* Note: Prices are in Million (M) USD.
Description:
Service Properties Trust (SVC) is a leading real estate investment trust (REIT) focused on owning a diverse portfolio of hospitality and net-leased properties across the United States, Puerto Rico, and Canada. With a strategic investment in 149 different brands spanning 23 industries, SVC provides a robust platform for growth and stability within the real estate sector. Headquartered in Newton, Massachusetts, the company is well-positioned to capitalize on emerging market trends and demand for essential retail and accommodations.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $63 M
Debt : $5,719 M
EBITDA : $471 M
Net Debt (Debt - Cash): $5,656 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Real estate & construction
Industry: Real estate investment trusts
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $-108 M
Average Revenue: $1,574 M
Revenue Converted To Free Cash Flow (%): -6.8%
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): $1,897 M
Revenue 5 Years Ago (2019-12-31): $2,316 M
Total Growth over 5 Years: -18.1%
5-Year Revenue CAGR (Historical): -3.9%
Forward 5-Year CAGR (Tapered): -3.5%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $165 M
Share Count 5 Years Ago (2020-12-31): $164 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-1.00
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 2%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-1.00
EPS is non-positive; payout ratio not meaningful. 0 point assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 0.3%
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: $2.64
52-Week Low: $1.69
Threshold Price (15% Above 52-Week Low): $1.95
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: $439 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 0.5% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share, latest positive annual) (2024-12-31): $0.84
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 9 points to above Service Properties Trust (SVC) stock.
Last 13 Years Avg PE 11.18, Fair Value PE 9, Industry Based PE 10, ROE Based PE 0.28, Risk-Free Anchored PE (25% MoS) 18.2. Based on these 5 values, average assigned is 9.73. The fair value of Service Properties Trust (SVC) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
