DB:MCL

Stock Analysis Report

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Executive Summary

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States.


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.3%

MCL

1.4%

DE REITs

-1.4%

DE Market


1 Year Return

-71.5%

MCL

8.0%

DE REITs

8.0%

DE Market

Return vs Industry: MCL underperformed the German REITs industry which returned 8% over the past year.

Return vs Market: MCL underperformed the German Market which returned 8% over the past year.


Shareholder returns

MCLIndustryMarket
7 Day-4.3%1.4%-1.4%
30 Day-18.1%-3.3%-1.2%
90 Day4.1%1.1%12.6%
1 Year-70.3%-71.5%8.5%8.0%10.4%8.0%
3 Yearn/a-2.1%-15.1%4.7%-3.7%
5 Yearn/a3.3%-17.8%15.9%0.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Sotherly Hotels 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: MCL (€1.77) is trading below our estimate of fair value (€3.74)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: MCL has negative assets, so we can't compare its PB Ratio to the DE REITs industry average.


Next Steps

Future Growth

How is Sotherly Hotels forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

41.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: MCL's revenue (6.7% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: MCL's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Sotherly Hotels performed over the past 5 years?

-65.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCL is currently unprofitable.

Growing Profit Margin: MCL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MCL is unprofitable, and losses have increased over the past 5 years at a rate of 65.9% per year.

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

Earnings vs Industry: MCL is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (25.3%).


Return on Equity

High ROE: MCL has a negative Return on Equity (-14%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sotherly Hotels's financial position?


Financial Position Analysis

Short Term Liabilities: MCL's short term assets ($34.2M) exceed its short term liabilities ($31.3M).

Long Term Liabilities: MCL's short term assets ($34.2M) do not cover its long term liabilities ($359.4M).


Debt to Equity History and Analysis

Debt Level: MCL's debt to equity ratio (424%) is considered high.

Reducing Debt: MCL's debt to equity ratio has reduced from 931.4% to 424% 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 MCL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MCL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 12.4% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate MCL'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 MCL's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: MCL is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MCL'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?

0.6yrs

Average management tenure


CEO

Dave Folsom (55 yo)

0.58

Tenure

US$606,893

Compensation

Mr. David R. Folsom, also known as Dave, has been the President of Sotherly Hotels Inc., the General Partner of Sotherly Hotels LP (formerly MHI Hospitality, L.P.) since January 19, 2011 and served as its ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD606.89K) is about average for companies of similar size in the German market ($USD475.35K).

Compensation vs Earnings: Dave's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
David Folsom
President0.58yrUS$606.89k2.16%
$ 635.6k
Anthony Domalski
VP, Secretary & CFO7.58yrsUS$504.03k0.69%
$ 202.9k
Scott Kucinski
Executive VP & COO0.58yrno data0.19%
$ 55.0k
Mack Sims
Vice President of Operations & Investor Relations0.50yrno datano data
Ashley Kirkland
Corporate Counsel & Compliance Officer0.50yrno datano data
Robert Kirkland
General Counsel0.58yrno datano data
Lindsay Newport
Vice President of Branding & Marketing0.50yrno datano data
David Surette
Corporate Controller6.58yrsno datano data

0.6yrs

Average Tenure

55yo

Average Age

Experienced Management: MCL's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Folsom
President0.58yrUS$606.89k2.16%
$ 635.6k
Anthony Zinni
Independent Director15.67yrsUS$45.05k0.50%
$ 146.6k
Herschel Walker
Independent Director5.33yrsUS$44.68k0.12%
$ 35.6k
Edward Stein
Lead Independent Directorno dataUS$57.93k0.31%
$ 89.8k
Andrew Sims
Chairman16yrsUS$863.47k9.2%
$ 2.7m
George Gibson
Independent Director3.33yrsUS$56.68k0.18%
$ 54.2k
Maria Caldwell
Independent Director1.33yrsUS$33.68k0.037%
$ 10.8k

7.3yrs

Average Tenure

58yo

Average Age

Experienced Board: MCL's board of directors are considered experienced (7.3 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 3.8%.


Top Shareholders

Company Information

Sotherly Hotels Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sotherly Hotels Inc.
  • Ticker: MCL
  • Exchange: DB
  • Founded: 1957
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Implied Market Cap: US$34.830m
  • Market Cap: US$25.982m
  • Listing Market Cap: US$29.403m
  • Shares outstanding: 15.98m
  • Website: https://www.sotherlyhotels.com

Number of Employees


Location

  • Sotherly Hotels Inc.
  • 306 South Henry Street
  • Suite 100
  • Williamsburg
  • Virginia
  • 23185
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOHONasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDDec 2004
MCLDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2004
SOHO.BNasdaqGM (Nasdaq Global Market)PFD SER BUSUSDAug 2016
SOHO.ONasdaqGM (Nasdaq Global Market)7.875% PFD SER CUSUSDOct 2017
SOHO.NNasdaqGM (Nasdaq Global Market)8.25% CM PFD DUSUSDApr 2019

Biography

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Souther ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 21:24
End of Day Share Price2020/08/06 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.