NasdaqGS:SVC

Stock Analysis Report

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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 concerning outlook.


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 more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: SVC's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

6.7%

SVC

0.07%

US REITs

2.8%

US Market


1 Year Return

-47.1%

SVC

-8.6%

US REITs

20.9%

US Market

Return vs Industry: SVC underperformed the US REITs industry which returned -8.6% over the past year.

Return vs Market: SVC underperformed the US Market which returned 20.9% over the past year.


Shareholder returns

SVCIndustryMarket
7 Day6.7%0.07%2.8%
30 Day70.7%10.3%12.8%
90 Day49.9%3.1%6.6%
1 Year-45.7%-47.1%-4.8%-8.6%23.6%20.9%
3 Year-50.3%-58.8%17.8%3.8%47.3%37.6%
5 Year-36.3%-54.6%47.6%17.9%94.3%72.9%

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 ($12.31) is trading below our estimate of fair value ($41.64)

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 (0.9x) compared to the US REITs industry average (1.6x).


Next Steps

Future Growth

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

53.2%

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 (18.6% per year) is forecast to grow faster than the US market (10.3% per year).

High Growth Revenue: SVC's revenue (18.6% 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 SVC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-12.9%

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 12.9% 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 (2%).


Return on Equity

High ROE: SVC has a negative Return on Equity (-8.41%), as it is currently unprofitable.


Next Steps

  • Explore strong past performing companies in the Real Estate industry.

Financial Health

How is Service Properties Trust's financial position?


Financial Position Analysis

Short Term Liabilities: SVC's short term assets ($349.2M) exceed its short term liabilities ($293.9M).

Long Term Liabilities: SVC's short term assets ($349.2M) do not cover its long term liabilities ($6.3B).


Debt to Equity History and Analysis

Debt Level: SVC's debt to equity ratio (273.7%) is considered high.

Reducing Debt: SVC's debt to equity ratio has increased from 110.2% to 273.7% over the past 5 years.

Debt Coverage: SVC's debt is not well covered by operating cash flow (4.1%).

Interest Coverage: SVC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

0.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SVC's dividend (0.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: SVC's dividend (0.32%) is low compared to the top 25% of dividend payers in the US market (4.08%).


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?

2.3yrs

Average management tenure


CEO

John Murray (59 yo)

2.83yrs

Tenure

US$560,572

Compensation

Mr. John G. Murray serves as President, CEO & Managing Trustee at Industrial Logistics Properties Trust since December 01, 2018. He has been Executive Vice President at RMR Group LLC since 2001. Mr. Murray...


Leadership Team

NamePositionTenureCompensationOwnership
John Murray
President2.83yrsUS$560.57k0.088%
$ 1.8m
Brian Donley
CFO & Treasurer1.83yrsUS$103.28k0.012%
$ 252.8k
Todd Hargreaves
VP & Chief Investment Officer0.50yrUS$104.42k0.0091%
$ 185.0k
Ethan Bornstein
Senior Vice President21.83yrsUS$219.98k0.061%
$ 1.2m
Kristin Brown
Head of Investor Relations1.25yrsno datano data
Jennifer Clark
Secretary12.83yrsno datano data

2.3yrs

Average Tenure

46yo

Average Age

Experienced Management: SVC's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Murray
President2.83yrsUS$560.57k0.088%
$ 1.8m
John Harrington
Lead Independent Trustee5.17yrsUS$197.76k0.026%
$ 526.3k
Laurie Burns
Independent Trustee0.75yrno data0.0049%
$ 98.4k
Donna Fraiche
Independent Trustee5.17yrsUS$182.76k0.012%
$ 233.9k
Adam Portnoy
Chair of Board of Trustees1.42yrsUS$74.01k0.094%
$ 1.9m
William Lamkin
Independent Trustee13.83yrsUS$197.76k0.021%
$ 418.6k
Robert Cramer
Independent Trustee0.75yrno data0.0049%
$ 98.4k

2.6yrs

Average Tenure

61yo

Average Age

Experienced Board: SVC's board of directors are not considered experienced ( 2.6 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.


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$2.029b
  • Shares outstanding: 164.82m
  • Website: https://www.svcreit.com

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SVCNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDAug 1995
HPODB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1995

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 Analysis2020/11/29 23:39
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.