SUNSTONE HOTEL INVESTORS INC (SHO) Fundamental Analysis & Valuation

NYSE:SHO • US8678921011

Current stock price

9.01 USD
+0.02 (+0.22%)
At close:
9.01 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.
  • Each year in the past 5 years SHO has 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

  • SHO has a Return On Assets (0.27%) which is in line with its industry peers.
  • With a Return On Equity value of 0.42%, SHO perfoms like the industry average, outperforming 42.62% of the companies in the same industry.
  • The Return On Invested Capital of SHO (2.08%) is worse than 61.48% 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 3.11%.
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

  • Looking at the Profit Margin, with a value of 0.86%, SHO is in line with its industry, outperforming 42.62% of the companies in the same industry.
  • SHO's Profit Margin has declined in the last couple of years.
  • With a Operating Margin value of 7.89%, SHO is not doing good in the industry: 77.05% of the companies in the same industry are doing better.
  • In the last couple of years the Operating Margin of SHO has declined.
  • With a Gross Margin value of 60.06%, SHO is not doing good in the industry: 67.21% of the companies in the same industry are doing better.
  • 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

  • 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.
  • SHO has a worse debt/assets ratio than last year.
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

  • SHO has an Altman-Z score of 1.08. This is a bad value and indicates that SHO is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.08, SHO is in the better half of the industry, outperforming 78.69% of the companies in the same industry.
  • 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.
  • With an excellent Debt to FCF ratio value of 5.09, SHO belongs to the best of the industry, outperforming 97.54% of the companies in the same industry.
  • A Debt/Equity ratio of 0.47 indicates that SHO is not too dependend on debt financing.
  • SHO's Debt to Equity ratio of 0.47 is amongst the best of the industry. SHO outperforms 88.52% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 5.09
Altman-Z 1.08
ROIC/WACC0.28
WACC7.41%
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

  • A Current Ratio of 1.44 indicates that SHO should not have too much problems paying 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.
  • With a decent Quick ratio value of 1.44, SHO is doing good in the industry, outperforming 72.95% of the companies in the same industry.
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%.
  • SHO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -51.47% yearly.
  • 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.
  • The Revenue is expected to grow by 3.77% on average over the next years.
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

  • The Price/Earnings ratio is 225.25, which means the current valuation is very expensive for SHO.
  • SHO's Price/Earnings ratio is a bit more expensive when compared to the industry. SHO is more expensive than 60.66% of the companies in the same industry.
  • SHO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.60.
  • A Price/Forward Earnings ratio of 55.75 indicates a quite expensive valuation of SHO.
  • The rest of the industry has a similar Price/Forward Earnings ratio as SHO.
  • The average S&P500 Price/Forward Earnings ratio is at 22.84. SHO is valued rather expensively when compared to this.
Industry RankSector Rank
PE 225.25
Fwd PE 55.75
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHO indicates a somewhat cheap valuation: SHO is cheaper than 65.57% of the companies listed in the same industry.
  • SHO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SHO is cheaper than 90.98% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.46
EV/EBITDA 11.95
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

  • SHO's 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.
  • SHO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
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.
  • SHO has decreased its dividend 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

  • SHO pays out 1052.29% of its income as dividend. 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 (4/2/2026, 8:04:00 PM)

After market: 9.01 0 (0%)

9.01

+0.02 (+0.22%)

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 Cap1.71B
Revenue(TTM)960.13M
Net Income(TTM)8.21M
Analysts72
Price Target10.2 (13.21%)
Short Float %5.2%
Short Ratio4.5
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 225.25
Fwd PE 55.75
P/S 1.78
P/FCF 9.46
P/OCF 9.39
P/B 0.88
P/tB 0.88
EV/EBITDA 11.95
EPS(TTM)0.04
EY0.44%
EPS(NY)0.16
Fwd EY1.79%
FCF(TTM)0.95
FCFY10.57%
OCF(TTM)0.96
OCFY10.64%
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 1.08
F-Score5
WACC7.41%
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.


What is the profitability of SHO stock?

SUNSTONE HOTEL INVESTORS INC (SHO) has a profitability rating of 4 / 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 225.25 and the Price/Book (PB) ratio is 0.88.


What is the earnings growth outlook for SUNSTONE HOTEL INVESTORS INC?

The Earnings per Share (EPS) of SUNSTONE HOTEL INVESTORS INC (SHO) is expected to grow by 304% in the next year.