SHO

Sunstone Hotel InvestorsNYSE:SHO Stock Report

Market Cap

US$2.6b

7D

-2.7%

1Y

56.8%

Updated

22 Sep, 2021

Data

Company Financials +
SHO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance0/6
Financial Health3/6
Dividends0/6

SHO Overview

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that as of the date of this release has interests in 19 hotels comprised of 9,997 rooms.

Rewards

Trading at 62% below our estimate of its fair value

Earnings are forecast to grow 94.51% per year

Risk Analysis

No risks detected for SHO from our risk checks.

Sunstone Hotel Investors Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sunstone Hotel Investors
Historical stock prices
Current Share PriceUS$11.82
52 Week HighUS$7.12
52 Week LowUS$13.74
Beta1.4
1 Month Change9.44%
3 Month Change-8.58%
1 Year Change56.76%
3 Year Change-27.71%
5 Year Change-5.44%
Change since IPO-30.47%

Recent News & Updates

Shareholder Returns

SHOUS REITsUS Market
7D-2.7%-1.0%-1.8%
1Y56.8%34.6%31.5%

Return vs Industry: SHO exceeded the US REITs industry which returned 36.1% over the past year.

Return vs Market: SHO exceeded the US Market which returned 33% over the past year.

Price Volatility

Is SHO's price volatile compared to industry and market?
SHO volatility
SHO Beta1.4
Industry Beta0.82
Market Beta1

Stable Share Price: SHO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SHO's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199540Doug Pasqualehttps://www.sunstonehotels.com

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that as of the date of this release has interests in 19 hotels comprised of 9,997 rooms. Sunstone's business is to acquire, own, asset manage and renovate or reposition hotels considered to be Long-Term Relevant Real Estate®, the majority of which are operated under nationally recognized brands, such as Marriott, Hilton and Hyatt.

Valuation

Is Sunstone Hotel Investors 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: SHO ($11.82) is trading below our estimate of fair value ($31.13)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SHO is good value based on its PB Ratio (1.4x) compared to the US REITs industry average (2x).


Future Growth

How is Sunstone Hotel Investors forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

94.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: SHO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SHO's is expected to become profitable in the next 3 years.

Revenue vs Market: SHO's revenue (38.9% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: SHO's revenue (38.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHO's Return on Equity is forecast to be low in 3 years time (3.2%).


Past Performance

How has Sunstone Hotel Investors performed over the past 5 years?

-56.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHO is currently unprofitable.

Growing Profit Margin: SHO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SHO is unprofitable, and losses have increased over the past 5 years at a rate of 56.3% per year.

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

Earnings vs Industry: SHO is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (3.9%).


Return on Equity

High ROE: SHO has a negative Return on Equity (-10.16%), as it is currently unprofitable.


Financial Health

How is Sunstone Hotel Investors's financial position?


Financial Position Analysis

Short Term Liabilities: SHO's short term assets ($242.8M) exceed its short term liabilities ($113.7M).

Long Term Liabilities: SHO's short term assets ($242.8M) do not cover its long term liabilities ($798.3M).


Debt to Equity History and Analysis

Debt Level: SHO's debt to equity ratio (35.6%) is considered satisfactory.

Reducing Debt: SHO's debt to equity ratio has reduced from 39.8% to 35.6% over the past 5 years.

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

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


Balance Sheet


Dividend

What is Sunstone Hotel Investors's current dividend yield, its reliability and sustainability?

0.81%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SHO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SHO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SHO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SHO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SHO is not paying a notable dividend for the US market.


Future Payout to Shareholders

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

6.9yrs

Average management tenure


CEO

Doug Pasquale (66 yo)

no data

Tenure

US$318,573

Compensation

Mr. Douglas M. Pasquale, also known as Doug, has been Senior Advisor of Healthpeak Properties, Inc. (formerly known as HCP, Inc.) since August 2017. Mr. Pasquale is a Founder of Capstone Enterprises Corpor...


Leadership Team

Experienced Management: SHO's management team is seasoned and experienced (6.9 years average tenure).


Board Members

Experienced Board: SHO's board of directors are considered experienced (5.4 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

Sunstone Hotel Investors, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Sunstone Hotel Investors, Inc.
  • Ticker: SHO
  • Exchange: NYSE
  • Founded: 1995
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Market Cap: US$2.589b
  • Shares outstanding: 219.04m
  • Website: https://www.sunstonehotels.com

Number of Employees


Location

  • Sunstone Hotel Investors, Inc.
  • 200 Spectrum Center Drive
  • 21st Floor
  • Irvine
  • California
  • 92618
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 00:18
End of Day Share Price2021/09/21 00:00
Earnings2021/06/30
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.