NasdaqGM:SOHO

Stock Analysis Report

Executive Summary

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States.

Snowflake

Average dividend payer and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SOHO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

SOHO

1.4%

US REITs

0.5%

US Market


1 Year Return

0.5%

SOHO

15.7%

US REITs

16.1%

US Market

Return vs Industry: SOHO underperformed the US REITs industry which returned 15.7% over the past year.

Return vs Market: SOHO underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

SOHOIndustryMarket
7 Day1.1%1.4%0.5%
30 Day0.9%-2.3%3.9%
90 Day-1.2%1.9%6.6%
1 Year8.2%0.5%20.6%15.7%18.7%16.1%
3 Year51.6%23.1%40.3%22.8%47.2%37.7%
5 Year21.3%-11.1%56.0%23.5%61.5%43.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

48.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOHO ($6.66) is trading below our estimate of fair value ($12.95)

Significantly Below Fair Value: SOHO is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: SOHO 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 SOHO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SOHO is overvalued based on its PB Ratio (2.4x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Sotherly Hotels forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

37.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SOHO's revenue (3.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SOHO's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Sotherly Hotels performed over the past 5 years?

-61.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOHO has large one-off items impacting its financial results.

Growing Profit Margin: SOHO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SOHO is unprofitable, and losses have increased over the past 5 years at a rate of -61.4% per year.

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

Earnings vs Industry: SOHO is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (8.7%).


Return on Equity

High ROE: SOHO has a negative Return on Equity (0.053%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sotherly Hotels's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: SOHO's debt is not covered by short term assets (assets are 0.1x 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 SOHO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SOHO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 17.1% per year.


Financial Institutions Analysis

Asset Level: SOHO's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SOHO has a sufficient allowance for bad loans.

Low Risk Liabilities: SOHO reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SOHO has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SOHO has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SOHO has an appropriate level of bad loans.


Next Steps

Dividend

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

7.81%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Sotherly Hotels before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company7.8%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SOHO's dividend (7.81%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: SOHO's dividend (7.81%) is in the top 25% of dividend payers in the US market (3.65%)


Stability and Growth of Payments

Stable Dividend: SOHO's dividend payments have been volatile in the past 10 years.

Growing Dividend: SOHO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84%), SOHO's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Sotherly Hotels's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average management tenure


CEO

Drew Sims (62yo)

15.3yrs

Tenure

US$834,673

Compensation

Mr. Andrew M. Sims, also known as Drew, has been the Chairman and Chief Executive Officer at Sotherly Hotels Inc. since August 8, 2004. Previously, he was the President from December 2004 to December 31, 2 ...


CEO Compensation Analysis

Compensation vs Market: Drew's total compensation ($USD834.67K) is above average for companies of similar size in the US market ($USD504.52K).

Compensation vs Earnings: Drew's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

7.8yrs

Average Tenure

58yo

Average Age

Experienced Management: SOHO's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

57yo

Average Age

Experienced Board: SOHO's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: SOHO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$119,99525 Sep 19
Andrew Sims
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares17,751
Max PriceUS$6.76
SellUS$66820 Aug 19
Andrew Sims
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares99
Max PriceUS$6.75
SellUS$129,98315 Aug 19
Andrew Sims
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares19,126
Max PriceUS$6.87
SellUS$28,67221 Jun 19
Andrew Sims
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares4,000
Max PriceUS$7.17
SellUS$64,73814 Jun 19
David Folsom
EntityIndividual
Role
Member of the Board of Directors
President
Shares8,517
Max PriceUS$7.60
SellUS$52,84113 Jun 19
Andrew Sims
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares7,000
Max PriceUS$7.57

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Dave Folsom (54yo)

    President

    • Tenure: 8.5yrs
    • Compensation: US$582.89k
  • Dave Surette (59yo)

    Corporate Controller

    • Tenure: 5.8yrs
  • Drew Sims (62yo)

    Chairman & CEO

    • Tenure: 15.3yrs
    • Compensation: US$834.67k
  • Tony Domalski (57yo)

    VP, Secretary & CFO

    • Tenure: 6.8yrs
    • Compensation: US$605.86k
  • Scott Kucinski

    Vice President of Operations & Investor Relations

    • Tenure: 10.3yrs
  • Ashley Kirkland

    Corporate Counsel & Operations Analyst

    • Tenure: 0yrs
  • Bert Kirkland

    Compliance Officer

    • Tenure: 6.4yrs

Board Members

  • Anthony Zinni (76yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$42.47k
  • Dave Folsom (54yo)

    President

    • Tenure: 8.5yrs
    • Compensation: US$582.89k
  • Herschel Walker (57yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$42.47k
  • Ed Stein (72yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$54.97k
  • Drew Sims (62yo)

    Chairman & CEO

    • Tenure: 15.3yrs
    • Compensation: US$834.67k
  • George Gibson (53yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$47.72k
  • Maria Caldwell (55yo)

    Independent Director

    • Tenure: 0.6yrs

Company Information

Sotherly Hotels Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sotherly Hotels Inc.
  • Ticker: SOHO
  • Exchange: NasdaqGM
  • Founded: 1957
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Implied Market Cap: US$103.375m
  • Market Cap: US$90.762m
  • Shares outstanding: 15.41m
  • Website: https://www.sotherlyhotels.com

Number of Employees


Location

  • Sotherly Hotels Inc.
  • 410 West Francis Street
  • Williamsburg
  • Virginia
  • 23185
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOHONasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDDec 2004
MCLDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2004
SOHO.BNasdaqGM (Nasdaq Global Market)PFD SER BUSUSDAug 2016
SOHO.ONasdaqGM (Nasdaq Global Market)7.875% PFD SER CUSUSDOct 2017
SOHO.NNasdaqGM (Nasdaq Global Market)8.25% CM PFD DUSUSDApr 2019

Biography

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Souther ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 23:51
End of Day Share Price2019/11/20 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.