DB:AHD

Stock Analysis Report

Ashford Hospitality Trust

Executive Summary

Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry in upper upscale, full-service hotels.

Rewards

Trading at 76.6% below its fair value

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Dividend of 9.52% is not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Fair value second-rate dividend payer.


Similar Companies

Share Price & News

How has Ashford Hospitality Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AHD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.7%

AHD

4.2%

DE REITs

2.0%

DE Market


1 Year Return

-50.6%

AHD

44.3%

DE REITs

15.1%

DE Market

Return vs Industry: AHD underperformed the German REITs industry which returned 44.7% over the past year.

Return vs Market: AHD underperformed the German Market which returned 15% over the past year.


Shareholder returns

AHDIndustryMarket
7 Day-8.7%4.2%2.0%
30 Day-5.7%8.8%1.0%
90 Day-3.4%15.0%3.8%
1 Year-46.3%-50.6%48.9%44.3%18.6%15.1%
3 Year-58.4%-67.5%41.2%21.0%16.8%6.6%
5 Year-62.7%-74.9%45.5%14.2%23.7%6.7%

Price Volatility Vs. Market

How volatile is Ashford Hospitality Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ashford Hospitality Trust undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AHD (€2.32) is trading below our estimate of fair value (€9.9)

Significantly Below Fair Value: AHD is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: AHD 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 AHD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AHD is good value based on its PB Ratio (0.8x) compared to the DE REITs industry average (1.7x).


Next Steps

Future Growth

How is Ashford Hospitality Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: AHD's revenue (0.7% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: AHD's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AHD is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Ashford Hospitality Trust performed over the past 5 years?

-47.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AHD is currently unprofitable.

Growing Profit Margin: AHD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AHD is unprofitable, and losses have increased over the past 5 years at a rate of -47.9% per year.

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

Earnings vs Industry: AHD is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (91.2%).


Return on Equity

High ROE: AHD has a negative Return on Equity (-44.61%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ashford Hospitality Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AHD has a high level of physical assets or inventory.

Debt Coverage by Assets: AHD's debt is not covered by short term assets (assets are 0.1x debt).


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 AHD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AHD is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 5.9% per year.


Financial Institutions Analysis

Asset Level: AHD's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if AHD has a sufficient allowance for bad loans.

Low Risk Liabilities: AHD reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AHD has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AHD has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AHD has an appropriate level of bad loans.


Next Steps

Dividend

What is Ashford Hospitality Trust's current dividend yield, its reliability and sustainability?

9.52%

Current Dividend Yield


Dividend Yield vs Market

company9.5%marketbottom25%1.3%markettop25%3.6%industryaverage2.7%forecastin3Years9.6%

Current dividend yield vs market & industry

Notable Dividend: AHD's dividend (9.52%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: AHD's dividend (9.52%) is in the top 25% of dividend payers in the German market (3.59%)


Stability and Growth of Payments

Stable Dividend: AHD has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AHD has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (122.5%), AHD's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AHD's dividends in 3 years are forecast to be thoroughly covered by earnings (0.2% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Doug Kessler (58yo)

3yrs

Tenure

US$2,969,759

Compensation

Mr. Douglas A. Kessler, also known as Doug, has been Senior Managing Director of Ashford, Inc. since March 12 2018. Mr. Kessler has been the Chief Executive Officer of Ashford Hospitality Trust, Inc. since ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD2.97M) is above average for companies of similar size in the German market ($USD801.26K).

Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Montgomery Bennett
Founder & Chairman of the Board7.1yrsUS$2.97m1.87% $5.4m
Douglas Kessler
Chief Executive Officer3yrsUS$2.97m1.22% $3.5m
Deric Eubanks
CFO & Treasurer5.7yrsUS$1.34m0.43% $1.2m
Jeremy Welter
Chief Operating Officer1.9yrsUS$1.34m0.42% $1.2m
Mark Nunneley
Chief Accounting Officer16.8yrsUS$712.74k0.49% $1.4m
J. Hays
Chief Strategy Officer4.8yrsUS$1.34m0.59% $1.7m
Jay Steigerwald
President & Head of Distribution0yrsno datano data
Jordan Jennings
Manager of Investor Relations0yrsno datano data
Robert Haiman
Executive VP0yrsno data0.085% $246.6k
Chris Batchelor
President of RED Hospitality & Leisure0yrsno datano data

4.8yrs

Average Tenure

50yo

Average Age

Experienced Management: AHD's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Montgomery Bennett
Founder & Chairman of the Board7.1yrsUS$2.97m1.87% $5.4m
Frederick Kleisner
Independent Director3.4yrsUS$188.79k0.010% $28.8k
Alan Tallis
Independent Director7.1yrsUS$264.25k0.22% $645.4k
Archie Bennett
Chairman Emeritus7.1yrsno datano data
Kamal Jafarnia
Independent Director7.1yrsUS$198.15k0.0023% $6.6k
Amish Gupta
Independent Director5.8yrsUS$239.70k0.047% $136.1k
Benjamin Ansell
Lead Independent Director6.2yrsUS$231.25k0.24% $701.6k
Sheri Pantermuehl
Independent Director1.8yrsUS$195.45kno data

6.6yrs

Average Tenure

58yo

Average Age

Experienced Board: AHD's board of directors are considered experienced (6.6 years average tenure).


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 3.5%.


Top Shareholders

Company Information

Ashford Hospitality Trust, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ashford Hospitality Trust, Inc.
  • Ticker: AHD
  • Exchange: DB
  • Founded: 1968
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Implied Market Cap: US$312.608m
  • Market Cap: US$237.863m
  • Listing Market Cap: US$288.974m
  • Shares outstanding: 124.05m
  • Website: https://www.ahtreit.com

Number of Employees


Location

  • Ashford Hospitality Trust, Inc.
  • 14185 Dallas Parkway
  • Suite 1100
  • Dallas
  • Texas
  • 75254
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AHTNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2003
AHDDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2003
AHT.PRDNYSE (New York Stock Exchange)PFD D 8.45%CUMUSUSDJul 2007
AHT.PRFNYSE (New York Stock Exchange)PFD CUM SER FUSUSDJul 2016
AHT.PRGNYSE (New York Stock Exchange)PFD SER GUSUSDOct 2016
AHT.PRHNYSE (New York Stock Exchange)7.50% CUM PFD HUSUSDAug 2017
AHT.PRINYSE (New York Stock Exchange)7.5% PFD SER IUSUSDNov 2017

Biography

Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry in upper upscale, full-service hotels. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 20:31
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.