SUNSTONE HOTEL INVESTORS INC (SHO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SHO - US8678921011 - REIT
9.34 USD
+0.17 (+1.85%)
9.34 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. SHO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SHO does not seem to be growing, but still is valued expensively.
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.
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 0.06%, SHO is in line with its industry, outperforming 45.31% of the companies in the same industry.
SHO has a Return On Equity (0.10%) which is in line with its industry peers.
The Return On Invested Capital of SHO (1.86%) is worse than 69.53% 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 3.06%.
| 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
The Profit Margin of SHO (0.20%) is comparable to the rest of the industry.
SHO's Profit Margin has declined in the last couple of years.
SHO has a worse Operating Margin (7.27%) than 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.
In the last couple of years the Gross Margin of SHO has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
The debt/assets ratio for SHO is higher compared to a year ago.
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.
SHO has a better Altman-Z score (1.08) than 80.47% of its industry peers.
SHO has a debt to FCF ratio of 5.26. This is a neutral value as SHO would need 5.26 years to pay back of all of its debts.
SHO has a better Debt to FCF ratio (5.26) than 98.44% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that SHO is not too dependend on debt financing.
SHO has a better Debt to Equity ratio (0.47) than 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.25
WACC7.4%
2.3 Liquidity
SHO has a Current 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.
SHO has a Current ratio of 1.46. This is in the better half of the industry: SHO outperforms 65.63% of its industry peers.
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
The earnings per share for SHO have decreased strongly by -100.00% in the last year.
The earnings per share for SHO have been decreasing by -23.38% on average. This is quite bad
Looking at the last year, SHO shows a small growth in Revenue. The Revenue has grown by 3.04% in the last year.
The Revenue has been decreasing by -4.07% on average over the past years.
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
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
SHO is valuated quite expensively with a Price/Forward Earnings ratio of 86.02.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SHO is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of SHO to the average of the S&P500 Index (35.79), we can say SHO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 86.02 |
4.2 Price Multiples
SHO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SHO is cheaper than 67.97% 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 90.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.18 | ||
| EV/EBITDA | 12.62 |
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 4.00%, SHO is a good candidate for dividend investing.
SHO's Dividend Yield is slightly below the industry average, which is at 6.59.
Compared to an average S&P500 Dividend Yield of 2.41, SHO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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
4640.68% of the earnings are spent on dividend by SHO. This is not a sustainable payout ratio.
DP4640.68%
EPS Next 2Y-11.94%
EPS Next 3Y0.33%
9.34
+0.17 (+1.85%)
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%
Market Cap1.77B
Revenue(TTM)937.93M
Net Income(TTM)1.88M
Analysts73.33
Price Target9.88 (5.78%)
Short Float %7.44%
Short Ratio7.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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 | 86.02 | ||
| P/S | 1.89 | ||
| P/FCF | 10.18 | ||
| P/OCF | 10.1 | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 12.62 |
EPS(TTM)0
EYN/A
EPS(NY)0.11
Fwd EY1.16%
FCF(TTM)0.92
FCFY9.83%
OCF(TTM)0.92
OCFY9.9%
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 | 1.08 |
F-Score5
WACC7.4%
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.