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 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.
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 (0.20%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 0.61%, INN is in line with its industry, outperforming 42.86% of the companies in the same industry.
The Return On Invested Capital of INN (3.13%) is comparable to the rest of the industry.
| 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
With a Profit Margin value of 0.60%, INN perfoms like the industry average, outperforming 41.27% of the companies in the same industry.
With a Operating Margin value of 11.63%, INN is not doing good in the industry: 74.60% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of INN has declined.
With a Gross Margin value of 43.19%, INN is not doing good in the industry: 84.13% of the companies in the same industry are doing better.
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.
Compared to 5 years ago, INN has more shares outstanding
The debt/assets ratio for INN is higher compared to a year ago.
2.2 Solvency
INN has an Altman-Z score of 0.48. 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 0.48 is in line compared to the rest of the industry. INN outperforms 43.65% of its industry peers.
The Debt to FCF ratio of INN is 8.12, which is on the high side as it means it would take INN, 8.12 years of fcf income to pay off all of its debts.
INN has a Debt to FCF ratio of 8.12. This is amongst the best in the industry. INN outperforms 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's Debt to Equity ratio of 1.47 is on the low side compared to the rest of the industry. INN is outperformed by 62.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 8.12 | ||
| Altman-Z | 0.48 |
ROIC/WACC0.44
WACC7.07%
2.3 Liquidity
INN has a Current Ratio of 0.70. 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 Current ratio of 0.70. This is in the lower half of the industry: INN underperforms 72.22% of its industry peers.
INN has a Quick Ratio of 0.70. 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 worse Quick ratio (0.70) than 69.05% 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.
INN shows a strong growth in Revenue. In the last year, 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
INN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.48% yearly.
Based on estimates for the next years, INN will show a small growth in Revenue. The Revenue will grow by 1.41% on average per year.
EPS Next Y156.11%
EPS Next 2Y21.5%
EPS Next 3Y18.48%
EPS Next 5YN/A
Revenue Next Year-0.59%
Revenue Next 2Y0.65%
Revenue Next 3Y1.41%
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
A Price/Earnings ratio of 632.00 indicates a quite expensive valuation of INN.
69.84% of the companies in the same industry are cheaper than INN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, INN is valued quite expensively.
The Forward Price/Earnings Ratio is negative for INN. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 632 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, INN is valued cheaper than 96.83% 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 98.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.16 | ||
| EV/EBITDA | 7.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates INN does not grow enough to justify the current Price/Earnings ratio.
INN's earnings are expected to grow with 18.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.05
PEG (5Y)N/A
EPS Next 2Y21.5%
EPS Next 3Y18.48%
5. Dividend
5.1 Amount
INN has a Yearly Dividend Yield of 4.92%, which is a nice return.
Compared to an average industry Dividend Yield of 18.40, INN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, INN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
5.2 History
The dividend of INN decreases each year by -13.51%.
INN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of INN decreased in the last 3 years.
Dividend Growth(5Y)-13.51%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
952.98% of the earnings are spent on dividend by INN. This is not a sustainable payout ratio.
DP952.98%
EPS Next 2Y21.5%
EPS Next 3Y18.48%
6.32
-0.19 (-2.92%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.29%
Inst Owner Change-87.3%
Ins Owners3.03%
Ins Owner Change0%
Market Cap685.21M
Analysts70
Price Target8.29 (31.17%)
Short Float %3.34%
Short Ratio5.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
Yearly Dividend0.43
Dividend Growth(5Y)-13.51%
DP952.98%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)6.56%
PT rev (3m)8.33%
EPS NQ rev (1m)4.76%
EPS NQ rev (3m)0%
EPS NY rev (1m)7.14%
EPS NY rev (3m)11.11%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 632 | ||
| Fwd PE | N/A | ||
| P/S | 0.74 | ||
| P/FCF | 4.16 | ||
| P/OCF | 4.16 | ||
| P/B | 0.75 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 7.69 |
EPS(TTM)0.01
EY0.16%
EPS(NY)-0.14
Fwd EYN/A
FCF(TTM)1.52
FCFY24.02%
OCF(TTM)1.52
OCFY24.02%
SpS8.53
BVpS8.41
TBVpS8.41
PEG (NY)4.05
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 | 0.48 |
F-Score7
WACC7.07%
ROIC/WACC0.44
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 Y156.11%
EPS Next 2Y21.5%
EPS Next 3Y18.48%
EPS Next 5YN/A
Revenue 1Y (TTM)26.46%
Revenue growth 3Y46.42%
Revenue growth 5Y5.35%
Sales Q2Q%-2.75%
Revenue Next Year-0.59%
Revenue Next 2Y0.65%
Revenue Next 3Y1.41%
Revenue Next 5YN/A
EBIT growth 1Y41.28%
EBIT growth 3YN/A
EBIT growth 5Y-2.22%
EBIT Next Year160.04%
EBIT Next 3Y38.98%
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%