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SERVICE PROPERTIES TRUST (SVC) Stock Fundamental Analysis

NASDAQ:SVC - Nasdaq - US81761L1026 - REIT - Currency: USD

2.435  -0.02 (-0.61%)

Fundamental Rating

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Overall SVC gets a fundamental rating of 1 out of 10. We evaluated SVC against 129 industry peers in the Diversified REITs industry. SVC has a bad profitability rating. Also its financial health evaluation is rather negative. SVC is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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2

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.
SVC had a positive operating cash flow in each of the past 5 years.
SVC Yearly Net Income VS EBIT VS OCF VS FCFSVC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M -1B -1.5B -2B

1.2 Ratios

The Return On Assets of SVC (-4.50%) is worse than 80.62% of its industry peers.
Looking at the Return On Equity, with a value of -42.69%, SVC is doing worse than 93.80% of the companies in the same industry.
SVC has a Return On Invested Capital of 2.38%. This is comparable to the rest of the industry: SVC outperforms 42.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SVC is in line with the industry average of 3.15%.
The 3 year average ROIC (2.22%) for SVC is below the current ROIC(2.38%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -4.5%
ROE -42.69%
ROIC 2.38%
ROA(3y)-2.03%
ROA(5y)-3.12%
ROE(3y)-14.85%
ROE(5y)-18.87%
ROIC(3y)2.22%
ROIC(5y)N/A
SVC Yearly ROA, ROE, ROICSVC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20 -30

1.3 Margins

The Operating Margin of SVC (10.19%) is worse than 77.52% of its industry peers.
SVC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 32.75%, SVC is doing worse than 87.60% of the companies in the same industry.
In the last couple of years the Gross Margin of SVC has declined.
Industry RankSector Rank
OM 10.19%
PM (TTM) N/A
GM 32.75%
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%
SVC Yearly Profit, Operating, Gross MarginsSVC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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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.
Compared to 5 years ago, SVC has more shares outstanding
The debt/assets ratio for SVC is higher compared to a year ago.
SVC Yearly Shares OutstandingSVC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
SVC Yearly Total Debt VS Total AssetsSVC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

SVC has an Altman-Z score of -0.43. This is a bad value and indicates that SVC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SVC (-0.43) is worse than 86.82% of its industry peers.
SVC has a Debt/Equity ratio of 7.71. This is a high value indicating a heavy dependency on external financing.
SVC's Debt to Equity ratio of 7.71 is on the low side compared to the rest of the industry. SVC is outperformed by 90.70% of its industry peers.
Industry RankSector Rank
Debt/Equity 7.71
Debt/FCF N/A
Altman-Z -0.43
ROIC/WACC0.4
WACC5.89%
SVC Yearly LT Debt VS Equity VS FCFSVC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B 6B

2.3 Liquidity

SVC has a Current Ratio of 0.33. This is a bad value and indicates that SVC is not financially healthy enough and could expect problems in meeting its short term obligations.
SVC has a Current ratio of 0.33. This is amonst the worse of the industry: SVC underperforms 83.72% of its industry peers.
SVC has a Quick Ratio of 0.33. This is a bad value and indicates that SVC is not financially healthy enough and could expect problems in meeting its short term obligations.
SVC has a worse Quick ratio (0.33) than 82.95% of its industry peers.
Industry RankSector Rank
Current Ratio 0.33
Quick Ratio 0.33
SVC Yearly Current Assets VS Current LiabilitesSVC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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3. Growth

3.1 Past

The earnings per share for SVC have decreased strongly by -195.31% in the last year.
The Revenue has been growing slightly by 0.80% in the past year.
SVC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.91% yearly.
EPS 1Y (TTM)-195.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-52.17%
Revenue 1Y (TTM)0.8%
Revenue growth 3Y8.25%
Revenue growth 5Y-3.91%
Sales Q2Q%-0.25%

3.2 Future

The Earnings Per Share is expected to grow by 6.35% on average over the next years.
The Revenue is expected to decrease by -12.65% on average over the next years. This is quite bad
EPS Next Y16.32%
EPS Next 2Y9.63%
EPS Next 3Y6.35%
EPS Next 5YN/A
Revenue Next Year-3.5%
Revenue Next 2Y-4.92%
Revenue Next 3Y-12.65%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
SVC Yearly Revenue VS EstimatesSVC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B
SVC Yearly EPS VS EstimatesSVC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 1 -1 -2 -3

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for SVC. In the last year negative earnings were reported.
Also next year SVC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
SVC Price Earnings VS Forward Price EarningsSVC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30 40 50

4.2 Price Multiples

SVC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SVC is cheaper than 78.29% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.68
SVC Per share dataSVC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.63%
EPS Next 3Y6.35%

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5. Dividend

5.1 Amount

SVC has a Yearly Dividend Yield of 1.76%.
With a Dividend Yield of 1.76, SVC pays less dividend than the industry average, which is at 6.75. 86.05% of the companies listed in the same industry pay a better dividend than SVC!
SVC's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
Industry RankSector Rank
Dividend Yield 1.76%

5.2 History

The dividend of SVC decreases each year by -22.30%.
SVC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-22.3%
Div Incr Years0
Div Non Decr Years0
SVC Yearly Dividends per shareSVC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

SVC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-22.21%
EPS Next 2Y9.63%
EPS Next 3Y6.35%
SVC Yearly Income VS Free CF VS DividendSVC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -500M -1B -1.5B -2B

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SERVICE PROPERTIES TRUST

NASDAQ:SVC (6/12/2025, 10:37:01 AM)

2.435

-0.02 (-0.61%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)05-06 2025-05-06/amc
Earnings (Next)08-04 2025-08-04
Inst Owners73.85%
Inst Owner Change-0.17%
Ins Owners5.59%
Ins Owner Change0%
Market Cap405.77M
Analysts72.5
Price Target2.38 (-2.26%)
Short Float %3.21%
Short Ratio2.4
Dividend
Industry RankSector Rank
Dividend Yield 1.76%
Yearly Dividend0.61
Dividend Growth(5Y)-22.3%
DP-22.21%
Div Incr Years0
Div Non Decr Years0
Ex-Date04-22 2025-04-22 (0.01)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.68%
Min EPS beat(2)-34.58%
Max EPS beat(2)-16.78%
EPS beat(4)0
Avg EPS beat(4)-115.48%
Min EPS beat(4)-395.05%
Max EPS beat(4)-15.51%
EPS beat(8)2
Avg EPS beat(8)-81.82%
EPS beat(12)6
Avg EPS beat(12)-19.82%
EPS beat(16)8
Avg EPS beat(16)-19.15%
Revenue beat(2)1
Avg Revenue beat(2)0.82%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)1.9%
Revenue beat(4)1
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)1.9%
Revenue beat(8)4
Avg Revenue beat(8)0.47%
Revenue beat(12)7
Avg Revenue beat(12)0.96%
Revenue beat(16)10
Avg Revenue beat(16)1.41%
PT rev (1m)-15.66%
PT rev (3m)-19.54%
EPS NQ rev (1m)-28.57%
EPS NQ rev (3m)-80%
EPS NY rev (1m)-28.36%
EPS NY rev (3m)-433.98%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)0.11%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.21
P/FCF N/A
P/OCF 2.27
P/B 0.55
P/tB 0.64
EV/EBITDA 10.68
EPS(TTM)-1.89
EYN/A
EPS(NY)-1.32
Fwd EYN/A
FCF(TTM)-0.66
FCFYN/A
OCF(TTM)1.07
OCFY43.99%
SpS11.38
BVpS4.41
TBVpS3.79
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.5%
ROE -42.69%
ROCE 3.02%
ROIC 2.38%
ROICexc 2.41%
ROICexgc 2.54%
OM 10.19%
PM (TTM) N/A
GM 32.75%
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
ROICexcg growth 3YN/A
ROICexcg 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 RankSector Rank
Debt/Equity 7.71
Debt/FCF N/A
Debt/EBITDA 10.09
Cap/Depr 78.52%
Cap/Sales 15.23%
Interest Coverage 0.58
Cash Conversion 31.82%
Profit Quality N/A
Current Ratio 0.33
Quick Ratio 0.33
Altman-Z -0.43
F-Score5
WACC5.89%
ROIC/WACC0.4
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)-195.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-52.17%
EPS Next Y16.32%
EPS Next 2Y9.63%
EPS Next 3Y6.35%
EPS Next 5YN/A
Revenue 1Y (TTM)0.8%
Revenue growth 3Y8.25%
Revenue growth 5Y-3.91%
Sales Q2Q%-0.25%
Revenue Next Year-3.5%
Revenue Next 2Y-4.92%
Revenue Next 3Y-12.65%
Revenue Next 5YN/A
EBIT growth 1Y-8.38%
EBIT growth 3YN/A
EBIT growth 5Y-14.33%
EBIT Next Year753.1%
EBIT Next 3Y92.02%
EBIT Next 5YN/A
FCF growth 1Y-169.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-33.26%
OCF growth 3Y40.84%
OCF growth 5Y-25.75%