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. More Details
High growth potential with mediocre balance sheet.
Share Price & News
How has Sunstone Hotel Investors's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
7 Day Return
1 Year Return
Return vs Industry: SHO exceeded the US REITs industry which returned 30.6% over the past year.
Return vs Market: SHO exceeded the US Market which returned 35.9% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Sunstone Hotel Investors's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall StDid Sunstone Hotel Investors' (NYSE:SHO) Share Price Deserve to Gain 65%?
5 months ago | Simply Wall StAnalysts Are More Bearish On Sunstone Hotel Investors, Inc. (NYSE:SHO) Than They Used To Be
7 months ago | Simply Wall StHow Much Is Sunstone Hotel Investors, Inc. (NYSE:SHO) CEO Getting Paid?
Is Sunstone Hotel Investors undervalued compared to its fair value and its price relative to the market?
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: SHO ($11.31) is trading above our estimate of fair value ($0.55)
Significantly Below Fair Value: SHO is trading above our estimate of fair value.
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 (1.9x).
How is Sunstone Hotel Investors forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
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 (45.5% per year) is forecast to grow faster than the US market (9.2% per year).
High Growth Revenue: SHO's revenue (45.5% 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 (2.6%).
How has Sunstone Hotel Investors performed over the past 5 years?
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 54% 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 (-9.1%).
Return on Equity
High ROE: SHO has a negative Return on Equity (-14.93%), as it is currently unprofitable.
How is Sunstone Hotel Investors's financial position?
Financial Position Analysis
Short Term Liabilities: SHO's short term assets ($389.9M) exceed its short term liabilities ($84.2M).
Long Term Liabilities: SHO's short term assets ($389.9M) do not cover its long term liabilities ($800.8M).
Debt to Equity History and Analysis
Debt Level: SHO's debt to equity ratio (36.9%) is considered satisfactory.
Reducing Debt: SHO's debt to equity ratio has reduced from 42.8% to 36.9% over the past 5 years.
Debt Coverage: SHO's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if SHO's interest payments on its debt are well covered by EBIT.
What is Sunstone Hotel Investors's current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SHO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SHO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SHO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SHO's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: SHO is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SHO's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Arabia (51 yo)
Mr. John V. Arabia, CPA serves as the Chief Executive Officer, President and Executive Director of Sunstone Hotel Investors, Inc. since January 17, 2015, February 15, 2013 and February 19, 2014 respectivel...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD4.50M) is about average for companies of similar size in the US market ($USD5.32M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Experienced Management: SHO's management team is seasoned and experienced (6.6 years average tenure).
Experienced Board: SHO's board of directors are considered experienced (5.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SHO insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Sunstone Hotel Investors, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Sunstone Hotel Investors, Inc.
- Ticker: SHO
- Exchange: NYSE
- Founded: 1995
- Industry: Hotel and Resort REITs
- Sector: Real Estate
- Market Cap: US$2.446b
- Shares outstanding: 216.24m
- Website: https://www.sunstonehotels.com
Number of Employees
- Sunstone Hotel Investors, Inc.
- 200 Spectrum Center Drive
- 21st Floor
- United States
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,...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/08/03 00:40|
|End of Day Share Price||2021/08/02 00:00|
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.