DB:UF2

Stock Analysis Report

Sunstone Hotel Investors

Executive Summary

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that as of May 6, 2019 has interests in 21 hotels comprised of 10,780 rooms.

Snowflake

Fundamentals

Excellent balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has Sunstone Hotel Investors's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.2%

DB:UF2

-0.8%

DE REITs

-0.4%

DE Market


1 Year Return

-17.7%

DB:UF2

12.8%

DE REITs

-6.2%

DE Market

UF2 underperformed the REITs industry which returned 11.2% over the past year.

UF2 underperformed the Market in Germany which returned -5.8% over the past year.


Share holder returns

UF2IndustryMarket
7 Day-3.2%-0.8%-0.4%
30 Day-3.7%2.1%0.7%
90 Day-7.5%3.3%1.8%
1 Year-13.3%-17.7%16.9%12.8%-3.3%-6.2%
3 Year26.8%10.4%35.8%20.0%24.7%13.9%
5 Year43.7%8.9%69.6%36.2%24.9%7.5%

Price Volatility Vs. Market

How volatile is Sunstone Hotel Investors's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sunstone Hotel Investors undervalued based on future cash flows and its price relative to the stock market?

42%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sunstone Hotel Investors's share price is below the future cash flow value, and at a moderate discount (> 20%).

Sunstone Hotel Investors's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Sunstone Hotel Investors is overvalued based on earnings compared to the DE REITs industry average.

Sunstone Hotel Investors is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Sunstone Hotel Investors earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Sunstone Hotel Investors is good value based on assets compared to the DE REITs industry average.


Next Steps

Future Growth

How is Sunstone Hotel Investors expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

-17.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sunstone Hotel Investors's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Sunstone Hotel Investors's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Sunstone Hotel Investors's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.

Sunstone Hotel Investors's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.

Sunstone Hotel Investors's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Sunstone Hotel Investors is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Sunstone Hotel Investors performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sunstone Hotel Investors's year on year earnings growth rate has been positive over the past 5 years.

Sunstone Hotel Investors's 1-year earnings growth exceeds its 5-year average (119.4% vs 15%)

Sunstone Hotel Investors's earnings growth has exceeded the DE REITs industry average in the past year (119.4% vs 69.6%).


Return on Equity

Sunstone Hotel Investors has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sunstone Hotel Investors used its assets less efficiently than the DE REITs industry average last year based on Return on Assets.


Return on Capital Employed

Sunstone Hotel Investors's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sunstone Hotel Investors's financial position?


Financial Position Analysis

Sunstone Hotel Investors is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sunstone Hotel Investors's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Sunstone Hotel Investors's level of debt (37%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (72.8% vs 37% today).

Debt is well covered by operating cash flow (30.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

What is Sunstone Hotel Investors's current dividend yield, its reliability and sustainability?

4.80%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Sunstone Hotel Investors before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Sunstone Hotel Investors's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.44%).

Sunstone Hotel Investors's dividend is above the markets top 25% of dividend payers in Germany (3.81%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (375.9x coverage).


Next Steps

Management

What is the CEO of Sunstone Hotel Investors's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

John Arabia (48yo)

4.4yrs

Tenure

US$5,145,849

Compensation

Mr. John V. Arabia, CPA serves as the Chief Executive Officer since January 17, 2015 and President since February 15, 2013 at Sunstone Hotel Investors, Inc. and has been its Executive Director since Februa ...


CEO Compensation Analysis

John's remuneration is higher than average for companies of similar size in Germany.

John's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.3yrs

Average Tenure

48yo

Average Age

The average tenure for the Sunstone Hotel Investors management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.5yrs

Average Tenure

59.5yo

Average Age

The tenure for the Sunstone Hotel Investors board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Denise Hertle

    Vice President of Corporate Accounting

  • Bryan Giglia (42yo)

    Executive VP & CFO

    • Tenure: 6.3yrs
    • Compensation: $2.33m
  • Marc Hoffman (60yo)

    Executive VP & COO

    • Tenure: 9.3yrs
    • Compensation: $2.64m
  • Cormac O’Modhrain

    Group Vice President of Asset Management

  • Todd Hersperger

    Vice President of Asset Management

  • Robert Springer (40yo)

    Executive VP & Chief Investment Officer

    • Tenure: 6.3yrs
    • Compensation: $2.10m
  • Aaron Reyes

    VP of Corporate Finance & Treasurer

    • Tenure: 1.6yrs
  • John Arabia (48yo)

    President

    • Tenure: 4.4yrs
    • Compensation: $5.15m
  • David Klein (49yo)

    Executive VP

    • Compensation: $1.28m
  • Michael Harvey

    Vice President of Asset Management

    • Tenure: 9.3yrs

Board Members

  • Keith Russell (73yo)

    Director

    • Tenure: 14.7yrs
    • Compensation: $193.26k
  • Tom Lewis (65yo)

    Director

    • Tenure: 13.1yrs
    • Compensation: $173.26k
  • Doug Pasquale (63yo)

    Non-Executive Chairman of the Board

    • Tenure: 4.1yrs
    • Compensation: $305.21k
  • Andrew Batinovich (59yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: $193.26k
  • W. Baird (57yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: $173.26k
  • Z. Behar (60yo)

    Director

    • Tenure: 14.7yrs
    • Compensation: $193.26k
  • John Arabia (48yo)

    President

    • Tenure: 5.3yrs
    • Compensation: $5.15m
  • Murray McCabe (50yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: $173.26k

Company Information

Sunstone Hotel Investors, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sunstone Hotel Investors, Inc.
  • Ticker: UF2
  • Exchange: DB
  • Founded: 1995
  • Industry: hotel and resort reits
  • Sector: real estate
  • Market Cap: US$3.032b
  • Listing Market Cap: US$2.663b
  • Shares outstanding: 228.64m
  • Website: Click here

Number of Employees


Location

  • Sunstone Hotel Investors, Inc.
  • 200 Spectrum Center Drive
  • 21st Floor
  • Irvine
  • California
  • 92618
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHONYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2004
UF2DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2004

Biography

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that as of May 6, 2019 has interests in 21 hotels comprised of 10,780 rooms. Sunstone's primary business is to acquire, own ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/26 02:24
End of Day Share Price2019/06/25 00:00
Earnings2019/03/31
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.