SUNSTONE HOTEL INVESTORS INC (SHO) Stock Fundamental Analysis

NYSE:SHO • US8678921011

9.22 USD
+0.05 (+0.55%)
At close: Feb 13, 2026
9.22 USD
0 (0%)
After Hours: 2/13/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

SHO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 122 industry peers in the Diversified REITs industry. The financial health of SHO is average, but there are quite some concerns on its profitability. SHO is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • SHO had negative earnings in the past year.
  • SHO had a positive operating cash flow in the past year.
  • SHO had positive earnings in 4 of the past 5 years.
  • SHO had a positive operating cash flow in 4 of the past 5 years.
SHO Yearly Net Income VS EBIT VS OCF VS FCFSHO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M

1.2 Ratios

  • SHO has a Return On Assets of 0.06%. This is comparable to the rest of the industry: SHO outperforms 41.80% of its industry peers.
  • SHO has a Return On Equity of 0.10%. This is comparable to the rest of the industry: SHO outperforms 41.80% of its industry peers.
  • SHO has a worse Return On Invested Capital (1.86%) than 68.85% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SHO is in line with the industry average of 3.07%.
Industry RankSector Rank
ROA 0.06%
ROE 0.1%
ROIC 1.86%
ROA(3y)3.11%
ROA(5y)-0.84%
ROE(3y)4.55%
ROE(5y)-1.22%
ROIC(3y)2.7%
ROIC(5y)N/A
SHO Yearly ROA, ROE, ROICSHO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 -10 -15 -20

1.3 Margins

  • Looking at the Profit Margin, with a value of 0.20%, SHO is in line with its industry, outperforming 40.98% of the companies in the same industry.
  • SHO's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 7.27%, SHO is doing worse than 79.51% of the companies in the same industry.
  • SHO's Operating Margin has declined in the last couple of years.
  • The Gross Margin of SHO (60.10%) is worse than 65.57% of its industry peers.
  • In the last couple of years the Gross Margin of SHO has remained more or less at the same level.
Industry RankSector Rank
OM 7.27%
PM (TTM) 0.2%
GM 60.1%
OM growth 3YN/A
OM growth 5Y-9.81%
PM growth 3Y4.77%
PM growth 5Y-22.47%
GM growth 3Y-0.55%
GM growth 5Y-0.8%
SHO Yearly Profit, Operating, Gross MarginsSHO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100 -150

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHO is destroying value.
  • The number of shares outstanding for SHO has been reduced compared to 1 year ago.
  • The number of shares outstanding for SHO has been reduced compared to 5 years ago.
  • SHO has a worse debt/assets ratio than last year.
SHO Yearly Shares OutstandingSHO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
SHO Yearly Total Debt VS Total AssetsSHO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

  • Based on the Altman-Z score of 1.08, we must say that SHO is in the distress zone and has some risk of bankruptcy.
  • SHO has a Altman-Z score of 1.08. This is in the better half of the industry: SHO outperforms 74.59% of its industry peers.
  • The Debt to FCF ratio of SHO is 5.26, which is a neutral value as it means it would take SHO, 5.26 years of fcf income to pay off all of its debts.
  • SHO has a Debt to FCF ratio of 5.26. This is amongst the best in the industry. SHO outperforms 98.36% of its industry peers.
  • A Debt/Equity ratio of 0.47 indicates that SHO is not too dependend on debt financing.
  • With an excellent Debt to Equity ratio value of 0.47, SHO belongs to the best of the industry, outperforming 90.16% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 5.26
Altman-Z 1.08
ROIC/WACC0.25
WACC7.39%
SHO Yearly LT Debt VS Equity VS FCFSHO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • A Current Ratio of 1.46 indicates that SHO should not have too much problems paying its short term obligations.
  • SHO has a better Current ratio (1.46) than 71.31% of its industry peers.
  • A Quick Ratio of 1.46 indicates that SHO should not have too much problems paying its short term obligations.
  • SHO's Quick ratio of 1.46 is fine compared to the rest of the industry. SHO outperforms 72.13% of its industry peers.
Industry RankSector Rank
Current Ratio 1.46
Quick Ratio 1.46
SHO Yearly Current Assets VS Current LiabilitesSHO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • The earnings per share for SHO have decreased strongly by -100.00% in the last year.
  • SHO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.38% yearly.
  • SHO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.04%.
  • SHO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.07% yearly.
EPS 1Y (TTM)-100%
EPS 3Y29.76%
EPS 5Y-23.38%
EPS Q2Q%-329.73%
Revenue 1Y (TTM)3.04%
Revenue growth 3Y21.17%
Revenue growth 5Y-4.07%
Sales Q2Q%1.29%

3.2 Future

  • Based on estimates for the next years, SHO will show a small growth in Earnings Per Share. The EPS will grow by 7.04% on average per year.
  • SHO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.15% yearly.
EPS Next Y-90.98%
EPS Next 2Y2.86%
EPS Next 3Y7.04%
EPS Next 5YN/A
Revenue Next Year5.32%
Revenue Next 2Y4.44%
Revenue Next 3Y4%
Revenue Next 5Y4.15%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
SHO Yearly Revenue VS EstimatesSHO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
SHO Yearly EPS VS EstimatesSHO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 1 -1 -2

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Forward Earnings ratio of 62.24 indicates a quite expensive valuation of SHO.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SHO is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.96, SHO is valued quite expensively.
Industry RankSector Rank
PE N/A
Fwd PE 62.24
SHO Price Earnings VS Forward Price EarningsSHO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHO indicates a somewhat cheap valuation: SHO is cheaper than 70.49% of the companies listed in the same industry.
  • SHO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SHO is cheaper than 88.52% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.04
EV/EBITDA 12.61
SHO Per share dataSHO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.86%
EPS Next 3Y7.04%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. Dividend

5.1 Amount

  • SHO has a Yearly Dividend Yield of 4.00%.
  • SHO's Dividend Yield is slightly below the industry average, which is at 6.86.
  • Compared to an average S&P500 Dividend Yield of 1.79, SHO pays a better dividend.
Industry RankSector Rank
Dividend Yield 4%

5.2 History

  • The dividend of SHO decreases each year by -9.74%.
  • SHO has paid a dividend for at least 10 years, which is a reliable track record.
  • SHO has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.74%
Div Incr Years2
Div Non Decr Years2
SHO Yearly Dividends per shareSHO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

  • 4640.68% of the earnings are spent on dividend by SHO. This is not a sustainable payout ratio.
DP4640.68%
EPS Next 2Y2.86%
EPS Next 3Y7.04%
SHO Yearly Income VS Free CF VS DividendSHO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M
SHO Dividend Payout.SHO Dividend Payout, showing the Payout Ratio.SHO Dividend Payout.PayoutRetained Earnings

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SUNSTONE HOTEL INVESTORS INC

NYSE:SHO (2/13/2026, 8:04:00 PM)

After market: 9.22 0 (0%)

9.22

+0.05 (+0.55%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-07
Earnings (Next)02-27
Inst Owners100.91%
Inst Owner Change-2.53%
Ins Owners1.29%
Ins Owner Change3.29%
Market Cap1.75B
Revenue(TTM)937.93M
Net Income(TTM)1.88M
Analysts73.33
Price Target10.11 (9.65%)
Short Float %4.96%
Short Ratio4.59
Dividend
Industry RankSector Rank
Dividend Yield 4%
Yearly Dividend0.45
Dividend Growth(5Y)-9.74%
DP4640.68%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-19.92%
Min EPS beat(2)-65.59%
Max EPS beat(2)25.75%
EPS beat(4)3
Avg EPS beat(4)38.11%
Min EPS beat(4)-65.59%
Max EPS beat(4)164.03%
EPS beat(8)6
Avg EPS beat(8)342.08%
EPS beat(12)10
Avg EPS beat(12)313.34%
EPS beat(16)13
Avg EPS beat(16)247.19%
Revenue beat(2)0
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)-0.05%
Revenue beat(4)1
Avg Revenue beat(4)-0.86%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)0.7%
Revenue beat(8)3
Avg Revenue beat(8)-0.95%
Revenue beat(12)6
Avg Revenue beat(12)0.4%
Revenue beat(16)9
Avg Revenue beat(16)1.56%
PT rev (1m)0.93%
PT rev (3m)3.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-50%
EPS NY rev (1m)150%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.06%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 62.24
P/S 1.87
P/FCF 10.04
P/OCF 9.97
P/B 0.89
P/tB 0.89
EV/EBITDA 12.61
EPS(TTM)0
EYN/A
EPS(NY)0.15
Fwd EY1.61%
FCF(TTM)0.92
FCFY9.96%
OCF(TTM)0.92
OCFY10.03%
SpS4.94
BVpS10.32
TBVpS10.32
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 0.06%
ROE 0.1%
ROCE 2.36%
ROIC 1.86%
ROICexc 1.94%
ROICexgc 1.94%
OM 7.27%
PM (TTM) 0.2%
GM 60.1%
FCFM 18.59%
ROA(3y)3.11%
ROA(5y)-0.84%
ROE(3y)4.55%
ROE(5y)-1.22%
ROIC(3y)2.7%
ROIC(5y)N/A
ROICexc(3y)2.94%
ROICexc(5y)N/A
ROICexgc(3y)2.94%
ROICexgc(5y)N/A
ROCE(3y)3.42%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y-13.98%
ROICexc growth 3YN/A
ROICexc growth 5Y-13.98%
OM growth 3YN/A
OM growth 5Y-9.81%
PM growth 3Y4.77%
PM growth 5Y-22.47%
GM growth 3Y-0.55%
GM growth 5Y-0.8%
F-Score5
Asset Turnover0.31
Health
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 5.26
Debt/EBITDA 4.56
Cap/Depr 0.95%
Cap/Sales 0.14%
Interest Coverage 1.44
Cash Conversion 87.3%
Profit Quality 9259.53%
Current Ratio 1.46
Quick Ratio 1.46
Altman-Z 1.08
F-Score5
WACC7.39%
ROIC/WACC0.25
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-100%
EPS 3Y29.76%
EPS 5Y-23.38%
EPS Q2Q%-329.73%
EPS Next Y-90.98%
EPS Next 2Y2.86%
EPS Next 3Y7.04%
EPS Next 5YN/A
Revenue 1Y (TTM)3.04%
Revenue growth 3Y21.17%
Revenue growth 5Y-4.07%
Sales Q2Q%1.29%
Revenue Next Year5.32%
Revenue Next 2Y4.44%
Revenue Next 3Y4%
Revenue Next 5Y4.15%
EBIT growth 1Y-22.35%
EBIT growth 3YN/A
EBIT growth 5Y-13.48%
EBIT Next Year189.36%
EBIT Next 3Y47.55%
EBIT Next 5Y35.15%
FCF growth 1Y-23.66%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.11%
OCF growth 3Y81.77%
OCF growth 5Y-10.15%

SUNSTONE HOTEL INVESTORS INC / SHO FAQ

Can you provide the ChartMill fundamental rating for SUNSTONE HOTEL INVESTORS INC?

ChartMill assigns a fundamental rating of 4 / 10 to SHO.


Can you provide the valuation status for SUNSTONE HOTEL INVESTORS INC?

ChartMill assigns a valuation rating of 2 / 10 to SUNSTONE HOTEL INVESTORS INC (SHO). This can be considered as Overvalued.


Can you provide the profitability details for SUNSTONE HOTEL INVESTORS INC?

SUNSTONE HOTEL INVESTORS INC (SHO) has a profitability rating of 3 / 10.


What is the financial health of SUNSTONE HOTEL INVESTORS INC (SHO) stock?

The financial health rating of SUNSTONE HOTEL INVESTORS INC (SHO) is 6 / 10.


What is the expected EPS growth for SUNSTONE HOTEL INVESTORS INC (SHO) stock?

The Earnings per Share (EPS) of SUNSTONE HOTEL INVESTORS INC (SHO) is expected to decline by -90.98% in the next year.