9.49 USD
0 (0%)
SHO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 128 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 positive earnings in the past year.
In the past year SHO had a positive cash flow from operations.
SHO had positive earnings in 4 of the past 5 years.
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 44.53% of its industry peers.
The Return On Equity of SHO (0.21%) is comparable to the rest of the industry.
The Return On Invested Capital of SHO (2.00%) is worse than 63.28% 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 3.04%.
| 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
SHO has a Profit Margin (0.44%) which is in line with its industry peers.
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: 79.69% of the companies in the same industry are doing better.
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 64.84% 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
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
The debt/assets ratio for SHO is higher compared to a year ago.
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 has a Altman-Z score of 1.17. This is amongst the best in the industry. SHO outperforms 82.03% 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.
SHO has a Debt to FCF ratio of 5.18. This is amongst the best in the industry. SHO outperforms 98.44% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that SHO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.44, SHO belongs to the top of the industry, outperforming 91.41% 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
WACC7.48%
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.
The Current ratio of SHO (1.30) is better than 61.72% 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.
With a decent Quick ratio value of 1.30, SHO is doing good in the industry, outperforming 63.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.75% over the past year.
The earnings per share for SHO have been decreasing by -23.38% on average. This is quite bad
SHO shows a decrease in Revenue. In the last year, the revenue decreased by -8.18%.
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)18.75%
EPS 3Y29.76%
EPS 5Y-23.38%
EPS Q2Q%N/A
Revenue 1Y (TTM)-8.18%
Revenue growth 3Y21.17%
Revenue growth 5Y-4.07%
Sales Q2Q%1.29%
3.2 Future
SHO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.33% yearly.
The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y-90.98%
EPS Next 2Y-11.94%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue Next Year5.25%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 49.95, which means the current valuation is very expensive for SHO.
The rest of the industry has a similar Price/Earnings ratio as SHO.
SHO is valuated expensively when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 87.41, the valuation of SHO can be described as expensive.
SHO's Price/Forward Earnings is on the same level as the industry average.
SHO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.95 | ||
| Fwd PE | 87.41 |
4.2 Price Multiples
69.53% of the companies in the same industry are more expensive than SHO, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHO indicates a rather cheap valuation: SHO is cheaper than 88.28% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.74 | ||
| EV/EBITDA | 12.71 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.94%
EPS Next 3Y0.33%
5. Dividend
5.1 Amount
SHO has a Yearly Dividend Yield of 7.49%, which is a nice return.
Compared to an average industry Dividend Yield of 6.47, SHO is paying slightly less dividend.
SHO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.49% |
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-11.94%
EPS Next 3Y0.33%
9.49
+0.06 (+0.64%)
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-0.68%
Ins Owners1.26%
Ins Owner Change0%
Market Cap1.80B
Revenue(TTM)905.81M
Net Income(TTM)4.14M
Analysts73.33
Price Target9.74 (2.63%)
Short Float %7.81%
Short Ratio6.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.49% |
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)-0.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-259.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-90.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.13%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.95 | ||
| Fwd PE | 87.41 | ||
| P/S | 1.93 | ||
| P/FCF | 10.74 | ||
| P/OCF | 10.74 | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)0.19
EY2%
EPS(NY)0.11
Fwd EY1.14%
FCF(TTM)0.88
FCFY9.31%
OCF(TTM)0.88
OCFY9.31%
SpS4.92
BVpS10.42
TBVpS10.42
PEG (NY)N/A
PEG (5Y)N/A
Graham Number6.68
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
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 | 0.44 | ||
| 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
WACC7.48%
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)18.75%
EPS 3Y29.76%
EPS 5Y-23.38%
EPS Q2Q%N/A
EPS Next Y-90.98%
EPS Next 2Y-11.94%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.18%
Revenue growth 3Y21.17%
Revenue growth 5Y-4.07%
Sales Q2Q%1.29%
Revenue Next Year5.25%
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%
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.
What is the valuation status of SUNSTONE HOTEL INVESTORS INC (SHO) stock?
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 valuation of SUNSTONE HOTEL INVESTORS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SUNSTONE HOTEL INVESTORS INC (SHO) is 49.95 and the Price/Book (PB) ratio is 0.91.
Can you provide the financial health for SHO stock?
The financial health rating of SUNSTONE HOTEL INVESTORS INC (SHO) is 6 / 10.