XENIA HOTELS & RESORTS INC (XHR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XHR - US9840171030 - REIT
15.2 USD
-0.09 (-0.59%)
15.2 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to XHR. XHR was compared to 125 industry peers in the Diversified REITs industry. XHR has only an average score on both its financial health and profitability. XHR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year XHR was profitable.
- XHR had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: XHR reported negative net income in multiple years.
- Of the past 5 years XHR 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of XHR (1.94%) is better than 61.60% of its industry peers.
- The Return On Equity of XHR (4.74%) is better than 64.00% of its industry peers.
- With a Return On Invested Capital value of 2.92%, XHR perfoms like the industry average, outperforming 56.80% of the companies in the same industry.
- XHR had an Average Return On Invested Capital over the past 3 years of 2.74%. This is in line with the industry average of 3.07%.
- The last Return On Invested Capital (2.92%) for XHR is above the 3 year average (2.74%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.94% | ||
| ROE | 4.74% | ||
| ROIC | 2.92% |
ROA(3y)1.01%
ROA(5y)-1.39%
ROE(3y)2.2%
ROE(5y)-2.79%
ROIC(3y)2.74%
ROIC(5y)N/A
1.3 Margins
- XHR has a Profit Margin (5.19%) which 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 (9.34%) is worse than 74.40% of its industry peers.
- XHR's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 54.53%, XHR is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
- XHR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.34% | ||
| PM (TTM) | 5.19% | ||
| GM | 54.53% |
OM growth 3YN/A
OM growth 5Y-7.09%
PM growth 3YN/A
PM growth 5Y-20.5%
GM growth 3Y-0.24%
GM growth 5Y-0.93%
2. Health
2.1 Basic Checks
- XHR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, XHR has less shares outstanding
- Compared to 5 years ago, XHR has less shares outstanding
- XHR has a better debt/assets ratio than last year.
2.2 Solvency
- XHR has an Altman-Z score of 0.71. This is a bad value and indicates that XHR is not financially healthy and even has some risk of bankruptcy.
- XHR has a Altman-Z score of 0.71. This is in the better half of the industry: XHR outperforms 60.80% of its industry peers.
- XHR has a debt to FCF ratio of 21.84. This is a negative value and a sign of low solvency as XHR would need 21.84 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 21.84, XHR is doing good in the industry, outperforming 76.00% of the companies in the same industry.
- A Debt/Equity ratio of 1.21 is on the high side and indicates that XHR has dependencies on debt financing.
- XHR has a Debt to Equity ratio of 1.21. This is comparable to the rest of the industry: XHR outperforms 54.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.21 | ||
| Debt/FCF | 21.84 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.4
WACC7.27%
2.3 Liquidity
- XHR has a Current Ratio of 1.48. This is a normal value and indicates that XHR is financially healthy and should not expect problems in meeting its short term obligations.
- XHR has a Current ratio of 1.48. This is in the better half of the industry: XHR outperforms 72.00% of its industry peers.
- A Quick Ratio of 1.48 indicates that XHR should not have too much problems paying its short term obligations.
- XHR's Quick ratio of 1.48 is fine compared to the rest of the industry. XHR outperforms 72.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
- XHR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 139.13%, which is quite impressive.
- Measured over the past years, XHR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.70% on average per year.
- The Revenue has been growing slightly by 4.29% in the past year.
- XHR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.99% yearly.
EPS 1Y (TTM)139.13%
EPS 3YN/A
EPS 5Y-23.7%
EPS Q2Q%-114.29%
Revenue 1Y (TTM)4.29%
Revenue growth 3Y19.02%
Revenue growth 5Y-1.99%
Sales Q2Q%-0.16%
3.2 Future
- The Earnings Per Share is expected to grow by 42.53% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y172.7%
EPS Next 2Y11.61%
EPS Next 3Y42.53%
EPS Next 5YN/A
Revenue Next Year3.43%
Revenue Next 2Y3.28%
Revenue Next 3Y3.08%
Revenue Next 5Y3.74%
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/Earnings ratio is 27.64, which means the current valuation is very expensive for XHR.
- XHR's Price/Earnings ratio is a bit cheaper when compared to the industry. XHR is cheaper than 66.40% of the companies in the same industry.
- XHR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 81.35 indicates a quite expensive valuation of XHR.
- XHR's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, XHR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.64 | ||
| Fwd PE | 81.35 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, XHR is valued a bit cheaper than the industry average as 76.00% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, XHR is valued a bit cheaper than the industry average as 76.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.12 | ||
| EV/EBITDA | 11.57 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as XHR's earnings are expected to grow with 42.53% in the coming years.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y11.61%
EPS Next 3Y42.53%
5. Dividend
5.1 Amount
- XHR has a Yearly Dividend Yield of 3.80%.
- XHR's Dividend Yield is slightly below the industry average, which is at 6.59.
- Compared to an average S&P500 Dividend Yield of 1.82, XHR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
5.2 History
- The dividend of XHR decreases each year by -15.89%.
- XHR has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of XHR decreased in the last 3 years.
Dividend Growth(5Y)-15.89%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 23.47% of the earnings are spent on dividend by XHR. This is a low number and sustainable payout ratio.
DP23.47%
EPS Next 2Y11.61%
EPS Next 3Y42.53%
XENIA HOTELS & RESORTS INC / XHR FAQ
Can you provide the ChartMill fundamental rating for XENIA HOTELS & RESORTS INC?
ChartMill assigns a fundamental rating of 5 / 10 to XHR.
Can you provide the valuation status for XENIA HOTELS & RESORTS INC?
ChartMill assigns a valuation rating of 5 / 10 to XENIA HOTELS & RESORTS INC (XHR). This can be considered as Fairly Valued.
Can you provide the profitability details for XENIA HOTELS & RESORTS INC?
XENIA HOTELS & RESORTS INC (XHR) has a profitability rating of 4 / 10.
What is the financial health of XENIA HOTELS & RESORTS INC (XHR) stock?
The financial health rating of XENIA HOTELS & RESORTS INC (XHR) is 5 / 10.
Can you provide the dividend sustainability for XHR stock?
The dividend rating of XENIA HOTELS & RESORTS INC (XHR) is 4 / 10 and the dividend payout ratio is 23.47%.