NasdaqGS:SVC

Stock Analysis Report

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Market Cap

US$2.2b

Last Updated

2021/06/19 22:03 UTC

Data Sources

Company Financials +

Executive Summary

Service Properties Trust is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties across the United States and in Puerto Rico and Canada with 149 distinct brands across 23 industries. More Details


Snowflake Analysis

Fair value with limited growth.


Similar Companies

Share Price & News

How has Service Properties Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SVC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SVC's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-4.7%

SVC

-3.3%

US REITs

-1.9%

US Market


1 Year Return

56.8%

SVC

27.6%

US REITs

38.2%

US Market

Return vs Industry: SVC exceeded the US REITs industry which returned 27.4% over the past year.

Return vs Market: SVC exceeded the US Market which returned 39.4% over the past year.


Shareholder returns

SVCIndustryMarket
7 Day-4.7%-3.3%-1.9%
30 Day24.3%3.9%1.1%
90 Day3.9%12.7%4.3%
1 Year57.5%56.8%32.0%27.6%40.4%38.2%
3 Year-45.9%-53.6%41.8%25.9%57.5%47.8%
5 Year-34.3%-51.0%54.8%24.7%127.2%101.7%

Long-Term Price Volatility Vs. Market

How volatile is Service Properties Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Service Properties Trust undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SVC ($13.31) is trading below our estimate of fair value ($137.76)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SVC is good value based on its PB Ratio (1.2x) compared to the US REITs industry average (1.9x).


Future Growth

How is Service Properties Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

64.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SVC's revenue (26.8% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: SVC's revenue (26.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Service Properties Trust performed over the past 5 years?

-37.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SVC is currently unprofitable.

Growing Profit Margin: SVC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SVC is unprofitable, and losses have increased over the past 5 years at a rate of 37.1% per year.

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

Earnings vs Industry: SVC is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-10.7%).


Return on Equity

High ROE: SVC has a negative Return on Equity (-24.79%), as it is currently unprofitable.


Financial Health

How is Service Properties Trust's financial position?


Financial Position Analysis

Short Term Liabilities: SVC's short term assets ($963.6M) exceed its short term liabilities ($389.3M).

Long Term Liabilities: SVC's short term assets ($963.6M) do not cover its long term liabilities ($7.2B).


Debt to Equity History and Analysis

Debt Level: SVC's debt to equity ratio (369.7%) is considered high.

Reducing Debt: SVC's debt to equity ratio has increased from 124.9% to 369.7% over the past 5 years.

Debt Coverage: SVC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if SVC's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Service Properties Trust current dividend yield, its reliability and sustainability?

0.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SVC's dividend (0.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: SVC's dividend (0.3%) is low compared to the top 25% of dividend payers in the US market (3.43%).


Stability and Growth of Payments

Stable Dividend: SVC is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: SVC 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: SVC is not paying a notable dividend for the US market.


Future Payout to Shareholders

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

2.4yrs

Average management tenure


CEO

John Murray (59 yo)

3.42yrs

Tenure

US$373,525

Compensation

Mr. John G. Murray serves as President, CEO & Managing Trustee at Industrial Logistics Properties Trust since December 01, 2018. He serves as Director of Red Lion Hotels Corporation since March 17, 2021. H...


Leadership Team

Experienced Management: SVC's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: SVC's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SVC insiders have bought more shares than they have sold 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

Service Properties Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Service Properties Trust
  • Ticker: SVC
  • Exchange: NasdaqGS
  • Founded: 1995
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Market Cap: US$2.194b
  • Shares outstanding: 164.82m
  • Website: https://www.svcreit.com

Location

  • Service Properties Trust
  • Two Newton Place
  • Suite 300
  • Newton
  • Massachusetts
  • 2458
  • United States

Listings


Biography

Service Properties Trust is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties across the United States and in Pue...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 22:03
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.