Logo image of HT

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

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 quite expensive at the moment. 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

  • 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.
  • 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.
  • 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

  • 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.
  • HT's Operating Margin of 7.75% is on the low side compared to the rest of the industry. HT is outperformed by 83.72% of its industry peers.
  • HT's Operating Margin has declined in the last couple of years.
  • 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 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

More info and screens

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.
  • Compared to 1 year ago, HT has an improved debt to assets ratio.
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.
  • 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 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.
  • HT has a better Current ratio (2.39) 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.
  • HT's Quick ratio of 2.39 is amongst the best of the industry. HT outperforms 82.95% of its industry peers.
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

More info and screens

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.
  • 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.
  • 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

  • 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

More info and screens

3

4. Valuation

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.
  • Compared to an average S&P500 Price/Earnings ratio of 27.21, HT is valued quite expensively.
  • The Forward Price/Earnings Ratio is negative for HT. No positive earnings are expected for the next year.
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

  • 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 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%

More info and screens

2

5. Dividend

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 6.59. 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 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

  • 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

More info and screens

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%.