SUNSTONE HOTEL INVESTORS INC (SHO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SHO - US8678921011 - REIT
9.17 USD
+0.14 (+1.55%)
9.17 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SHO. SHO was compared to 126 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 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year SHO has reported negative net income.
- SHO had a positive operating cash flow in the past year.
- SHO had positive earnings in 4 of the past 5 years.
- Of the past 5 years SHO 4 years had a positive operating cash flow.
1.2 Ratios
- SHO's Return On Assets of 0.06% is in line compared to the rest of the industry. SHO outperforms 42.86% of its industry peers.
- 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 69.05% 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 3.06%.
| 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
- SHO has a Profit Margin of 0.20%. This is comparable to the rest of the industry: SHO outperforms 42.06% of its industry peers.
- In the last couple of years the Profit Margin of SHO has declined.
- SHO has a worse Operating Margin (7.27%) than 80.16% of its industry peers.
- In the last couple of years the Operating Margin of SHO has declined.
- With a Gross Margin value of 60.10%, SHO is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- 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.
- SHO has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, SHO has less shares outstanding
- SHO has a worse debt/assets ratio than last year.
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.
- SHO has a Altman-Z score of 1.08. This is amongst the best in the industry. SHO outperforms 80.95% 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.
- The Debt to FCF ratio of SHO (5.26) is better than 98.41% of its industry peers.
- A Debt/Equity ratio of 0.47 indicates that SHO is not too dependend on debt financing.
- The Debt to Equity ratio of SHO (0.47) is better than 90.48% 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
- 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 better Current ratio (1.46) than 70.63% 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.
- With a decent Quick ratio value of 1.46, SHO is doing good in the industry, outperforming 71.43% 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.
- 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.
- SHO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.04%.
- Measured over the past years, SHO shows a decrease in Revenue. The Revenue has been decreasing by -4.07% on average per year.
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.
- SHO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.15% yearly.
EPS Next Y-96.39%
EPS Next 2Y-7.93%
EPS Next 3Y14.85%
EPS Next 5YN/A
Revenue Next Year5.08%
Revenue Next 2Y5.33%
Revenue Next 3Y4.37%
Revenue Next 5Y4.15%
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
- Based on the Price/Forward Earnings ratio of 77.27, the valuation of SHO can be described as expensive.
- SHO's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of SHO to the average of the S&P500 Index (24.31), we can say SHO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 77.27 |
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 71.43% of the companies listed in the same industry.
- 89.68% of the companies in the same industry are more expensive than SHO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.99 | ||
| EV/EBITDA | 12.61 |
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 3.88%.
- Compared to an average industry Dividend Yield of 6.86, SHO is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.92, SHO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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
- 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%
9.17
+0.14 (+1.55%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-07 2025-11-07/bmo
Earnings (Next)02-19 2026-02-19/bmo
Inst Owners100.91%
Inst Owner Change0.01%
Ins Owners1.29%
Ins Owner Change0.12%
Market Cap1.74B
Revenue(TTM)937.93M
Net Income(TTM)1.88M
Analysts73.33
Price Target10.01 (9.16%)
Short Float %6.37%
Short Ratio6.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
Yearly Dividend0.45
Dividend Growth(5Y)-9.74%
DP4640.68%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)1.41%
PT rev (3m)2.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20%
EPS NY rev (1m)0%
EPS NY rev (3m)-60%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 77.27 | ||
| P/S | 1.86 | ||
| P/FCF | 9.99 | ||
| P/OCF | 9.92 | ||
| P/B | 0.89 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 12.61 |
EPS(TTM)0
EYN/A
EPS(NY)0.12
Fwd EY1.29%
FCF(TTM)0.92
FCFY10.01%
OCF(TTM)0.92
OCFY10.09%
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 Year5.08%
Revenue Next 2Y5.33%
Revenue Next 3Y4.37%
Revenue Next 5Y4.15%
EBIT growth 1Y-22.35%
EBIT growth 3YN/A
EBIT growth 5Y-13.48%
EBIT Next Year190.95%
EBIT Next 3Y47.74%
EBIT Next 5Y35.15%
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.
Can you provide the valuation status for SUNSTONE HOTEL INVESTORS INC?
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.
What is the financial health of SUNSTONE HOTEL INVESTORS INC (SHO) stock?
The financial health rating of SUNSTONE HOTEL INVESTORS INC (SHO) is 6 / 10.
What is the expected EPS growth for SUNSTONE HOTEL INVESTORS INC (SHO) stock?
The Earnings per Share (EPS) of SUNSTONE HOTEL INVESTORS INC (SHO) is expected to decline by -96.39% in the next year.