Taking everything into account, INN scores 1 out of 10 in our fundamental rating. INN was compared to 124 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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's Return On Assets of -0.60% is on the low side compared to the rest of the industry. INN is outperformed by 63.71% 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 64.52% of its industry peers.
INN has a Return On Invested Capital of 1.90%. This is in the lower half of the industry: INN underperforms 66.94% 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 3.05%.

		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.
Looking at the Operating Margin, with a value of 9.01%, INN is doing worse than 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of INN has declined.
The Gross Margin of INN (41.33%) is worse than 82.26% 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	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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INN is destroying value.
Compared to 1 year ago, INN has more shares outstanding
Compared to 5 years ago, INN has more shares outstanding
Compared to 1 year ago, INN has an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 0.26, we must say that INN is in the distress zone and has some risk of bankruptcy.
INN's Altman-Z score of 0.26 is on the low side compared to the rest of the industry. INN is outperformed by 65.32% of its industry peers.
INN has a debt to FCF ratio of 25.23. This is a negative value and a sign of low solvency as INN would need 25.23 years to pay back of all of its debts.
The Debt to FCF ratio of INN (25.23) is better than 75.00% of its industry peers.
A Debt/Equity ratio of 1.62 is on the high side and indicates that INN has dependencies on debt financing.
INN has a worse Debt to Equity ratio (1.62) than 62.90% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.62
Debt/FCF	25.23
Altman-Z	0.26

ROIC/WACC0.28

WACC6.83%

2.3 Liquidity

A Current Ratio of 0.59 indicates that INN may have some problems paying its short term obligations.
INN has a Current ratio of 0.59. This is in the lower half of the industry: INN underperforms 75.81% of its industry peers.
A Quick Ratio of 0.59 indicates that INN may have some problems paying its short term obligations.
The Quick ratio of INN (0.59) is worse than 75.81% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.59
Quick Ratio	0.59

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for INN have decreased strongly by -1700.00% in the last year.
Measured over the past years, INN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -22.65% on average per year.
Looking at the last year, INN shows a very negative growth in Revenue. The Revenue has decreased by -21.31% in the last year.
The Revenue has been growing slightly by 5.90% on average over the past years.

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 -41.64% 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-206.61%

EPS Next 2Y-83.7%

EPS Next 3Y-41.64%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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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 cheaper than 93.55% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, INN is valued cheaply inside the industry as 95.16% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	8.53
EV/EBITDA	8.72

4.3 Compensation for Growth

INN's earnings are expected to decrease with -41.64% in the coming years. This may justify a cheaper valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-83.7%

EPS Next 3Y-41.64%

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5. Dividend

5.1 Amount

INN has a Yearly Dividend Yield of 6.63%, which is a nice return.
Compared to an average industry Dividend Yield of 6.82, INN pays a bit more dividend than its industry peers.
INN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	6.63%

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-341.4%

EPS Next 2Y-83.7%

EPS Next 3Y-41.64%

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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 -206.61% in the next year.