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Hersha Hospitality Trust (HT) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:HT - US4278255009 - REIT

9.99 USD
-0.01 (-0.1%)
Last: 11/27/2023, 8:12:15 PM
9.995 USD
+0 (+0.05%)
After Hours: 11/27/2023, 8:12:15 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to HT. HT was compared to 124 industry peers in the Diversified REITs industry. While HT seems to be doing ok healthwise, there are quite some concerns on its profitability. HT is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

  • HT had positive earnings in the past year.
  • In the past year HT had a positive cash flow from operations.
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

  • The Return On Assets of HT (0.66%) is comparable to the rest of the industry.
  • Looking at the Return On Equity, with a value of 1.40%, HT is in line with its industry, outperforming 45.74% of the companies in the same industry.
  • HT's Return On Invested Capital of 1.68% is on the low side compared to the rest of the industry. HT is outperformed by 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

  • The Profit Margin of HT (2.54%) is comparable to the rest of the industry.
  • HT's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 7.75%, HT is doing worse than 83.72% of the companies in the same industry.
  • HT's Operating Margin has declined in the last couple of years.
  • The Gross Margin of HT (30.04%) is worse than 90.70% of its industry peers.
  • HT's Gross Margin has been stable in the last couple of years.
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. Health

2.1 Basic Checks

  • HT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for HT has been increased compared to 1 year ago.
  • HT has a better debt/assets ratio than last year.
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.
  • Looking at the Altman-Z score, with a value of 0.22, HT is doing worse than 71.32% of the companies in the same industry.
  • 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.
  • A Debt/Equity ratio of 0.88 indicates that HT is somewhat dependend on debt financing.
  • HT has a better Debt to Equity ratio (0.88) than 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.
  • The Current ratio of HT (2.39) is better 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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4

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.
  • HT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.73% yearly.
  • HT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.28%.
  • HT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.02% yearly.
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.
  • 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.
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. Valuation

4.1 Price/Earnings Ratio

  • HT is valuated quite expensively with a Price/Earnings ratio of 58.76.
  • Compared to the rest of the industry, the Price/Earnings ratio of HT is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 28.60, HT is valued quite 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

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, HT is valued cheaper than 89.15% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of HT indicates a somewhat cheap valuation: HT is cheaper than 74.42% of the companies listed 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

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

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2

5. Dividend

5.1 Amount

  • HT has a Yearly Dividend Yield of 2.00%.
  • Compared to an average industry Dividend Yield of 6.82, HT's dividend is way lower than its industry peers. On top of this 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 1.82.
Industry RankSector 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
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

  • 618.48% of the earnings are spent on dividend by HT. 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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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.


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.


How profitable is Hersha Hospitality Trust (HT) stock?

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


What is the valuation of Hersha Hospitality Trust based on its PE and PB ratios?

The Price/Earnings (PE) ratio for Hersha Hospitality Trust (HT) is 58.76 and the Price/Book (PB) ratio is 0.61.


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%.