SUMMIT HOTEL PROPERTIES INC (INN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:INN - US8660821005 - REIT
4.83 USD
-0.01 (-0.21%)
4.83 USD
0 (0%)
INN gets a fundamental rating of 1 out of 10. The analysis compared the fundamentals against 125 industry peers in the Diversified REITs industry. Both the profitability and financial health of INN have multiple concerns. INN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- INN had negative earnings in the past year.
- INN had a positive operating cash flow in the past year.
- INN had negative earnings in 4 of the past 5 years.
- Of the past 5 years INN 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of INN (-0.60%) is worse than 64.00% of its industry peers.
- INN's Return On Equity of -1.94% is on the low side compared to the rest of the industry. INN is outperformed by 64.80% of its industry peers.
- INN has a worse Return On Invested Capital (1.90%) than 67.20% 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 3.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.6% | ||
| ROE | -1.94% | ||
| ROIC | 1.9% |
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.
- INN has a worse Operating Margin (9.01%) than 75.20% of its industry peers.
- In the last couple of years the Operating Margin of INN has declined.
- Looking at the Gross Margin, with a value of 41.33%, INN is doing worse than 82.40% 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 | 9.01% | ||
| PM (TTM) | N/A | ||
| GM | 41.33% |
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.
- Compared to 1 year ago, INN has more shares outstanding
- INN has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, INN has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.28, we must say that INN is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of INN (0.28) is worse than 64.80% of its industry peers.
- The Debt to FCF ratio of INN is 25.23, which is on the high side as it means it would take INN, 25.23 years of fcf income to pay off all of its debts.
- INN has a Debt to FCF ratio of 25.23. This is in the better half of the industry: INN outperforms 75.20% of its industry peers.
- INN has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
- INN has a Debt to Equity ratio of 1.62. This is in the lower half of the industry: INN underperforms 62.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | 25.23 | ||
| Altman-Z | 0.28 |
ROIC/WACC0.28
WACC6.88%
2.3 Liquidity
- INN has a Current Ratio of 0.59. This is a bad value and indicates that INN is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of INN (0.59) is worse than 76.00% of its industry peers.
- A Quick Ratio of 0.59 indicates that INN may have some problems paying its short term obligations.
- INN has a worse Quick ratio (0.59) than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- INN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -1700.00%.
- INN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.65% yearly.
- Looking at the last year, INN shows a very negative growth in Revenue. The Revenue has decreased by -21.31% in the last year.
- 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)-1700%
EPS 3YN/A
EPS 5Y-22.65%
EPS Q2Q%-175%
Revenue 1Y (TTM)-21.31%
Revenue growth 3Y26.45%
Revenue growth 5Y5.9%
Sales Q2Q%0.18%
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 -78.28% yearly.
- Based on estimates for the next years, INN will show a small growth in Revenue. The Revenue will grow by 1.22% on average per year.
EPS Next Y-184.17%
EPS Next 2Y-78.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.11%
Revenue Next 2Y0.92%
Revenue Next 3Y1.22%
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
- The Price/Earnings Ratio is negative for INN. In the last year negative earnings were reported.
- 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
- Based on the Enterprise Value to EBITDA ratio, INN is valued cheaper than 92.80% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of INN indicates a rather cheap valuation: INN is cheaper than 92.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.33 | ||
| EV/EBITDA | 8.9 |
4.3 Compensation for Growth
- A cheap valuation may be justified as INN's earnings are expected to decrease with -78.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-78.28%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- INN has a Yearly Dividend Yield of 6.78%, which is a nice return.
- INN's Dividend Yield is a higher than the industry average which is at 6.59.
- INN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.78% |
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
- The earnings of INN are negative and hence is the payout ratio. INN will probably not be able to sustain this dividend level.
- INN's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-341.4%
EPS Next 2Y-78.28%
EPS Next 3YN/A
SUMMIT HOTEL PROPERTIES INC / INN FAQ
What is the ChartMill fundamental rating of SUMMIT HOTEL PROPERTIES INC (INN) stock?
ChartMill assigns a fundamental rating of 1 / 10 to INN.
Can you provide the valuation status for SUMMIT HOTEL PROPERTIES INC?
ChartMill assigns a valuation rating of 2 / 10 to SUMMIT HOTEL PROPERTIES INC (INN). This can be considered as Overvalued.
What is the profitability of INN stock?
SUMMIT HOTEL PROPERTIES INC (INN) has a profitability rating of 1 / 10.
What is the expected EPS growth for SUMMIT HOTEL PROPERTIES INC (INN) stock?
The Earnings per Share (EPS) of SUMMIT HOTEL PROPERTIES INC (INN) is expected to decline by -184.17% in the next year.