SUNSTONE HOTEL INVESTORS INC (SHO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SHO - US8678921011 - REIT
8.935 USD
+0.01 (+0.06%)
We assign a fundamental rating of 4 out of 10 to SHO. SHO was compared to 128 industry peers in the Diversified REITs industry. The financial health of SHO is average, but there are quite some concerns on its profitability. SHO has a expensive valuation and it also scores bad on growth.
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.
1.2 Ratios
SHO has a Return On Assets (0.06%) which is in line with its industry peers.
The Return On Equity of SHO (0.10%) is comparable to the rest of the industry.
SHO has a Return On Invested Capital of 1.86%. This is in the lower half of the industry: SHO underperforms 69.53% 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 3.06%.
| Industry Rank | Sector 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
1.3 Margins
SHO has a Profit Margin (0.20%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SHO has declined.
SHO's Operating Margin of 7.27% is on the low side compared to the rest of the industry. SHO is outperformed by 82.03% of its industry peers.
SHO's Operating Margin has declined in the last couple of years.
SHO has a Gross Margin of 60.10%. This is in the lower half of the industry: SHO underperforms 66.41% of its industry peers.
SHO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SHO is destroying value.
Compared to 1 year ago, SHO has less shares outstanding
Compared to 5 years ago, SHO has less shares outstanding
The debt/assets ratio for SHO is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.06, we must say that SHO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.06, SHO belongs to the top of the industry, outperforming 80.47% of the companies in the same industry.
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 98.44% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that SHO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, SHO belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.25
WACC7.38%
2.3 Liquidity
A Current Ratio of 1.46 indicates that SHO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.46, SHO is doing good in the industry, outperforming 65.63% of the companies in the same industry.
SHO has a Quick Ratio of 1.46. 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 (1.46) is better than 66.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
SHO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -100.00%.
Measured over the past years, SHO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.38% on average per year.
The Revenue has been growing slightly by 3.04% 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)-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 0.33% on average per year.
Based on estimates for the next years, SHO will show a small growth in Revenue. The Revenue will grow by 4.44% on average per year.
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.
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/Forward Earnings ratio of 82.29.
The rest of the industry has a similar Price/Forward Earnings ratio as SHO.
SHO is valuated expensively when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 82.29 |
4.2 Price Multiples
SHO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SHO is cheaper than 70.31% of the companies in the same industry.
SHO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SHO is cheaper than 89.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.73 | ||
| EV/EBITDA | 12.39 |
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 3.83%, SHO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.34, SHO is paying slightly less dividend.
SHO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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 4640.68% of its income as dividend. This is not a sustainable payout ratio.
DP4640.68%
EPS Next 2Y-11.94%
EPS Next 3Y0.33%
NYSE:SHO (12/5/2025, 3:53:10 PM)
8.935
+0.01 (+0.06%)
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-1.69%
Ins Owners1.26%
Ins Owner Change0.12%
Market Cap1.70B
Revenue(TTM)937.93M
Net Income(TTM)1.88M
Analysts73.33
Price Target9.88 (10.58%)
Short Float %7.16%
Short Ratio7.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
Yearly Dividend0.45
Dividend Growth(5Y)-9.74%
DP4640.68%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)1.43%
PT rev (3m)0.47%
EPS NQ rev (1m)-50%
EPS NQ rev (3m)-500%
EPS NY rev (1m)0%
EPS NY rev (3m)-70.59%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 82.29 | ||
| P/S | 1.81 | ||
| P/FCF | 9.73 | ||
| P/OCF | 9.66 | ||
| P/B | 0.87 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 12.39 |
EPS(TTM)0
EYN/A
EPS(NY)0.11
Fwd EY1.22%
FCF(TTM)0.92
FCFY10.28%
OCF(TTM)0.92
OCFY10.35%
SpS4.94
BVpS10.32
TBVpS10.32
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.06 |
F-Score5
WACC7.38%
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 2Y-11.94%
EPS Next 3Y0.33%
EPS Next 5YN/A
Revenue 1Y (TTM)3.04%
Revenue growth 3Y21.17%
Revenue growth 5Y-4.07%
Sales Q2Q%1.29%
Revenue Next Year5.25%
Revenue Next 2Y5.43%
Revenue Next 3Y4.44%
Revenue Next 5YN/A
EBIT growth 1Y-22.35%
EBIT growth 3YN/A
EBIT growth 5Y-13.48%
EBIT Next Year193.94%
EBIT Next 3Y48.3%
EBIT Next 5YN/A
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.
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.
How financially healthy is SUNSTONE HOTEL INVESTORS INC?
The financial health rating of SUNSTONE HOTEL INVESTORS INC (SHO) is 6 / 10.