SUNSTONE HOTEL INVESTORS INC (SHO) Fundamental Analysis & Valuation

NYSE:SHO • US8678921011

9.55 USD
+0.06 (+0.63%)
At close: Mar 3, 2026
9.55 USD
0 (0%)
After Hours: 3/3/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

5

Overall SHO gets a fundamental rating of 5 out of 10. We evaluated SHO against 122 industry peers in the Diversified REITs industry. SHO has only an average score on both its financial health and profitability. SHO is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

4

1. SHO Profitability Analysis

1.1 Basic Checks

  • In the past year SHO was profitable.
  • In the past year SHO had a positive cash flow from operations.
  • Each year in the past 5 years SHO has been profitable.
  • SHO had a positive operating cash flow in each of the past 5 years.
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

  • Looking at the Return On Assets, with a value of 0.27%, SHO is in line with its industry, outperforming 43.44% of the companies in the same industry.
  • With a Return On Equity value of 0.42%, SHO perfoms like the industry average, outperforming 40.98% of the companies in the same industry.
  • SHO has a Return On Invested Capital of 2.08%. This is in the lower half of the industry: SHO underperforms 61.48% 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 3.10%.
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 of 0.86%. This is comparable to the rest of the industry: SHO outperforms 40.98% of its industry peers.
  • SHO's Profit Margin has declined in the last couple of years.
  • SHO's Operating Margin of 7.89% is on the low side compared to the rest of the industry. SHO is outperformed by 77.87% of its industry peers.
  • SHO's Operating Margin has declined in the last couple of years.
  • SHO has a worse Gross Margin (60.06%) than 67.21% of its industry peers.
  • SHO's Gross Margin has improved in the last couple of years.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • The number of shares outstanding for SHO has been reduced compared to 5 years ago.
  • The debt/assets ratio for SHO is higher compared to a year ago.
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 1.13. 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 79.51% of its industry peers.
  • SHO has a debt to FCF ratio of 5.09. This is a neutral value as SHO would need 5.09 years to pay back of all of its debts.
  • The Debt to FCF ratio of SHO (5.09) is better than 97.54% 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 88.52% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 5.09
Altman-Z 1.13
ROIC/WACC0.29
WACC7.28%
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

  • A Current Ratio of 1.44 indicates that SHO should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.44, SHO is in the better half of the industry, outperforming 74.59% of the companies in the same industry.
  • SHO has a Quick 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.
  • SHO has a Quick ratio of 1.44. This is in the better half of the industry: SHO outperforms 76.23% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. SHO Growth Analysis

3.1 Past

  • The earnings per share for SHO have decreased strongly by -71.43% in the last year.
  • The earnings per share for SHO have been decreasing by -51.47% on average. This is quite bad
  • Looking at the last year, SHO shows a small growth in Revenue. The Revenue has grown by 6.00% in the last year.
  • 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.
  • SHO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.77% yearly.
EPS Next Y304%
EPS Next 2Y124.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.96%
Revenue Next 2Y3.77%
Revenue Next 3Y3.77%
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 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

  • SHO is valuated quite expensively with a Price/Earnings ratio of 238.75.
  • Based on the Price/Earnings ratio, SHO is valued a bit more expensive than the industry average as 64.75% of the companies are valued more cheaply.
  • Compared to an average S&P500 Price/Earnings ratio of 26.83, SHO is valued quite expensively.
  • SHO is valuated quite expensively with a Price/Forward Earnings ratio of 59.10.
  • SHO's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of SHO to the average of the S&P500 Index (24.95), we can say SHO is valued expensively.
Industry RankSector Rank
PE 238.75
Fwd PE 59.1
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

  • SHO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SHO is cheaper than 70.49% 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 89.34% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.03
EV/EBITDA 12.46
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

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • SHO's earnings are expected to grow with 124.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y124.72%
EPS Next 3YN/A

More info and screens

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

3

5. SHO Dividend Analysis

5.1 Amount

  • SHO has a Yearly Dividend Yield of 3.77%.
  • SHO's Dividend Yield is slightly below the industry average, which is at 7.07.
  • SHO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.77%

5.2 History

  • The dividend of SHO decreases each year by -9.02%.
  • 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)-9.02%
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

  • 1052.29% of the earnings are spent on dividend by SHO. 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 (3/3/2026, 8:04:00 PM)

After market: 9.55 0 (0%)

9.55

+0.06 (+0.63%)

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 Owners100.91%
Inst Owner Change-2.97%
Ins Owners1.29%
Ins Owner Change5.5%
Market Cap1.81B
Revenue(TTM)960.13M
Net Income(TTM)8.21M
Analysts72
Price Target10.11 (5.86%)
Short Float %4.95%
Short Ratio4.33
Dividend
Industry RankSector Rank
Dividend Yield 3.77%
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)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)150%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.06%
Valuation
Industry RankSector Rank
PE 238.75
Fwd PE 59.1
P/S 1.89
P/FCF 10.03
P/OCF 9.96
P/B 0.93
P/tB 0.93
EV/EBITDA 12.46
EPS(TTM)0.04
EY0.42%
EPS(NY)0.16
Fwd EY1.69%
FCF(TTM)0.95
FCFY9.97%
OCF(TTM)0.96
OCFY10.04%
SpS5.07
BVpS10.26
TBVpS10.26
PEG (NY)0.79
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 1.13
F-Score5
WACC7.28%
ROIC/WACC0.29
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 Year3.96%
Revenue Next 2Y3.77%
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 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.