SUNSTONE HOTEL INVESTORS INC (SHO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SHO - US8678921011 - REIT
9.15 USD
+0.05 (+0.55%)
9.15 USD
0 (0%)
SHO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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
In the past year SHO has reported negative net income.
In the past year SHO had a positive cash flow from operations.
Of the past 5 years SHO 4 years were profitable.
Of the past 5 years SHO 4 years had a positive operating cash flow.
1.2 Ratios
SHO has a Return On Assets (0.06%) which is comparable to the rest of the industry.
SHO has a Return On Equity (0.10%) which is in line with its industry peers.
With a Return On Invested Capital value of 1.86%, SHO is not doing good in the industry: 69.53% 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 3.05%.
| 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's Profit Margin of 0.20% is in line compared to the rest of the industry. SHO outperforms 41.41% of its industry peers.
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 81.25% of its industry peers.
In the last couple of years the Operating Margin of SHO has declined.
Looking at the Gross Margin, with a value of 60.10%, SHO is doing worse than 66.41% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SHO is destroying value.
The number of shares outstanding for SHO has been reduced compared to 1 year ago.
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 1.08, we must say that SHO is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.08, SHO belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
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.
SHO has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
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
WACC7.46%
2.3 Liquidity
A Current Ratio of 1.46 indicates that SHO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.46, SHO is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
A Quick Ratio of 1.46 indicates that SHO should not have too much problems paying its short term obligations.
SHO has a better Quick ratio (1.46) than 69.53% 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.
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.
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 14.85% on average over the next years. This is quite good.
Based on estimates for the next years, SHO will show a small growth in Revenue. The Revenue will grow by 4.47% on average per year.
EPS Next Y-96.39%
EPS Next 2Y-7.93%
EPS Next 3Y14.85%
EPS Next 5YN/A
Revenue Next Year5.21%
Revenue Next 2Y5.43%
Revenue Next 3Y4.47%
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.
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
A Price/Forward Earnings ratio of 77.10 indicates a quite expensive valuation of SHO.
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 (23.83), we can say SHO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 77.1 |
4.2 Price Multiples
69.53% of the companies in the same industry are more expensive than SHO, based on the Enterprise Value to EBITDA ratio.
SHO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SHO is cheaper than 89.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.97 | ||
| EV/EBITDA | 12.55 |
4.3 Compensation for Growth
SHO's earnings are expected to grow with 14.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.93%
EPS Next 3Y14.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.96%, SHO has a reasonable but not impressive dividend return.
SHO's Dividend Yield is slightly below the industry average, which is at 6.34.
Compared to an average S&P500 Dividend Yield of 1.87, SHO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
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-7.93%
EPS Next 3Y14.85%
9.15
+0.05 (+0.55%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.68%
Inst Owner Change-1.69%
Ins Owners1.29%
Ins Owner Change0.12%
Market Cap1.74B
Revenue(TTM)937.93M
Net Income(TTM)1.88M
Analysts73.33
Price Target9.88 (7.98%)
Short Float %6.79%
Short Ratio7.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
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)1.43%
EPS NQ rev (1m)-50%
EPS NQ rev (3m)-500%
EPS NY rev (1m)-60%
EPS NY rev (3m)-88.24%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 77.1 | ||
| P/S | 1.85 | ||
| P/FCF | 9.97 | ||
| P/OCF | 9.89 | ||
| P/B | 0.89 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 12.55 |
EPS(TTM)0
EYN/A
EPS(NY)0.12
Fwd EY1.3%
FCF(TTM)0.92
FCFY10.03%
OCF(TTM)0.92
OCFY10.11%
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
WACC7.46%
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-96.39%
EPS Next 2Y-7.93%
EPS Next 3Y14.85%
EPS Next 5YN/A
Revenue 1Y (TTM)3.04%
Revenue growth 3Y21.17%
Revenue growth 5Y-4.07%
Sales Q2Q%1.29%
Revenue Next Year5.21%
Revenue Next 2Y5.43%
Revenue Next 3Y4.47%
Revenue Next 5YN/A
EBIT growth 1Y-22.35%
EBIT growth 3YN/A
EBIT growth 5Y-13.48%
EBIT Next Year190.87%
EBIT Next 3Y47.67%
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 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.
How financially healthy is SUNSTONE HOTEL INVESTORS INC?
The financial health rating of SUNSTONE HOTEL INVESTORS INC (SHO) is 6 / 10.