SUNSTONE HOTEL INVESTORS INC (SHO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SHO - US8678921011 - REIT
9.455 USD
+0.17 (+1.78%)
We assign a fundamental rating of 4 out of 10 to SHO. SHO was compared to 127 industry peers in the Diversified REITs industry. While SHO seems to be doing ok healthwise, there are quite some concerns on its profitability. SHO is valued expensive and it does not seem to be growing.
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.
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 42.52% of the companies in the same industry.
SHO's Return On Equity of 0.10% is in line compared to the rest of the industry. SHO outperforms 42.52% of its industry peers.
SHO has a worse Return On Invested Capital (1.86%) than 69.29% 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
SHO has a Profit Margin (0.20%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SHO has declined.
Looking at the Operating Margin, with a value of 7.27%, SHO is doing worse than 80.31% 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 66.93% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHO is destroying value.
The number of shares outstanding for SHO has been reduced compared to 1 year ago.
The number of shares outstanding for SHO has been reduced compared to 5 years ago.
SHO has a worse debt/assets ratio than last year.
2.2 Solvency
SHO has an Altman-Z score of 1.10. This is a bad value and indicates that SHO is not financially healthy and even has some risk of bankruptcy.
SHO has a Altman-Z score of 1.10. This is amongst the best in the industry. SHO outperforms 81.10% of its industry peers.
The Debt to FCF ratio of SHO is 5.26, which is a neutral value as it means it would take SHO, 5.26 years of fcf income to pay off all of its debts.
SHO's Debt to FCF ratio of 5.26 is amongst the best of the industry. SHO outperforms 98.43% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that SHO is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.47, SHO belongs to the best of the industry, outperforming 90.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.26 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.25
WACC7.5%
2.3 Liquidity
A Current Ratio of 1.46 indicates that SHO should not have too much problems paying its short term obligations.
The Current ratio of SHO (1.46) is better than 70.08% 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.
SHO's Quick ratio of 1.46 is fine compared to the rest of the industry. SHO outperforms 70.87% 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
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
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.
SHO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.37% 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 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 79.67, which means the current valuation is very expensive for SHO.
SHO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, SHO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 79.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHO is valued a bit cheaper than the industry average as 70.87% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SHO is valued cheaply inside the industry as 88.98% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.3 | ||
| EV/EBITDA | 12.73 |
4.3 Compensation for Growth
A more expensive valuation may be justified as SHO's earnings are expected to grow with 14.85% in the coming years.
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 7.39%, which is a nice return.
Compared to an average industry Dividend Yield of 6.83, SHO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, SHO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.39% |
5.2 History
The dividend of SHO decreases each year by -9.74%.
SHO has been paying a dividend for at least 10 years, so it has 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%
NYSE:SHO (1/9/2026, 11:48:42 AM)
9.455
+0.17 (+1.78%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.91%
Inst Owner Change0%
Ins Owners1.29%
Ins Owner Change0.12%
Market Cap1.80B
Revenue(TTM)937.93M
Net Income(TTM)1.88M
Analysts73.33
Price Target10.01 (5.87%)
Short Float %6.37%
Short Ratio6.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.39% |
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 | 79.67 | ||
| P/S | 1.91 | ||
| P/FCF | 10.3 | ||
| P/OCF | 10.22 | ||
| P/B | 0.92 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 12.73 |
EPS(TTM)0
EYN/A
EPS(NY)0.12
Fwd EY1.26%
FCF(TTM)0.92
FCFY9.71%
OCF(TTM)0.92
OCFY9.78%
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 | 1.1 |
F-Score5
WACC7.5%
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 5YN/A
EBIT growth 1Y-22.35%
EBIT growth 3YN/A
EBIT growth 5Y-13.48%
EBIT Next Year190.95%
EBIT Next 3Y47.74%
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.
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.