PEBBLEBROOK HOTEL TRUST (PEB) Stock Fundamental Analysis
NYSE:PEB - New York Stock Exchange, Inc. - US70509V1008 - REIT - Currency: USD
PEB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. Both the profitability and financial health of PEB have multiple concerns. PEB is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PEB has reported negative net income.
PEB had a positive operating cash flow in the past year.
PEB had negative earnings in each of the past 5 years.
PEB had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
PEB's Return On Assets of -1.50% is on the low side compared to the rest of the industry. PEB is outperformed by 68.46% of its industry peers.
PEB has a Return On Equity of -3.18%. This is in the lower half of the industry: PEB underperforms 68.46% of its industry peers.
PEB's Return On Invested Capital of 1.32% is on the low side compared to the rest of the industry. PEB is outperformed by 81.54% of its industry peers.
PEB had an Average Return On Invested Capital over the past 3 years of 1.30%. This is in line with the industry average of 3.17%.
The last Return On Invested Capital (1.32%) for PEB is above the 3 year average (1.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.5% | ||
| ROE | -3.18% | ||
| ROIC | 1.32% |
ROA(3y)-1.6%
ROA(5y)-3.11%
ROE(3y)-3.33%
ROE(5y)-6.09%
ROIC(3y)1.3%
ROIC(5y)N/A
1.3 Margins
PEB has a Operating Margin of 4.79%. This is amonst the worse of the industry: PEB underperforms 85.38% of its industry peers.
In the last couple of years the Operating Margin of PEB has declined.
With a Gross Margin value of 33.40%, PEB is not doing good in the industry: 86.15% of the companies in the same industry are doing better.
PEB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.79% | ||
| PM (TTM) | N/A | ||
| GM | 33.4% |
OM growth 3YN/A
OM growth 5Y-16.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.64%
GM growth 5Y-3.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PEB is destroying value.
Compared to 1 year ago, PEB has less shares outstanding
Compared to 5 years ago, PEB has less shares outstanding
Compared to 1 year ago, PEB has an improved debt to assets ratio.
2.2 Solvency
PEB has an Altman-Z score of 0.18. This is a bad value and indicates that PEB is not financially healthy and even has some risk of bankruptcy.
PEB has a Altman-Z score of 0.18. This is in the lower half of the industry: PEB underperforms 67.69% of its industry peers.
PEB has a debt to FCF ratio of 15.66. This is a negative value and a sign of low solvency as PEB would need 15.66 years to pay back of all of its debts.
PEB's Debt to FCF ratio of 15.66 is amongst the best of the industry. PEB outperforms 80.77% of its industry peers.
PEB has a Debt/Equity ratio of 0.85. This is a neutral value indicating PEB is somewhat dependend on debt financing.
The Debt to Equity ratio of PEB (0.85) is better than 66.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 15.66 | ||
| Altman-Z | 0.18 |
ROIC/WACC0.2
WACC6.46%
2.3 Liquidity
PEB has a Current Ratio of 0.59. This is a bad value and indicates that PEB is not financially healthy enough and could expect problems in meeting its short term obligations.
PEB has a Current ratio of 0.59. This is in the lower half of the industry: PEB underperforms 71.54% of its industry peers.
A Quick Ratio of 0.59 indicates that PEB may have some problems paying its short term obligations.
PEB's Quick ratio of 0.59 is on the low side compared to the rest of the industry. PEB is outperformed by 70.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 84.54% over the past year.
Looking at the last year, PEB shows a very strong growth in Revenue. The Revenue has grown by 24.47%.
Measured over the past years, PEB shows a decrease in Revenue. The Revenue has been decreasing by -2.05% on average per year.
EPS 1Y (TTM)84.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%16.22%
Revenue 1Y (TTM)24.47%
Revenue growth 3Y25.63%
Revenue growth 5Y-2.05%
Sales Q2Q%1.05%
3.2 Future
PEB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.93% yearly.
The Revenue is expected to grow by 3.45% on average over the next years.
EPS Next Y-263.6%
EPS Next 2Y-56.98%
EPS Next 3Y26.7%
EPS Next 5Y46.93%
Revenue Next Year1.51%
Revenue Next 2Y2.43%
Revenue Next 3Y2.51%
Revenue Next 5Y3.45%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for PEB. In the last year negative earnings were reported.
Also next year PEB 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, PEB is valued cheaper than 80.77% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PEB indicates a rather cheap valuation: PEB is cheaper than 92.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.43 | ||
| EV/EBITDA | 10.09 |
4.3 Compensation for Growth
A more expensive valuation may be justified as PEB's earnings are expected to grow with 26.70% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-56.98%
EPS Next 3Y26.7%
5. Dividend
5.1 Amount
PEB has a yearly dividend return of 0.44%, which is pretty low.
In the last 3 months the price of PEB has falen by -34.20%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 16.90, PEB's dividend is way lower than its industry peers. On top of this 94.62% of the companies listed in the same industry pay a better dividend than PEB!
Compared to an average S&P500 Dividend Yield of 2.47, PEB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
5.2 History
The dividend of PEB decreases each year by -23.57%.
PEB has been paying a dividend for at least 10 years, so it has a reliable track record.
PEB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-23.57%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
The earnings of PEB are negative and hence is the payout ratio. PEB will probably not be able to sustain this dividend level.
DP-60.77%
EPS Next 2Y-56.98%
EPS Next 3Y26.7%
9.16
+0.16 (+1.78%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners123.37%
Inst Owner Change-49.87%
Ins Owners2.05%
Ins Owner Change8.64%
Market Cap1.09B
Analysts53
Price Target12.01 (31.11%)
Short Float %13.05%
Short Ratio5.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Yearly Dividend0.43
Dividend Growth(5Y)-23.57%
DP-60.77%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2439.03%
Min EPS beat(2)25.59%
Max EPS beat(2)4852.48%
EPS beat(4)4
Avg EPS beat(4)2439.84%
Min EPS beat(4)25.59%
Max EPS beat(4)4852.48%
EPS beat(8)7
Avg EPS beat(8)1086.24%
EPS beat(12)8
Avg EPS beat(12)719.28%
EPS beat(16)9
Avg EPS beat(16)536.76%
Revenue beat(2)2
Avg Revenue beat(2)0.57%
Min Revenue beat(2)0.02%
Max Revenue beat(2)1.11%
Revenue beat(4)4
Avg Revenue beat(4)0.9%
Min Revenue beat(4)0.02%
Max Revenue beat(4)2.43%
Revenue beat(8)7
Avg Revenue beat(8)1.22%
Revenue beat(12)11
Avg Revenue beat(12)7.84%
Revenue beat(16)14
Avg Revenue beat(16)6.32%
PT rev (1m)-17.4%
PT rev (3m)-19.45%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)-21.74%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-37.06%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)-0.94%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.62 | ||
| P/FCF | 7.43 | ||
| P/OCF | 3.95 | ||
| P/B | 0.4 | ||
| P/tB | 0.4 | ||
| EV/EBITDA | 10.09 |
EPS(TTM)-0.15
EYN/A
EPS(NY)-0.55
Fwd EYN/A
FCF(TTM)1.23
FCFY13.45%
OCF(TTM)2.32
OCFY25.29%
SpS14.89
BVpS22.73
TBVpS22.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.5% | ||
| ROE | -3.18% | ||
| ROCE | 1.67% | ||
| ROIC | 1.32% | ||
| ROICexc | 1.37% | ||
| ROICexgc | 1.37% | ||
| OM | 4.79% | ||
| PM (TTM) | N/A | ||
| GM | 33.4% | ||
| FCFM | 8.28% |
ROA(3y)-1.6%
ROA(5y)-3.11%
ROE(3y)-3.33%
ROE(5y)-6.09%
ROIC(3y)1.3%
ROIC(5y)N/A
ROICexc(3y)1.34%
ROICexc(5y)N/A
ROICexgc(3y)1.34%
ROICexgc(5y)N/A
ROCE(3y)1.65%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-15.61%
ROICexc growth 3YN/A
ROICexc growth 5Y-15.61%
OM growth 3YN/A
OM growth 5Y-16.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.64%
GM growth 5Y-3.06%
F-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 15.66 | ||
| Debt/EBITDA | 7.29 | ||
| Cap/Depr | 56.09% | ||
| Cap/Sales | 7.28% | ||
| Interest Coverage | 0.84 | ||
| Cash Conversion | 87.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 0.18 |
F-Score7
WACC6.46%
ROIC/WACC0.2
Cap/Depr(3y)62.73%
Cap/Depr(5y)56.25%
Cap/Sales(3y)10.46%
Cap/Sales(5y)14.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)84.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%16.22%
EPS Next Y-263.6%
EPS Next 2Y-56.98%
EPS Next 3Y26.7%
EPS Next 5Y46.93%
Revenue 1Y (TTM)24.47%
Revenue growth 3Y25.63%
Revenue growth 5Y-2.05%
Sales Q2Q%1.05%
Revenue Next Year1.51%
Revenue Next 2Y2.43%
Revenue Next 3Y2.51%
Revenue Next 5Y3.45%
EBIT growth 1Y23.09%
EBIT growth 3YN/A
EBIT growth 5Y-18.36%
EBIT Next Year289.72%
EBIT Next 3Y63.4%
EBIT Next 5Y39.7%
FCF growth 1Y311.25%
FCF growth 3YN/A
FCF growth 5Y-8.24%
OCF growth 1Y16.43%
OCF growth 3Y57.22%
OCF growth 5Y-7%