Extended Stay America
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Extended Stay America, Inc., together with its subsidiaries, owns, operates, and manages hotels in the United States. The last earnings update was 81 days ago. More info.
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STAY Share Price and Events
7 Day Returns
1 Year Returns
STAY Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Extended Stay America (STAY) | -4.3% | -6.5% | -11.3% | -26.6% | 4.2% | -29.6% |
| US Hospitality | -1% | 0% | -2.5% | -5.5% | 41.3% | 21.3% |
| US Market | -1.2% | 1.2% | 1.7% | 3.4% | 35.5% | 41.6% |
1 Year Return vs Industry and Market
- STAY underperformed the Hospitality industry which returned -5.5% over the past year.
- STAY underperformed the Market in United States of America which returned 3.4% over the past year.
STAY Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Extended Stay America
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Extended Stay America.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 9 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 10.7% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Hospitality Unlevered Beta | Simply Wall St/ S&P Global | 0.92 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.922 (1 + (1- 21%) (80.1%)) |
1.338 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.34 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.338 * 5.96%) |
10.71% |
Discounted Cash Flow Calculation for NasdaqGS:STAY using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Extended Stay America is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 10.71%) |
|
|---|---|---|---|
| 2020 | 151.90 | Analyst x2 | 137.21 |
| 2021 | 124.73 | Est @ -17.89% | 101.77 |
| 2022 | 110.13 | Est @ -11.7% | 81.17 |
| 2023 | 102.01 | Est @ -7.37% | 67.91 |
| 2024 | 97.58 | Est @ -4.34% | 58.68 |
| 2025 | 95.41 | Est @ -2.22% | 51.83 |
| 2026 | 94.71 | Est @ -0.74% | 46.47 |
| 2027 | 95.00 | Est @ 0.3% | 42.11 |
| 2028 | 95.98 | Est @ 1.03% | 38.43 |
| 2029 | 97.46 | Est @ 1.54% | 35.25 |
| Present value of next 10 years cash flows | $660.83 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2029
× (1 + g) ÷ (Discount Rate – g)
= $97.46 × (1 + 2.73%) ÷ (10.71% – 2.73%) |
$1,255.33 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $1,255.33 ÷ (1 + 10.71%)10 |
$454.02 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $660.83 + $454.02 |
$1,114.85 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $1,114.85 / 188.41 |
$5.92 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $5.92 |
| Current discount | Discount to share price of
$16.03
= -1 x ($16.03 - $5.92) / $5.92 |
-170.9% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Extended Stay America is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Extended Stay America's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Extended Stay America's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $1.11 |
| NasdaqGS:STAY Share Price ** | NasdaqGS (2019-07-19) in USD | $16.03 |
| United States of America Hospitality Industry PE Ratio | Median Figure of 74 Publicly-Listed Hospitality Companies | 22.4x |
| United States of America Market PE Ratio | Median Figure of 3,080 Publicly-Listed Companies | 17.88x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Extended Stay America.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:STAY Share Price ÷ EPS (both in USD) = 16.03 ÷ 1.11 |
14.45x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Extended Stay America is good value based on earnings compared to the US Hospitality industry average.
- Extended Stay America is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Extended Stay America's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 14.45x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts |
-28.7%per year |
| United States of America Hospitality Industry PEG Ratio | Median Figure of 56 Publicly-Listed Hospitality Companies | 1.88x |
| United States of America Market PEG Ratio | Median Figure of 2,119 Publicly-Listed Companies | 1.57x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 14.45x ÷ -28.7% |
-0.5x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Extended Stay America earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
Extended Stay America's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $6.88 |
| NasdaqGS:STAY Share Price * | NasdaqGS (2019-07-19) in USD | $16.03 |
| United States of America Hospitality Industry PB Ratio | Median Figure of 112 Publicly-Listed Hospitality Companies | 2.16x |
| United States of America Market PB Ratio | Median Figure of 5,245 Publicly-Listed Companies | 1.79x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:STAY Share Price ÷ Book Value per Share (both in USD) = 16.03 ÷ 6.88 |
2.33x |
* Primary Listing of Extended Stay America.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Extended Stay America is overvalued based on assets compared to the US Hospitality industry average.
Value checks
We assess Extended Stay America's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check) Extended Stay America has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
STAY Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Extended Stay America's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
- Extended Stay America's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
- Extended Stay America's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:STAY Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts | -28.7% |
| NasdaqGS:STAY Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts | -0.2% |
| United States of America Hospitality Industry Earnings Growth Rate | Market Cap Weighted Average | 17.1% |
| United States of America Hospitality Industry Revenue Growth Rate | Market Cap Weighted Average | 7.5% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.9% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.4% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 1,215 | 4 | ||
| 2020-12-31 | 1,239 | 421 | 92 | 9 |
| 2019-12-31 | 1,224 | 412 | 90 | 9 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 1,240 | 433 | 209 |
| 2018-12-31 | 1,262 | 450 | 212 |
| 2018-09-30 | 1,281 | 459 | 213 |
| 2018-06-30 | 1,283 | 453 | 203 |
| 2018-03-31 | 1,288 | 455 | 187 |
| 2017-12-31 | 1,283 | 447 | 172 |
| 2017-09-30 | 1,276 | 453 | 162 |
| 2017-06-30 | 1,280 | 450 | 153 |
| 2017-03-31 | 1,274 | 446 | 165 |
| 2016-12-31 | 1,271 | 422 | 163 |
| 2016-09-30 | 1,271 | 400 | 265 |
| 2016-06-30 | 1,277 | 396 | 266 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
All data from Extended Stay America Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | ||||
| 2020-12-31 | 0.46 | 0.49 | 0.43 | 3.00 |
| 2019-12-31 | 0.46 | 0.48 | 0.42 | 3.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 1.11 |
| 2018-12-31 | 1.12 |
| 2018-09-30 | 1.11 |
| 2018-06-30 | 1.06 |
| 2018-03-31 | 0.97 |
| 2017-12-31 | 0.89 |
| 2017-09-30 | 0.84 |
| 2017-06-30 | 0.78 |
| 2017-03-31 | 0.83 |
| 2016-12-31 | 0.81 |
| 2016-09-30 | 1.31 |
| 2016-06-30 | 1.31 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Extended Stay America's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Extended Stay America has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
STAY Past Performance
How has Extended Stay America performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Extended Stay America's year on year earnings growth rate has been positive over the past 5 years.
- Extended Stay America's 1-year earnings growth exceeds its 5-year average (11.7% vs 8%)
- Extended Stay America's earnings growth has exceeded the US Hospitality industry average in the past year (11.7% vs -0.5%).
Earnings and Revenue History
All data from Extended Stay America Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 1,240.17 | 209.07 | 114.86 | |
| 2018-12-31 | 1,262.49 | 211.76 | 116.79 | |
| 2018-09-30 | 1,280.58 | 212.51 | 113.04 | |
| 2018-06-30 | 1,283.14 | 203.07 | 114.84 | |
| 2018-03-31 | 1,287.63 | 187.22 | 116.31 | |
| 2017-12-31 | 1,282.73 | 172.19 | 117.65 | |
| 2017-09-30 | 1,275.95 | 162.19 | 121.65 | |
| 2017-06-30 | 1,279.60 | 153.00 | 122.44 | |
| 2017-03-31 | 1,274.03 | 164.66 | 121.00 | |
| 2016-12-31 | 1,270.59 | 163.35 | 119.65 | |
| 2016-09-30 | 1,271.20 | 265.34 | 122.37 | |
| 2016-06-30 | 1,277.20 | 266.50 | 122.13 | |
| 2016-03-31 | 1,284.72 | 269.92 | 124.18 | |
| 2015-12-31 | 1,284.75 | 283.02 | 122.73 | |
| 2015-09-30 | 1,271.11 | 178.89 | 122.36 | |
| 2015-06-30 | 1,249.15 | 180.85 | 117.57 | |
| 2015-03-31 | 1,230.75 | 162.33 | 113.08 | |
| 2014-12-31 | 1,213.48 | 150.55 | 112.68 | |
| 2014-09-30 | 1,199.56 | 107.17 | 122.67 | |
| 2014-06-30 | 1,174.66 | 93.57 | 127.63 | |
| 2014-03-31 | 1,146.34 | 84.82 | 131.82 | |
| 2013-12-31 | 1,132.82 | 82.66 | 127.13 | |
| 2013-09-30 | 1,114.60 | 64.91 | 105.35 | |
| 2013-06-30 | 1,082.32 | 51.47 | 103.40 | |
| 2013-03-31 | 1,028.49 | 25.06 | 99.91 | |
| 2012-12-31 | 1,011.46 | 22.28 | 103.74 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Extended Stay America has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Extended Stay America used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.
- Extended Stay America has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Extended Stay America's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Extended Stay America has a total score of 5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
STAY Health
How is Extended Stay America's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Extended Stay America's finances.
The net worth of a company is the difference between its assets and liabilities.
- Extended Stay America is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Extended Stay America's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Extended Stay America Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 1,296.65 | 2,401.63 | 292.10 |
| 2018-12-31 | 1,310.64 | 2,402.64 | 293.25 |
| 2018-09-30 | 1,318.50 | 2,478.86 | 378.68 |
| 2018-06-30 | 1,294.60 | 2,480.08 | 191.71 |
| 2018-03-31 | 1,301.67 | 2,481.30 | 199.01 |
| 2017-12-31 | 1,345.85 | 2,541.90 | 119.73 |
| 2017-09-30 | 1,348.42 | 2,543.26 | 121.19 |
| 2017-06-30 | 1,325.03 | 2,544.64 | 60.76 |
| 2017-03-31 | 1,332.03 | 2,595.09 | 70.11 |
| 2016-12-31 | 1,377.24 | 2,609.73 | 89.15 |
| 2016-09-30 | 1,447.69 | 2,587.90 | 149.84 |
| 2016-06-30 | 1,436.71 | 2,768.81 | 137.10 |
| 2016-03-31 | 1,443.25 | 2,766.77 | 172.43 |
| 2015-12-31 | 1,488.36 | 2,783.59 | 373.24 |
| 2015-09-30 | 1,440.69 | 2,817.42 | 107.51 |
| 2015-06-30 | 1,418.60 | 2,903.44 | 68.21 |
| 2015-03-31 | 1,384.88 | 2,929.13 | 71.89 |
| 2014-12-31 | 1,389.32 | 2,880.59 | 121.32 |
| 2014-09-30 | 1,392.40 | 2,912.48 | 20.43 |
| 2014-06-30 | 1,363.16 | 2,942.18 | 18.74 |
| 2014-03-31 | 1,343.17 | 2,966.05 | 15.48 |
| 2013-12-31 | 1,341.21 | 2,926.05 | 60.46 |
| 2013-09-30 | 833.61 | 3,605.52 | 163.51 |
| 2013-06-30 | 1,313.20 | 3,102.80 | 104.97 |
| 2013-03-31 | 752.82 | 3,605.71 | 103.58 |
| 2012-12-31 | 752.82 | 3,605.71 | 103.58 |
- Extended Stay America's level of debt (185.5%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (220.8% vs 185.5% today).
- Debt is not well covered by operating cash flow (18%, less than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).
Financial health checks
We assess Extended Stay America's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Extended Stay America has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
STAY Dividends
What is Extended Stay America's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Extended Stay America
shares you are expected to receive
$115
in your first year as a dividend.
Dividend Amount
- Extended Stay America's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
- Extended Stay America's dividend is above the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
| United States of America Hospitality Industry Average Dividend Yield | Market Cap Weighted Average of 47 Stocks | 2.7% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2016 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.8% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 0.92 | 5.00 |
| 2020-12-31 | 0.90 | 7.00 |
| 2019-12-31 | 0.89 | 7.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-01 | 0.920 | 5.345 |
| 2019-02-27 | 0.880 | 4.813 |
| 2018-10-31 | 0.880 | 5.156 |
| 2018-07-25 | 0.880 | 4.499 |
| 2018-04-26 | 0.880 | 4.214 |
| 2018-02-27 | 0.840 | 4.245 |
| 2017-11-07 | 0.840 | 4.518 |
| 2017-08-01 | 0.840 | 4.282 |
| 2017-04-27 | 0.840 | 4.492 |
| 2017-02-28 | 0.760 | 4.559 |
| 2016-10-25 | 0.760 | 4.774 |
| 2016-07-28 | 0.760 | 5.391 |
| 2016-04-26 | 0.760 | 5.122 |
| 2016-02-23 | 0.680 | 4.421 |
| 2015-10-27 | 0.680 | 4.509 |
| 2015-07-30 | 0.680 | 3.752 |
| 2015-04-30 | 0.680 | 3.516 |
| 2015-02-26 | 0.600 | 3.054 |
| 2014-11-07 | 0.600 | 3.091 |
| 2014-07-31 | 0.600 | 2.623 |
| 2014-05-07 | 0.600 | 2.647 |
| 2014-02-26 | 0.600 | 2.578 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, Extended Stay America has been paying a dividend for less than 10 years.
- Dividend payments have increased, but Extended Stay America only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of
Extended Stay America's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.2x coverage).
- Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
Income/ dividend checks
We assess Extended Stay America's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Extended Stay America afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Extended Stay America has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
STAY Management
CEO
| COMPENSATION | $14,614,008 |
| AGE | 54 |
| TENURE AS CEO | 1.5 years |
CEO Bio
Mr. Jonathan S. Halkyard has been the President, Chief Executive Officer and Director of ESH Hospitality, Inc. since January 1, 2018. Mr. Halkyard has been the President, Chief Executive Officer and Director of Extended Stay America Inc. since January 1, 2018 and served as its Chief Financial Officer from January 2015 to December 2017. He has deep experience in adjacent hospitality industries. His skills and expertise includes: Corporate finance, capital markets, operations, strategy, governance, lodging, and gaming. He served as CFO of ESH Hospitality, Inc. (“ESH REIT”). He served as Interim Chief Financial Officer of Extended Stay America, Inc. and ESH REIT from August 2014 to January 2015 and as Chief Operating Officer of Extended Stay America, Inc. from November 2013 to January 2015 and served in the same position at HVM LLC (“HVM”), the predecessor of ESA Management, from September 2013 to November 2013. From July 2012 to September 2013, Mr. Halkyard served as Executive Vice President and Chief Financial Officer of NV Energy, Inc., a holding company providing energy services and products in Nevada, and its wholly-owned subsidiaries, Nevada Power Company and Sierra Pacific Power Company. From March 1999 to May 2012, Mr. Halkyard held various positions with Caesars Entertainment Corporation (formerly known as Harrah’s Entertainment, Inc.), included Vice President (from 2002 to 2005), Treasurer (from 2003 to 2010), Senior Vice President (from 2005 to 2010), Executive Vice President (from 2010 to 2012) and Chief Financial Officer (from 2006 to 2012). Mr. Halkyard serves as Independent Director of Dave & Buster’s, Inc. His other positions/memberships: Member, Board of Advisors, McColl School of Business, Queens University of Charlotte, NC and Member, Board of Trustees, Charlotte Latin School, NC. He has been an Independent Director of Dave & Buster’s Entertainment, Inc. since 2011. He holds B.A. in Economics from Colgate University and an M.B.A. from Harvard Business School. In 2013, he received Civitas Laurel Award, Foundation for an Independent Tomorrow, Las Vegas, NV.
CEO Compensation
- Jonathan's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
- Jonathan's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Extended Stay America management team in years:
- The tenure for the Extended Stay America management team is about average.
Management Team
Jonathan Halkyard
President
$15M
54
1.5 yrs
Brian Nicholson
Chief Financial Officer
$1M
49
1.2 yrs
Kevin Henry
Executive VP & Chief Human Resources Officer
$2M
51
4.9 yrs
Tom Buoy
Executive Vice President of Revenue
$1M
50
1.8 yrs
Jim Alderman
Chief Asset Merchant
$1M
54
2.7 yrs
David Clarkson
VP of Financial Planning & Analysis and Treasurer
$1M
47
6.5 yrs
David Kim
Executive Vice President of Finance and Chief Investment Officer
Howard Weissman
Corporate Controller & Chief Accounting Officer
$415K
50
4.2 yrs
Rob Ballew
Vice President of Investor Relations
Christopher Dekle
General Counsel & Corporate Secretary
47
1.1 yrs
Board of Directors Tenure
Average tenure and age of the Extended Stay America board of directors in years:
- The average tenure for the Extended Stay America board of directors is less than 3 years, this suggests a new board.
Board of Directors
Doug G. Geoga
Independent Chairman of the Board
$159K
63
6 yrs
Jonathan Halkyard
President
$15M
54
1.5 yrs
Richard Wallman
Independent Director
$203K
68
6 yrs
Kapila Anand
Independent Director
$143K
65
3 yrs
Tom O’Toole
Independent Director
$194K
61
2.2 yrs
Jodie McLean
Independent Director
$188K
50
2.1 yrs
Ellen Keszler
Independent Director
$197K
56
1.4 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 03. Aug 18 | Sell | Richard Wallman | Individual | 02. Aug 18 | 02. Aug 18 | -15,000 | $21.49 | $-322,376 | ||
| 01. Aug 18 | Buy | Brian Nicholson | Individual | 31. Jul 18 | 31. Jul 18 | 10,000 | $21.19 | $211,908 | ||
Management checks
We assess Extended Stay America's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Extended Stay America has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
STAY News
Simply Wall St News
Investors Who Bought Extended Stay America (NASDAQ:STAY) Shares Five Years Ago Are Now Down 27%
While the share price declined over five years, Extended Stay America actually managed to increase EPS by an average of 19% per year. … In the case of Extended Stay America, it has a TSR of -8.0% for the last 5 years. … Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround.
Simply Wall St - – Full articleShould You Consider Extended Stay America, Inc. (NASDAQ:STAY)?
I've been keeping an eye on Extended Stay America, Inc. … For those interested in digger a bit deeper into my commentary, read the full report on Extended Stay America here. … NasdaqGS:STAY Historical Dividend Yield, June 3rd 2019 Next Steps: For Extended Stay America, I've compiled three key factors you should look at: Future Outlook: What are well-informed industry analysts predicting for STAY’s future growth?
Simply Wall St - – Full articleThree Things You Should Check Before Buying Extended Stay America, Inc. (NASDAQ:STAY) For Its Dividend
(NASDAQ:STAY) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. If you are hoping to live on your dividends, it's important to be more stringent with your investments than the average punter. Regular readers know we like to apply the same approach to each dividend stock, and we hope you'll find our analysis useful. In this case, Extended Stay America likely looks attractive to dividend investors, given its 5.1% dividend yield and five-year payment history. We'd agree the yield does look enticing. The company also bought back stock during the year, equivalent to approximately 1.5% of the company's market capitalisation at the time. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … We're conscious though that one of the best ways to detect a multi-decade consistent dividend payer, is to watch a company pay dividends for 20 years - a distinction Extended Stay America has not achieved yet. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Extended Stay America has grown its earnings per share at 19% per annum over the past five years.
Simply Wall St - – Full articleWhat You Must Know About Extended Stay America, Inc.'s (NASDAQ:STAY) Beta Value
Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider. … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
Simply Wall St - – Full articleIs It Too Late To Consider Buying Extended Stay America, Inc. (NASDAQ:STAY)?
Extended Stay America, Inc. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Extended Stay America’s outlook and valuation to see if the opportunity still exists
Simply Wall St - – Full articleDid Changing Sentiment Drive Extended Stay America's (NASDAQ:STAY) Share Price Down By 17%?
One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … While the share price declined over five years, Extended Stay America actually managed to increase EPS by an average of 19% per year. … While it's not completely obvious why the share price is down, a closer look at the company's history might help explain it.
Simply Wall St - – Full articleA Closer Look At Extended Stay America, Inc.'s (NASDAQ:STAY) Impressive ROE
Our data shows Extended Stay America has a return on equity of 16% for the last year. … That means that for every $1 worth of shareholders' equity, it generated $0.16 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleOnly 4 Days Left Before Extended Stay America, Inc. (NASDAQ:STAY) Will Be Trading Ex-Dividend
To qualify for the dividend check of US$0.22 per share, investors must have owned the shares prior to 13 March 2019, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Extended Stay America's latest financial data to analyse its dividend attributes. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?
Simply Wall St - – Full articleDoes Extended Stay America, Inc. (NASDAQ:STAY) Create Value For Shareholders?
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Simply Wall St - – Full articleDoes Extended Stay America, Inc. (NASDAQ:STAY) Have A Good P/E Ratio?
To keep it practical, we'll show how Extended Stay America, Inc.'s (NASDAQ:STAY) P/E ratio could help you assess the value on offer. … Extended Stay America has a P/E ratio of 15.27, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleSTAY Company Info
Description
Extended Stay America, Inc., together with its subsidiaries, owns, operates, and manages hotels in the United States. As of February 27, 2019, the company had a network of 627 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.
Details
| Name: | Extended Stay America, Inc. |
| STAY | |
| Exchange: | NasdaqGS |
| Founded: | 1995 |
| $3,020,250,387 | |
| 188,412,376 | |
| Website: | http://www.extendedstayamerica.com |
| Address: |
Extended Stay America, Inc. 11525 North Community House Road, Suite 100, Charlotte, North Carolina, 28277, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | STAY | Paired Shares | Nasdaq Global Select | US | USD | 13. Nov 2013 | |
| DB | EA71 | Paired Shares | Deutsche Boerse AG | DE | EUR | 13. Nov 2013 |
Number of employees
Current staff
Industry
| Hotels, Resorts and Cruise Lines | |
| Consumer Services |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/07/21 01:00 |
| End of day share price update: | 2019/07/19 00:00 |
| Last estimates confirmation: | 2019/07/18 |
| Last earnings filing: | 2019/05/01 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
