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SOTHERLY HOTELS INC - SOHO 8 1/4 PERP (SOHON) Stock Fundamental Analysis

NASDAQ:SOHON - Nasdaq - US83600C5094

18.25  +1 (+5.8%)

After market: 17.13 -1.12 (-6.14%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to SOHON. SOHON was compared to 129 industry peers in the Diversified REITs industry. SOHON may be in some trouble as it scores bad on both profitability and health. SOHON does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

SOHON had positive earnings in the past year.
SOHON had a positive operating cash flow in the past year.
SOHON had negative earnings in 4 of the past 5 years.
Of the past 5 years SOHON 4 years had a positive operating cash flow.
SOHON Yearly Net Income VS EBIT VS OCF VS FCFSOHON Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M -20M -40M -60M

1.2 Ratios

SOHON has a worse Return On Assets (-1.52%) than 73.02% of its industry peers.
SOHON has a worse Return On Equity (-13.77%) than 84.13% of its industry peers.
The Return On Invested Capital of SOHON (4.23%) is better than 84.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOHON is in line with the industry average of 3.11%.
The last Return On Invested Capital (4.23%) for SOHON is above the 3 year average (3.12%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -1.52%
ROE -13.77%
ROIC 4.23%
ROA(3y)-0.85%
ROA(5y)-3.2%
ROE(3y)-39.07%
ROE(5y)-47.94%
ROIC(3y)3.12%
ROIC(5y)N/A
SOHON Yearly ROA, ROE, ROICSOHON Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -50 -100 -150

1.3 Margins

SOHON's Operating Margin of 11.48% is on the low side compared to the rest of the industry. SOHON is outperformed by 76.19% of its industry peers.
In the last couple of years the Operating Margin of SOHON has remained more or less at the same level.
SOHON's Gross Margin of 65.73% is on the low side compared to the rest of the industry. SOHON is outperformed by 60.32% of its industry peers.
SOHON's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 11.48%
PM (TTM) N/A
GM 65.73%
OM growth 3YN/A
OM growth 5Y-1.2%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.62%
GM growth 5Y0.69%
SOHON Yearly Profit, Operating, Gross MarginsSOHON Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50

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1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SOHON is destroying value.
The number of shares outstanding for SOHON has been increased compared to 1 year ago.
SOHON has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SOHON has a worse debt to assets ratio.
SOHON Yearly Shares OutstandingSOHON Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M
SOHON Yearly Total Debt VS Total AssetsSOHON Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M

2.2 Solvency

Based on the Altman-Z score of 0.71, we must say that SOHON is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.71, SOHON perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
SOHON has a debt to FCF ratio of 28.22. This is a negative value and a sign of low solvency as SOHON would need 28.22 years to pay back of all of its debts.
SOHON has a better Debt to FCF ratio (28.22) than 66.67% of its industry peers.
A Debt/Equity ratio of 7.44 is on the high side and indicates that SOHON has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 7.44, SOHON is doing worse than 92.06% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 7.44
Debt/FCF 28.22
Altman-Z 0.71
ROIC/WACC0.61
WACC6.89%
SOHON Yearly LT Debt VS Equity VS FCFSOHON Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M

2.3 Liquidity

A Current Ratio of 0.82 indicates that SOHON may have some problems paying its short term obligations.
The Current ratio of SOHON (0.82) is worse than 70.63% of its industry peers.
A Quick Ratio of 0.82 indicates that SOHON may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.82, SOHON is doing worse than 67.46% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.82
Quick Ratio 0.82
SOHON Yearly Current Assets VS Current LiabilitesSOHON Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M

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2

3. Growth

3.1 Past

SOHON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.24%.
SOHON shows a small growth in Revenue. In the last year, the Revenue has grown by 4.08%.
Measured over the past years, SOHON shows a decrease in Revenue. The Revenue has been decreasing by -0.49% on average per year.
EPS 1Y (TTM)-38.24%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-37.3%
Revenue 1Y (TTM)4.08%
Revenue growth 3Y34.47%
Revenue growth 5Y-0.49%
Sales Q2Q%3.88%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
SOHON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.06% yearly.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.48%
Revenue Next 2Y3.06%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
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.
SOHON Yearly Revenue VS EstimatesSOHON Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
SOHON Yearly EPS VS EstimatesSOHON Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -1 -2 -3 -4

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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 28.97, the valuation of SOHON can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SOHON indicates a somewhat cheap valuation: SOHON is cheaper than 73.02% of the companies listed in the same industry.
SOHON is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 28.97
Fwd PE N/A
SOHON Price Earnings VS Forward Price EarningsSOHON Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SOHON is valued a bit more expensive than 72.22% of the companies in the same industry.
69.05% of the companies in the same industry are more expensive than SOHON, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 29.91
EV/EBITDA 16.81
SOHON Per share dataSOHON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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4

5. Dividend

5.1 Amount

SOHON has a Yearly Dividend Yield of 11.96%, which is a nice return.
SOHON's Dividend Yield is rather good when compared to the industry average which is at 18.51. SOHON pays more dividend than 95.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, SOHON pays a better dividend.
Industry RankSector Rank
Dividend Yield 11.96%

5.2 History

The dividend of SOHON decreases each year by -9.71%.
SOHON has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)-9.71%
Div Incr Years0
Div Non Decr Years0
SOHON Yearly Dividends per shareSOHON Yearly Dividends per shareYearly Dividends per share 2019 2023 2024 0.5 1 1.5 2 2.5

5.3 Sustainability

SOHON has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-126.09%
EPS Next 2YN/A
EPS Next 3YN/A
SOHON Yearly Income VS Free CF VS DividendSOHON Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M -20M -40M -60M

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SOTHERLY HOTELS INC - SOHO 8 1/4 PERP

NASDAQ:SOHON (1/21/2025, 8:00:02 PM)

After market: 17.13 -1.12 (-6.14%)

18.25

+1 (+5.8%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-12 2024-11-12/bmo
Earnings (Next)N/A N/A
Inst Owners30.14%
Inst Owner ChangeN/A
Ins Owners14.87%
Ins Owner ChangeN/A
Market Cap362.26M
Analysts43.33
Price Target29.72 (62.85%)
Short Float %0%
Short Ratio0.04
Dividend
Industry RankSector Rank
Dividend Yield 11.96%
Yearly Dividend0.52
Dividend Growth(5Y)-9.71%
DP-126.09%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)33.03%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 28.97
Fwd PE N/A
P/S 2.01
P/FCF 29.91
P/OCF 14.89
P/B 7.89
P/tB 7.89
EV/EBITDA 16.81
EPS(TTM)0.63
EY3.45%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.61
FCFY3.34%
OCF(TTM)1.23
OCFY6.72%
SpS9.07
BVpS2.31
TBVpS2.31
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.52%
ROE -13.77%
ROCE 5.35%
ROIC 4.23%
ROICexc 4.39%
ROICexgc 4.39%
OM 11.48%
PM (TTM) N/A
GM 65.73%
FCFM 6.72%
ROA(3y)-0.85%
ROA(5y)-3.2%
ROE(3y)-39.07%
ROE(5y)-47.94%
ROIC(3y)3.12%
ROIC(5y)N/A
ROICexc(3y)3.29%
ROICexc(5y)N/A
ROICexgc(3y)3.29%
ROICexgc(5y)N/A
ROCE(3y)3.95%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y2.89%
ROICexc growth 3YN/A
ROICexc growth 5Y2.89%
OM growth 3YN/A
OM growth 5Y-1.2%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.62%
GM growth 5Y0.69%
F-Score3
Asset Turnover0.43
Health
Industry RankSector Rank
Debt/Equity 7.44
Debt/FCF 28.22
Debt/EBITDA 8.57
Cap/Depr 63.71%
Cap/Sales 6.78%
Interest Coverage 1.05
Cash Conversion 61.04%
Profit Quality N/A
Current Ratio 0.82
Quick Ratio 0.82
Altman-Z 0.71
F-Score3
WACC6.89%
ROIC/WACC0.61
Cap/Depr(3y)34.07%
Cap/Depr(5y)42.05%
Cap/Sales(3y)4%
Cap/Sales(5y)5.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-38.24%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-37.3%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.08%
Revenue growth 3Y34.47%
Revenue growth 5Y-0.49%
Sales Q2Q%3.88%
Revenue Next Year5.48%
Revenue Next 2Y3.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2.11%
EBIT growth 3YN/A
EBIT growth 5Y-1.69%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y479.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y877.02%
OCF growth 3YN/A
OCF growth 5Y-3.94%