SUMMIT HOTEL PROPERTIES INC (INN) Stock Fundamental Analysis
NYSE:INN - New York Stock Exchange, Inc. - US8660821005 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to INN. INN was compared to 129 industry peers in the Diversified REITs industry. INN has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, INN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
INN had positive earnings in the past year.
INN had a positive operating cash flow in the past year.
In the past 5 years INN reported 4 times negative net income.
INN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.70%, INN is in line with its industry, outperforming 52.71% of the companies in the same industry.
INN's Return On Equity of 2.19% is in line compared to the rest of the industry. INN outperforms 53.49% of its industry peers.
With a Return On Invested Capital value of 2.87%, INN perfoms like the industry average, outperforming 57.36% of the companies in the same industry.
INN had an Average Return On Invested Capital over the past 3 years of 2.00%. This is in line with the industry average of 3.15%.
The last Return On Invested Capital (2.87%) for INN is above the 3 year average (2.00%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 2.19% | ||
| ROIC | 2.87% |
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
INN has a Profit Margin (2.20%) which is in line with its industry peers.
INN's Profit Margin has declined in the last couple of years.
INN has a worse Operating Margin (11.04%) than 75.97% of its industry peers.
INN's Operating Margin has declined in the last couple of years.
INN has a worse Gross Margin (42.86%) than 82.17% of its industry peers.
In the last couple of years the Gross Margin of INN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.04% | ||
| PM (TTM) | 2.2% | ||
| GM | 42.86% |
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
INN 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 INN has been increased compared to 1 year ago.
The number of shares outstanding for INN has been increased compared to 5 years ago.
INN has a better debt/assets ratio than last year.
2.2 Solvency
INN has an Altman-Z score of 0.44. This is a bad value and indicates that INN is not financially healthy and even has some risk of bankruptcy.
INN's Altman-Z score of 0.44 is in line compared to the rest of the industry. INN outperforms 45.74% of its industry peers.
INN has a debt to FCF ratio of 20.94. This is a negative value and a sign of low solvency as INN would need 20.94 years to pay back of all of its debts.
INN has a Debt to FCF ratio of 20.94. This is in the better half of the industry: INN outperforms 77.52% of its industry peers.
INN has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.54, INN is not doing good in the industry: 62.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 20.94 | ||
| Altman-Z | 0.44 |
ROIC/WACC0.4
WACC7.12%
2.3 Liquidity
INN has a Current Ratio of 0.78. 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 0.78, INN is doing worse than 62.02% of the companies in the same industry.
INN has a Quick Ratio of 0.78. This is a bad value and indicates that INN is not financially healthy enough and could expect problems in meeting its short term obligations.
INN has a Quick ratio (0.78) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
INN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 166.67%, which is quite impressive.
The earnings per share for INN have been decreasing by -22.65% on average. This is quite bad
INN shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.51%.
INN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.90% yearly.
EPS 1Y (TTM)166.67%
EPS 3YN/A
EPS 5Y-22.65%
EPS Q2Q%-100%
Revenue 1Y (TTM)23.51%
Revenue growth 3Y26.45%
Revenue growth 5Y5.9%
Sales Q2Q%-1.95%
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 -58.27% yearly.
INN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.25% yearly.
EPS Next Y-111.22%
EPS Next 2Y-58.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.02%
Revenue Next 2Y2.26%
Revenue Next 3YN/A
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
With a Price/Earnings ratio of 34.94, INN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of INN is on the same level as its industry peers.
INN is valuated rather expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for INN. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.94 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INN indicates a rather cheap valuation: INN is cheaper than 96.12% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, INN is valued cheaper than 94.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.27 | ||
| EV/EBITDA | 8.04 |
4.3 Compensation for Growth
A cheap valuation may be justified as INN's earnings are expected to decrease with -58.27% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-58.27%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.86%, INN is a good candidate for dividend investing.
INN's Dividend Yield is comparable with the industry average which is at 6.43.
INN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.86% |
5.2 History
The dividend of INN decreases each year by -9.83%.
INN has paid a dividend for at least 10 years, which is 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 pays out 289.26% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of INN has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP289.26%
EPS Next 2Y-58.27%
EPS Next 3YN/A
5.59
+0.02 (+0.36%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners91.14%
Inst Owner Change0%
Ins Owners3.58%
Ins Owner Change27.43%
Market Cap627.31M
Analysts72
Price Target7.01 (25.4%)
Short Float %4.76%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.86% |
Yearly Dividend0.52
Dividend Growth(5Y)-9.83%
DP289.26%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)25.74%
Min EPS beat(2)-58.42%
Max EPS beat(2)109.9%
EPS beat(4)3
Avg EPS beat(4)172.88%
Min EPS beat(4)-58.42%
Max EPS beat(4)606.05%
EPS beat(8)4
Avg EPS beat(8)78.9%
EPS beat(12)8
Avg EPS beat(12)81.42%
EPS beat(16)10
Avg EPS beat(16)62.16%
Revenue beat(2)0
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)-0.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.42%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)-0.5%
Revenue beat(8)2
Avg Revenue beat(8)-0.73%
Revenue beat(12)5
Avg Revenue beat(12)-0.39%
Revenue beat(16)8
Avg Revenue beat(16)0.95%
PT rev (1m)-3.51%
PT rev (3m)-15.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20%
EPS NY rev (1m)33.33%
EPS NY rev (3m)33.33%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-2.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.94 | ||
| Fwd PE | N/A | ||
| P/S | 0.68 | ||
| P/FCF | 9.27 | ||
| P/OCF | 3.82 | ||
| P/B | 0.68 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 8.04 |
EPS(TTM)0.16
EY2.86%
EPS(NY)-0.09
Fwd EYN/A
FCF(TTM)0.6
FCFY10.79%
OCF(TTM)1.46
OCFY26.15%
SpS8.16
BVpS8.2
TBVpS8.2
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 2.19% | ||
| ROCE | 3.63% | ||
| ROIC | 2.87% | ||
| ROICexc | 2.92% | ||
| ROICexgc | 2.95% | ||
| OM | 11.04% | ||
| PM (TTM) | 2.2% | ||
| GM | 42.86% | ||
| FCFM | 7.39% |
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-Score6
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 20.94 | ||
| Debt/EBITDA | 5.72 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.35 | ||
| Cash Conversion | 66.14% | ||
| Profit Quality | 335.97% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 0.44 |
F-Score6
WACC7.12%
ROIC/WACC0.4
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)166.67%
EPS 3YN/A
EPS 5Y-22.65%
EPS Q2Q%-100%
EPS Next Y-111.22%
EPS Next 2Y-58.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)23.51%
Revenue growth 3Y26.45%
Revenue growth 5Y5.9%
Sales Q2Q%-1.95%
Revenue Next Year2.02%
Revenue Next 2Y2.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y24.72%
EBIT growth 3YN/A
EBIT growth 5Y1.23%
EBIT Next Year139.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-58.21%
FCF growth 3Y114.42%
FCF growth 5YN/A
OCF growth 1Y-6.86%
OCF growth 3Y36.01%
OCF growth 5Y2.29%