NYSE:CPLG

Stock Analysis Report

Executive Summary

CorePoint Lodging Inc., a real estate investment trust company, operates midscale and upper-midscale select-service hotels primarily under the La Quinta brand.

Rewards

Trading at 62% below its fair value

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Unstable dividend track record



Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has CorePoint Lodging's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.2%

CPLG

3.0%

US REITs

1.5%

US Market


1 Year Return

-24.8%

CPLG

16.2%

US REITs

20.1%

US Market

Return vs Industry: CPLG underperformed the US REITs industry which returned 16.2% over the past year.

Return vs Market: CPLG underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

CPLGIndustryMarket
7 Day0.2%3.0%1.5%
30 Day-7.9%4.5%1.4%
90 Day-2.7%6.1%8.7%
1 Year-19.1%-24.8%20.9%16.2%22.7%20.1%
3 Yearn/a40.7%23.1%50.1%40.5%
5 Yearn/a57.9%25.3%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CorePoint Lodging 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: CPLG ($9.73) is trading below our estimate of fair value ($25.59)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CPLG is good value based on its PB Ratio (0.5x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is CorePoint Lodging forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: CPLG's revenue is expected to decline over the next 3 years (-10.4% per year).

High Growth Revenue: CPLG's revenue is forecast to decline over the next 3 years (-10.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has CorePoint Lodging performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPLG is currently unprofitable.

Growing Profit Margin: CPLG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CPLG is unprofitable, but has reduced losses over the past 5 years at a rate of 10.2% per year.

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

Earnings vs Industry: CPLG is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (6.9%).


Return on Equity

High ROE: CPLG has a negative Return on Equity (-20.61%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CorePoint Lodging'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: CPLG has a high level of physical assets or inventory.

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

Forecast Cash Runway: CPLG is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -36.5% per year.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is CorePoint Lodging's current dividend yield, its reliability and sustainability?

8.22%

Current Dividend Yield


Dividend Yield vs Market

company8.2%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years8.2%

Current dividend yield vs market & industry

Notable Dividend: CPLG's dividend (8.22%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CPLG's dividend (8.22%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

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

Growing Dividend: CPLG has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.3%), CPLG's dividend payments are well covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

14.1yrs

Average management tenure


CEO

Keith Cline (49yo)

4.4yrs

Tenure

US$9,577,783

Compensation

Mr. Keith A. Cline has been the Chief Executive Officer and President of La Quinta Holdings Inc. and La Quinta L.L.C. since February 18, 2016. Mr. Cline serves as President and Chief Executive Officer of C ...


CEO Compensation Analysis

Compensation vs Market: Keith's total compensation ($USD9.58M) is above average for companies of similar size in the US market ($USD1.68M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Keith Cline
President4.4yrsUS$9.58m1.06% $5.9m
Mark Chloupek
Executive VP14.1yrsUS$3.91m0.38% $2.1m
Daniel Swanstrom
Executive VP & CFO1.8yrsno data0.19% $1.1m
Howard Garfield
Senior VP0yrsno data0.047% $260.4k
Kristin Hays
SVP, Investor Relations & Corporate Communications0yrsno datano data
Julie Cary
Executive VP & Chief Marketing Officer14.1yrsno datano data
Rajiv Trivedi
Executive VP & Chief Development Officer14.1yrsno datano data
Becky Roseberry
Senior Vice President of Finance0yrsno datano data

14.1yrs

Average Tenure

49yo

Average Age

Experienced Management: CPLG's management team is seasoned and experienced (14.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Keith Cline
President4.4yrsUS$9.58m1.06% $5.9m
James Abrahamson
Independent Director4.3yrsUS$141.16k0.035% $194.6k
David Loeb
Independent Director1.8yrsUS$144.55k0.023% $127.0k
Glenn Alba
Director7.1yrsUS$173.17k0.022% $124.3k
Mitesh Shah
Independent Chairman of the Board5.3yrsUS$201.20k0.059% $329.4k
Jean Birch
Independent Director1.4yrsUS$91.30k0.020% $111.2k
B. Isaac
Independent Director1.8yrsUS$144.55k0.020% $112.5k
Alan Bowers
Independent Director6yrsUS$149.98k0.044% $244.5k
Brian Kim
Independent Director5.3yrsno datano data
Giovanni Cutaia
Independent Director5.3yrsno datano data

4.8yrs

Average Tenure

53.5yo

Average Age

Experienced Board: CPLG's board of directors are considered experienced (4.8 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

CorePoint Lodging Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CorePoint Lodging Inc.
  • Ticker: CPLG
  • Exchange: NYSE
  • Founded:
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Market Cap: US$557.720m
  • Shares outstanding: 57.32m
  • Website: https://www.corepoint.com

Number of Employees


Location

  • CorePoint Lodging Inc.
  • 909 Hidden Ridge
  • Suite 600
  • Irving
  • Texas
  • 75038
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPLGNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2018
44WDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2018

Biography

CorePoint Lodging Inc., a real estate investment trust company, operates midscale and upper-midscale select-service hotels primarily under the La Quinta brand. As of March 21, 2019, it had a portfolio of 313 hotels and approximately 40,000 rooms across 41 states in the United States. CorePoint Lodging Inc. is based in Irving, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 01:36
End of Day Share Price2020/02/14 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.