Extended Stay America
Market Cap
US$2.4b
Last Updated
2020/11/24 23:59 UTC
Data Sources
Company Financials +
Executive Summary
Extended Stay America, Inc., together with its subsidiaries, owns, operates, develops, and manages hotels in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Moderate growth potential and slightly overvalued.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: STAY's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
5.4%
STAY
5.2%
US Hospitality
1.8%
US Market
1 Year Return
-8.4%
STAY
-8.4%
US Hospitality
20.4%
US Market
Return vs Industry: STAY exceeded the US Hospitality industry which returned -11.4% over the past year.
Return vs Market: STAY underperformed the US Market which returned 19% over the past year.
Shareholder returns
| STAY | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.4% | 5.2% | 1.8% |
| 30 Day | 9.7% | 14.7% | 6.0% |
| 90 Day | 10.0% | 21.4% | 6.8% |
| 1 Year | -5.8%-8.4% | -7.1%-8.4% | 23.2%20.4% |
| 3 Year | -10.0%-20.8% | -2.2%-8.5% | 47.4%37.6% |
| 5 Year | 0.6%-21.0% | 38.1%24.4% | 91.9%70.8% |
Long-Term 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 week ago | Simply Wall St
Have Insiders Sold Extended Stay America, Inc. (NASDAQ:STAY) Shares Recently?3 weeks ago | Simply Wall St
Extended Stay America (NASDAQ:STAY) Has A Somewhat Strained Balance Sheet1 month ago | Simply Wall St
Is Extended Stay America (NASDAQ:STAY) Using Capital Effectively?Valuation
Is Extended Stay America undervalued compared to its fair value and its price relative to the market?
44.62x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: STAY ($13.58) is trading above our estimate of fair value ($12.91)
Significantly Below Fair Value: STAY is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: STAY is poor value based on its PE Ratio (44.6x) compared to the US Hospitality industry average (37.1x).
PE vs Market: STAY is poor value based on its PE Ratio (44.6x) compared to the US market (19.5x).
Price to Earnings Growth Ratio
PEG Ratio: STAY is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: STAY is good value based on its PB Ratio (2.1x) compared to the US Hospitality industry average (2.6x).
Next Steps
Future Growth
How is Extended Stay America forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
62.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STAY's forecast earnings growth (62.4% per year) is above the savings rate (2.2%).
Earnings vs Market: STAY's earnings (62.4% per year) are forecast to grow faster than the US market (21.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: STAY's revenue (7.2% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: STAY's revenue (7.2% per year) is forecast to grow slower than 20% 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 (14.7%).
Next Steps
Past Performance
How has Extended Stay America performed over the past 5 years?
-12.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STAY has high quality earnings.
Growing Profit Margin: STAY's current net profit margins (5.2%) are lower than last year (15%).
Past Earnings Growth Analysis
Earnings Trend: STAY's earnings have declined by 12.9% 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 (-69.9%) over the past year, making it difficult to compare to the Hospitality industry average (-53.8%).
Return on Equity
High ROE: STAY's Return on Equity (4.8%) is considered low.
Next Steps
Financial Health
How is Extended Stay America's financial position?
Financial Position Analysis
Short Term Liabilities: STAY's short term assets ($410.9M) exceed its short term liabilities ($287.6M).
Long Term Liabilities: STAY's short term assets ($410.9M) do not cover its long term liabilities ($2.6B).
Debt to Equity History and Analysis
Debt Level: STAY's debt to equity ratio (236.7%) is considered high.
Reducing Debt: STAY's debt to equity ratio has increased from 195.4% to 236.7% over the past 5 years.
Debt Coverage: STAY's debt is not well covered by operating cash flow (10.4%).
Interest Coverage: STAY's interest payments on its debt are not well covered by EBIT (1.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Extended Stay America current dividend yield, its reliability and sustainability?
0.29%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: STAY's dividend (0.29%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.5%).
High Dividend: STAY's dividend (0.29%) is low compared to the top 25% of dividend payers in the US market (4.15%).
Stability and Growth of Payments
Stable Dividend: STAY is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: STAY is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: STAY is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of STAY's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.7yrs
Average management tenure
CEO
Bruce Haase (60 yo)
1
Tenure
US$4,045,493
Compensation
Mr. Bruce N. Haase has been a Director of ESH Hospitality, Inc. since April 5, 2018 and serves as its President and Chief Executive Officer since November 22, 2019. He serves as Director, President and Chi...
CEO Compensation Analysis
Compensation vs Market: Bruce's total compensation ($USD4.05M) is about average for companies of similar size in the US market ($USD5.19M).
Compensation vs Earnings: Insufficient data to compare Bruce's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1yr | US$4.05m | 0.040% $ 972.5k | |
| Executive VP & Chief Human Resources Officer | 6.25yrs | US$1.14m | 0.041% $ 979.7k | |
| Executive Officer | 0.17yr | US$1.10m | 0.029% $ 704.3k | |
| Chief Financial Officer | 0.17yr | US$1.01m | 0.014% $ 337.1k | |
| Executive Vice President of Finance and Chief Investment Officer | no data | no data | no data | |
| Corporate Controller & Chief Accounting Officer | 5.5yrs | US$414.52k | 0.017% $ 398.8k | |
| Senior VP & Chief Information Officer | 0.83yr | no data | 0.0016% $ 39.3k | |
| Vice President of Investor Relations | no data | no data | no data | |
| General Counsel & Corporate Secretary | 2.42yrs | no data | 0.0073% $ 175.5k | |
| Executive Vice President of Sales | 6.17yrs | no data | no data | |
| Executive Vice President of Hotel Operations | 7yrs | no data | no data | |
| Executive VP & Chief Commercial Officer | 1yr | no data | no data |
1.7yrs
Average Tenure
50yo
Average Age
Experienced Management: STAY's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1yr | US$4.05m | 0.040% $ 972.5k | |
| Independent Director | 7.33yrs | US$202.56k | 0.14% $ 3.3m | |
| Independent Chairman of the Board | 7.33yrs | US$158.18k | 0.31% $ 7.4m | |
| Independent Director | 3.5yrs | US$195.06k | 0.019% $ 459.1k | |
| Independent Director | 3.42yrs | US$187.56k | 0.018% $ 429.7k | |
| Independent Director | 2.75yrs | US$187.56k | 0.0035% $ 83.4k | |
| Independent Director | 4.33yrs | US$143.18k | 0.013% $ 314.2k |
3.5yrs
Average Tenure
62yo
Average Age
Experienced Board: STAY's board of directors are considered experienced (3.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: STAY insiders have only sold shares 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$2.411b
- Shares outstanding: 177.56m
- Website: https://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, develops, and manages hotels in the United States. As of November 20, 2020, the company had a network of 646 hotels. It serves c...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/24 23:59 |
| End of Day Share Price | 2020/11/24 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.