Overall HT gets a fundamental rating of 3 out of 10. We evaluated HT against 125 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.

1.2 Ratios

Looking at the Return On Assets, with a value of 0.66%, HT is in line with its industry, outperforming 50.39% of the companies in the same industry.
HT has a Return On Equity of 1.40%. This is comparable to the rest of the industry: HT outperforms 45.74% of its industry peers.
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 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

The Profit Margin of HT (2.54%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HT has grown nicely.
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.
In the last couple of years the Operating Margin of HT has declined.
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.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
HT has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, HT has an improved debt to assets ratio.

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.
The Debt to FCF ratio of HT (25.66) is better than 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 Debt to Equity ratio of 0.88. This is in the better half of the industry: HT outperforms 62.79% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.88
Debt/FCF	25.66
Altman-Z	0.22

ROIC/WACC0.24

WACC7.12%

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.
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

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 110.56% over the past year.
HT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.73% yearly.
Looking at the last year, HT shows a very negative growth in Revenue. The Revenue has decreased by -10.28% in the last year.
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

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.

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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.
When comparing the Price/Earnings ratio of HT to the average of the S&P500 Index (27.32), we can say HT is valued expensively.
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

HT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HT is cheaper than 89.15% of the companies in the same industry.
74.42% of the companies in the same industry are more expensive than HT, based on the Price/Free Cash Flow ratio.

		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%

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5. Dividend

5.1 Amount

HT has a Yearly Dividend Yield of 2.00%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.59, 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 1.83.

		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%

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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%.