* Note: Prices are in Million (M) USD.
Description:
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) that, as of the date of this release, has interests in 19 hotels with 9,997 rooms.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $107 M
Debt : $853 M
EBITDA : $207 M
Net Debt (Debt - Cash): $746 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Real Estate
Industry: REIT - Hotel & Motel
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 11.26
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $-81 M
Average Revenue: $904 M
Revenue Converted To Free Cash Flow (%): -9%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 5.25%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $906 M
Revenue 4 Years Ago (2020-12-31): $268 M
Last 5 Years Average Revenue Growth: 48%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $203 M
Share Count 5 Years Ago (2020-12-31): $216 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.88
Trailing 12-Month Earnings Per Share (EPS): $0.82
Average Earnings Per Share (EPS): $0.85
Dividend Per Share (DPS): $0
Payout Ratio: 42%
Dividend Yield: 4%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 4, 4 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 3%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $10
52-Week Low: $7
Threshold Price (15% Above 52-Week Low): $8
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,794 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 24 points to above Sunstone Hotel Investors Inc (SHO) stock.
Last 13 Years Avg PE 26.23, Fair Value PE 15, Industry Based PE 20, Growth Based PE 47. Based on these 4 values, average assigned is 27.06.
Value-Trades has assined P/E value 27.06. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.85.
The fair value of Sunstone Hotel Investors Inc (SHO) stock should be (27.06 x $0.85) = $23
