SUMMIT HOTEL PROPERTIES INC (INN) Stock Fundamental Analysis
NYSE:INN - New York Stock Exchange, Inc. - US8660821005 - REIT
INN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals 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 is quite expensive at the moment. It does show a decent growth rate.
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.
Of the past 5 years INN 4 years had a positive operating cash flow.
1.2 Ratios
INN has a Return On Assets (0.20%) which is comparable to the rest of the industry.
INN's Return On Equity of 0.61% is in line compared to the rest of the industry. INN outperforms 46.03% of its industry peers.
INN has a better Return On Invested Capital (3.13%) than 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 0.61% | ||
| ROIC | 3.13% |
ROA(3y)-1.74%
ROA(5y)-1.89%
ROE(3y)-4.55%
ROE(5y)-4.78%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
INN has a Profit Margin of 0.60%. This is comparable to the rest of the industry: INN outperforms 43.65% of its industry peers.
INN has a Operating Margin of 11.63%. This is in the lower half of the industry: INN underperforms 74.60% of its industry peers.
In the last couple of years the Operating Margin of INN has declined.
INN has a worse Gross Margin (43.19%) than 84.13% 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 | 11.63% | ||
| PM (TTM) | 0.6% | ||
| GM | 43.19% |
OM growth 3YN/A
OM growth 5Y-7.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y11.23%
GM growth 5Y-0.76%
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.
INN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for INN has been increased compared to 5 years ago.
INN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.49, we must say that INN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.49, INN perfoms like the industry average, outperforming 43.65% of the companies in the same industry.
INN has a debt to FCF ratio of 8.12. This is a slightly negative value and a sign of low solvency as INN would need 8.12 years to pay back of all of its debts.
INN has a better Debt to FCF ratio (8.12) than 92.86% of its industry peers.
A Debt/Equity ratio of 1.47 is on the high side and indicates that INN has dependencies on debt financing.
INN has a worse Debt to Equity ratio (1.47) than 62.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 8.12 | ||
| Altman-Z | 0.49 |
ROIC/WACC0.49
WACC6.35%
2.3 Liquidity
A Current Ratio of 0.70 indicates that INN may have some problems paying its short term obligations.
The Current ratio of INN (0.70) is worse than 76.98% of its industry peers.
A Quick Ratio of 0.70 indicates that INN may have some problems paying its short term obligations.
INN has a Quick ratio of 0.70. This is in the lower half of the industry: INN underperforms 73.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
INN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 107.69%, which is quite impressive.
Looking at the last year, INN shows a very strong growth in Revenue. The Revenue has grown by 26.46%.
INN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.35% yearly.
EPS 1Y (TTM)107.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20%
Revenue 1Y (TTM)26.46%
Revenue growth 3Y46.42%
Revenue growth 5Y5.35%
Sales Q2Q%-2.75%
3.2 Future
The Earnings Per Share is expected to grow by 26.78% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.03% on average over the next years.
EPS Next Y152.37%
EPS Next 2Y26.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.72%
Revenue Next 2Y0.17%
Revenue Next 3Y1.03%
Revenue Next 5YN/A
3.3 Evolution
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 674.00, INN can be considered very expensive at the moment.
Based on the Price/Earnings ratio, INN is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
INN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.29.
INN is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 674 | ||
| 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 96.83% of the companies in the same industry.
98.41% of the companies in the same industry are more expensive than INN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.44 | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as INN's earnings are expected to grow with 26.78% in the coming years.
PEG (NY)4.42
PEG (5Y)N/A
EPS Next 2Y26.78%
EPS Next 3YN/A
5. Dividend
5.1 Amount
INN has a Yearly Dividend Yield of 4.77%, which is a nice return.
INN's Dividend Yield is comparable with the industry average which is at 18.51.
Compared to an average S&P500 Dividend Yield of 2.28, INN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
5.2 History
The dividend of INN decreases each year by -13.51%.
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)-13.51%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
INN pays out 952.98% of its income as dividend. This is not a sustainable payout ratio.
DP952.98%
EPS Next 2Y26.78%
EPS Next 3YN/A
SUMMIT HOTEL PROPERTIES INC
NYSE:INN (1/21/2025, 8:07:43 PM)
After market: 6.74 0 (0%)6.74
+0.07 (+1.05%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners91.61%
Inst Owner Change0.03%
Ins Owners3.03%
Ins Owner Change0%
Market Cap730.75M
Analysts70
Price Target7.78 (15.43%)
Short Float %3.7%
Short Ratio5.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
Yearly Dividend0.43
Dividend Growth(5Y)-13.51%
DP952.98%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)320.02%
Min EPS beat(2)33.99%
Max EPS beat(2)606.05%
EPS beat(4)3
Avg EPS beat(4)173.36%
Min EPS beat(4)-21.86%
Max EPS beat(4)606.05%
EPS beat(8)5
Avg EPS beat(8)76.25%
EPS beat(12)7
Avg EPS beat(12)72.81%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.22%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)-0.99%
Revenue beat(4)1
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)0.77%
Revenue beat(8)4
Avg Revenue beat(8)-0.4%
Revenue beat(12)6
Avg Revenue beat(12)0.45%
Revenue beat(16)8
Avg Revenue beat(16)0.21%
PT rev (1m)0%
PT rev (3m)-4.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.08%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 674 | ||
| Fwd PE | N/A | ||
| P/S | 0.79 | ||
| P/FCF | 4.44 | ||
| P/OCF | 4.44 | ||
| P/B | 0.8 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 7.84 |
EPS(TTM)0.01
EY0.15%
EPS(NY)-0.11
Fwd EYN/A
FCF(TTM)1.52
FCFY22.52%
OCF(TTM)1.52
OCFY22.52%
SpS8.53
BVpS8.41
TBVpS8.41
PEG (NY)4.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 0.61% | ||
| ROCE | 3.97% | ||
| ROIC | 3.13% | ||
| ROICexc | 3.2% | ||
| ROICexgc | 3.21% | ||
| OM | 11.63% | ||
| PM (TTM) | 0.6% | ||
| GM | 43.19% | ||
| FCFM | 17.8% |
ROA(3y)-1.74%
ROA(5y)-1.89%
ROE(3y)-4.55%
ROE(5y)-4.78%
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 3YN/A
ROICexcg growth 5Y-7.5%
ROICexc growth 3YN/A
ROICexc growth 5Y-7.48%
OM growth 3YN/A
OM growth 5Y-7.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y11.23%
GM growth 5Y-0.76%
F-Score7
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 8.12 | ||
| Debt/EBITDA | 5.22 | ||
| Cap/Depr | 0.01% | ||
| Cap/Sales | 0% | ||
| Interest Coverage | 1.35 | ||
| Cash Conversion | 64.26% | ||
| Profit Quality | 2946.55% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 0.49 |
F-Score7
WACC6.35%
ROIC/WACC0.49
Cap/Depr(3y)92.03%
Cap/Depr(5y)112.08%
Cap/Sales(3y)21.6%
Cap/Sales(5y)23.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)107.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20%
EPS Next Y152.37%
EPS Next 2Y26.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)26.46%
Revenue growth 3Y46.42%
Revenue growth 5Y5.35%
Sales Q2Q%-2.75%
Revenue Next Year-0.72%
Revenue Next 2Y0.17%
Revenue Next 3Y1.03%
Revenue Next 5YN/A
EBIT growth 1Y41.28%
EBIT growth 3YN/A
EBIT growth 5Y-2.22%
EBIT Next Year159.71%
EBIT Next 3Y38.68%
EBIT Next 5YN/A
FCF growth 1Y205.9%
FCF growth 3YN/A
FCF growth 5Y3.75%
OCF growth 1Y8.63%
OCF growth 3YN/A
OCF growth 5Y-1.02%