SUNSTONE HOTEL INVESTORS INC (SHO) Stock Fundamental Analysis
USA - NYSE:SHO - US8678921011 - REIT
9.195 USD
+0.06 (+0.71%)
SHO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 is valued expensive and it does not seem to be growing.
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
SHO's Return On Assets of 0.14% is in line compared to the rest of the industry. SHO outperforms 44.53% of its industry peers.
The Return On Equity of SHO (0.21%) is comparable to the rest of the industry.
The Return On Invested Capital of SHO (2.00%) is worse than 64.06% 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 3.04%.
| 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
SHO has a Profit Margin of 0.44%. This is comparable to the rest of the industry: SHO outperforms 44.53% of its industry peers.
In the last couple of years the Profit Margin of SHO has declined.
SHO has a Operating Margin of 7.77%. This is amonst the worse of the industry: SHO underperforms 80.47% of its industry peers.
SHO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 60.49%, SHO is doing worse than 64.84% of the companies in the same industry.
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
SHO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SHO has less shares outstanding
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 1.14, we must say that SHO is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.14, SHO belongs to the best of the industry, outperforming 82.03% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 5.18, SHO belongs to the best of the industry, outperforming 98.44% 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's Debt to Equity ratio of 0.44 is amongst the best of the industry. SHO outperforms 91.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 1.14 |
ROIC/WACC0.27
WACC7.44%
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's Current ratio of 1.30 is fine compared to the rest of the industry. SHO outperforms 62.50% 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.
Looking at the Quick ratio, with a value of 1.30, SHO is in the better half of the industry, outperforming 63.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.75% over the past 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.
The Revenue has decreased by -8.18% in the past 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.
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SHO is valuated quite expensively with a Price/Earnings ratio of 48.39.
The rest of the industry has a similar Price/Earnings ratio as SHO.
SHO is valuated expensively when we compare the Price/Earnings ratio to 25.46, which is the current average of the S&P500 Index.
SHO is valuated quite expensively with a Price/Forward Earnings ratio of 84.69.
The rest of the industry has a similar Price/Forward Earnings ratio as SHO.
SHO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 35.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.39 | ||
| Fwd PE | 84.69 |
4.2 Price Multiples
68.75% of the companies in the same industry are more expensive than SHO, based on the Enterprise Value to EBITDA ratio.
88.28% of the companies in the same industry are more expensive than SHO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.41 | ||
| EV/EBITDA | 12.43 |
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 7.49%, SHO is a good candidate for dividend investing.
SHO's Dividend Yield is a higher than the industry average which is at 6.49.
Compared to an average S&P500 Dividend Yield of 2.44, SHO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.49% |
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
5.3 Sustainability
2126.95% of the earnings are spent on dividend by SHO. This is not a sustainable payout ratio.
DP2126.95%
EPS Next 2Y-11.94%
EPS Next 3Y0.33%
NYSE:SHO (11/19/2025, 2:58:22 PM)
9.195
+0.06 (+0.71%)
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 Cap1.75B
Revenue(TTM)905.81M
Net Income(TTM)4.14M
Analysts73.33
Price Target9.74 (5.93%)
Short Float %7.44%
Short Ratio7.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.49% |
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 | 48.39 | ||
| Fwd PE | 84.69 | ||
| P/S | 1.87 | ||
| P/FCF | 10.41 | ||
| P/OCF | 10.41 | ||
| P/B | 0.88 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 12.43 |
EPS(TTM)0.19
EY2.07%
EPS(NY)0.11
Fwd EY1.18%
FCF(TTM)0.88
FCFY9.61%
OCF(TTM)0.88
OCFY9.61%
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 | 1.14 |
F-Score5
WACC7.44%
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 48.39 and the Price/Book (PB) ratio is 0.88.
Can you provide the financial health for SHO stock?
The financial health rating of SUNSTONE HOTEL INVESTORS INC (SHO) is 6 / 10.