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SERVICE PROPERTIES TRUST (SVC) Stock Fundamental Analysis

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

2.21  -0.01 (-0.45%)

After market: 2.3 +0.09 (+4.07%)

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. Both the profitability and financial health of SVC have multiple concerns. SVC has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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1. Profitability

1.1 Basic Checks

SVC had negative earnings in the past year.
SVC had a positive operating cash flow in the past year.
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

Looking at the Return On Assets, with a value of -4.50%, SVC is doing worse than 82.17% of the companies in the same industry.
SVC has a worse Return On Equity (-42.69%) than 93.02% of its industry peers.
With a Return On Invested Capital value of 2.38%, SVC perfoms like the industry average, outperforming 42.64% of the companies in the same industry.
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

SVC's Operating Margin of 10.19% is on the low side compared to the rest of the industry. SVC is outperformed by 77.52% of its industry peers.
In the last couple of years the Operating Margin of SVC has declined.
SVC's Gross Margin of 32.75% is on the low side compared to the rest of the industry. SVC is outperformed by 87.60% of its industry peers.
SVC's Gross Margin has declined in the last couple of years.
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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SVC is destroying value.
Compared to 1 year ago, SVC has more shares outstanding
Compared to 5 years ago, SVC has more shares outstanding
Compared to 1 year ago, SVC has a worse debt to assets ratio.
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 -0.44. 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 -0.44, SVC is doing worse than 86.82% of the companies in the same industry.
SVC has a Debt/Equity ratio of 7.71. This is a high value indicating a heavy dependency on external financing.
SVC has a worse Debt to Equity ratio (7.71) than 87.60% of its industry peers.
Industry RankSector Rank
Debt/Equity 7.71
Debt/FCF N/A
Altman-Z -0.44
ROIC/WACC0.41
WACC5.82%
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

A Current Ratio of 0.33 indicates that SVC may have some problems paying its short term obligations.
With a Current ratio value of 0.33, SVC is not doing good in the industry: 84.50% of the companies in the same industry are doing better.
A Quick Ratio of 0.33 indicates that SVC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.33, SVC is doing worse than 83.72% of the companies in the same industry.
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

SVC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -195.31%.
Looking at the last year, SVC shows a small growth in Revenue. The Revenue has grown by 0.80% in the last 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

SVC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.35% yearly.
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-4.83%
Revenue Next 2Y-7.12%
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.
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.
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 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 79.84% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.61
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

With a Yearly Dividend Yield of 1.81%, SVC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.62, SVC's dividend is way lower than its industry peers. On top of this 87.60% 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 2.36.
Industry RankSector Rank
Dividend Yield 1.81%

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.
SVC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-22.3%
Div Incr Years2
Div Non Decr Years2
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 (5/19/2025, 8:14:17 PM)

After market: 2.3 +0.09 (+4.07%)

2.21

-0.01 (-0.45%)

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 Change0.03%
Ins Owners5.59%
Ins Owner Change0%
Market Cap366.00M
Analysts72.5
Price Target2.82 (27.6%)
Short Float %2.85%
Short Ratio1.87
Dividend
Industry RankSector Rank
Dividend Yield 1.81%
Yearly Dividend0.61
Dividend Growth(5Y)-22.3%
DP-22.21%
Div Incr Years2
Div Non Decr Years2
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)-24.2%
PT rev (3m)-7%
EPS NQ rev (1m)-21.43%
EPS NQ rev (3m)-70%
EPS NY rev (1m)-28.36%
EPS NY rev (3m)-433.98%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)-0.28%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.19
P/FCF N/A
P/OCF 2.05
P/B 0.5
P/tB 0.58
EV/EBITDA 10.61
EPS(TTM)-1.89
EYN/A
EPS(NY)-1.32
Fwd EYN/A
FCF(TTM)-0.67
FCFYN/A
OCF(TTM)1.08
OCFY48.78%
SpS11.45
BVpS4.44
TBVpS3.81
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 -0.44
F-Score5
WACC5.82%
ROIC/WACC0.41
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-4.83%
Revenue Next 2Y-7.12%
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 Year769.73%
EBIT Next 3Y98.82%
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%