SUNSTONE HOTEL INVESTORS INC (SHO) Fundamental Analysis & Valuation

NYSE:SHO • US8678921011

Current stock price

9.695 USD
+0.05 (+0.57%)
Last:

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.
  • In the past year SHO had a positive cash flow from operations.
  • In the past 5 years SHO has always been profitable.
  • SHO had a positive operating cash flow in each of the past 5 years.
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

  • With a Return On Assets value of 0.27%, SHO perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
  • With a Return On Equity value of 0.42%, SHO perfoms like the industry average, outperforming 42.15% of the companies in the same industry.
  • With a Return On Invested Capital value of 2.08%, SHO is not doing good in the industry: 61.98% of the companies in the same industry are doing better.
  • SHO had an Average Return On Invested Capital over the past 3 years of 2.43%. This 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

  • SHO has a Profit Margin (0.86%) which is comparable to the rest of the industry.
  • SHO's Profit Margin has declined in the last couple of years.
  • SHO has a Operating Margin of 7.89%. This is in the lower half of the industry: SHO underperforms 76.86% 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 60.06%, SHO is doing worse than 66.94% of the companies in the same industry.
  • SHO's Gross Margin has improved in the last couple of years.
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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SHO is destroying value.
  • SHO has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for SHO has been reduced compared to 5 years ago.
  • Compared to 1 year ago, SHO has a worse debt to assets ratio.
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 1.14. This is a bad value and indicates that SHO is not financially healthy and even has some risk of bankruptcy.
  • With a decent Altman-Z score value of 1.14, SHO is doing good in the industry, outperforming 77.69% 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.
  • SHO's Debt to FCF ratio of 5.09 is amongst the best of the industry. SHO outperforms 97.52% 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.
  • The Debt to Equity ratio of SHO (0.47) is better than 88.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 5.09
Altman-Z 1.14
ROIC/WACC0.28
WACC7.46%
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 Current ratio of 1.44. This is in the better half of the industry: SHO outperforms 71.07% 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 72.73% 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%.
  • The earnings per share for SHO have been decreasing by -51.47% on average. This is quite bad
  • SHO shows a small growth in Revenue. In the last year, the Revenue has grown by 6.00%.
  • The Revenue has been growing by 29.08% on average over the past years. This is a very strong growth!
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

  • Based on estimates for the next years, SHO will show a very strong growth in Earnings Per Share. The EPS will grow by 230.78% on average per year.
  • The Revenue is expected to grow by 3.77% on average over the next years.
EPS Next Y278.75%
EPS Next 2Y230.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.14%
Revenue Next 2Y3.22%
Revenue Next 3Y3.77%
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 decreasing: in the next years the growth will be less than in the last years.
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 242.38, which means the current valuation is very expensive for SHO.
  • Compared to the rest of the industry, the Price/Earnings ratio of SHO indicates a slightly more expensive valuation: SHO is more expensive than 61.16% of the companies listed in the same industry.
  • SHO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.42.
  • A Price/Forward Earnings ratio of 63.99 indicates a quite expensive valuation of SHO.
  • The rest of the industry has a similar Price/Forward Earnings ratio as SHO.
  • When comparing the Price/Forward Earnings ratio of SHO to the average of the S&P500 Index (22.29), we can say SHO is valued expensively.
Industry RankSector Rank
PE 242.38
Fwd PE 63.99
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

  • SHO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SHO is cheaper than 66.12% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, SHO is valued cheaply inside the industry as 92.56% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.16
EV/EBITDA 12.52
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

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as SHO's earnings are expected to grow with 230.78% in the coming years.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y230.78%
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 3.77%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 7.44, SHO is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.81, SHO pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.77%

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 not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-9.02%
Div Incr Years3
Div Non Decr Years3
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 2Y230.78%
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 (4/27/2026, 12:22:41 PM)

9.695

+0.05 (+0.57%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)02-27
Earnings (Next)05-05
Inst Owners94.18%
Inst Owner Change1.09%
Ins Owners1.44%
Ins Owner Change5.37%
Market Cap1.83B
Revenue(TTM)960.13M
Net Income(TTM)8.21M
Analysts71.25
Price Target10.2 (5.21%)
Short Float %6.11%
Short Ratio5.26
Dividend
Industry RankSector Rank
Dividend Yield 3.77%
Yearly Dividend0.44
Dividend Growth(5Y)-9.02%
DP1052.29%
Div Incr Years3
Div Non Decr Years3
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)0.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)200.08%
EPS NY rev (1m)-6.25%
EPS NY rev (3m)30.43%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.6%
Valuation
Industry RankSector Rank
PE 242.38
Fwd PE 63.99
P/S 1.91
P/FCF 10.16
P/OCF 10.09
P/B 0.94
P/tB 0.94
EV/EBITDA 12.52
EPS(TTM)0.04
EY0.41%
EPS(NY)0.15
Fwd EY1.56%
FCF(TTM)0.95
FCFY9.84%
OCF(TTM)0.96
OCFY9.91%
SpS5.08
BVpS10.28
TBVpS10.28
PEG (NY)0.87
PEG (5Y)N/A
Graham Number3.04191 (-68.62%)
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 1.14
F-Score5
WACC7.46%
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 Y278.75%
EPS Next 2Y230.78%
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 Year4.14%
Revenue Next 2Y3.22%
Revenue Next 3Y3.77%
Revenue Next 5YN/A
EBIT growth 1Y-3.66%
EBIT growth 3Y-8.66%
EBIT growth 5YN/A
EBIT Next Year227.15%
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 242.38 and the Price/Book (PB) ratio is 0.94.


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 278.75% in the next year.