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Hersha Hospitality Trust (HT) Stock Fundamental Analysis

NYSE:HT - New York Stock Exchange, Inc. - US4278255009 - REIT - Currency: USD

9.99  -0.01 (-0.1%)

After market: 9.995 +0 (+0.05%)

Fundamental Rating

4

HT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. While HT seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, HT is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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3

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.
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 2015 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.
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.
With a Return On Invested Capital value of 1.68%, HT is not doing good in the industry: 69.77% of the companies in the same industry are doing better.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 10 -10 -20 -30

1.3 Margins

With a Profit Margin value of 2.54%, HT perfoms like the industry average, outperforming 44.19% of the companies in the same industry.
HT's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 7.75%, HT is not doing good in the industry: 83.72% of the companies in the same industry are doing better.
HT's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 30.04%, HT is not doing good in the industry: 90.70% of the companies in the same industry are doing better.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 -50 -100

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5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HT is destroying value.
Compared to 1 year ago, HT has more shares outstanding
Compared to 1 year ago, HT has an improved debt to assets ratio.
HT Yearly Shares OutstandingHT Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B

2.2 Solvency

Based on the Altman-Z score of 0.22, we must say that HT is in the distress zone and has some risk of bankruptcy.
HT has a worse Altman-Z score (0.22) than 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'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.
The Debt to Equity ratio of HT (0.88) is better 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 2015 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's Current ratio of 2.39 is amongst the best of the industry. HT outperforms 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 2015 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M 200M

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4

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.
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

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.
The Revenue is expected to decrease by -0.82% on average over the next years.
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.
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 2014 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 2014 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

The Price/Earnings ratio is 58.76, which means the current valuation is very expensive for HT.
Compared to the rest of the industry, the Price/Earnings ratio of HT is on the same level as its industry peers.
When comparing the Price/Earnings ratio of HT to the average of the S&P500 Index (28.47), 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 80

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.
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 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 18.71, 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 2.28.
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 2015 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 2015 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

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 2023-11-09/amc
Earnings (Next)02-13 2024-02-13/amc
Inst Owners0.13%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change0%
Market Cap402.60M
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
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
ROICexcg growth 3Y16.11%
ROICexcg 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%