XENIA HOTELS & RESORTS INC (XHR) Stock Fundamental Analysis
NYSE:XHR - New York Stock Exchange, Inc. - US9840171030 - REIT - Currency: USD
We assign a fundamental rating of 3 out of 10 to XHR. XHR was compared to 129 industry peers in the Diversified REITs industry. XHR has a bad profitability rating. Also its financial health evaluation is rather negative. XHR does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year XHR was profitable.
In the past year XHR had a positive cash flow from operations.
In multiple years XHR reported negative net income over the last 5 years.
XHR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.83%, XHR perfoms like the industry average, outperforming 53.17% of the companies in the same industry.
XHR has a Return On Equity (1.90%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.47%, XHR perfoms like the industry average, outperforming 42.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 1.9% | ||
| ROIC | 2.47% |
ROA(3y)-0.73%
ROA(5y)-1.16%
ROE(3y)-1.57%
ROE(5y)-2.41%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of XHR (2.33%) is comparable to the rest of the industry.
XHR's Profit Margin has declined in the last couple of years.
The Operating Margin of XHR (8.35%) is worse than 84.92% of its industry peers.
In the last couple of years the Operating Margin of XHR has declined.
The Gross Margin of XHR (54.35%) is worse than 76.19% of its industry peers.
In the last couple of years the Gross Margin of XHR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.35% | ||
| PM (TTM) | 2.33% | ||
| GM | 54.35% |
OM growth 3YN/A
OM growth 5Y-4.65%
PM growth 3YN/A
PM growth 5Y-36.78%
GM growth 3Y13.94%
GM growth 5Y-1.03%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XHR is destroying value.
Compared to 1 year ago, XHR has less shares outstanding
Compared to 5 years ago, XHR has less shares outstanding
Compared to 1 year ago, XHR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.67, we must say that XHR is in the distress zone and has some risk of bankruptcy.
XHR's Altman-Z score of 0.67 is in line compared to the rest of the industry. XHR outperforms 57.14% of its industry peers.
The Debt to FCF ratio of XHR is 54.20, which is on the high side as it means it would take XHR, 54.20 years of fcf income to pay off all of its debts.
XHR has a Debt to FCF ratio (54.20) which is in line with its industry peers.
XHR has a Debt/Equity ratio of 1.10. This is a high value indicating a heavy dependency on external financing.
XHR's Debt to Equity ratio of 1.10 is in line compared to the rest of the industry. XHR outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 54.2 | ||
| Altman-Z | 0.67 |
ROIC/WACC0.33
WACC7.38%
2.3 Liquidity
XHR has a Current Ratio of 1.31. This is a normal value and indicates that XHR is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of XHR (1.31) is comparable to the rest of the industry.
A Quick Ratio of 1.31 indicates that XHR should not have too much problems paying its short term obligations.
XHR's Quick ratio of 1.31 is fine compared to the rest of the industry. XHR outperforms 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
XHR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.90%.
Measured over the past years, XHR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -33.93% on average per year.
XHR shows a decrease in Revenue. In the last year, the revenue decreased by -0.45%.
XHR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.63% yearly.
EPS 1Y (TTM)-43.9%
EPS 3YN/A
EPS 5Y-33.93%
EPS Q2Q%12.5%
Revenue 1Y (TTM)-0.45%
Revenue growth 3Y40.49%
Revenue growth 5Y-0.63%
Sales Q2Q%2.06%
3.2 Future
The Earnings Per Share is expected to grow by 26.41% on average over the next years. This is a very strong growth
Based on estimates for the next years, XHR will show a small growth in Revenue. The Revenue will grow by 3.21% on average per year.
EPS Next Y2.98%
EPS Next 2Y33.5%
EPS Next 3Y26.41%
EPS Next 5YN/A
Revenue Next Year1.45%
Revenue Next 2Y3.09%
Revenue Next 3Y3.21%
Revenue Next 5YN/A
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
XHR is valuated quite expensively with a Price/Earnings ratio of 60.87.
XHR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. XHR is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 46.20 indicates a quite expensive valuation of XHR.
65.08% of the companies in the same industry are more expensive than XHR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, XHR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.87 | ||
| Fwd PE | 46.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XHR is valued a bit cheaper than the industry average as 65.87% of the companies are valued more expensively.
XHR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.37 | ||
| EV/EBITDA | 12.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates XHR does not grow enough to justify the current Price/Earnings ratio.
XHR's earnings are expected to grow with 26.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)20.44
PEG (5Y)N/A
EPS Next 2Y33.5%
EPS Next 3Y26.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.32%, XHR has a reasonable but not impressive dividend return.
XHR's Dividend Yield is slightly below the industry average, which is at 18.40.
XHR's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
5.2 History
The dividend of XHR decreases each year by -17.85%.
XHR has been paying a dividend for over 5 years, so it has already some track record.
XHR has decreased its dividend recently.
Dividend Growth(5Y)-17.85%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
192.33% of the earnings are spent on dividend by XHR. This is not a sustainable payout ratio.
DP192.33%
EPS Next 2Y33.5%
EPS Next 3Y26.41%
14
-0.44 (-3.05%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners96.16%
Inst Owner Change1.04%
Ins Owners0.91%
Ins Owner Change0.04%
Market Cap1.43B
Analysts76.67
Price Target17.95 (28.21%)
Short Float %3.51%
Short Ratio5.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend0.42
Dividend Growth(5Y)-17.85%
DP192.33%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.27%
Min EPS beat(2)9.11%
Max EPS beat(2)41.44%
EPS beat(4)4
Avg EPS beat(4)144.16%
Min EPS beat(4)9.11%
Max EPS beat(4)362.05%
EPS beat(8)5
Avg EPS beat(8)164.69%
EPS beat(12)7
Avg EPS beat(12)114.37%
EPS beat(16)10
Avg EPS beat(16)92.86%
Revenue beat(2)0
Avg Revenue beat(2)-1.95%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)-1.92%
Revenue beat(4)1
Avg Revenue beat(4)-0.64%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)2.48%
Revenue beat(8)3
Avg Revenue beat(8)0.03%
Revenue beat(12)6
Avg Revenue beat(12)1.83%
Revenue beat(16)10
Avg Revenue beat(16)2.55%
PT rev (1m)8.55%
PT rev (3m)9.51%
EPS NQ rev (1m)-20%
EPS NQ rev (3m)-66.67%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)-24.23%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.87 | ||
| Fwd PE | 46.2 | ||
| P/S | 1.38 | ||
| P/FCF | 55.37 | ||
| P/OCF | 7.37 | ||
| P/B | 1.13 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 12.47 |
EPS(TTM)0.23
EY1.64%
EPS(NY)0.3
Fwd EY2.16%
FCF(TTM)0.25
FCFY1.81%
OCF(TTM)1.9
OCFY13.56%
SpS10.12
BVpS12.4
TBVpS12.35
PEG (NY)20.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.83% | ||
| ROE | 1.9% | ||
| ROCE | 3.12% | ||
| ROIC | 2.47% | ||
| ROICexc | 2.62% | ||
| ROICexgc | 2.66% | ||
| OM | 8.35% | ||
| PM (TTM) | 2.33% | ||
| GM | 54.35% | ||
| FCFM | 2.5% |
ROA(3y)-0.73%
ROA(5y)-1.16%
ROE(3y)-1.57%
ROE(5y)-2.41%
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 3YN/A
ROICexcg growth 5Y-3.17%
ROICexc growth 3YN/A
ROICexc growth 5Y-2.78%
OM growth 3YN/A
OM growth 5Y-4.65%
PM growth 3YN/A
PM growth 5Y-36.78%
GM growth 3Y13.94%
GM growth 5Y-1.03%
F-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.1 | ||
| Debt/FCF | 54.2 | ||
| Debt/EBITDA | 6.54 | ||
| Cap/Depr | 131.68% | ||
| Cap/Sales | 16.26% | ||
| Interest Coverage | 1.08 | ||
| Cash Conversion | 90.63% | ||
| Profit Quality | 107.15% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 0.67 |
F-Score5
WACC7.38%
ROIC/WACC0.33
Cap/Depr(3y)138.99%
Cap/Depr(5y)129.28%
Cap/Sales(3y)18.98%
Cap/Sales(5y)20.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-43.9%
EPS 3YN/A
EPS 5Y-33.93%
EPS Q2Q%12.5%
EPS Next Y2.98%
EPS Next 2Y33.5%
EPS Next 3Y26.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.45%
Revenue growth 3Y40.49%
Revenue growth 5Y-0.63%
Sales Q2Q%2.06%
Revenue Next Year1.45%
Revenue Next 2Y3.09%
Revenue Next 3Y3.21%
Revenue Next 5YN/A
EBIT growth 1Y-16.8%
EBIT growth 3YN/A
EBIT growth 5Y-5.24%
EBIT Next Year145.43%
EBIT Next 3Y40.17%
EBIT Next 5YN/A
FCF growth 1Y112.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.18%
OCF growth 3YN/A
OCF growth 5Y-4.87%