SUNSTONE HOTEL INVESTORS INC (SHO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SHO - US8678921011 - REIT
9.12 USD
+0.03 (+0.33%)
9.12 USD
0 (0%)
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.
In the past year SHO had a positive cash flow from operations.
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
With a Return On Assets value of 0.06%, SHO perfoms like the industry average, outperforming 42.19% of the companies in the same industry.
SHO has a Return On Equity of 0.10%. This is comparable to the rest of the industry: SHO outperforms 42.19% of its industry peers.
SHO's Return On Invested Capital of 1.86% is on the low side compared to the rest of the industry. SHO is outperformed by 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 3.05%.
| 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 has a Profit Margin (0.20%) which is in line with its industry peers.
SHO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.27%, SHO is doing worse than 81.25% of the companies in the same industry.
In the last couple of years the Operating Margin of SHO has declined.
SHO has a worse Gross Margin (60.10%) than 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
SHO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
Compared to 1 year ago, SHO has a worse debt to assets ratio.
2.2 Solvency
SHO has an Altman-Z score of 1.07. This is a bad value and indicates that SHO is not financially healthy and even has some risk of bankruptcy.
SHO's Altman-Z score of 1.07 is fine compared to the rest of the industry. SHO outperforms 79.69% 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's Debt to FCF ratio of 5.26 is amongst the best of 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.
SHO has a Debt to Equity ratio of 0.47. This is amongst the best in the industry. SHO outperforms 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.25
WACC7.45%
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 68.75% 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.
With a decent Quick ratio value of 1.46, SHO is doing good in the industry, outperforming 69.53% of the companies in the same industry.
| 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.
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
SHO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.85% yearly.
The Revenue is expected to grow by 4.47% on average over the next years.
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
The Price/Forward Earnings ratio is 76.85, which means the current valuation is very expensive for SHO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SHO is on the same level as its industry peers.
SHO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 76.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHO is valued a bit cheaper than the industry average as 69.53% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHO indicates a rather cheap valuation: SHO is cheaper than 88.28% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.93 | ||
| EV/EBITDA | 12.54 |
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
SHO has a Yearly Dividend Yield of 3.96%. Purely for dividend investing, there may be better candidates out there.
SHO's Dividend Yield is slightly below the industry average, which is at 6.33.
SHO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| 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.
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
SHO pays out 4640.68% of its income as dividend. This is not a sustainable payout ratio.
DP4640.68%
EPS Next 2Y-7.93%
EPS Next 3Y14.85%
9.12
+0.03 (+0.33%)
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 Cap1.73B
Revenue(TTM)937.93M
Net Income(TTM)1.88M
Analysts73.33
Price TargetN/A
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)0%
EPS NQ rev (3m)-500%
EPS NY rev (1m)-60%
EPS NY rev (3m)-88.24%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 76.85 | ||
| P/S | 1.85 | ||
| P/FCF | 9.93 | ||
| P/OCF | 9.86 | ||
| P/B | 0.88 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 12.54 |
EPS(TTM)0
EYN/A
EPS(NY)0.12
Fwd EY1.3%
FCF(TTM)0.92
FCFY10.07%
OCF(TTM)0.92
OCFY10.14%
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 | 1.07 |
F-Score5
WACC7.45%
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.