HOST HOTELS & RESORTS INC (HST) Stock Fundamental Analysis
USA - NASDAQ:HST - US44107P1049 - REIT
17.52 USD
-0.14 (-0.79%)
17.5767 USD
+0.06 (+0.32%)
HST gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. Both the profitability and the financial health of HST get a neutral evaluation. Nothing too spectacular is happening here. HST is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HST had positive earnings in the past year.
HST had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HST reported negative net income in multiple years.
Of the past 5 years HST 4 years had a positive operating cash flow.
1.2 Ratios
HST has a better Return On Assets (5.08%) than 95.38% of its industry peers.
With an excellent Return On Equity value of 9.93%, HST belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
The Return On Invested Capital of HST (5.33%) is better than 93.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HST is above the industry average of 3.05%.
The 3 year average ROIC (5.17%) for HST is below the current ROIC(5.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 9.93% | ||
| ROIC | 5.33% |
ROA(3y)5.52%
ROA(5y)2.15%
ROE(3y)10.38%
ROE(5y)3.87%
ROIC(3y)5.17%
ROIC(5y)N/A
1.3 Margins
HST's Profit Margin of 11.12% is fine compared to the rest of the industry. HST outperforms 61.54% of its industry peers.
In the last couple of years the Profit Margin of HST has declined.
With a Operating Margin value of 13.80%, HST is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
HST's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.8% | ||
| PM (TTM) | 11.12% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y-1.5%
PM growth 3YN/A
PM growth 5Y-6.13%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HST has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HST has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HST has been reduced compared to 5 years ago.
The debt/assets ratio for HST is higher compared to a year ago.
2.2 Solvency
HST has an Altman-Z score of 1.76. This is a bad value and indicates that HST is not financially healthy and even has some risk of bankruptcy.
HST's Altman-Z score of 1.76 is amongst the best of the industry. HST outperforms 93.08% of its industry peers.
HST has a debt to FCF ratio of 6.29. This is a slightly negative value and a sign of low solvency as HST would need 6.29 years to pay back of all of its debts.
HST has a better Debt to FCF ratio (6.29) than 95.38% of its industry peers.
HST has a Debt/Equity ratio of 0.76. This is a neutral value indicating HST is somewhat dependend on debt financing.
The Debt to Equity ratio of HST (0.76) is better than 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6.29 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.75
WACC7.08%
2.3 Liquidity
A Current Ratio of 1.03 indicates that HST should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.03, HST is in line with its industry, outperforming 51.54% of the companies in the same industry.
A Quick Ratio of 1.03 indicates that HST should not have too much problems paying its short term obligations.
HST has a Quick ratio of 1.03. This is comparable to the rest of the industry: HST outperforms 52.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
HST shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.15%.
Measured over the past years, HST shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.56% on average per year.
Looking at the last year, HST shows a quite strong growth in Revenue. The Revenue has grown by 8.28% in the last year.
The Revenue has been growing slightly by 0.77% on average over the past years.
EPS 1Y (TTM)-12.15%
EPS 3Y114.72%
EPS 5Y-4.56%
EPS Q2Q%-5.88%
Revenue 1Y (TTM)8.28%
Revenue growth 3Y25.29%
Revenue growth 5Y0.77%
Sales Q2Q%8.19%
3.2 Future
The Earnings Per Share is expected to grow by 7.85% on average over the next years.
The Revenue is expected to grow by 3.40% on average over the next years.
EPS Next Y-11.24%
EPS Next 2Y-9.85%
EPS Next 3Y-10.19%
EPS Next 5Y7.85%
Revenue Next Year5.91%
Revenue Next 2Y3.77%
Revenue Next 3Y3.36%
Revenue Next 5Y3.4%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
HST is valuated rather expensively with a Price/Earnings ratio of 18.64.
Compared to the rest of the industry, the Price/Earnings ratio of HST indicates a rather cheap valuation: HST is cheaper than 87.69% of the companies listed in the same industry.
HST is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
HST is valuated rather expensively with a Price/Forward Earnings ratio of 21.77.
HST's Price/Forward Earnings ratio is rather cheap when compared to the industry. HST is cheaper than 90.77% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, HST is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 21.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HST is valued cheaper than 83.85% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HST is valued cheaply inside the industry as 82.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.93 | ||
| EV/EBITDA | 10.26 |
4.3 Compensation for Growth
HST has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as HST's earnings are expected to decrease with -10.19% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.85%
EPS Next 3Y-10.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.52%, HST is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, HST has a dividend in line with its industry peers.
HST's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
5.2 History
The dividend of HST has a limited annual growth rate of 4.32%.
HST has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.32%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
95.30% of the earnings are spent on dividend by HST. This is not a sustainable payout ratio.
The dividend of HST is growing, but earnings are growing more, so the dividend growth is sustainable.
DP95.3%
EPS Next 2Y-9.85%
EPS Next 3Y-10.19%
17.52
-0.14 (-0.79%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners109.97%
Inst Owner Change-2.11%
Ins Owners1.37%
Ins Owner Change0.21%
Market Cap12.05B
Analysts78.18
Price Target18.77 (7.13%)
Short Float %6.57%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
Yearly Dividend1.05
Dividend Growth(5Y)4.32%
DP95.3%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)36.58%
Min EPS beat(2)26.47%
Max EPS beat(2)46.68%
EPS beat(4)4
Avg EPS beat(4)26.79%
Min EPS beat(4)16.77%
Max EPS beat(4)46.68%
EPS beat(8)6
Avg EPS beat(8)20.58%
EPS beat(12)8
Avg EPS beat(12)17.79%
EPS beat(16)12
Avg EPS beat(16)246.28%
Revenue beat(2)2
Avg Revenue beat(2)3.02%
Min Revenue beat(2)2.11%
Max Revenue beat(2)3.93%
Revenue beat(4)4
Avg Revenue beat(4)2.54%
Min Revenue beat(4)0.84%
Max Revenue beat(4)3.93%
Revenue beat(8)6
Avg Revenue beat(8)1.51%
Revenue beat(12)7
Avg Revenue beat(12)1.09%
Revenue beat(16)11
Avg Revenue beat(16)3%
PT rev (1m)2.08%
PT rev (3m)3.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.67%
EPS NY rev (1m)13.48%
EPS NY rev (3m)15.23%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 21.77 | ||
| P/S | 2.03 | ||
| P/FCF | 14.93 | ||
| P/OCF | 8.43 | ||
| P/B | 1.81 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 10.26 |
EPS(TTM)0.94
EY5.37%
EPS(NY)0.8
Fwd EY4.59%
FCF(TTM)1.17
FCFY6.7%
OCF(TTM)2.08
OCFY11.86%
SpS8.62
BVpS9.65
TBVpS9.65
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 9.93% | ||
| ROCE | 6.74% | ||
| ROIC | 5.33% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 5.96% | ||
| OM | 13.8% | ||
| PM (TTM) | 11.12% | ||
| GM | N/A | ||
| FCFM | 13.62% |
ROA(3y)5.52%
ROA(5y)2.15%
ROE(3y)10.38%
ROE(5y)3.87%
ROIC(3y)5.17%
ROIC(5y)N/A
ROICexc(3y)5.67%
ROICexc(5y)N/A
ROICexgc(3y)5.92%
ROICexgc(5y)N/A
ROCE(3y)6.54%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-3.28%
ROICexc growth 3YN/A
ROICexc growth 5Y-3.47%
OM growth 3YN/A
OM growth 5Y-1.5%
PM growth 3YN/A
PM growth 5Y-6.13%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6.29 | ||
| Debt/EBITDA | 3.17 | ||
| Cap/Depr | 79.24% | ||
| Cap/Sales | 10.49% | ||
| Interest Coverage | 4.09 | ||
| Cash Conversion | 89.15% | ||
| Profit Quality | 122.46% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 1.76 |
F-Score5
WACC7.08%
ROIC/WACC0.75
Cap/Depr(3y)80.17%
Cap/Depr(5y)74.32%
Cap/Sales(3y)10.69%
Cap/Sales(5y)15.53%
Profit Quality(3y)129.27%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.15%
EPS 3Y114.72%
EPS 5Y-4.56%
EPS Q2Q%-5.88%
EPS Next Y-11.24%
EPS Next 2Y-9.85%
EPS Next 3Y-10.19%
EPS Next 5Y7.85%
Revenue 1Y (TTM)8.28%
Revenue growth 3Y25.29%
Revenue growth 5Y0.77%
Sales Q2Q%8.19%
Revenue Next Year5.91%
Revenue Next 2Y3.77%
Revenue Next 3Y3.36%
Revenue Next 5Y3.4%
EBIT growth 1Y10.09%
EBIT growth 3YN/A
EBIT growth 5Y-0.74%
EBIT Next Year96.65%
EBIT Next 3Y27.26%
EBIT Next 5Y20.16%
FCF growth 1Y-14.24%
FCF growth 3YN/A
FCF growth 5Y6.54%
OCF growth 1Y-6.48%
OCF growth 3Y72.47%
OCF growth 5Y3.69%