SERVICE PROPERTIES TRUST (SVC) Stock Fundamental Analysis
NASDAQ:SVC - Nasdaq - US81761L1026 - REIT - Currency: USD
Overall SVC gets a fundamental rating of 1 out of 10. We evaluated SVC against 129 industry peers in the Diversified REITs industry. SVC may be in some trouble as it scores bad on both profitability and health. SVC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year SVC has reported negative net income.
SVC had a positive operating cash flow in the past year.
In the past 5 years SVC reported 4 times negative net income.
In the past 5 years SVC always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -3.42%, SVC is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
SVC has a worse Return On Equity (-26.10%) than 91.27% of its industry peers.
SVC has a worse Return On Invested Capital (2.32%) than 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.42% | ||
| ROE | -26.1% | ||
| ROIC | 2.32% |
ROA(3y)-2.72%
ROA(5y)-1.77%
ROE(3y)-15.74%
ROE(5y)-10.33%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Operating Margin value of 10.10%, SVC is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of SVC has declined.
SVC has a Gross Margin of 33.17%. This is amonst the worse of the industry: SVC underperforms 89.68% of its industry peers.
SVC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.1% | ||
| PM (TTM) | N/A | ||
| GM | 33.17% |
OM growth 3Y274.87%
OM growth 5Y-8.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.21%
GM growth 5Y-2.48%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SVC is destroying value.
The number of shares outstanding for SVC remains at a similar level compared to 1 year ago.
SVC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SVC has an improved debt to assets ratio.
2.2 Solvency
SVC has an Altman-Z score of -0.40. This is a bad value and indicates that SVC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.40, SVC is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
A Debt/Equity ratio of 5.98 is on the high side and indicates that SVC has dependencies on debt financing.
SVC has a Debt to Equity ratio of 5.98. This is amonst the worse of the industry: SVC underperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.98 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.4 |
ROIC/WACC0.44
WACC5.31%
2.3 Liquidity
SVC has a Current Ratio of 0.24. This is a bad value and indicates that SVC is not financially healthy enough and could expect problems in meeting its short term obligations.
SVC has a Current ratio of 0.24. This is amonst the worse of the industry: SVC underperforms 93.65% of its industry peers.
A Quick Ratio of 0.24 indicates that SVC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.24, SVC is doing worse than 93.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
SVC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -873.03%.
Looking at the last year, SVC shows a decrease in Revenue. The Revenue has decreased by -0.03% in the last year.
SVC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.97% yearly.
EPS 1Y (TTM)-873.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-833.33%
Revenue 1Y (TTM)-0.03%
Revenue growth 3Y13.99%
Revenue growth 5Y-3.97%
Sales Q2Q%-1.14%
3.2 Future
SVC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 236.81% yearly.
Based on estimates for the next years, SVC will show a decrease in Revenue. The Revenue will decrease by -4.83% on average per year.
EPS Next Y-6977.58%
EPS Next 2Y-259.56%
EPS Next 3Y236.81%
EPS Next 5YN/A
Revenue Next Year0.59%
Revenue Next 2Y-2.02%
Revenue Next 3Y-4.83%
Revenue Next 5YN/A
3.3 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SVC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year SVC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SVC is valued cheaply inside the industry as 80.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.57 |
4.3 Compensation for Growth
A more expensive valuation may be justified as SVC's earnings are expected to grow with 236.81% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-259.56%
EPS Next 3Y236.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.44%, SVC has a reasonable but not impressive dividend return.
With a Dividend Yield of 1.44, SVC pays less dividend than the industry average, which is at 18.40. 91.27% of the companies listed in the same industry pay a better dividend than SVC!
SVC's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
The dividend of SVC decreases each year by -17.64%.
SVC has paid a dividend for at least 10 years, which is a reliable track record.
SVC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-17.64%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
The earnings of SVC are negative and hence is the payout ratio. SVC will probably not be able to sustain this dividend level.
DP-54.7%
EPS Next 2Y-259.56%
EPS Next 3Y236.81%
2.69
-0.09 (-3.24%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners73.85%
Inst Owner Change-97.72%
Ins Owners5.59%
Ins Owner Change0%
Market Cap448.29M
Analysts46
Price Target3.03 (12.64%)
Short Float %3.67%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend0.8
Dividend Growth(5Y)-17.64%
DP-54.7%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-205.28%
Min EPS beat(2)-395.05%
Max EPS beat(2)-15.51%
EPS beat(4)1
Avg EPS beat(4)-89.41%
Min EPS beat(4)-395.05%
Max EPS beat(4)64%
EPS beat(8)4
Avg EPS beat(8)-55.36%
EPS beat(12)6
Avg EPS beat(12)-28.42%
EPS beat(16)8
Avg EPS beat(16)-25.1%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)-0.06%
Revenue beat(4)2
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-2.15%
Max Revenue beat(4)2.94%
Revenue beat(8)5
Avg Revenue beat(8)0.8%
Revenue beat(12)7
Avg Revenue beat(12)0.86%
Revenue beat(16)9
Avg Revenue beat(16)0.29%
PT rev (1m)-36.02%
PT rev (3m)-41.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.47%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.24 | ||
| P/FCF | N/A | ||
| P/OCF | 1.93 | ||
| P/B | 0.48 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)-1.27
EYN/A
EPS(NY)-0.26
Fwd EYN/A
FCF(TTM)-0.44
FCFYN/A
OCF(TTM)1.4
OCFY51.88%
SpS11.31
BVpS5.57
TBVpS4.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.42% | ||
| ROE | -26.1% | ||
| ROCE | 2.94% | ||
| ROIC | 2.32% | ||
| ROICexc | 2.34% | ||
| ROICexgc | 2.47% | ||
| OM | 10.1% | ||
| PM (TTM) | N/A | ||
| GM | 33.17% | ||
| FCFM | N/A |
ROA(3y)-2.72%
ROA(5y)-1.77%
ROE(3y)-15.74%
ROE(5y)-10.33%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y354.46%
ROICexcg growth 5Y-12.65%
ROICexc growth 3Y360.87%
ROICexc growth 5Y-11.98%
OM growth 3Y274.87%
OM growth 5Y-8.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.21%
GM growth 5Y-2.48%
F-Score4
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.98 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 9.86 | ||
| Cap/Depr | 82.24% | ||
| Cap/Sales | 16.27% | ||
| Interest Coverage | 0.63 | ||
| Cash Conversion | 41.3% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | -0.4 |
F-Score4
WACC5.31%
ROIC/WACC0.44
Cap/Depr(3y)47.72%
Cap/Depr(5y)165.38%
Cap/Sales(3y)10.72%
Cap/Sales(5y)32.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-873.03%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-833.33%
EPS Next Y-6977.58%
EPS Next 2Y-259.56%
EPS Next 3Y236.81%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.03%
Revenue growth 3Y13.99%
Revenue growth 5Y-3.97%
Sales Q2Q%-1.14%
Revenue Next Year0.59%
Revenue Next 2Y-2.02%
Revenue Next 3Y-4.83%
Revenue Next 5YN/A
EBIT growth 1Y-13.89%
EBIT growth 3Y327.29%
EBIT growth 5Y-12.45%
EBIT Next Year177.56%
EBIT Next 3Y36.61%
EBIT Next 5YN/A
FCF growth 1Y-178.92%
FCF growth 3YN/A
FCF growth 5Y-16.14%
OCF growth 1Y18.67%
OCF growth 3Y134.61%
OCF growth 5Y-4.05%