Hersha Hospitality Trust (HT) Fundamental Analysis & Valuation

NYSE:HT • US4278255009

Current stock price

9.99 USD
-0.01 (-0.1%)
At close:
9.995 USD
+0 (+0.05%)
After Hours:

This HT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. HT Profitability Analysis

1.1 Basic Checks

  • HT had positive earnings in the past year.
  • HT had a positive operating cash flow in the past year.
HT Yearly Net Income VS EBIT VS OCF VS FCFHT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 100M -100M -200M

1.2 Ratios

  • HT has a Return On Assets of 0.66%. This is comparable to the rest of the industry: HT outperforms 50.39% of its industry peers.
  • The Return On Equity of HT (1.40%) is comparable to the rest of the industry.
  • The Return On Invested Capital of HT (1.68%) is worse than 69.77% of its industry peers.
Industry RankSector Rank
ROA 0.66%
ROE 1.4%
ROIC 1.68%
ROA(3y)-1.59%
ROA(5y)-1.35%
ROE(3y)-7.91%
ROE(5y)-5.77%
ROIC(3y)N/A
ROIC(5y)N/A
HT Yearly ROA, ROE, ROICHT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 10 -10 -20 -30

1.3 Margins

  • HT has a Profit Margin (2.54%) which is in line with its industry peers.
  • HT's Profit Margin has improved in the last couple of years.
  • HT has a worse Operating Margin (7.75%) than 83.72% of its industry peers.
  • HT's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 30.04%, HT is doing worse than 90.70% of the companies in the same industry.
  • In the last couple of years the Gross Margin of HT has remained more or less at the same level.
Industry RankSector Rank
OM 7.75%
PM (TTM) 2.54%
GM 30.04%
OM growth 3Y5.9%
OM growth 5Y-2.93%
PM growth 3YN/A
PM growth 5Y14.8%
GM growth 3Y1.03%
GM growth 5Y-0.4%
HT Yearly Profit, Operating, Gross MarginsHT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 -50 -100

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5

2. HT Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HT is destroying value.
  • The number of shares outstanding for HT has been increased compared to 1 year ago.
  • The debt/assets ratio for HT has been reduced compared to a year ago.
HT Yearly Shares OutstandingHT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M 40M
HT Yearly Total Debt VS Total AssetsHT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B

2.2 Solvency

  • HT has an Altman-Z score of 0.22. This is a bad value and indicates that HT is not financially healthy and even has some risk of bankruptcy.
  • HT's Altman-Z score of 0.22 is on the low side compared to the rest of the industry. HT is outperformed by 71.32% of its industry peers.
  • The Debt to FCF ratio of HT is 25.66, which is on the high side as it means it would take HT, 25.66 years of fcf income to pay off all of its debts.
  • HT's Debt to FCF ratio of 25.66 is fine compared to the rest of the industry. HT outperforms 62.79% of its industry peers.
  • HT has a Debt/Equity ratio of 0.88. This is a neutral value indicating HT is somewhat dependend on debt financing.
  • HT's Debt to Equity ratio of 0.88 is fine compared to the rest of the industry. HT outperforms 62.79% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 25.66
Altman-Z 0.22
ROIC/WACC0.24
WACC7.12%
HT Yearly LT Debt VS Equity VS FCFHT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 500M 1B

2.3 Liquidity

  • A Current Ratio of 2.39 indicates that HT has no problem at all paying its short term obligations.
  • HT has a better Current ratio (2.39) than 82.95% of its industry peers.
  • HT has a Quick Ratio of 2.39. This indicates that HT is financially healthy and has no problem in meeting its short term obligations.
  • With an excellent Quick ratio value of 2.39, HT belongs to the best of the industry, outperforming 82.95% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.39
Quick Ratio 2.39
HT Yearly Current Assets VS Current LiabilitesHT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M 200M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. HT Growth Analysis

3.1 Past

  • HT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 110.56%, which is quite impressive.
  • The Earnings Per Share has been growing by 10.73% on average over the past years. This is quite good.
  • The Revenue for HT has decreased by -10.28% in the past year. This is quite bad
  • Measured over the past years, HT shows a decrease in Revenue. The Revenue has been decreasing by -4.02% on average per year.
EPS 1Y (TTM)110.56%
EPS 3YN/A
EPS 5Y10.73%
EPS Q2Q%81.67%
Revenue 1Y (TTM)-10.28%
Revenue growth 3Y-8.51%
Revenue growth 5Y-4.02%
Sales Q2Q%-11.71%

3.2 Future

  • The Earnings Per Share is expected to grow by 64.16% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, HT will show a decrease in Revenue. The Revenue will decrease by -0.82% on average per year.
EPS Next Y-41.37%
EPS Next 2Y-13.42%
EPS Next 3Y64.16%
EPS Next 5YN/A
Revenue Next Year-10.87%
Revenue Next 2Y-3.54%
Revenue Next 3Y-0.82%
Revenue Next 5YN/A

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.
HT Yearly Revenue VS EstimatesHT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
HT Yearly EPS VS EstimatesHT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 -2 -4

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3

4. HT Valuation Analysis

4.1 Price/Earnings Ratio

  • HT is valuated quite expensively with a Price/Earnings ratio of 58.76.
  • The rest of the industry has a similar Price/Earnings ratio as HT.
  • When comparing the Price/Earnings ratio of HT to the average of the S&P500 Index (26.17), we can say HT is valued expensively.
  • HT is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE 58.76
Fwd PE N/A
HT Price Earnings VS Forward Price EarningsHT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60

4.2 Price Multiples

  • 89.15% of the companies in the same industry are more expensive than HT, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, HT is valued a bit cheaper than 74.42% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.74
EV/EBITDA 9.78
HT Per share dataHT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

  • HT's earnings are expected to grow with 64.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)5.48
EPS Next 2Y-13.42%
EPS Next 3Y64.16%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

2

5. HT Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.00%, HT has a reasonable but not impressive dividend return.
  • With a Dividend Yield of 2.00, HT pays less dividend than the industry average, which is at 8.03. 85.27% of the companies listed in the same industry pay a better dividend than HT!
  • HT's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2%

5.2 History

  • The dividend of HT decreases each year by -19.88%.
  • HT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-19.88%
Div Incr Years0
Div Non Decr Years0
HT Yearly Dividends per shareHT Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2022 2023 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • HT pays out 618.48% of its income as dividend. This is not a sustainable payout ratio.
DP618.48%
EPS Next 2Y-13.42%
EPS Next 3Y64.16%
HT Yearly Income VS Free CF VS DividendHT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 100M -100M -200M
HT Dividend Payout.HT Dividend Payout, showing the Payout Ratio.HT Dividend Payout.PayoutRetained Earnings

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HT Fundamentals: All Metrics, Ratios and Statistics

Hersha Hospitality Trust

NYSE:HT (11/27/2023, 8:12:15 PM)

After market: 9.995 +0 (+0.05%)

9.99

-0.01 (-0.1%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-09
Earnings (Next)02-13
Inst Owners0.13%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap402.60M
Revenue(TTM)361.50M
Net Income(TTM)9.20M
Analysts49.41
Price Target9.88 (-1.1%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2%
Yearly Dividend0.67
Dividend Growth(5Y)-19.88%
DP618.48%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)365.77%
Min EPS beat(2)54.84%
Max EPS beat(2)676.7%
EPS beat(4)4
Avg EPS beat(4)388.16%
Min EPS beat(4)4.5%
Max EPS beat(4)816.6%
EPS beat(8)7
Avg EPS beat(8)183.57%
EPS beat(12)10
Avg EPS beat(12)122.52%
EPS beat(16)10
Avg EPS beat(16)84.32%
Revenue beat(2)0
Avg Revenue beat(2)-2.09%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)-1.71%
Revenue beat(4)0
Avg Revenue beat(4)-2.76%
Min Revenue beat(4)-4.46%
Max Revenue beat(4)-1.71%
Revenue beat(8)2
Avg Revenue beat(8)-2.03%
Revenue beat(12)4
Avg Revenue beat(12)-2.82%
Revenue beat(16)4
Avg Revenue beat(16)-5.43%
PT rev (1m)0%
PT rev (3m)1.31%
EPS NQ rev (1m)23.08%
EPS NQ rev (3m)23.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.53%
Revenue NQ rev (1m)-4.26%
Revenue NQ rev (3m)-4.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
Industry RankSector Rank
PE 58.76
Fwd PE N/A
P/S 1.11
P/FCF 17.74
P/OCF 6.97
P/B 0.61
P/tB 0.61
EV/EBITDA 9.78
EPS(TTM)0.17
EY1.7%
EPS(NY)-0.66
Fwd EYN/A
FCF(TTM)0.56
FCFY5.64%
OCF(TTM)1.43
OCFY14.36%
SpS8.97
BVpS16.34
TBVpS16.32
PEG (NY)N/A
PEG (5Y)5.48
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 0.66%
ROE 1.4%
ROCE 2.12%
ROIC 1.68%
ROICexc 1.88%
ROICexgc 1.91%
OM 7.75%
PM (TTM) 2.54%
GM 30.04%
FCFM 6.28%
ROA(3y)-1.59%
ROA(5y)-1.35%
ROE(3y)-7.91%
ROE(5y)-5.77%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y16.11%
ROICexgc growth 5Y4.4%
ROICexc growth 3Y15.5%
ROICexc growth 5Y4.24%
OM growth 3Y5.9%
OM growth 5Y-2.93%
PM growth 3YN/A
PM growth 5Y14.8%
GM growth 3Y1.03%
GM growth 5Y-0.4%
F-Score5
Asset Turnover0.26
Health
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 25.66
Debt/EBITDA 6.79
Cap/Depr 60.73%
Cap/Sales 9.71%
Interest Coverage 0.63
Cash Conversion 67.37%
Profit Quality 246.74%
Current Ratio 2.39
Quick Ratio 2.39
Altman-Z 0.22
F-Score5
WACC7.12%
ROIC/WACC0.24
Cap/Depr(3y)24.22%
Cap/Depr(5y)56.3%
Cap/Sales(3y)8.13%
Cap/Sales(5y)12.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)110.56%
EPS 3YN/A
EPS 5Y10.73%
EPS Q2Q%81.67%
EPS Next Y-41.37%
EPS Next 2Y-13.42%
EPS Next 3Y64.16%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.28%
Revenue growth 3Y-8.51%
Revenue growth 5Y-4.02%
Sales Q2Q%-11.71%
Revenue Next Year-10.87%
Revenue Next 2Y-3.54%
Revenue Next 3Y-0.82%
Revenue Next 5YN/A
EBIT growth 1Y-19.54%
EBIT growth 3Y-3.11%
EBIT growth 5Y-6.83%
EBIT Next Year194.17%
EBIT Next 3Y50.08%
EBIT Next 5YN/A
FCF growth 1Y191.9%
FCF growth 3Y-1.25%
FCF growth 5YN/A
OCF growth 1Y566.13%
OCF growth 3Y-9.82%
OCF growth 5Y-6.73%

Hersha Hospitality Trust / HT Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for Hersha Hospitality Trust?

ChartMill assigns a fundamental rating of 4 / 10 to HT.


What is the valuation status for HT stock?

ChartMill assigns a valuation rating of 3 / 10 to Hersha Hospitality Trust (HT). This can be considered as Overvalued.


What is the profitability of HT stock?

Hersha Hospitality Trust (HT) has a profitability rating of 3 / 10.


What is the financial health of Hersha Hospitality Trust (HT) stock?

The financial health rating of Hersha Hospitality Trust (HT) is 6 / 10.


Is the dividend of Hersha Hospitality Trust sustainable?

The dividend rating of Hersha Hospitality Trust (HT) is 2 / 10 and the dividend payout ratio is 618.48%.