SERVICE PROPERTIES TRUST (SVC) Stock Fundamental Analysis
USA - NASDAQ:SVC - US81761L1026 - REIT
1.75 USD
-0.02 (-1.13%)
1.75 USD
0 (0%)
Overall SVC gets a fundamental rating of 1 out of 10. We evaluated SVC against 128 industry peers in the Diversified REITs industry. SVC may be in some trouble as it scores bad on both profitability and health. SVC is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SVC has reported negative net income.
In the past year SVC had a positive cash flow from operations.
SVC had negative earnings in each of the past 5 years.
Each year in the past 5 years SVC had a positive operating cash flow.
1.2 Ratios
SVC's Return On Assets of -4.01% is on the low side compared to the rest of the industry. SVC is outperformed by 80.47% of its industry peers.
SVC has a worse Return On Equity (-39.93%) than 92.97% of its industry peers.
SVC's Return On Invested Capital of 2.50% is in line compared to the rest of the industry. SVC outperforms 47.66% of its industry peers.
SVC had an Average Return On Invested Capital over the past 3 years of 2.22%. This is in line with the industry average of 3.04%.
The 3 year average ROIC (2.22%) for SVC is below the current ROIC(2.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.01% | ||
| ROE | -39.93% | ||
| ROIC | 2.5% |
ROA(3y)-2.03%
ROA(5y)-3.12%
ROE(3y)-14.85%
ROE(5y)-18.87%
ROIC(3y)2.22%
ROIC(5y)N/A
1.3 Margins
SVC's Operating Margin of 10.79% is on the low side compared to the rest of the industry. SVC is outperformed by 71.09% of its industry peers.
In the last couple of years the Operating Margin of SVC has declined.
The Gross Margin of SVC (32.38%) is worse than 87.50% of its industry peers.
SVC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.79% | ||
| PM (TTM) | N/A | ||
| GM | 32.38% |
OM growth 3YN/A
OM growth 5Y-10.84%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.43%
GM growth 5Y-3.43%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SVC is destroying value.
The number of shares outstanding for SVC has been increased compared to 1 year ago.
SVC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SVC has a worse debt to assets ratio.
2.2 Solvency
SVC has an Altman-Z score of -0.44. This is a bad value and indicates that SVC is not financially healthy and even has some risk of bankruptcy.
SVC has a worse Altman-Z score (-0.44) than 85.94% of its industry peers.
SVC has a Debt/Equity ratio of 8.22. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SVC (8.22) is worse than 89.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.44 |
ROIC/WACC0.44
WACC5.67%
2.3 Liquidity
A Current Ratio of 0.36 indicates that SVC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.36, SVC is doing worse than 83.59% of the companies in the same industry.
A Quick Ratio of 0.36 indicates that SVC may have some problems paying its short term obligations.
SVC has a worse Quick ratio (0.36) than 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The earnings per share for SVC have decreased strongly by -31.50% in the last year.
Looking at the last year, SVC shows a small growth in Revenue. The Revenue has grown by 1.23% in the last year.
The Revenue has been decreasing by -3.91% on average over the past years.
EPS 1Y (TTM)-31.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)1.23%
Revenue growth 3Y8.25%
Revenue growth 5Y-3.91%
Sales Q2Q%-2.52%
3.2 Future
SVC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.35% yearly.
Based on estimates for the next years, SVC will show a very negative growth in Revenue. The Revenue will decrease by -12.65% on average per year.
EPS Next Y9.1%
EPS Next 2Y18.59%
EPS Next 3Y6.35%
EPS Next 5YN/A
Revenue Next Year-0.37%
Revenue Next 2Y-2.88%
Revenue Next 3Y-12.65%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for SVC. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for SVC. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SVC indicates a somewhat cheap valuation: SVC is cheaper than 78.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.8 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.59%
EPS Next 3Y6.35%
5. Dividend
5.1 Amount
SVC has a Yearly Dividend Yield of 2.26%.
In the last 3 months the price of SVC has falen by -30.00%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
With a Dividend Yield of 2.26, SVC pays less dividend than the industry average, which is at 6.30. 84.38% of the companies listed in the same industry pay a better dividend than SVC!
Compared to an average S&P500 Dividend Yield of 2.36, SVC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
The dividend of SVC decreases each year by -22.30%.
SVC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-22.3%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SVC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-13.74%
EPS Next 2Y18.59%
EPS Next 3Y6.35%
1.75
-0.02 (-1.13%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners75.88%
Inst Owner Change-0.71%
Ins Owners5.73%
Ins Owner Change43.32%
Market Cap292.00M
Revenue(TTM)1.90B
Net Income(TTM)-277.90M
Analysts48
Price Target2.81 (60.57%)
Short Float %3.1%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Yearly Dividend0.61
Dividend Growth(5Y)-22.3%
DP-13.74%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-30.54%
Min EPS beat(2)-34.58%
Max EPS beat(2)-26.51%
EPS beat(4)0
Avg EPS beat(4)-23.35%
Min EPS beat(4)-34.58%
Max EPS beat(4)-15.51%
EPS beat(8)2
Avg EPS beat(8)-54.32%
EPS beat(12)5
Avg EPS beat(12)-32.12%
EPS beat(16)7
Avg EPS beat(16)-23.58%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)0.54%
Revenue beat(4)2
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)1.9%
Revenue beat(8)5
Avg Revenue beat(8)0.56%
Revenue beat(12)7
Avg Revenue beat(12)0.66%
Revenue beat(16)10
Avg Revenue beat(16)0.86%
PT rev (1m)0%
PT rev (3m)10%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-5.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.15 | ||
| P/FCF | N/A | ||
| P/OCF | 2.17 | ||
| P/B | 0.42 | ||
| P/tB | 0.49 | ||
| EV/EBITDA | 10.8 |
EPS(TTM)-1.67
EYN/A
EPS(NY)-0.98
Fwd EYN/A
FCF(TTM)-0.81
FCFYN/A
OCF(TTM)0.81
OCFY46.13%
SpS11.3
BVpS4.17
TBVpS3.57
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.01% | ||
| ROE | -39.93% | ||
| ROCE | 3.17% | ||
| ROIC | 2.5% | ||
| ROICexc | 2.53% | ||
| ROICexgc | 2.66% | ||
| OM | 10.79% | ||
| PM (TTM) | N/A | ||
| GM | 32.38% | ||
| FCFM | N/A |
ROA(3y)-2.03%
ROA(5y)-3.12%
ROE(3y)-14.85%
ROE(5y)-18.87%
ROIC(3y)2.22%
ROIC(5y)N/A
ROICexc(3y)2.26%
ROICexc(5y)N/A
ROICexgc(3y)2.34%
ROICexgc(5y)N/A
ROCE(3y)2.81%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y-9.9%
ROICexc growth 3YN/A
ROICexc growth 5Y-9.28%
OM growth 3YN/A
OM growth 5Y-10.84%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.43%
GM growth 5Y-3.43%
F-Score5
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 10.38 | ||
| Cap/Depr | 77.55% | ||
| Cap/Sales | 14.27% | ||
| Interest Coverage | 0.55 | ||
| Cash Conversion | 24.46% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.36 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | -0.44 |
F-Score5
WACC5.67%
ROIC/WACC0.44
Cap/Depr(3y)67.89%
Cap/Depr(5y)48.02%
Cap/Sales(3y)13.76%
Cap/Sales(5y)10.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-31.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y9.1%
EPS Next 2Y18.59%
EPS Next 3Y6.35%
EPS Next 5YN/A
Revenue 1Y (TTM)1.23%
Revenue growth 3Y8.25%
Revenue growth 5Y-3.91%
Sales Q2Q%-2.52%
Revenue Next Year-0.37%
Revenue Next 2Y-2.88%
Revenue Next 3Y-12.65%
Revenue Next 5YN/A
EBIT growth 1Y1.34%
EBIT growth 3YN/A
EBIT growth 5Y-14.33%
EBIT Next Year764.54%
EBIT Next 3Y92.02%
EBIT Next 5YN/A
FCF growth 1Y-161.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-73.71%
OCF growth 3Y40.84%
OCF growth 5Y-25.75%
SERVICE PROPERTIES TRUST / SVC FAQ
What is the fundamental rating for SVC stock?
ChartMill assigns a fundamental rating of 1 / 10 to SVC.
What is the valuation status for SVC stock?
ChartMill assigns a valuation rating of 1 / 10 to SERVICE PROPERTIES TRUST (SVC). This can be considered as Overvalued.
How profitable is SERVICE PROPERTIES TRUST (SVC) stock?
SERVICE PROPERTIES TRUST (SVC) has a profitability rating of 2 / 10.
How financially healthy is SERVICE PROPERTIES TRUST?
The financial health rating of SERVICE PROPERTIES TRUST (SVC) is 0 / 10.