SERVICE PROPERTIES TRUST (SVC)
US81761L1026 - REIT
Taking everything into account, SVC scores 2 out of 10 in our fundamental rating. SVC was compared to 127 industry peers in the Diversified REITs industry. SVC may be in some trouble as it scores bad on both profitability and health. SVC has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SVC has reported negative net income.
SVC had a positive operating cash flow in the past year.
SVC had negative earnings in 4 of the past 5 years.
SVC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.44%, SVC is doing worse than 62.40% of the companies in the same industry.
The Return On Equity of SVC (-2.67%) is worse than 67.20% of its industry peers.
SVC has a Return On Invested Capital of 2.37%. This is comparable to the rest of the industry: SVC outperforms 43.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.44% | ||
| ROE | -2.67% | ||
| ROIC | 2.37% |
ROA(3y)-2.72%
ROA(5y)-1.77%
ROE(3y)-15.74%
ROE(5y)-10.33%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SVC has a worse Operating Margin (10.82%) than 79.20% of its industry peers.
SVC's Operating Margin has declined in the last couple of years.
SVC has a Gross Margin of 34.69%. This is amonst the worse of the industry: SVC underperforms 88.80% of its industry peers.
In the last couple of years the Gross Margin of SVC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.82% | ||
| PM (TTM) | N/A | ||
| GM | 34.69% |
OM growth 3Y274.87%
OM growth 5Y-8.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.21%
GM growth 5Y-2.48%
2. Health
2.1 Basic Checks
SVC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SVC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, SVC has more shares outstanding
SVC has a better debt/assets ratio than last year.
2.2 Solvency
SVC has an Altman-Z score of -0.25. This is a bad value and indicates that SVC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.25, SVC is doing worse than 88.80% of the companies in the same industry.
The Debt to FCF ratio of SVC is 46.47, which is on the high side as it means it would take SVC, 46.47 years of fcf income to pay off all of its debts.
SVC has a Debt to FCF ratio of 46.47. This is comparable to the rest of the industry: SVC outperforms 48.80% of its industry peers.
SVC has a Debt/Equity ratio of 4.50. This is a high value indicating a heavy dependency on external financing.
SVC has a Debt to Equity ratio of 4.50. This is amonst the worse of the industry: SVC underperforms 86.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.5 | ||
| Debt/FCF | 46.47 | ||
| Altman-Z | -0.25 |
ROIC/WACC0.38
WACC6.17%
2.3 Liquidity
SVC has a Current Ratio of 0.40. 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 0.40. This is amonst the worse of the industry: SVC underperforms 89.60% of its industry peers.
A Quick Ratio of 0.40 indicates that SVC may have some problems paying its short term obligations.
SVC's Quick ratio of 0.40 is on the low side compared to the rest of the industry. SVC is outperformed by 88.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 97.50% over the past year.
The Revenue has been growing slightly by 0.58% in the past year.
The Revenue has been decreasing by -3.97% on average over the past years.
EPS 1Y (TTM)97.5%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q58.01%
Revenue 1Y (TTM)0.58%
Revenue growth 3Y13.99%
Revenue growth 5Y-3.97%
Revenue growth Q2Q-2.45%
3.2 Future
SVC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -221.00% yearly.
SVC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.09% yearly.
EPS Next Y-4126.85%
EPS Next 2Y-508.83%
EPS Next 3Y-221%
EPS Next 5YN/A
Revenue Next Year2.45%
Revenue Next 2Y2.03%
Revenue Next 3Y2.09%
Revenue Next 5YN/A
3.3 Evolution
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 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
Based on the Enterprise Value to EBITDA ratio, SVC is valued cheaper than 82.40% of the companies in the same industry.
SVC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SVC is cheaper than 92.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.28 | ||
| EV/EBITDA | 10.77 |
4.3 Compensation for Growth
SVC's earnings are expected to decrease with -221.00% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-508.83%
EPS Next 3Y-221%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.63%, SVC is a good candidate for dividend investing.
The stock price of SVC dropped by -23.48% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
SVC's Dividend Yield is rather good when compared to the industry average which is at 5.70. SVC pays more dividend than 99.20% of the companies in the same industry.
SVC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.63% |
5.2 History
The dividend of SVC decreases each year by -17.64%.
SVC has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SVC decreased in the last 3 years.
Dividend Growth(5Y)-17.64%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SVC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The Dividend Rate of SVC has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-404.7%
EPS Next 2Y-508.83%
EPS Next 3Y-221%
SERVICE PROPERTIES TRUST
NASDAQ:SVC (5/16/2024, 7:19:25 PM)
After market: 5.8 -0.13 (-2.19%)5.93
+0.13 (+2.33%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap983.02M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.63% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.44% | ||
| ROE | -2.67% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.82% | ||
| PM (TTM) | N/A | ||
| GM | 34.69% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)97.5%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-4126.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.58%
Revenue growth 3Y13.99%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y