NYSE:AHT

Stock Analysis Report

Ashford Hospitality Trust

Executive Summary

Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry in upper upscale, full-service hotels.

Snowflake

Fundamentals

Fair value second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-9.3%

AHT

-0.4%

US REITs

1.0%

US Market


1 Year Return

-48.4%

AHT

20.9%

US REITs

6.7%

US Market

Return vs Industry: AHT underperformed the US REITs industry which returned 20.9% over the past year.

Return vs Market: AHT underperformed the US Market which returned 6.7% over the past year.


Share holder returns

AHTIndustryMarket
7 Day-9.3%-0.4%1.0%
30 Day-9.3%2.0%-1.8%
90 Day7.2%4.0%-1.8%
1 Year-43.2%-48.4%26.3%20.9%9.1%6.7%
3 Year-40.3%-53.1%34.5%17.3%46.1%36.6%
5 Year-54.6%-72.7%64.8%29.9%66.9%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ashford Hospitality Trust undervalued based on future cash flows and its price relative to the stock market?

47%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: AHT ($2.83) is trading below our estimate of fair value ($5.36)

Significantly Undervalued: AHT is trading below fair value by more than 20%.


Price Based on Earnings

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

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


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: AHT is good value based on its PB Ratio (0.8x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Ashford Hospitality Trust expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

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

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

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

Revenue vs Market: AHT's revenue (1.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: AHT's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: AHT is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Ashford Hospitality Trust performed over the past 5 years?

-43.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AHT is unprofitable, and losses have increased over the past 5 years at a rate of -43.7% per year.

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

Earnings vs Industry: AHT is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (17%).


Return on Equity

High ROE: AHT has a negative Return on Equity (-38.21%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: AHT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: AHT is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Ashford Hospitality Trust'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: AHT has a high level of physical assets or inventory.

Debt Coverage by Assets: AHT'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 AHT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AHT is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -9.9% per year.


Financial Institutions Analysis

Asset Level: AHT's level of assets compared to its equity is moderate.

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

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

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

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

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


Next Steps

Dividend

What is Ashford Hospitality Trust's current dividend yield, its reliability and sustainability?

9.38%

Expected Dividend Yield


Dividend Yield vs Market

company8.5%marketbottom25%1.5%markettop25%3.8%industryaverage4.4%forecastin3Years9.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: AHT's dividend (8.48%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: AHT's dividend (8.48%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: AHT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AHT has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (121.2%), AHT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AHT's dividends in 3 years are forecast to be thoroughly covered by earnings (0.2% payout ratio).


Next Steps

Management

What is the CEO of Ashford Hospitality Trust's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Doug Kessler (58yo)

2.7yrs

Tenure

US$2,969,759

Compensation

Mr. Douglas A. Kessler, also known as Doug, has been Senior Managing Director of Ashford, Inc. since March 12 2018. Mr. Kessler has been the Chief Executive Officer of Ashford Hospitality Trust, Inc. since ...


CEO Compensation Analysis

Compensation vs. Market: Doug's total compensation ($USD2.97M) is above average for companies of similar size in the US market ($USD1.85M).

Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.4yrs

Average Tenure

50yo

Average Age

Experienced Management: AHT's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

58yo

Average Age

Experienced Board: AHT's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: AHT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$95,20028 Aug 19
Mark Nunneley
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares40,000
Max PriceUS$2.38
BuyUS$72,50026 Jun 19
Benjamin Ansell
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares25,000
Max PriceUS$2.90
BuyUS$67,20019 Jun 19
Benjamin Ansell
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares20,000
Max PriceUS$3.36

Ownership Breakdown


Management Team

  • Doug Kessler (58yo)

    President & CEO

    • Tenure: 2.7yrs
    • Compensation: US$2.97m
  • Mark Nunneley (62yo)

    Chief Accounting Officer

    • Tenure: 16.4yrs
    • Compensation: US$712.74k
  • Monty Bennett (53yo)

    Founder & Chairman of the Board

    • Tenure: 6.8yrs
    • Compensation: US$2.97m
  • Rob Haiman (50yo)

    Executive VP

    • Tenure: 0yrs
  • Larry Doyle

    Senior Vice President of Asset Management

    • Tenure: 0yrs
  • Jeremy Welter (42yo)

    Chief Operating Officer

    • Tenure: 1.6yrs
    • Compensation: US$1.34m
  • Deric Eubanks (43yo)

    CFO & Treasurer

    • Tenure: 5.3yrs
    • Compensation: US$1.34m
  • J. Hays (41yo)

    Chief Strategy Officer

    • Tenure: 4.4yrs
    • Compensation: US$1.34m
  • Jordan Jennings

    Manager of Investor Relations

    • Tenure: 0yrs
  • Chris Batchelor

    President of RED Hospitality & Leisure

    • Tenure: 0yrs

Board Members

  • Fred Kleisner (74yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$188.79k
  • Alan Tallis (72yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$264.25k
  • Archie Bennett (81yo)

    Chairman Emeritus

    • Tenure: 6.8yrs
  • Monty Bennett (53yo)

    Founder & Chairman of the Board

    • Tenure: 6.8yrs
    • Compensation: US$2.97m
  • Kamal Jafarnia (52yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$198.15k
  • Amish Gupta (39yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$239.70k
  • Benjamin Ansell (51yo)

    Lead Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$231.25k
  • Sheri Pantermuehl (63yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$195.45k

Company Information

Ashford Hospitality Trust, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ashford Hospitality Trust, Inc.
  • Ticker: AHT
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Implied Market Cap: US$351.126m
  • Market Cap: US$289.030m
  • Shares outstanding: 124.07m
  • Website: https://www.ahtreit.com

Number of Employees


Location

  • Ashford Hospitality Trust, Inc.
  • 14185 Dallas Parkway
  • Suite 1100
  • Dallas
  • Texas
  • 75254
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AHTNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2003
AHDDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2003
AHT.PRDNYSE (New York Stock Exchange)PFD D 8.45%CUMUSUSDJul 2007
AHT.PRFNYSE (New York Stock Exchange)PFD CUM SER FUSUSDJul 2016
AHT.PRGNYSE (New York Stock Exchange)PFD SER GUSUSDOct 2016
AHT.PRHNYSE (New York Stock Exchange)7.50% CUM PFD HUSUSDAug 2017
AHT.PRINYSE (New York Stock Exchange)7.5% PFD SER IUSUSDNov 2017

Biography

Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry in upper upscale, full-service hotels. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:51
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

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