HOST HOTELS & RESORTS INC (HST) Stock Fundamental Analysis
NASDAQ:HST - Nasdaq - US44107P1049 - REIT - Currency: USD
Taking everything into account, HST scores 5 out of 10 in our fundamental rating. HST was compared to 130 industry peers in the Diversified REITs industry. HST has only an average score on both its financial health and profitability. 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.
In multiple years HST reported negative net income over the last 5 years.
HST had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of HST (5.23%) is better than 94.62% of its industry peers.
The Return On Equity of HST (10.18%) is better than 89.23% of its industry peers.
The Return On Invested Capital of HST (5.12%) is better than 91.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HST is above the industry average of 3.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 10.18% | ||
| ROIC | 5.12% |
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
Looking at the Profit Margin, with a value of 11.66%, HST is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
HST's Profit Margin has declined in the last couple of years.
HST has a Operating Margin of 13.54%. This is in the lower half of the industry: HST underperforms 69.23% of its industry peers.
HST's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.54% | ||
| PM (TTM) | 11.66% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HST is destroying value.
HST has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HST has less shares outstanding
The debt/assets ratio for HST is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.62, we must say that HST is in the distress zone and has some risk of bankruptcy.
HST has a Altman-Z score of 1.62. This is amongst the best in the industry. HST outperforms 92.31% of its industry peers.
HST has a debt to FCF ratio of 6.00. This is a slightly negative value and a sign of low solvency as HST would need 6.00 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 6.00, HST belongs to the best of the industry, outperforming 96.92% of the companies in the same industry.
A Debt/Equity ratio of 0.76 indicates that HST is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.76, HST is doing good in the industry, outperforming 71.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6 | ||
| Altman-Z | 1.62 |
ROIC/WACC0.62
WACC8.22%
2.3 Liquidity
A Current Ratio of 0.99 indicates that HST may have some problems paying its short term obligations.
HST has a Current ratio (0.99) which is comparable to the rest of the industry.
HST has a Quick Ratio of 0.99. This is a bad value and indicates that HST is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of HST (0.99) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
HST shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.88%.
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.
The Revenue has been growing slightly by 7.52% in the past year.
Measured over the past years, HST shows a small growth in Revenue. The Revenue has been growing by 0.77% on average per year.
EPS 1Y (TTM)-5.88%
EPS 3Y114.72%
EPS 5Y-4.56%
EPS Q2Q%-7.89%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y25.29%
Revenue growth 5Y0.77%
Sales Q2Q%8.36%
3.2 Future
The Earnings Per Share is expected to grow by 7.85% on average over the next years.
HST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.40% yearly.
EPS Next Y-22.8%
EPS Next 2Y-10.32%
EPS Next 3Y-0.86%
EPS Next 5Y7.85%
Revenue Next Year5.17%
Revenue Next 2Y3.6%
Revenue Next 3Y3.68%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.00, which indicates a correct valuation of HST.
Based on the Price/Earnings ratio, HST is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.15, HST is valued a bit cheaper.
The Price/Forward Earnings ratio is 19.29, which indicates a rather expensive current valuation of HST.
Based on the Price/Forward Earnings ratio, HST is valued cheaper than 93.08% of the companies in the same industry.
HST is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 19.29 |
4.2 Price Multiples
HST's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HST is cheaper than 85.38% of the companies in the same industry.
HST's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HST is cheaper than 88.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.58 | ||
| EV/EBITDA | 9.8 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.32%
EPS Next 3Y-0.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.09%, HST is a good candidate for dividend investing.
HST's Dividend Yield is comparable with the industry average which is at 6.64.
Compared to an average S&P500 Dividend Yield of 2.42, HST pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
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
HST pays out 93.21% of its income as dividend. This is not a sustainable payout ratio.
HST's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP93.21%
EPS Next 2Y-10.32%
EPS Next 3Y-0.86%
15.36
-0.4 (-2.54%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners110.97%
Inst Owner Change2.8%
Ins Owners1.37%
Ins Owner Change8.42%
Market Cap10.66B
Analysts80
Price Target18.04 (17.45%)
Short Float %7.23%
Short Ratio4.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
Yearly Dividend1.05
Dividend Growth(5Y)4.32%
DP93.21%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.86%
Min EPS beat(2)17.25%
Max EPS beat(2)26.47%
EPS beat(4)3
Avg EPS beat(4)14.87%
Min EPS beat(4)-0.99%
Max EPS beat(4)26.47%
EPS beat(8)5
Avg EPS beat(8)13.16%
EPS beat(12)8
Avg EPS beat(12)17.24%
EPS beat(16)12
Avg EPS beat(16)247.14%
Revenue beat(2)2
Avg Revenue beat(2)2.68%
Min Revenue beat(2)2.11%
Max Revenue beat(2)3.25%
Revenue beat(4)3
Avg Revenue beat(4)1.28%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)3.25%
Revenue beat(8)5
Avg Revenue beat(8)0.63%
Revenue beat(12)7
Avg Revenue beat(12)1.5%
Revenue beat(16)11
Avg Revenue beat(16)3.03%
PT rev (1m)-0.43%
PT rev (3m)-10.11%
EPS NQ rev (1m)-5.43%
EPS NQ rev (3m)-6.25%
EPS NY rev (1m)0.22%
EPS NY rev (3m)5.3%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 19.29 | ||
| P/S | 1.83 | ||
| P/FCF | 12.58 | ||
| P/OCF | 7.41 | ||
| P/B | 1.6 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 9.8 |
EPS(TTM)0.96
EY6.25%
EPS(NY)0.8
Fwd EY5.18%
FCF(TTM)1.22
FCFY7.95%
OCF(TTM)2.07
OCFY13.5%
SpS8.37
BVpS9.59
TBVpS9.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 10.18% | ||
| ROCE | 6.48% | ||
| ROIC | 5.12% | ||
| ROICexc | 5.43% | ||
| ROICexgc | 5.69% | ||
| OM | 13.54% | ||
| PM (TTM) | 11.66% | ||
| GM | N/A | ||
| FCFM | 14.59% |
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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6 | ||
| Debt/EBITDA | 3.25 | ||
| Cap/Depr | 75.96% | ||
| Cap/Sales | 10.18% | ||
| Interest Coverage | 4.16 | ||
| Cash Conversion | 91.94% | ||
| Profit Quality | 125.11% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 1.62 |
F-Score5
WACC8.22%
ROIC/WACC0.62
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)-5.88%
EPS 3Y114.72%
EPS 5Y-4.56%
EPS Q2Q%-7.89%
EPS Next Y-22.8%
EPS Next 2Y-10.32%
EPS Next 3Y-0.86%
EPS Next 5Y7.85%
Revenue 1Y (TTM)7.52%
Revenue growth 3Y25.29%
Revenue growth 5Y0.77%
Sales Q2Q%8.36%
Revenue Next Year5.17%
Revenue Next 2Y3.6%
Revenue Next 3Y3.68%
Revenue Next 5Y3.4%
EBIT growth 1Y4.38%
EBIT growth 3YN/A
EBIT growth 5Y-0.74%
EBIT Next Year93.45%
EBIT Next 3Y29.3%
EBIT Next 5Y20.16%
FCF growth 1Y-9.41%
FCF growth 3YN/A
FCF growth 5Y6.54%
OCF growth 1Y-1.71%
OCF growth 3Y72.47%
OCF growth 5Y3.69%