SUMMIT HOTEL PROPERTIES INC (INN) Stock Fundamental Analysis
USA - NYSE:INN - US8660821005 - REIT
5.73 USD
-0.02 (-0.35%)
5.73 USD
0 (0%)
Overall INN gets a fundamental rating of 2 out of 10. We evaluated INN against 129 industry peers in the Diversified REITs industry. Both the profitability and financial health of INN have multiple concerns. INN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
INN had negative earnings in the past year.
In the past year INN had a positive cash flow from operations.
In the past 5 years INN reported 4 times negative net income.
Of the past 5 years INN 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.35%, INN is not doing good in the industry: 61.24% of the companies in the same industry are doing better.
INN's Return On Equity of -1.11% is on the low side compared to the rest of the industry. INN is outperformed by 61.24% of its industry peers.
INN's Return On Invested Capital of 2.08% is in line compared to the rest of the industry. INN outperforms 40.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for INN is in line with the industry average of 3.04%.
The 3 year average ROIC (2.00%) for INN is below the current ROIC(2.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.35% | ||
| ROE | -1.11% | ||
| ROIC | 2.08% |
ROA(3y)-0.22%
ROA(5y)-2.29%
ROE(3y)-0.7%
ROE(5y)-5.39%
ROIC(3y)2%
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of INN has declined.
The Operating Margin of INN (9.99%) is worse than 76.74% of its industry peers.
INN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 42.02%, INN is doing worse than 82.95% of the companies in the same industry.
INN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.99% | ||
| PM (TTM) | N/A | ||
| GM | 42.02% |
OM growth 3YN/A
OM growth 5Y-4.42%
PM growth 3YN/A
PM growth 5Y-22.69%
GM growth 3Y1.41%
GM growth 5Y-0.69%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so INN is destroying value.
The number of shares outstanding for INN has been increased compared to 1 year ago.
The number of shares outstanding for INN has been increased compared to 5 years ago.
The debt/assets ratio for INN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.33, we must say that INN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of INN (0.33) is worse than 62.79% of its industry peers.
The Debt to FCF ratio of INN is 21.54, which is on the high side as it means it would take INN, 21.54 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 21.54, INN is doing good in the industry, outperforming 75.19% of the companies in the same industry.
A Debt/Equity ratio of 1.59 is on the high side and indicates that INN has dependencies on debt financing.
INN has a Debt to Equity ratio of 1.59. This is in the lower half of the industry: INN underperforms 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 21.54 | ||
| Altman-Z | 0.33 |
ROIC/WACC0.29
WACC7.06%
2.3 Liquidity
INN has a Current Ratio of 0.67. This is a bad value and indicates that INN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.67, INN is doing worse than 69.77% of the companies in the same industry.
A Quick Ratio of 0.67 indicates that INN may have some problems paying its short term obligations.
With a Quick ratio value of 0.67, INN is not doing good in the industry: 67.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
INN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -648518346341351552.00%.
The earnings per share for INN have been decreasing by -22.65% on average. This is quite bad
INN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.77%.
Measured over the past years, INN shows a small growth in Revenue. The Revenue has been growing by 5.90% on average per year.
EPS 1Y (TTM)-648518346341351600%
EPS 3YN/A
EPS 5Y-22.65%
EPS Q2Q%-108.7%
Revenue 1Y (TTM)-21.77%
Revenue growth 3Y26.45%
Revenue growth 5Y5.9%
Sales Q2Q%-0.51%
3.2 Future
INN is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -76.70% yearly.
INN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.61% yearly.
EPS Next Y-178.56%
EPS Next 2Y-76.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.33%
Revenue Next 2Y1.79%
Revenue Next 3Y1.61%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for INN. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for INN. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INN is valued cheaply inside the industry as 91.47% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, INN is valued cheaply inside the industry as 91.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.42 | ||
| EV/EBITDA | 9.13 |
4.3 Compensation for Growth
INN's earnings are expected to decrease with -76.70% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-76.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.54%, INN is a good candidate for dividend investing.
INN's Dividend Yield is comparable with the industry average which is at 6.63.
Compared to an average S&P500 Dividend Yield of 2.41, INN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.54% |
5.2 History
The dividend of INN decreases each year by -9.83%.
INN has been paying a dividend for at least 10 years, so it has a reliable track record.
INN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.83%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
INN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The Dividend Rate of INN has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-584.4%
EPS Next 2Y-76.7%
EPS Next 3YN/A
5.73
-0.02 (-0.35%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners89.37%
Inst Owner Change5.48%
Ins Owners3.58%
Ins Owner Change-2.18%
Market Cap623.48M
Analysts72
Price Target6.57 (14.66%)
Short Float %5.53%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.54% |
Yearly Dividend0.52
Dividend Growth(5Y)-9.83%
DP-584.4%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-177.23%
Min EPS beat(2)-296.04%
Max EPS beat(2)-58.42%
EPS beat(4)2
Avg EPS beat(4)-52.64%
Min EPS beat(4)-296.04%
Max EPS beat(4)109.9%
EPS beat(8)4
Avg EPS beat(8)55.35%
EPS beat(12)7
Avg EPS beat(12)38.79%
EPS beat(16)9
Avg EPS beat(16)42.72%
Revenue beat(2)0
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-2.08%
Max Revenue beat(2)-0.75%
Revenue beat(4)0
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)-0.5%
Revenue beat(8)1
Avg Revenue beat(8)-0.99%
Revenue beat(12)4
Avg Revenue beat(12)-0.67%
Revenue beat(16)7
Avg Revenue beat(16)0.55%
PT rev (1m)-3.74%
PT rev (3m)-6.36%
EPS NQ rev (1m)-28.57%
EPS NQ rev (3m)-12.5%
EPS NY rev (1m)-600%
EPS NY rev (3m)-366.67%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.86 | ||
| P/FCF | 9.42 | ||
| P/OCF | 3.84 | ||
| P/B | 0.7 | ||
| P/tB | 0.7 | ||
| EV/EBITDA | 9.13 |
EPS(TTM)-0.09
EYN/A
EPS(NY)-0.2
Fwd EYN/A
FCF(TTM)0.61
FCFY10.62%
OCF(TTM)1.49
OCFY26.07%
SpS6.68
BVpS8.23
TBVpS8.23
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.35% | ||
| ROE | -1.11% | ||
| ROCE | 2.64% | ||
| ROIC | 2.08% | ||
| ROICexc | 2.11% | ||
| ROICexgc | 2.13% | ||
| OM | 9.99% | ||
| PM (TTM) | N/A | ||
| GM | 42.02% | ||
| FCFM | 9.1% |
ROA(3y)-0.22%
ROA(5y)-2.29%
ROE(3y)-0.7%
ROE(5y)-5.39%
ROIC(3y)2%
ROIC(5y)N/A
ROICexc(3y)2.03%
ROICexc(5y)N/A
ROICexgc(3y)2.05%
ROICexgc(5y)N/A
ROCE(3y)2.54%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-2.78%
ROICexc growth 3YN/A
ROICexc growth 5Y-2.8%
OM growth 3YN/A
OM growth 5Y-4.42%
PM growth 3YN/A
PM growth 5Y-22.69%
GM growth 3Y1.41%
GM growth 5Y-0.69%
F-Score2
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 21.54 | ||
| Debt/EBITDA | 6.47 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.98 | ||
| Cash Conversion | 73.78% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 0.33 |
F-Score2
WACC7.06%
ROIC/WACC0.29
Cap/Depr(3y)95.41%
Cap/Depr(5y)68.38%
Cap/Sales(3y)20.55%
Cap/Sales(5y)15.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-648518346341351600%
EPS 3YN/A
EPS 5Y-22.65%
EPS Q2Q%-108.7%
EPS Next Y-178.56%
EPS Next 2Y-76.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-21.77%
Revenue growth 3Y26.45%
Revenue growth 5Y5.9%
Sales Q2Q%-0.51%
Revenue Next Year1.33%
Revenue Next 2Y1.79%
Revenue Next 3Y1.61%
Revenue Next 5YN/A
EBIT growth 1Y-32.93%
EBIT growth 3YN/A
EBIT growth 5Y1.23%
EBIT Next Year136.58%
EBIT Next 3Y34.26%
EBIT Next 5YN/A
FCF growth 1Y-41.62%
FCF growth 3Y114.42%
FCF growth 5YN/A
OCF growth 1Y0.45%
OCF growth 3Y36.01%
OCF growth 5Y2.29%