NYSE:BHR

Stock Analysis Report

Braemar Hotels & Resorts

Executive Summary

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts.

Snowflake

Fundamentals

Fair value second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.0%

BHR

2.4%

US REITs

0.9%

US Market


1 Year Return

-0.7%

BHR

15.7%

US REITs

16.8%

US Market

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

Return vs Market: BHR underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

BHRIndustryMarket
7 Day2.0%2.4%0.9%
30 Day2.2%-2.0%4.5%
90 Day15.2%1.7%6.2%
1 Year7.1%-0.7%20.6%15.7%19.4%16.8%
3 Year-7.7%-24.0%40.0%22.5%47.5%38.0%
5 Year-29.0%-44.6%57.1%24.4%62.0%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Braemar Hotels & Resorts 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: BHR ($9.62) is trading below our estimate of fair value ($19.49)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: BHR is good value based on its PB Ratio (0.9x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Braemar Hotels & Resorts forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

57.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: BHR's revenue (5.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BHR's revenue (5.8% 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 BHR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Braemar Hotels & Resorts performed over the past 5 years?

-7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BHR has high quality earnings.

Growing Profit Margin: BHR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BHR is unprofitable, and losses have increased over the past 5 years at a rate of -7.8% per year.

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

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


Return on Equity

High ROE: BHR has a negative Return on Equity (-5.91%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Braemar Hotels & Resorts'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: BHR has a high level of physical assets or inventory.

Debt Coverage by Assets: BHR's debt is not covered by short term assets (assets are 0.2x 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 BHR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BHR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 6.7% per year.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Braemar Hotels & Resorts's current dividend yield, its reliability and sustainability?

6.65%

Current Dividend Yield


Dividend Yield vs Market

company6.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years6.7%

Current dividend yield vs market & industry

Notable Dividend: BHR's dividend (6.65%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: BHR's dividend (6.65%) is in the top 25% of dividend payers in the US market (3.68%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BHR has been paying a dividend for less than 10 years.

Growing Dividend: BHR's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (138.4%), BHR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BHR's dividends in 3 years are forecast to be thoroughly covered by earnings (1% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Richard Stockton (48yo)

3yrs

Tenure

US$1,729,331

Compensation

Mr. Richard J. Stockton is an Independent Trustee and Lead Independent Trustee at Spirit MTA REIT since May 30, 2018. Mr. Stockton has been the Chief Executive Officer of Braemar Hotels & Resorts Inc. (for ...


Management Age and Tenure

4.5yrs

Average Tenure

48yo

Average Age

Experienced Management: BHR's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

53yo

Average Age

Experienced Board: BHR's board of directors are considered experienced (6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$7,702,79329 Aug 19
Al Shams Investments Limited
EntityCompany
Shares775,194
Max PriceUS$9.94
BuyUS$4,30026 Aug 19
Stefani Carter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$8.60
BuyUS$9,95616 Aug 19
Mary Evans
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,125
Max PriceUS$8.85
BuyUS$18,18014 Aug 19
Curtis McWilliams
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares2,000
Max PriceUS$9.09
BuyUS$10,30808 Aug 19
Abteen Vaziri
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,200
Max PriceUS$8.59
BuyUS$202,00006 Aug 19
Mark Nunneley
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares25,000
Max PriceUS$8.08

Ownership Breakdown

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


Management Team

  • Mark Nunneley (62yo)

    Chief Accounting Officer

    • Tenure: 6.6yrs
  • Monty Bennett (53yo)

    Chairman of the Board

    • Tenure: 6.6yrs
    • Compensation: US$1.73m
  • Rob Haiman (50yo)

    Executive VP

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

    Chief Operating Officer

    • Tenure: 1.7yrs
    • Compensation: US$729.74k
  • Jim Plohg

    Associate General Counsel

    • Tenure: 0yrs
  • Deric Eubanks (43yo)

    CFO & Treasurer

    • Tenure: 5.4yrs
    • Compensation: US$729.74k
  • J. Hays (41yo)

    Chief Strategy Officer

    • Tenure: 4.5yrs
    • Compensation: US$729.74k
  • Richard Stockton (48yo)

    President & CEO

    • Tenure: 3yrs
    • Compensation: US$1.73m
  • Jordan Jennings

    Manager

    • Tenure: 0yrs

Board Members

  • Monty Bennett (53yo)

    Chairman of the Board

    • Tenure: 6.6yrs
    • Compensation: US$1.73m
  • Curtis McWilliams (63yo)

    Lead Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$177.82k
  • Ken Fearn (53yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$148.82k
  • Abteen Vaziri (40yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$132.82k
  • Stefani Carter (41yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$157.82k
  • Matthew Rinaldi (44yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$155.82k
  • Mary Evans (64yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

Braemar Hotels & Resorts, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Braemar Hotels & Resorts, Inc.
  • Ticker: BHR
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Market Cap: US$312.120m
  • Shares outstanding: 32.44m
  • Website: https://www.bhrreit.com

Location

  • Braemar Hotels & Resorts, Inc.
  • 14185 Dallas Parkway
  • Suite 1100
  • Dallas
  • Texas
  • 75254
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BHRNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2013
BHR.PRBNYSE (New York Stock Exchange)5.5 CUM CV PFD BUSUSDMay 2016
BHR.PRDNYSE (New York Stock Exchange)Pfd Ser DUSUSDNov 2018

Biography

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BH ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 00:34
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.