NasdaqGS:STAY

Stock Analysis Report

Executive Summary

Extended Stay America, Inc., together with its subsidiaries, owns, operates, and manages hotels in the United States.

Snowflake

Fundamentals

Proven track record average dividend payer.


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


Market Performance


7 Day Return

-2.0%

NasdaqGS:STAY

0.9%

US Hospitality

0.9%

US Market


1 Year Return

-29.1%

NasdaqGS:STAY

-5.1%

US Hospitality

0.3%

US Market

STAY underperformed the Hospitality industry which returned -6.7% over the past year.

STAY underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

STAYIndustryMarket
7 Day-2.0%0.9%0.9%
30 Day-9.0%-3.0%-1.9%
90 Day-18.0%-1.0%1.6%
1 Year-26.4%-29.1%-2.8%-5.1%2.6%0.3%
3 Year12.9%-0.9%43.0%33.8%41.0%31.8%
5 Year-23.7%-39.1%34.1%19.4%55.2%38.0%

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

Valuation

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

27%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Extended Stay America's share price is below the future cash flow value, and at a moderate discount (> 20%).

Extended Stay America's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

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

Extended Stay America is overvalued based on assets compared to the US Hospitality industry average.


Next Steps

Future Growth

How is Extended Stay America expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

-31.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Extended Stay America's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

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 revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

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 earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Extended Stay America is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Extended Stay America performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History


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 is less than its 5-year average (0% vs 5.3%)

Extended Stay America's earnings growth has exceeded the US Hospitality industry average in the past year (0% vs -8.7%).


Return on Equity

Extended Stay America has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Extended Stay America used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Extended Stay America has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Extended Stay America's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Extended Stay America's level of debt (182.6%) 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 (215.8% vs 182.6% today).

Debt is not well covered by operating cash flow (17.7%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

What is Extended Stay America's current dividend yield, its reliability and sustainability?

6.20%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Extended Stay America's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Extended Stay America's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

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

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Jonathan Halkyard (54yo)

1.6yrs

Tenure

US$14,614,008

Compensation

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 Direct ...


CEO Compensation Analysis

Jonathan's remuneration is higher than average for companies of similar size in United States of America.

Jonathan's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

2.3yrs

Average Tenure

50yo

Average Age

The tenure for the Extended Stay America management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

61yo

Average Age

The average tenure for the Extended Stay America board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Extended Stay America individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$9,97314 Aug 19
Ames Flynn
EntityIndividual
Shares695
Max PriceUS$14.35
BuyUS$143,00014 Aug 19
Brian Nicholson
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares10,000
Max PriceUS$14.30
BuyUS$147,64413 Aug 19
Brian Nicholson
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares10,000
Max PriceUS$14.76
BuyUS$146,29413 Aug 19
Jonathan Halkyard
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$14.63

Ownership Breakdown


Management Team

  • Kevin Henry (51yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 5.0yrs
    • Compensation: US$2.05m
  • Jonathan Halkyard (54yo)

    President

    • Tenure: 1.6yrs
    • Compensation: US$14.61m
  • Tom Buoy (50yo)

    Executive Vice President of Revenue

    • Tenure: 1.8yrs
    • Compensation: US$1.26m
  • Howard Weissman (50yo)

    Corporate Controller & Chief Accounting Officer

    • Tenure: 4.3yrs
    • Compensation: US$414.52k
  • Jim Alderman (54yo)

    Chief Asset Merchant

    • Tenure: 2.8yrs
    • Compensation: US$1.20m
  • David Kim

    Executive Vice President of Finance and Chief Investment Officer

    • Tenure: 0.0yrs
  • Rob Ballew

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • David Clarkson (47yo)

    VP of Financial Planning & Analysis and Treasurer

    • Tenure: 6.6yrs
    • Compensation: US$1.01m
  • Brian Nicholson (49yo)

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: US$1.22m
  • Christopher Dekle (47yo)

    General Counsel & Corporate Secretary

    • Tenure: 1.2yrs

Board Members

  • Richard Wallman (68yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$203.04k
  • Doug G. Geoga (63yo)

    Independent Chairman of the Board

    • Tenure: 6.1yrs
    • Compensation: US$158.54k
  • Tom O’Toole (61yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$193.67k
  • Jodie McLean (50yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$188.04k
  • Ellen Keszler (56yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$196.55k
  • Jonathan Halkyard (54yo)

    President

    • Tenure: 1.6yrs
    • Compensation: US$14.61m
  • Kapila Anand (65yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$142.91k

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$2.747b
  • Shares outstanding: 188.42m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STAYNasdaqGS (Nasdaq Global Select)YesPaired SharesUSUSDNov 2013
EA71DB (Deutsche Boerse AG)YesPaired SharesDEEURNov 2013

Biography

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 i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:35
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
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.