SUMMIT HOTEL PROPERTIES INC (INN) Stock Fundamental Analysis
USA - NYSE:INN - US8660821005 - REIT
5.4 USD
+0.1 (+1.89%)
5.4 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. INN may be in some trouble as it scores bad on both profitability and health. 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.
INN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
INN has a Return On Assets of -0.35%. This is in the lower half of the industry: INN underperforms 61.24% of its industry peers.
Looking at the Return On Equity, with a value of -1.11%, INN is doing worse than 61.24% of the companies in the same industry.
INN has a Return On Invested Capital (2.08%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for INN is in line with the industry average of 3.01%.
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
INN's Profit Margin has declined in the last couple of years.
INN has a Operating Margin of 9.99%. This is in the lower half of the industry: INN underperforms 75.97% of its industry peers.
In the last couple of years the Operating Margin of INN has declined.
INN has a worse Gross Margin (42.02%) than 82.95% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INN is destroying value.
INN has more shares outstanding than it did 1 year ago.
INN has more shares outstanding than it did 5 years ago.
INN has a better debt/assets ratio than last year.
2.2 Solvency
INN has an Altman-Z score of 0.32. This is a bad value and indicates that INN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.32, INN is not doing good in the industry: 62.79% of the companies in the same industry are doing better.
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.
The Debt to FCF ratio of INN (21.54) is better than 75.19% of its industry peers.
INN has a Debt/Equity ratio of 1.59. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.59, 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 | 1.59 | ||
| Debt/FCF | 21.54 | ||
| Altman-Z | 0.32 |
ROIC/WACC0.31
WACC6.78%
2.3 Liquidity
A Current Ratio of 0.67 indicates that INN may have some problems paying its short term obligations.
With a Current ratio value of 0.67, INN is not doing good in the industry: 69.77% of the companies in the same industry are doing better.
INN has a Quick 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 Quick ratio, with a value of 0.67, INN is doing worse than 67.44% of the companies in the same industry.
| 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
The Revenue for INN has decreased by -21.77% in the past year. This is quite bad
INN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.90% yearly.
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
Based on estimates for the next years, INN will show a very negative growth in Earnings Per Share. The EPS will decrease by -76.70% on average per year.
The Revenue is expected to grow by 1.61% on average over the next years.
EPS Next Y-178.56%
EPS Next 2Y-76.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.65%
Revenue Next 2Y1.6%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
INN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year INN is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
INN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. INN is cheaper than 92.25% of the companies in the same industry.
INN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. INN is cheaper than 89.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.88 | ||
| EV/EBITDA | 8.96 |
4.3 Compensation for Growth
A cheap valuation may be justified as INN's earnings are expected to decrease with -76.70% in the coming years.
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 5.87%, INN is a good candidate for dividend investing.
INN's Dividend Yield is comparable with the industry average which is at 7.01.
Compared to an average S&P500 Dividend Yield of 2.44, INN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.87% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
INN's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-584.4%
EPS Next 2Y-76.7%
EPS Next 3YN/A
5.4
+0.1 (+1.89%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners99.48%
Inst Owner Change-0.07%
Ins Owners3.69%
Ins Owner Change2.26%
Market Cap587.57M
Analysts72
Price Target6.57 (21.67%)
Short Float %4.49%
Short Ratio5.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.87% |
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)0%
PT rev (3m)-6.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-125%
EPS NY rev (1m)0%
EPS NY rev (3m)-600%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.55%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.81 | ||
| P/FCF | 8.88 | ||
| P/OCF | 3.62 | ||
| P/B | 0.66 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 8.96 |
EPS(TTM)-0.09
EYN/A
EPS(NY)-0.2
Fwd EYN/A
FCF(TTM)0.61
FCFY11.27%
OCF(TTM)1.49
OCFY27.66%
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 | 0.32 |
F-Score2
WACC6.78%
ROIC/WACC0.31
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 Year0.65%
Revenue Next 2Y1.6%
Revenue Next 3Y1.61%
Revenue Next 5YN/A
EBIT growth 1Y-32.93%
EBIT growth 3YN/A
EBIT growth 5Y1.23%
EBIT Next Year131.98%
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%