Hersha Hospitality Trust (HT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HT - US4278255009 - REIT
9.99 USD
-0.01 (-0.1%)
9.995 USD
+0 (+0.05%)
We assign a fundamental rating of 4 out of 10 to HT. HT was compared to 127 industry peers in the Diversified REITs industry. HT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. HT is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
HT had positive earnings in the past year.
HT had a positive operating cash flow in the past year.
HT had negative earnings in 4 of the past 5 years.
HT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.66%, HT perfoms like the industry average, outperforming 50.39% of the companies in the same industry.
With a Return On Equity value of 1.40%, HT perfoms like the industry average, outperforming 45.74% of the companies in the same industry.
HT has a worse Return On Invested Capital (1.68%) than 69.77% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
Looking at the Profit Margin, with a value of 2.54%, HT is in line with its industry, outperforming 44.19% of the companies in the same industry.
In the last couple of years the Profit Margin of HT has grown nicely.
HT has a Operating Margin of 7.75%. This is amonst the worse of the industry: HT underperforms 83.72% of its industry peers.
In the last couple of years the Operating Margin of HT has declined.
HT has a Gross Margin of 30.04%. This is amonst the worse of the industry: HT underperforms 90.70% of its industry peers.
HT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HT is destroying value.
HT has more shares outstanding than it did 1 year ago.
HT has a better debt/assets ratio than last year.
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.
HT has a debt to FCF ratio of 25.66. This is a negative value and a sign of low solvency as HT would need 25.66 years to pay back of all of its debts.
HT has a better Debt to FCF ratio (25.66) than 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.
With a decent Debt to Equity ratio value of 0.88, HT is doing good in the industry, outperforming 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 25.66 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.24
WACC7.12%
2.3 Liquidity
HT has a Current Ratio of 2.39. This indicates that HT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HT (2.39) is better than 82.95% of its industry peers.
A Quick Ratio of 2.39 indicates that HT has no problem at all paying its short term obligations.
The Quick ratio of HT (2.39) is better than 82.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.39 |
3. Growth
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.
Measured over the past years, HT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.73% on average per year.
HT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.28%.
The Revenue has been decreasing by -4.02% on average over the past years.
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
Based on estimates for the next years, HT will show a very strong growth in Earnings Per Share. The EPS will grow by 64.16% on average per year.
HT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.82% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 58.76, HT can be considered very expensive at the moment.
HT's Price/Earnings ratio is in line with the industry average.
HT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.92.
The Forward Price/Earnings Ratio is negative for HT. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.76 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HT indicates a rather cheap valuation: HT is cheaper than 89.15% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HT is valued a bit cheaper than the industry average as 74.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.74 | ||
| EV/EBITDA | 9.78 |
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%
5. Dividend
5.1 Amount
HT has a Yearly Dividend Yield of 2.00%.
With a Dividend Yield of 2.00, HT pays less dividend than the industry average, which is at 6.43. 85.27% of the companies listed in the same industry pay a better dividend than HT!
Compared to an average S&P500 Dividend Yield of 2.00, HT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
5.2 History
The dividend of HT decreases each year by -19.88%.
HT has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-19.88%
Div Incr Years0
Div Non Decr Years0
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%
9.99
-0.01 (-0.1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners0.13%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change0%
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 FAQ
Can you provide the ChartMill fundamental rating for Hersha Hospitality Trust?
ChartMill assigns a fundamental rating of 4 / 10 to HT.
Can you provide the valuation status for Hersha Hospitality Trust?
ChartMill assigns a valuation rating of 3 / 10 to Hersha Hospitality Trust (HT). This can be considered as Overvalued.
Can you provide the profitability details for Hersha Hospitality Trust?
Hersha Hospitality Trust (HT) has a profitability rating of 3 / 10.
Can you provide the financial health for HT stock?
The financial health rating of Hersha Hospitality Trust (HT) is 6 / 10.
Can you provide the dividend sustainability for HT stock?
The dividend rating of Hersha Hospitality Trust (HT) is 2 / 10 and the dividend payout ratio is 618.48%.