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Extended Stay America

Nasdaq:STAY
Snowflake Description

Solid track record average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STAY
Nasdaq
$3B
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

Extended Stay America, Inc., together with its subsidiaries, owns, operates, and manages hotels in the United States. The last earnings update was 45 days ago. More info.


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STAY Share Price and Events
7 Day Returns
-0.6%
NasdaqGS:STAY
2.7%
US Hospitality
1.5%
US Market
1 Year Returns
-22.3%
NasdaqGS:STAY
-10.7%
US Hospitality
1%
US Market
STAY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Extended Stay America (STAY) -0.6% -7.1% -6.9% -22.3% 13.3% -27.7%
US Hospitality 2.7% -1.1% 1.7% -10.7% 41.1% 20.1%
US Market 1.5% 1% 1.4% 1% 37.6% 38.1%
1 Year Return vs Industry and Market
  • STAY underperformed the Hospitality industry which returned -10.7% over the past year.
  • STAY underperformed the Market in United States of America which returned 1% over the past year.
Price Volatility
STAY
Industry
5yr Volatility vs Market

STAY Value

 Is Extended Stay America undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Extended Stay America.

NasdaqGS:STAY Discounted Cash Flow Data Sources
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 10.6%
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.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:STAY
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))
= 0.921 (1 + (1- 21%) (75.97%))
1.317
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.32
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.317 * 5.96%)
10.58%

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.

NasdaqGS:STAY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.58%)
2019 84.40 Analyst x2 76.32
2020 151.90 Analyst x2 124.22
2021 124.73 Est @ -17.89% 92.24
2022 110.13 Est @ -11.7% 73.65
2023 102.01 Est @ -7.37% 61.69
2024 97.58 Est @ -4.34% 53.37
2025 95.41 Est @ -2.22% 47.19
2026 94.71 Est @ -0.74% 42.36
2027 95.00 Est @ 0.3% 38.42
2028 95.98 Est @ 1.03% 35.11
Present value of next 10 years cash flows $644.59
NasdaqGS:STAY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $95.98 × (1 + 2.73%) ÷ (10.58% – 2.73%)
$1,255.97
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,255.97 ÷ (1 + 10.58%)10
$459.41
NasdaqGS:STAY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $644.59 + $459.41
$1,104.00
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,104.00 / 188.41
$5.86
NasdaqGS:STAY Discount to Share Price
Calculation Result
Value per share (USD) From above. $5.86
Current discount Discount to share price of $16.90
= -1 x ($16.90 - $5.86) / $5.86
-188.4%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NasdaqGS:STAY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.11
NasdaqGS:STAY Share Price ** NasdaqGS (2019-06-14) in USD $16.9
United States of America Hospitality Industry PE Ratio Median Figure of 74 Publicly-Listed Hospitality Companies 23.14x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Extended Stay America.

NasdaqGS:STAY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:STAY Share Price ÷ EPS (both in USD)

= 16.9 ÷ 1.11

15.23x

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?
Raw Data
NasdaqGS:STAY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.23x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
-28.3%per year
United States of America Hospitality Industry PEG Ratio Median Figure of 55 Publicly-Listed Hospitality Companies 1.92x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NasdaqGS:STAY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.23x ÷ -28.3%

-0.54x

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?
Raw Data
NasdaqGS:STAY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $6.88
NasdaqGS:STAY Share Price * NasdaqGS (2019-06-14) in USD $16.9
United States of America Hospitality Industry PB Ratio Median Figure of 112 Publicly-Listed Hospitality Companies 2.19x
United States of America Market PB Ratio Median Figure of 5,242 Publicly-Listed Companies 1.8x
NasdaqGS:STAY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:STAY Share Price ÷ Book Value per Share (both in USD)

= 16.9 ÷ 6.88

2.46x

* 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.
X
Value checks
We assess Extended Stay America's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. 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

 How is Extended Stay America expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

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!
Annual Growth Rate
-28.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Extended Stay America expected to grow at an attractive rate?
  • 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
Raw Data
NasdaqGS:STAY Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:STAY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts -28.3%
NasdaqGS:STAY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts -0.1%
United States of America Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 16.5%
United States of America Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 7.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
Raw Data
NasdaqGS:STAY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:STAY Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,218 4
2020-12-31 1,240 421 93 9
2019-12-31 1,226 413 91 9
NasdaqGS:STAY Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Extended Stay America's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Extended Stay America's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:STAY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 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 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:STAY Future Estimates Data
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 0.43 3.00
NasdaqGS:STAY Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Extended Stay America is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Extended Stay America's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Extended Stay America's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 1%).
Earnings and Revenue History
Extended Stay America's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Extended Stay America Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:STAY Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess Extended Stay America's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Extended Stay America's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Extended Stay America Company Filings, last reported 2 months ago.

NasdaqGS:STAY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,296.65 2,419.14 292.10
2018-12-31 1,310.64 2,406.04 293.25
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).
X
Financial health checks
We assess Extended Stay America's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Extended Stay America has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
5.44%
Current annual income from Extended Stay America dividends. Estimated to be 5.34% next year.
If you bought $2,000 of Extended Stay America shares you are expected to receive $109 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Extended Stay America's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Extended Stay America's dividend is above the markets top 25% of dividend payers in United States of America (3.72%).
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.
Raw Data
NasdaqGS:STAY Annualized Past and Future Dividends
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 46 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
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 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:STAY Future Dividends Estimate Data
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
NasdaqGS:STAY Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-01 0.920 5.245
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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Extended Stay America's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Extended Stay America's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jonathan Halkyard
COMPENSATION $14,614,008
AGE 53
TENURE AS CEO 1.4 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:

2.1
Average Tenure
49
Average Age
  • The tenure for the Extended Stay America management team is about average.
Management Team

Jonathan Halkyard

TITLE
President
COMPENSATION
$15M
AGE
53
TENURE
1.4 yrs

Brian Nicholson

TITLE
Chief Financial Officer
COMPENSATION
$1M
AGE
48
TENURE
1.1 yrs

Kevin Henry

TITLE
Executive VP & Chief Human Resources Officer
COMPENSATION
$2M
AGE
50
TENURE
4.8 yrs

Tom Buoy

TITLE
Executive Vice President of Revenue
COMPENSATION
$1M
AGE
49
TENURE
1.7 yrs

Jim Alderman

TITLE
Chief Asset Merchant
COMPENSATION
$1M
AGE
53
TENURE
2.6 yrs

David Clarkson

TITLE
VP of Financial Planning & Analysis and Treasurer
COMPENSATION
$1M
AGE
46
TENURE
6.4 yrs

David Kim

TITLE
Executive Vice President of Finance and Chief Investment Officer

Howard Weissman

TITLE
Corporate Controller & Chief Accounting Officer
COMPENSATION
$415K
AGE
49
TENURE
4.1 yrs

Rob Ballew

TITLE
Vice President of Investor Relations

Christopher Dekle

TITLE
General Counsel & Corporate Secretary
AGE
46
TENURE
1 yrs
Board of Directors Tenure

Average tenure and age of the Extended Stay America board of directors in years:

2.1
Average Tenure
60
Average Age
  • 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

TITLE
Independent Chairman of the Board
COMPENSATION
$159K
AGE
62
TENURE
5.9 yrs

Jonathan Halkyard

TITLE
President
COMPENSATION
$15M
AGE
53
TENURE
1.4 yrs

Richard Wallman

TITLE
Independent Director
COMPENSATION
$203K
AGE
67
TENURE
5.9 yrs

Kapila Anand

TITLE
Independent Director
COMPENSATION
$143K
AGE
64
TENURE
2.9 yrs

Tom O’Toole

TITLE
Independent Director
COMPENSATION
$194K
AGE
60
TENURE
2.1 yrs

Jodie McLean

TITLE
Independent Director
COMPENSATION
$188K
AGE
49
TENURE
2 yrs

Ellen Keszler

TITLE
Independent Director
COMPENSATION
$197K
AGE
55
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) 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
X
Management checks
We assess Extended Stay America's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

Should 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 -

Three 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 -

What 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 -

Is 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 -

Did 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 -

A 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 -

Only 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 -

Does 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 -

Does 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 -

Why I Like Extended Stay America, Inc. (NASDAQ:STAY)

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Extended Stay America, Inc. … (NASDAQ:STAY) due to its excellent fundamentals in more than one area.

Simply Wall St -

STAY 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
$3,184,169,154
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
Staff numbers
6,300
Extended Stay America employees.
Industry
Hotels, Resorts and Cruise Lines
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/15 00:38
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/10
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.