RLJ LODGING TRUST (RLJ) Stock Fundamental Analysis
NYSE:RLJ - New York Stock Exchange, Inc. - US74965L1017 - REIT
Taking everything into account, RLJ scores 4 out of 10 in our fundamental rating. RLJ was compared to 129 industry peers in the Diversified REITs industry. The financial health of RLJ is average, but there are quite some concerns on its profitability. RLJ has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year RLJ was profitable.
In the past year RLJ had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: RLJ reported negative net income in multiple years.
Of the past 5 years RLJ 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.93%, RLJ is in line with its industry, outperforming 55.56% of the companies in the same industry.
RLJ has a Return On Equity of 1.98%. This is comparable to the rest of the industry: RLJ outperforms 53.97% of its industry peers.
RLJ's Return On Invested Capital of 2.56% is in line compared to the rest of the industry. RLJ outperforms 45.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 1.98% | ||
| ROIC | 2.56% |
ROA(3y)-1.68%
ROA(5y)-2.19%
ROE(3y)-3.63%
ROE(5y)-4.77%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RLJ has a Profit Margin (3.35%) which is in line with its industry peers.
In the last couple of years the Profit Margin of RLJ has declined.
RLJ's Operating Margin of 10.89% is on the low side compared to the rest of the industry. RLJ is outperformed by 79.37% of its industry peers.
In the last couple of years the Operating Margin of RLJ has declined.
RLJ has a worse Gross Margin (35.98%) than 87.30% of its industry peers.
RLJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.89% | ||
| PM (TTM) | 3.35% | ||
| GM | 35.98% |
OM growth 3YN/A
OM growth 5Y-4.72%
PM growth 3YN/A
PM growth 5Y-15.93%
GM growth 3Y29.06%
GM growth 5Y-0.95%
2. Health
2.1 Basic Checks
RLJ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RLJ has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RLJ has been reduced compared to 5 years ago.
Compared to 1 year ago, RLJ has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.46, we must say that RLJ is in the distress zone and has some risk of bankruptcy.
RLJ has a Altman-Z score (0.46) which is comparable to the rest of the industry.
RLJ has a debt to FCF ratio of 13.37. This is a negative value and a sign of low solvency as RLJ would need 13.37 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.37, RLJ belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.96 indicates that RLJ is somewhat dependend on debt financing.
RLJ's Debt to Equity ratio of 0.96 is fine compared to the rest of the industry. RLJ outperforms 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 13.37 | ||
| Altman-Z | 0.46 |
ROIC/WACC0.45
WACC5.74%
2.3 Liquidity
RLJ has a Current Ratio of 1.44. This is a normal value and indicates that RLJ is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.44, RLJ perfoms like the industry average, outperforming 57.94% of the companies in the same industry.
RLJ has a Quick Ratio of 1.44. This is a normal value and indicates that RLJ is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of RLJ (1.44) is better than 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The earnings per share for RLJ have decreased by -6.45% in the last year.
RLJ shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.68% yearly.
The Revenue has been growing slightly by 3.90% in the past year.
The Revenue has been decreasing by -5.52% on average over the past years.
EPS 1Y (TTM)-6.45%
EPS 3YN/A
EPS 5Y-18.68%
EPS Q2Q%50%
Revenue 1Y (TTM)3.9%
Revenue growth 3Y40.98%
Revenue growth 5Y-5.52%
Sales Q2Q%3.39%
3.2 Future
Based on estimates for the next years, RLJ will show a very negative growth in Earnings Per Share. The EPS will decrease by -42.57% on average per year.
Based on estimates for the next years, RLJ will show a small growth in Revenue. The Revenue will grow by 2.75% on average per year.
EPS Next Y-23.62%
EPS Next 2Y-22.56%
EPS Next 3Y-42.57%
EPS Next 5YN/A
Revenue Next Year3.3%
Revenue Next 2Y2.81%
Revenue Next 3Y2.75%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.38, the valuation of RLJ can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as RLJ.
RLJ is valuated rather expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 51.95 indicates a quite expensive valuation of RLJ.
The rest of the industry has a similar Price/Forward Earnings ratio as RLJ.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, RLJ is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.38 | ||
| Fwd PE | 51.95 |
4.2 Price Multiples
RLJ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RLJ is cheaper than 84.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RLJ is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.21 | ||
| EV/EBITDA | 10.27 |
4.3 Compensation for Growth
RLJ's earnings are expected to decrease with -42.57% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.56%
EPS Next 3Y-42.57%
5. Dividend
5.1 Amount
RLJ has a Yearly Dividend Yield of 6.00%, which is a nice return.
RLJ's Dividend Yield is a higher than the industry average which is at 18.51.
Compared to an average S&P500 Dividend Yield of 2.28, RLJ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6% |
5.2 History
The dividend of RLJ decreases each year by -20.46%.
RLJ has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of RLJ decreased in the last 3 years.
Dividend Growth(5Y)-20.46%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
192.51% of the earnings are spent on dividend by RLJ. This is not a sustainable payout ratio.
The Dividend Rate of RLJ has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP192.51%
EPS Next 2Y-22.56%
EPS Next 3Y-42.57%
RLJ LODGING TRUST
NYSE:RLJ (1/21/2025, 8:24:12 PM)
After market: 9.97 0 (0%)9.97
+0.06 (+0.61%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners94.46%
Inst Owner Change-0.28%
Ins Owners2.83%
Ins Owner Change0%
Market Cap1.53B
Analysts71.43
Price Target11.67 (17.05%)
Short Float %7.06%
Short Ratio5.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6% |
Yearly Dividend0.47
Dividend Growth(5Y)-20.46%
DP192.51%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1749.3%
Min EPS beat(2)34.25%
Max EPS beat(2)3464.36%
EPS beat(4)4
Avg EPS beat(4)1027.79%
Min EPS beat(4)17.49%
Max EPS beat(4)3464.36%
EPS beat(8)8
Avg EPS beat(8)581.74%
EPS beat(12)11
Avg EPS beat(12)395.74%
EPS beat(16)14
Avg EPS beat(16)268.81%
Revenue beat(2)0
Avg Revenue beat(2)-0.12%
Min Revenue beat(2)-0.24%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)0%
Min Revenue beat(4)-0.48%
Max Revenue beat(4)0.72%
Revenue beat(8)3
Avg Revenue beat(8)0.11%
Revenue beat(12)7
Avg Revenue beat(12)0.43%
Revenue beat(16)10
Avg Revenue beat(16)0.34%
PT rev (1m)0.55%
PT rev (3m)-5.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-820%
EPS NY rev (1m)0%
EPS NY rev (3m)72.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.37%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.38 | ||
| Fwd PE | 51.95 | ||
| P/S | 1.12 | ||
| P/FCF | 9.21 | ||
| P/OCF | 5.04 | ||
| P/B | 0.66 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 10.27 |
EPS(TTM)0.29
EY2.91%
EPS(NY)0.19
Fwd EY1.92%
FCF(TTM)1.08
FCFY10.86%
OCF(TTM)1.98
OCFY19.85%
SpS8.87
BVpS15.01
TBVpS15.01
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 1.98% | ||
| ROCE | 3.24% | ||
| ROIC | 2.56% | ||
| ROICexc | 2.79% | ||
| ROICexgc | 2.79% | ||
| OM | 10.89% | ||
| PM (TTM) | 3.35% | ||
| GM | 35.98% | ||
| FCFM | 12.21% |
ROA(3y)-1.68%
ROA(5y)-2.19%
ROE(3y)-3.63%
ROE(5y)-4.77%
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-4.98%
ROICexc growth 3YN/A
ROICexc growth 5Y-4.79%
OM growth 3YN/A
OM growth 5Y-4.72%
PM growth 3YN/A
PM growth 5Y-15.93%
GM growth 3Y29.06%
GM growth 5Y-0.95%
F-Score5
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 13.37 | ||
| Debt/EBITDA | 6.8 | ||
| Cap/Depr | 76.95% | ||
| Cap/Sales | 10.11% | ||
| Interest Coverage | 1.48 | ||
| Cash Conversion | 92.9% | ||
| Profit Quality | 364.03% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 0.46 |
F-Score5
WACC5.74%
ROIC/WACC0.45
Cap/Depr(3y)97.29%
Cap/Depr(5y)80.8%
Cap/Sales(3y)17.91%
Cap/Sales(5y)15.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.45%
EPS 3YN/A
EPS 5Y-18.68%
EPS Q2Q%50%
EPS Next Y-23.62%
EPS Next 2Y-22.56%
EPS Next 3Y-42.57%
EPS Next 5YN/A
Revenue 1Y (TTM)3.9%
Revenue growth 3Y40.98%
Revenue growth 5Y-5.52%
Sales Q2Q%3.39%
Revenue Next Year3.3%
Revenue Next 2Y2.81%
Revenue Next 3Y2.75%
Revenue Next 5YN/A
EBIT growth 1Y-2.26%
EBIT growth 3YN/A
EBIT growth 5Y-9.98%
EBIT Next Year135.95%
EBIT Next 3Y35.43%
EBIT Next 5YN/A
FCF growth 1Y449.34%
FCF growth 3YN/A
FCF growth 5Y-1.51%
OCF growth 1Y33.92%
OCF growth 3YN/A
OCF growth 5Y-4.41%