SUNSTONE HOTEL INVESTORS INC (SHO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SHO - US8678921011 - REIT
9.06 USD
+0.07 (+0.78%)
9.06 USD
0 (0%)
Overall SHO gets a fundamental rating of 4 out of 10. We evaluated SHO against 128 industry peers in the Diversified REITs industry. SHO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SHO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SHO was profitable.
In the past year SHO had a positive cash flow from operations.
Of the past 5 years SHO 4 years were profitable.
Of the past 5 years SHO 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.14%, SHO is in line with its industry, outperforming 44.53% of the companies in the same industry.
The Return On Equity of SHO (0.21%) is comparable to the rest of the industry.
SHO has a worse Return On Invested Capital (2.00%) than 64.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SHO is in line with the industry average of 3.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 0.21% | ||
| ROIC | 2% |
ROA(3y)3.11%
ROA(5y)-0.84%
ROE(3y)4.55%
ROE(5y)-1.22%
ROIC(3y)2.7%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 0.44%, SHO perfoms like the industry average, outperforming 44.53% of the companies in the same industry.
SHO's Profit Margin has declined in the last couple of years.
SHO has a worse Operating Margin (7.77%) than 80.47% of its industry peers.
SHO's Operating Margin has declined in the last couple of years.
SHO's Gross Margin of 60.49% is on the low side compared to the rest of the industry. SHO is outperformed by 64.84% of its industry peers.
SHO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.77% | ||
| PM (TTM) | 0.44% | ||
| GM | 60.49% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SHO is destroying value.
SHO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SHO has less shares outstanding
Compared to 1 year ago, SHO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.12, we must say that SHO is in the distress zone and has some risk of bankruptcy.
SHO has a better Altman-Z score (1.12) than 82.03% of its industry peers.
The Debt to FCF ratio of SHO is 5.18, which is a neutral value as it means it would take SHO, 5.18 years of fcf income to pay off all of its debts.
SHO has a Debt to FCF ratio of 5.18. This is amongst the best in the industry. SHO outperforms 98.44% of its industry peers.
SHO has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
SHO has a better Debt to Equity ratio (0.44) than 91.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 1.12 |
ROIC/WACC0.27
WACC7.39%
2.3 Liquidity
A Current Ratio of 1.30 indicates that SHO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.30, SHO is doing good in the industry, outperforming 61.72% of the companies in the same industry.
SHO has a Quick Ratio of 1.30. This is a normal value and indicates that SHO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.30, SHO is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
SHO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.75%, which is quite good.
SHO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.38% yearly.
Looking at the last year, SHO shows a decrease in Revenue. The Revenue has decreased by -8.18% in the last year.
Measured over the past years, SHO shows a decrease in Revenue. The Revenue has been decreasing by -4.07% on average per year.
EPS 1Y (TTM)18.75%
EPS 3Y29.76%
EPS 5Y-23.38%
EPS Q2Q%N/A
Revenue 1Y (TTM)-8.18%
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 0.33% on average per year.
The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y-90.98%
EPS Next 2Y-11.94%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue Next Year5.25%
Revenue Next 2Y5.43%
Revenue Next 3Y4.44%
Revenue Next 5YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
SHO is valuated quite expensively with a Price/Earnings ratio of 47.68.
The rest of the industry has a similar Price/Earnings ratio as SHO.
The average S&P500 Price/Earnings ratio is at 25.45. SHO is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 83.44, SHO can be considered very expensive at the moment.
SHO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of SHO to the average of the S&P500 Index (34.46), we can say SHO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.68 | ||
| Fwd PE | 83.44 |
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 68.75% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SHO is valued cheaply inside the industry as 88.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.25 | ||
| EV/EBITDA | 12.3 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.94%
EPS Next 3Y0.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.00%, SHO is a good candidate for dividend investing.
SHO's Dividend Yield is a higher than the industry average which is at 6.59.
SHO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector 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.
The dividend of SHO decreased in the last 3 years.
Dividend Growth(5Y)-9.74%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SHO pays out 2126.95% of its income as dividend. This is not a sustainable payout ratio.
DP2126.95%
EPS Next 2Y-11.94%
EPS Next 3Y0.33%
9.06
+0.07 (+0.78%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.99%
Inst Owner Change-2.63%
Ins Owners1.26%
Ins Owner Change0%
Market Cap1.72B
Revenue(TTM)905.81M
Net Income(TTM)4.14M
Analysts73.33
Price Target9.88 (9.05%)
Short Float %7.44%
Short Ratio7.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Yearly Dividend0.45
Dividend Growth(5Y)-9.74%
DP2126.95%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)49.22%
Min EPS beat(2)-65.59%
Max EPS beat(2)164.03%
EPS beat(4)2
Avg EPS beat(4)6.67%
Min EPS beat(4)-100%
Max EPS beat(4)164.03%
EPS beat(8)6
Avg EPS beat(8)345.59%
EPS beat(12)10
Avg EPS beat(12)313.01%
EPS beat(16)13
Avg EPS beat(16)247%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-3.82%
Max Revenue beat(2)-0.05%
Revenue beat(4)1
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)0.7%
Revenue beat(8)4
Avg Revenue beat(8)-0.69%
Revenue beat(12)7
Avg Revenue beat(12)0.76%
Revenue beat(16)10
Avg Revenue beat(16)1.95%
PT rev (1m)0%
PT rev (3m)-0.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-259.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-90.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.11%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.68 | ||
| Fwd PE | 83.44 | ||
| P/S | 1.84 | ||
| P/FCF | 10.25 | ||
| P/OCF | 10.25 | ||
| P/B | 0.87 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 12.3 |
EPS(TTM)0.19
EY2.1%
EPS(NY)0.11
Fwd EY1.2%
FCF(TTM)0.88
FCFY9.75%
OCF(TTM)0.88
OCFY9.75%
SpS4.92
BVpS10.42
TBVpS10.42
PEG (NY)N/A
PEG (5Y)N/A
Graham Number6.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 0.21% | ||
| ROCE | 2.54% | ||
| ROIC | 2% | ||
| ROICexc | 2.06% | ||
| ROICexgc | 2.06% | ||
| OM | 7.77% | ||
| PM (TTM) | 0.44% | ||
| GM | 60.49% | ||
| FCFM | 17.95% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 5.18 | ||
| Debt/EBITDA | 4.27 | ||
| Cap/Depr | 0% | ||
| Cap/Sales | 0% | ||
| Interest Coverage | 1.57 | ||
| Cash Conversion | 82.51% | ||
| Profit Quality | 4053.66% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 1.12 |
F-Score5
WACC7.39%
ROIC/WACC0.27
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)18.75%
EPS 3Y29.76%
EPS 5Y-23.38%
EPS Q2Q%N/A
EPS Next Y-90.98%
EPS Next 2Y-11.94%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.18%
Revenue growth 3Y21.17%
Revenue growth 5Y-4.07%
Sales Q2Q%1.29%
Revenue Next Year5.25%
Revenue Next 2Y5.43%
Revenue Next 3Y4.44%
Revenue Next 5YN/A
EBIT growth 1Y-25.98%
EBIT growth 3YN/A
EBIT growth 5Y-13.48%
EBIT Next Year193.94%
EBIT Next 3Y48.3%
EBIT Next 5YN/A
FCF growth 1Y-25.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-25.63%
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.
What is the valuation status of SUNSTONE HOTEL INVESTORS INC (SHO) stock?
ChartMill assigns a valuation rating of 3 / 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 valuation of SUNSTONE HOTEL INVESTORS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SUNSTONE HOTEL INVESTORS INC (SHO) is 47.68 and the Price/Book (PB) ratio is 0.87.
Can you provide the financial health for SHO stock?
The financial health rating of SUNSTONE HOTEL INVESTORS INC (SHO) is 6 / 10.