SUNSTONE HOTEL INVESTORS INC (SHO) Fundamental Analysis & Valuation

NYSE:SHO • US8678921011

Current stock price

8.95 USD
-0.3 (-3.24%)
At close:
8.95 USD
0 (0%)
After Hours:

This SHO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. SHO Profitability Analysis

1.1 Basic Checks

  • SHO had positive earnings in the past year.
  • SHO had a positive operating cash flow in the past year.
  • In the past 5 years SHO has always been profitable.
  • Each year in the past 5 years SHO had a positive operating cash flow.
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 2025 0 200M -200M -400M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 0.27%, SHO is in line with its industry, outperforming 46.72% of the companies in the same industry.
  • The Return On Equity of SHO (0.42%) is comparable to the rest of the industry.
  • With a Return On Invested Capital value of 2.08%, SHO is not doing good in the industry: 61.48% of the companies in the same industry are doing better.
  • The Average Return On Invested Capital over the past 3 years for SHO is in line with the industry average of 3.11%.
Industry RankSector Rank
ROA 0.27%
ROE 0.42%
ROIC 2.08%
ROA(3y)2.42%
ROA(5y)2.01%
ROE(3y)3.53%
ROE(5y)2.94%
ROIC(3y)2.43%
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 2025 0 5 -5 -10 -15 -20

1.3 Margins

  • SHO has a Profit Margin of 0.86%. This is comparable to the rest of the industry: SHO outperforms 42.62% of its industry peers.
  • SHO's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 7.89%, SHO is doing worse than 77.05% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SHO has declined.
  • SHO has a worse Gross Margin (60.06%) than 67.21% of its industry peers.
  • In the last couple of years the Gross Margin of SHO has grown nicely.
Industry RankSector Rank
OM 7.89%
PM (TTM) 0.86%
GM 60.06%
OM growth 3Y-10.21%
OM growth 5YN/A
PM growth 3Y-52.46%
PM growth 5YN/A
GM growth 3Y-1.28%
GM growth 5Y6.01%
SHO Yearly Profit, Operating, Gross MarginsSHO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 -100 -150

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6

2. SHO Health Analysis

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.
  • SHO has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for SHO is higher compared to a year ago.
SHO Yearly Shares OutstandingSHO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 1B 2B 3B

2.2 Solvency

  • Based on the Altman-Z score of 1.07, we must say that SHO is in the distress zone and has some risk of bankruptcy.
  • SHO's Altman-Z score of 1.07 is fine compared to the rest of the industry. SHO outperforms 79.51% of its industry peers.
  • SHO has a debt to FCF ratio of 5.09. This is a neutral value as SHO would need 5.09 years to pay back of all of its debts.
  • SHO has a Debt to FCF ratio of 5.09. This is amongst the best in the industry. SHO outperforms 97.54% of its industry peers.
  • SHO has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
  • With an excellent Debt to Equity ratio value of 0.47, SHO belongs to the best of the industry, outperforming 88.52% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 5.09
Altman-Z 1.07
ROIC/WACC0.28
WACC7.48%
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 2025 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • SHO has a Current Ratio of 1.44. 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 (1.44) than 71.31% of its industry peers.
  • SHO has a Quick Ratio of 1.44. This is a normal value and indicates that SHO is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of SHO (1.44) is better than 72.95% of its industry peers.
Industry RankSector Rank
Current Ratio 1.44
Quick Ratio 1.44
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 2025 200M 400M 600M 800M

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

5

3. SHO Growth Analysis

3.1 Past

  • SHO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -71.43%.
  • Measured over the past years, SHO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -51.47% on average per year.
  • SHO shows a small growth in Revenue. In the last year, the Revenue has grown by 6.00%.
  • SHO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.08% yearly.
EPS 1Y (TTM)-71.43%
EPS 3Y-51.47%
EPS 5YN/A
EPS Q2Q%200%
Revenue 1Y (TTM)6%
Revenue growth 3Y1.73%
Revenue growth 5Y29.08%
Sales Q2Q%10.33%

3.2 Future

  • SHO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 124.72% yearly.
  • Based on estimates for the next years, SHO will show a small growth in Revenue. The Revenue will grow by 3.77% on average per year.
EPS Next Y304%
EPS Next 2Y124.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.32%
Revenue Next 2Y3.16%
Revenue Next 3Y3.77%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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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4

4. SHO Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 223.75 indicates a quite expensive valuation of SHO.
  • Based on the Price/Earnings ratio, SHO is valued a bit more expensive than the industry average as 60.66% of the companies are valued more cheaply.
  • SHO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.89.
  • The Price/Forward Earnings ratio is 55.38, which means the current valuation is very expensive for SHO.
  • SHO's Price/Forward Earnings is on the same level as the industry average.
  • SHO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 223.75
Fwd PE 55.38
SHO Price Earnings VS Forward Price EarningsSHO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SHO is valued a bit cheaper than 64.75% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, SHO is valued cheaply inside the industry as 89.34% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 9.4
EV/EBITDA 11.92
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

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • SHO's earnings are expected to grow with 124.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y124.72%
EPS Next 3YN/A

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

3

5. SHO Dividend Analysis

5.1 Amount

  • SHO has a Yearly Dividend Yield of 3.89%. Purely for dividend investing, there may be better candidates out there.
  • SHO's Dividend Yield is slightly below the industry average, which is at 7.54.
  • Compared to an average S&P500 Dividend Yield of 1.89, SHO pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.89%

5.2 History

  • The dividend of SHO decreases each year by -9.02%.
  • 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)-9.02%
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 2026 0.2 0.4 0.6

5.3 Sustainability

  • 1052.29% of the earnings are spent on dividend by SHO. This is not a sustainable payout ratio.
DP1052.29%
EPS Next 2Y124.72%
EPS Next 3YN/A
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 2025 0 200M -200M -400M
SHO Dividend Payout.SHO Dividend Payout, showing the Payout Ratio.SHO Dividend Payout.PayoutRetained Earnings

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SHO Fundamentals: All Metrics, Ratios and Statistics

SUNSTONE HOTEL INVESTORS INC

NYSE:SHO (3/27/2026, 8:04:00 PM)

After market: 8.95 0 (0%)

8.95

-0.3 (-3.24%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)02-27
Earnings (Next)05-04
Inst Owners93.51%
Inst Owner Change-2.91%
Ins Owners1.43%
Ins Owner Change5.37%
Market Cap1.70B
Revenue(TTM)960.13M
Net Income(TTM)8.21M
Analysts72
Price Target10.2 (13.97%)
Short Float %4.85%
Short Ratio4.29
Dividend
Industry RankSector Rank
Dividend Yield 3.89%
Yearly Dividend0.44
Dividend Growth(5Y)-9.02%
DP1052.29%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-31
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)128.88%
Min EPS beat(2)25.75%
Max EPS beat(2)232.01%
EPS beat(4)3
Avg EPS beat(4)89.05%
Min EPS beat(4)-65.59%
Max EPS beat(4)232.01%
EPS beat(8)6
Avg EPS beat(8)358.58%
EPS beat(12)10
Avg EPS beat(12)312.41%
EPS beat(16)14
Avg EPS beat(16)269.07%
Revenue beat(2)1
Avg Revenue beat(2)1.83%
Min Revenue beat(2)-0.26%
Max Revenue beat(2)3.93%
Revenue beat(4)1
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)3.93%
Revenue beat(8)3
Avg Revenue beat(8)-0.47%
Revenue beat(12)6
Avg Revenue beat(12)0.21%
Revenue beat(16)10
Avg Revenue beat(16)2%
PT rev (1m)0.92%
PT rev (3m)1.85%
EPS NQ rev (1m)33.33%
EPS NQ rev (3m)139.95%
EPS NY rev (1m)9.09%
EPS NY rev (3m)36.17%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)-1.01%
Valuation
Industry RankSector Rank
PE 223.75
Fwd PE 55.38
P/S 1.77
P/FCF 9.4
P/OCF 9.33
P/B 0.87
P/tB 0.87
EV/EBITDA 11.92
EPS(TTM)0.04
EY0.45%
EPS(NY)0.16
Fwd EY1.81%
FCF(TTM)0.95
FCFY10.64%
OCF(TTM)0.96
OCFY10.72%
SpS5.07
BVpS10.26
TBVpS10.26
PEG (NY)0.74
PEG (5Y)N/A
Graham Number3.04
Profitability
Industry RankSector Rank
ROA 0.27%
ROE 0.42%
ROCE 2.63%
ROIC 2.08%
ROICexc 2.16%
ROICexgc 2.16%
OM 7.89%
PM (TTM) 0.86%
GM 60.06%
FCFM 18.8%
ROA(3y)2.42%
ROA(5y)2.01%
ROE(3y)3.53%
ROE(5y)2.94%
ROIC(3y)2.43%
ROIC(5y)N/A
ROICexc(3y)2.65%
ROICexc(5y)N/A
ROICexgc(3y)2.65%
ROICexgc(5y)N/A
ROCE(3y)3.07%
ROCE(5y)N/A
ROICexgc growth 3Y-10.53%
ROICexgc growth 5YN/A
ROICexc growth 3Y-10.53%
ROICexc growth 5YN/A
OM growth 3Y-10.21%
OM growth 5YN/A
PM growth 3Y-52.46%
PM growth 5YN/A
GM growth 3Y-1.28%
GM growth 5Y6.01%
F-Score5
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 5.09
Debt/EBITDA 4.37
Cap/Depr 0.94%
Cap/Sales 0.13%
Interest Coverage 1.55
Cash Conversion 86.46%
Profit Quality 2198.43%
Current Ratio 1.44
Quick Ratio 1.44
Altman-Z 1.07
F-Score5
WACC7.48%
ROIC/WACC0.28
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)-71.43%
EPS 3Y-51.47%
EPS 5YN/A
EPS Q2Q%200%
EPS Next Y304%
EPS Next 2Y124.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6%
Revenue growth 3Y1.73%
Revenue growth 5Y29.08%
Sales Q2Q%10.33%
Revenue Next Year4.32%
Revenue Next 2Y3.16%
Revenue Next 3Y3.77%
Revenue Next 5YN/A
EBIT growth 1Y-3.66%
EBIT growth 3Y-8.66%
EBIT growth 5YN/A
EBIT Next Year228.06%
EBIT Next 3Y53.11%
EBIT Next 5YN/A
FCF growth 1Y406.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y6.68%
OCF growth 3Y-4.61%
OCF growth 5YN/A

SUNSTONE HOTEL INVESTORS INC / SHO Fundamental Analysis FAQ

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

ChartMill assigns a fundamental rating of 5 / 10 to SHO.


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

ChartMill assigns a valuation rating of 4 / 10 to SUNSTONE HOTEL INVESTORS INC (SHO). This can be considered as Fairly Valued.


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

SUNSTONE HOTEL INVESTORS INC (SHO) has a profitability rating of 4 / 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 grow by 304% in the next year.