Logo image of SVC

SERVICE PROPERTIES TRUST (SVC) Stock Fundamental Analysis

NASDAQ:SVC - Nasdaq - US81761L1026 - REIT

2.7  +0.1 (+3.85%)

After market: 2.6801 -0.02 (-0.74%)

Fundamental Rating

1

Overall SVC gets a fundamental rating of 1 out of 10. We evaluated SVC against 129 industry peers in the Diversified REITs industry. SVC has a bad profitability rating. Also its financial health evaluation is rather negative. SVC is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

Quickly go to:

1

1. Profitability

1.1 Basic Checks

SVC had negative earnings in the past year.
In the past year SVC had a positive cash flow from operations.
SVC had negative earnings in 4 of the past 5 years.
Each year in the past 5 years SVC had a positive operating cash flow.
SVC Yearly Net Income VS EBIT VS OCF VS FCFSVC 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 500M -500M -1B -1.5B -2B

1.2 Ratios

With a Return On Assets value of -3.42%, SVC is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
SVC has a Return On Equity of -26.10%. This is amonst the worse of the industry: SVC underperforms 91.27% of its industry peers.
SVC has a Return On Invested Capital of 2.32%. This is in the lower half of the industry: SVC underperforms 62.70% of its industry peers.
Industry RankSector 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
SVC Yearly ROA, ROE, ROICSVC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 -20 -30

1.3 Margins

The Operating Margin of SVC (10.10%) is worse than 80.95% of its industry peers.
SVC's Operating Margin has declined in the last couple of years.
SVC has a worse Gross Margin (33.17%) than 89.68% of its industry peers.
SVC's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
SVC Yearly Profit, Operating, Gross MarginsSVC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40

More info and screens

1

2. Health

2.1 Basic Checks

SVC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SVC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, SVC has more shares outstanding
The debt/assets ratio for SVC has been reduced compared to a year ago.
SVC Yearly Shares OutstandingSVC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
SVC Yearly Total Debt VS Total AssetsSVC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

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.
SVC has a Altman-Z score of -0.40. This is amonst the worse of the industry: SVC underperforms 88.89% of its industry peers.
A Debt/Equity ratio of 5.98 is on the high side and indicates that SVC has dependencies on debt financing.
SVC's Debt to Equity ratio of 5.98 is on the low side compared to the rest of the industry. SVC is outperformed by 88.89% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.98
Debt/FCF N/A
Altman-Z -0.4
ROIC/WACC0.44
WACC5.32%
SVC Yearly LT Debt VS Equity VS FCFSVC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B 6B

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.
With a Current ratio value of 0.24, SVC is not doing good in the industry: 95.24% of the companies in the same industry are doing better.
SVC has a Quick 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 worse Quick ratio (0.24) than 94.44% of its industry peers.
Industry RankSector Rank
Current Ratio 0.24
Quick Ratio 0.24
SVC Yearly Current Assets VS Current LiabilitesSVC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

More info and screens

1

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.
SVC Yearly Revenue VS EstimatesSVC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
SVC Yearly EPS VS EstimatesSVC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 -1 -2 -3

More info and screens

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for SVC. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for SVC. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
SVC Price Earnings VS Forward Price EarningsSVC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SVC indicates a rather cheap valuation: SVC is cheaper than 80.95% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.55
SVC Per share dataSVC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

SVC's earnings are expected to grow with 236.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-259.56%
EPS Next 3Y236.81%

More info and screens

2

5. Dividend

5.1 Amount

SVC has a Yearly Dividend Yield of 1.57%.
In the last 3 months the price of SVC has falen by -25.41%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
With a Dividend Yield of 1.57, SVC pays less dividend than the industry average, which is at 18.51. 88.89% of the companies listed in the same industry pay a better dividend than SVC!
Compared to the average S&P500 Dividend Yield of 2.28, SVC is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.57%

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
SVC Yearly Dividends per shareSVC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

SVC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-54.7%
EPS Next 2Y-259.56%
EPS Next 3Y236.81%
SVC Yearly Income VS Free CF VS DividendSVC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -500M -1B -1.5B -2B

More info and screens

SERVICE PROPERTIES TRUST

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

After market: 2.6801 -0.02 (-0.74%)

2.7

+0.1 (+3.85%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)N/A N/A
Inst Owners78.31%
Inst Owner Change-0.17%
Ins Owners5.61%
Ins Owner Change0%
Market Cap449.95M
Analysts49.09
Price Target4.74 (75.56%)
Short Float %2.55%
Short Ratio1.01
Dividend
Industry RankSector Rank
Dividend Yield 1.57%
Yearly Dividend0.8
Dividend Growth(5Y)-17.64%
DP-54.7%
Div Incr Years2
Div Non Decr Years2
Ex-Date01-27 2025-01-27 (0.01)
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)-1.76%
PT rev (3m)-20.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-56%
EPS NY rev (1m)0%
EPS NY rev (3m)-24.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.47%
Valuation
Industry RankSector 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 10.55
EPS(TTM)-1.27
EYN/A
EPS(NY)-0.26
Fwd EYN/A
FCF(TTM)-0.44
FCFYN/A
OCF(TTM)1.4
OCFY51.69%
SpS11.31
BVpS5.57
TBVpS4.89
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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
WACC5.32%
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%