NYSE:RLH

Stock Analysis Report

Executive Summary

Red Lion Hotels Corporation, doing business as RLH Corporation, operates as a hospitality and leisure company the United States.


Snowflake Analysis

Excellent balance sheet and overvalued.


Similar Companies

Share Price & News

How has Red Lion Hotels's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RLH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.3%

RLH

-6.3%

US Hospitality

-4.2%

US Market


1 Year Return

-62.4%

RLH

-0.04%

US Hospitality

14.0%

US Market

Return vs Industry: RLH underperformed the US Hospitality industry which returned -0% over the past year.

Return vs Market: RLH underperformed the US Market which returned 14% over the past year.


Shareholder returns

RLHIndustryMarket
7 Day5.3%-6.3%-4.2%
30 Day-5.4%-6.0%-1.8%
90 Day-12.2%-2.7%2.6%
1 Year-62.4%-62.4%2.6%-0.04%16.3%14.0%
3 Year-60.3%-60.3%26.7%18.2%43.2%34.0%
5 Year-56.6%-56.6%36.4%21.9%65.9%47.6%

Price Volatility Vs. Market

How volatile is Red Lion Hotels's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Red Lion Hotels undervalued compared to its fair value and its price relative to the market?

0.48x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RLH ($2.96) is trading above our estimate of fair value ($0.67)

Significantly Below Fair Value: RLH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RLH is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: RLH is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RLH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RLH is good value based on its PB Ratio (0.5x) compared to the US Hospitality industry average (2.1x).


Next Steps

Future Growth

How is Red Lion Hotels forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RLH is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RLH is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RLH is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RLH's revenue is expected to decline over the next 3 years (-5.2% per year).

High Growth Revenue: RLH's revenue is forecast to decline over the next 3 years (-5.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RLH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Red Lion Hotels performed over the past 5 years?

-17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RLH is currently unprofitable.

Growing Profit Margin: RLH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RLH is unprofitable, and losses have increased over the past 5 years at a rate of -17% per year.

Accelerating Growth: Unable to compare RLH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RLH is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-8.2%).


Return on Equity

High ROE: RLH has a negative Return on Equity (-13.67%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Red Lion Hotels's financial position?


Financial Position Analysis

Short Term Liabilities: RLH's short term assets ($49.8M) exceed its short term liabilities ($42.0M).

Long Term Liabilities: RLH's short term assets ($49.8M) do not cover its long term liabilities ($80.1M).


Debt to Equity History and Analysis

Debt Level: RLH's debt to equity ratio (33.3%) is considered satisfactory.

Reducing Debt: RLH's debt to equity ratio has reduced from 43.7% to 33.3% over the past 5 years.


Balance Sheet

Inventory Level: RLH has a high level of physical assets or inventory.

Debt Coverage by Assets: RLH's debt is not covered by short term assets (assets are 0.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable RLH has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RLH is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 11.3% per year.


Next Steps

Dividend

What is Red Lion Hotels's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage3.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RLH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RLH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RLH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RLH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RLH'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?

1.8yrs

Average management tenure


CEO

John Russell (72yo)

0.2yrs

Tenure

0

Mr. John J. Russell, Jr., serves as Interim Chief Executive Officer of Red Lion Hotels Corporation since December 2019. He serves as Chief Executive Officer of Hospitality Artists LLC. Mr. Russell served a ...


Leadership Team

NamePositionTenureCompensationOwnership
Gary Sims
Executive VP & COO1.7yrsUS$1.42m0.00012% $89.3
Nathan Troup
Senior VP & Chief Accounting Officer1.3yrsUS$263.69kno data
Thomas McKeirnan
Executive VP15yrsUS$645.67k0.78% $583.3k
John Russell
Interim Chief Executive Officer0.2yrsno datano data
Julie Shiflett
Executive VP1.1yrsUS$482.58kno data
John Edwards
Senior VP & Chief Information Officer2.3yrsno datano data
Amy Koch
Investor Relations3.1yrsno datano data
Dan Schacter
Director of Social Engagement & Public Relations0yrsno datano data
Harry Sladich
Executive Vice President of Hotel Operations & Sales0yrsUS$435.62k0.81% $599.6k
Kristin Thielking
Senior Vice President of Human Resources1.8yrsno datano data

1.8yrs

Average Tenure

51yo

Average Age

Experienced Management: RLH's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Frederic Brace
Independent Director0.6yrsno data0.23% $170.5k
Amy Humphreys
Independent Director1.6yrsUS$41.85k0.014% $10.3k
Theodore Darnall
Director1.6yrsUS$41.85k0.17% $128.1k
R. Pate
Independent Chairman of the Board0.2yrsno data0.046% $34.4k
Joseph Megibow
Independent Director2.9yrsUS$110.00k0.11% $82.9k
Bonny Simi
Independent Director2.9yrsUS$116.04k0.14% $106.8k

1.6yrs

Average Tenure

59yo

Average Age

Experienced Board: RLH's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

Red Lion Hotels Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Red Lion Hotels Corporation
  • Ticker: RLH
  • Exchange: NYSE
  • Founded: 1937
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$74.436m
  • Shares outstanding: 25.15m
  • Website: https://www.redlion.com

Number of Employees


Location

  • Red Lion Hotels Corporation
  • 1550 Market Street
  • Suite 350
  • Denver
  • Colorado
  • 80202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RLHNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1998
R2UDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1998

Biography

Red Lion Hotels Corporation, doing business as RLH Corporation, operates as a hospitality and leisure company the United States. It operates in two segments, Company Operated Hotels and Franchised Hotels. The company owns, manages, and franchises upscale, midscale, and economy hotels under the Hotel RL, Red Lion Hotels, Red Lion Inn & Suites, GuestHouse, Settle Inn, Americas Best Value Inn, Canadas Best Value Inn, Signature and Signature Inn, Knights Inn, and Country Hearth Inns & Suites brands. It also develops technology and system offerings for the hospitality industry. As of December 31, 2018, it had a network of 1,318 franchised hotels, including a total of 83,800 rooms. The company was formerly known as WestCoast Hospitality Corporation and changed its name to Red Lion Hotels Corporation in September 2005. Red Lion Hotels Corporation was founded in 1937 and is headquartered in Denver, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:03
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
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.