DB:R2U

Stock Analysis Report

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Executive Summary

Red Lion Hotels Corporation, doing business as RLH Corporation, operates as a hospitality and leisure company the United States.


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has Red Lion Hotels's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: R2U's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.7%

R2U

-2.4%

DE Hospitality

-0.6%

DE Market


1 Year Return

-69.8%

R2U

-35.6%

DE Hospitality

3.0%

DE Market

Return vs Industry: R2U underperformed the German Hospitality industry which returned -34.9% over the past year.

Return vs Market: R2U underperformed the German Market which returned 2.5% over the past year.


Shareholder returns

R2UIndustryMarket
7 Day-8.7%-2.4%-0.6%
30 Day-17.4%-18.4%-0.1%
90 Day27.5%2.7%16.4%
1 Year-69.8%-69.8%-32.8%-35.6%5.2%3.0%
3 Year-68.3%-68.3%-50.4%-57.2%1.0%-6.9%
5 Yearn/a-50.4%-60.9%8.0%-6.4%

Price Volatility Vs. Market

How volatile is Red Lion Hotels's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Red Lion Hotels undervalued compared to its fair value and its price relative to the market?

0.4x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate R2U's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate R2U's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: R2U is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: R2U is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate R2U's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: R2U is good value based on its PB Ratio (0.4x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Red Lion Hotels forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

35.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: R2U is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: R2U is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: R2U is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: R2U's revenue is expected to decline over the next 3 years (-20.8% per year).

High Growth Revenue: R2U's revenue is forecast to decline over the next 3 years (-20.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if R2U's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Red Lion Hotels performed over the past 5 years?

-38.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: R2U is currently unprofitable.

Growing Profit Margin: R2U is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: R2U is unprofitable, and losses have increased over the past 5 years at a rate of -38.5% per year.

Accelerating Growth: Unable to compare R2U's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: R2U is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-15.6%).


Return on Equity

High ROE: R2U has a negative Return on Equity (-18.59%), as it is currently unprofitable.


Next Steps

Financial Health

How is Red Lion Hotels's financial position?


Financial Position Analysis

Short Term Liabilities: R2U's short term assets ($54.0M) exceed its short term liabilities ($19.4M).

Long Term Liabilities: R2U's short term assets ($54.0M) exceed its long term liabilities ($7.0M).


Debt to Equity History and Analysis

Debt Level: R2U's debt to equity ratio (4%) is considered satisfactory.

Reducing Debt: R2U's debt to equity ratio has reduced from 49% to 4% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable R2U has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: R2U is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 24.1% per year.


Next Steps

Dividend

What is Red Lion Hotels's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate R2U's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate R2U's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if R2U's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if R2U's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of R2U's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

John Russell (73yo)

0.58

Tenure

US$200,448

Compensation

Mr. John J. Russell, Jr., serves as Chief Executive Officer at Red Lion Hotels Corporation since June 2020. He serves as an Interim President of Red Lion Hotels Corporation since December 3, 2019 and serve ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD200.45K) is below average for companies of similar size in the German market ($USD469.15K).

Compensation vs Earnings: Insufficient data to compare John's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
John Russell
CEO & Interim President0.58yrUS$200.45kno data
Gary Sims
Executive VP & COO2.08yrsUS$630.15k0.00012% $59.2
Gary Kohn
Executive VP & CFO0.17yrno datano data
Paul Moerner
Senior VP & Chief Accounting Officer0.25yrno data0.011% $5.2k
John Edwards
Senior VP & Chief Information Officer2.67yrsno datano data
Amy Koch
Investor Relations3.5yrsno datano data
Thomas McKeirnan
Executive VP15.42yrsUS$645.67k0.61% $300.4k
Dan Schacter
Director of Social Engagement & Public Relationsno datano datano data
Kristin Thielking
Senior Vice President of Human Resources2.25yrsno datano data
Harry Sladich
Executive Vice President of Lodging Development & Franchise Operationsno dataUS$435.62k0.62% $307.6k

2.2yrs

Average Tenure

56yo

Average Age

Experienced Management: R2U's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenneth Trammell
Independent Director0.17yrno datano data
Frederic Brace
Independent Director1yrUS$62.25k0.27% $132.2k
Linda Coughlin
Independent Director0.17yrno datano data
Janet Hendrickson
Independent Director0.17yrno datano data
Theodore Darnall
Director2yrsUS$100.00k0.23% $112.6k
R. Pate
Independent Chairman of the Board0.58yrUS$79.33k0.087% $42.8k
Joseph Megibow
Independent Director3.33yrsUS$107.50k0.15% $74.6k

0.6yrs

Average Tenure

63yo

Average Age

Experienced Board: R2U's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

Red Lion Hotels Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Red Lion Hotels Corporation
  • Ticker: R2U
  • Exchange: DB
  • Founded: 1937
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$55.752m
  • Listing Market Cap: US$49.340m
  • Shares outstanding: 25.34m
  • Website: https://www.redlion.com

Number of Employees


Location

  • Red Lion Hotels Corporation
  • 1550 Market Street
  • Suite 350
  • Denver
  • Colorado
  • 80202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RLHNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1998
R2UDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1998

Biography

Red Lion Hotels Corporation, doing business as RLH Corporation, operates as a hospitality and leisure company the United States. It operates in two segments, Company Operated Hotels and Franchised Hotels. The company owns, manages, and franchises upscale, midscale, and economy hotels under the Hotel RL, Red Lion Hotels, Red Lion Inn & Suites, GuestHouse, Settle Inn, Americas Best Value Inn, Canadas Best Value Inn, Signature and Signature Inn, Knights Inn, and Country Hearth Inns & Suites brands. It also develops technology and system offerings for the hospitality industry. As of December 31, 2018, it had a network of 1,318 franchised hotels, including a total of 83,800 rooms. The company was formerly known as WestCoast Hospitality Corporation and changed its name to Red Lion Hotels Corporation in September 2005. Red Lion Hotels Corporation was founded in 1937 and is headquartered in Denver, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 21:45
End of Day Share Price2020/07/09 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.