Extended Stay America
Market Cap
US$2.4b
Last Updated
2020/02/19 01:58 UTC
Data Sources
Company Financials +
Executive Summary
Extended Stay America, Inc., together with its subsidiaries, owns, operates, and manages hotels in the United States.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -31.5% per year for the next 3 years
Dividend of 7.05% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Undervalued with questionable track record.
Similar Companies
Share Price & News
How has Extended Stay America's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: STAY has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.4%
STAY
-1.2%
US Hospitality
0.06%
US Market
1 Year Return
-27.8%
STAY
6.0%
US Hospitality
19.4%
US Market
Return vs Industry: STAY underperformed the US Hospitality industry which returned 6% over the past year.
Return vs Market: STAY underperformed the US Market which returned 19.4% over the past year.
Shareholder returns
| STAY | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.4% | -1.2% | 0.06% |
| 30 Day | -8.9% | -5.0% | 1.1% |
| 90 Day | -12.0% | 7.0% | 8.9% |
| 1 Year | -23.6%-27.8% | 8.7%6.0% | 21.9%19.4% |
| 3 Year | -13.1%-25.0% | 35.7%26.8% | 48.9%39.3% |
| 5 Year | -18.2%-36.2% | 47.7%32.2% | 71.9%53.1% |
Price Volatility Vs. Market
How volatile is Extended Stay America's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Here's How P/E Ratios Can Help Us Understand Extended Stay America, Inc. (NASDAQ:STAY)2 weeks ago | Simply Wall St
Imagine Owning Extended Stay America (NASDAQ:STAY) And Wondering If The 36% Share Price Slide Is Justified4 weeks ago | Simply Wall St
Is It Time To Consider Buying Extended Stay America, Inc. (NASDAQ:STAY)?Valuation
Is Extended Stay America 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: STAY ($13.05) is trading below our estimate of fair value ($36.08)
Significantly Below Fair Value: STAY is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: STAY is good value based on its PE Ratio (13.6x) compared to the Hospitality industry average (24x).
PE vs Market: STAY is good value based on its PE Ratio (13.6x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: STAY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: STAY is good value based on its PB Ratio (1.9x) compared to the US Hospitality industry average (2.2x).
Next Steps
Future Growth
How is Extended Stay America forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
-31.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STAY's earnings are forecast to decline over the next 3 years (-31.5% per year).
Earnings vs Market: STAY's earnings are forecast to decline over the next 3 years (-31.5% per year).
High Growth Earnings: STAY's earnings are forecast to decline over the next 3 years.
Revenue vs Market: STAY's revenue is expected to decline over the next 3 years (-0.2% per year).
High Growth Revenue: STAY's revenue is forecast to decline over the next 3 years (-0.2% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: STAY's Return on Equity is forecast to be low in 3 years time (18%).
Next Steps
Past Performance
How has Extended Stay America performed over the past 5 years?
2.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STAY has high quality earnings.
Growing Profit Margin: STAY's current net profit margins (15%) are lower than last year (16.6%).
Past Earnings Growth Analysis
Earnings Trend: STAY's earnings have grown by 2.1% per year over the past 5 years.
Accelerating Growth: STAY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: STAY had negative earnings growth (-15%) over the past year, making it difficult to compare to the Hospitality industry average (-9.8%).
Return on Equity
High ROE: STAY's Return on Equity (14.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Extended Stay America's financial position?
Financial Position Analysis
Short Term Liabilities: STAY's short term assets ($526.2M) exceed its short term liabilities ($232.9M).
Long Term Liabilities: STAY's short term assets ($526.2M) do not cover its long term liabilities ($2.7B).
Debt to Equity History and Analysis
Debt Level: STAY's debt to equity ratio (208.4%) is considered high.
Reducing Debt: STAY's debt to equity ratio has reduced from 209.1% to 208.4% over the past 5 years.
Debt Coverage: STAY's debt is not well covered by operating cash flow (15.4%).
Interest Coverage: STAY's interest payments on its debt are not well covered by EBIT (2.9x coverage).
Balance Sheet
Inventory Level: STAY has a high level of physical assets or inventory.
Debt Coverage by Assets: STAY's debt is not covered by short term assets (assets are 0.2x debt).
Next Steps
Dividend
What is Extended Stay America's current dividend yield, its reliability and sustainability?
7.05%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: STAY's dividend (7.05%) is higher than the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: STAY's dividend (7.05%) is in the top 25% of dividend payers in the US market (3.7%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, STAY has been paying a dividend for less than 10 years.
Growing Dividend: STAY's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (94.8%), STAY's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: STAY's dividends in 3 years are not forecast to be well covered by earnings (94.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Bruce Haase (59yo)
0.3yrs
Tenure
Mr. Bruce N. Haase has been a Director of ESH Hospitality, Inc. since April 5, 2018 and serves as its President and Chief Executive Officer since November 22, 2019. He serves as Director, President and Chi ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Financial Officer | 1.8yrs | US$1.22m | 0.027% $653.9k | |
| Executive VP & Chief Human Resources Officer | 5.5yrs | US$2.05m | 0.036% $861.7k | |
| Executive Officer | 0.3yrs | US$4.87m | 0.15% $3.6m | |
| Chief Asset Merchant | 3.3yrs | US$1.20m | 0.0082% $195.6k | |
| VP of Financial Planning & Analysis and Treasurer | 7.1yrs | US$1.01m | 0.013% $301.1k | |
| President | 0.3yrs | no data | 0.036% $852.9k | |
| Executive Vice President of Finance and Chief Investment Officer | 0yrs | no data | no data | |
| Corporate Controller & Chief Accounting Officer | 4.8yrs | US$414.52k | 0.015% $356.4k | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| General Counsel & Corporate Secretary | 1.7yrs | no data | 0.0032% $76.8k |
2.5yrs
Average Tenure
50.5yo
Average Age
Experienced Management: STAY's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.3yrs | no data | 0.036% $852.9k | |
| Independent Director | 6.6yrs | US$203.04k | 0.12% $3.0m | |
| Independent Chairman of the Board | 6.6yrs | US$158.54k | 0.29% $6.9m | |
| Independent Director | 2.8yrs | US$193.67k | 0.013% $300.6k | |
| Independent Director | 2.7yrs | US$188.04k | 0.012% $277.5k | |
| Independent Director | 2yrs | US$196.55k | no data | |
| Independent Director | 3.6yrs | US$142.91k | 0.0067% $159.6k |
2.8yrs
Average Tenure
61yo
Average Age
Experienced Board: STAY's board of directors are not considered experienced ( 2.8 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: STAY insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Extended Stay America, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Extended Stay America, Inc.
- Ticker: STAY
- Exchange: NasdaqGS
- Founded: 1995
- Industry: Hotels, Resorts and Cruise Lines
- Sector: Consumer Services
- Market Cap: US$2.386b
- Shares outstanding: 182.82m
- Website: https://www.extendedstayamerica.com
Number of Employees
Location
- Extended Stay America, Inc.
- 11525 North Community House Road
- Suite 100
- Charlotte
- North Carolina
- 28277
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| STAY | NasdaqGS (Nasdaq Global Select) | Yes | Paired Shares | US | USD | Nov 2013 |
| EA71 | DB (Deutsche Boerse AG) | Yes | Paired Shares | DE | EUR | Nov 2013 |
Biography
Extended Stay America, Inc., together with its subsidiaries, owns, operates, and manages hotels in the United States. As of December 16, 2019, the company had a network of 630 hotels. It serves customers in the mid-priced extended stay segment. The company also relicenses Extended Stay America brand to third party franchisees. Extended Stay America, Inc. was founded in 1995 and is headquartered in Charlotte, North Carolina.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 01:58 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.