SUNSTONE HOTEL INVESTORS INC (SHO) Stock Fundamental Analysis
USA - NYSE:SHO - US8678921011 - REIT
9.45 USD
+0.17 (+1.83%)
9.45 USD
0 (0%)
Taking everything into account, SHO scores 4 out of 10 in our fundamental rating. SHO was compared to 128 industry peers in the Diversified REITs industry. While SHO seems to be doing ok healthwise, there are quite some concerns on its profitability. SHO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
SHO had positive earnings in the past year.
In the past year SHO had a positive cash flow from operations.
Of the past 5 years SHO 4 years were profitable.
SHO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.14%, SHO is in line with its industry, outperforming 44.09% of the companies in the same industry.
SHO has a Return On Equity (0.21%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.00%, SHO is doing worse than 64.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SHO is in line with the industry average of 3.09%.
| 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 44.09% of the companies in the same industry.
In the last couple of years the Profit Margin of SHO has declined.
SHO's Operating Margin of 7.77% is on the low side compared to the rest of the industry. SHO is outperformed by 80.31% of its industry peers.
SHO's Operating Margin has declined in the last couple of years.
SHO has a Gross Margin of 60.49%. This is in the lower half of the industry: SHO underperforms 64.57% 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.
SHO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SHO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.17, we must say that SHO is in the distress zone and has some risk of bankruptcy.
SHO has a better Altman-Z score (1.17) than 81.89% 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.
Looking at the Debt to FCF ratio, with a value of 5.18, SHO belongs to the top of the industry, outperforming 98.43% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that SHO is not too dependend on debt financing.
SHO has a better Debt to Equity ratio (0.44) than 90.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.27
WACC7.46%
2.3 Liquidity
SHO has a Current 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.
SHO has a better Current ratio (1.30) than 62.20% of its industry peers.
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.
SHO's Quick ratio of 1.30 is fine compared to the rest of the industry. SHO outperforms 63.78% of its industry peers.
| 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.
The earnings per share for SHO have been decreasing by -23.38% on average. This is quite bad
The Revenue has decreased by -8.18% in the past year.
SHO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.07% yearly.
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
The Earnings Per Share is expected to grow by 0.33% on average over the next years.
SHO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.44% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 49.74, which means the current valuation is very expensive for SHO.
SHO's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.06. SHO is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 87.04, which means the current valuation is very expensive for SHO.
The rest of the industry has a similar Price/Forward Earnings ratio as SHO.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.73, SHO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.74 | ||
| Fwd PE | 87.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHO is valued a bit cheaper than 70.08% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHO indicates a rather cheap valuation: SHO is cheaper than 88.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.69 | ||
| EV/EBITDA | 12.73 |
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 3.88%, SHO has a reasonable but not impressive dividend return.
SHO's Dividend Yield is slightly below the industry average, which is at 6.31.
SHO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
5.2 History
The dividend of SHO decreases each year by -9.74%.
SHO has been paying a dividend for at least 10 years, so it has 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%
9.45
+0.17 (+1.83%)
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-0.68%
Ins Owners1.26%
Ins Owner Change0%
Market Cap1.80B
Revenue(TTM)905.81M
Net Income(TTM)4.14M
Analysts73.33
Price Target9.74 (3.07%)
Short Float %7.81%
Short Ratio6.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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)-4.13%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.74 | ||
| Fwd PE | 87.04 | ||
| P/S | 1.92 | ||
| P/FCF | 10.69 | ||
| P/OCF | 10.69 | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 12.73 |
EPS(TTM)0.19
EY2.01%
EPS(NY)0.11
Fwd EY1.15%
FCF(TTM)0.88
FCFY9.35%
OCF(TTM)0.88
OCFY9.35%
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 | 1.17 |
F-Score5
WACC7.46%
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 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 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 49.74 and the Price/Book (PB) ratio is 0.91.
Can you provide the financial health for SHO stock?
The financial health rating of SUNSTONE HOTEL INVESTORS INC (SHO) is 6 / 10.