SVC Stock Analysis: Service Properties Trust | NASDAQ
REIT - Hotel & Motel | NASDAQ, USA | Market Cap: 796m USD | 12M Return: -44.4% | US81761L2016 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 11.7M
Qual. Beats: 0
Rev. Trend: -71.0%
Qual. Beats: 2
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Service Properties Trust (NASDAQ: SVC) is a Maryland-incorporated real estate investment trust (REIT), founded in 1995 and headquartered in Newton, Massachusetts. As of June 30, 2026, the company had approximately $9.7 billion invested across two segments: service-focused retail net lease properties and hotels. Its portfolio included 745 retail net lease properties spanning over 13.5 million square feet and 93 hotels with more than 21,000 guest rooms, located throughout the U.S., Puerto Rico, and Canada. SVC is externally managed by The RMR Group, an alternative asset manager with over $37 billion in assets under management and four decades of commercial real estate experience. The company carries a small-cap market capitalization of roughly $851 million and falls within the Diversified REITs sub-industry.
As a REIT, SVC is generally required to distribute the majority of its taxable income as dividends to shareholders, and its diversified structure spans both net lease retail - where tenants typically bear operating costs such as taxes, insurance, and maintenance - and the more operationally intensive hotel segment, which is sensitive to travel demand and occupancy trends.
- Hotel RevPAR recovery drives 93-property portfolio revenue growth
- Retail net lease occupancy and rent escalators boost cash flow
- High leverage and refinancing costs pressure dividend coverage
| Net Income: -422.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.01 > 0.02 and ΔFCF/TA -4.51 > 1.0 |
| NWC/Revenue: -26.97% < 20% (prev 23.70%; Δ -50.67% < -1%) |
| CFO/TA 0.02 > 3% & CFO 123.5m > Net Income -422.7m |
| Net Debt (4.57b) to EBITDA (235.9m): 19.39 < 3 |
| Current Ratio: 0.01 > 1.5 & < 3 |
| Outstanding Shares: last quarter (128.1m) vs 12m ago 286.4% < -2% |
| Gross Margin: 23.25% > 18% (prev 46.53%; Δ -23.28% > 0.5%) |
| Asset Turnover: 25.99% > 50% (prev 27.21%; Δ -1.22% > 0%) |
| Interest Coverage Ratio: -0.19 > 6 (EBIT TTM -67.8m / Interest Expense TTM 365.9m) |
| A: -0.08 (Total Current Assets 5.51m - Total Current Liabilities 453.0m) / Total Assets 5.84b |
| B: -0.74 (Retained Earnings -4.30b / Total Assets 5.84b) |
| C: -0.01 (EBIT TTM -67.8m / Avg Total Assets 6.39b) |
| D: 0.16 (Book Value of Equity 806.5m / Total Liabilities 5.03b) |
| Altman-Z'' = -2.81 = D |
As of October 22, 2026, the stock is trading at USD 6.10 with a total of 1,545,923 shares traded. Over the past week, the price has changed by +5.13%, over one month by -7.66%, over three months by -30.43% and over the past year by -44.39%.
Current recommended Stop Loss: 5.60 (which is 8.2% or 1.2 ATR below the current price).
Service Properties Trust has received a consensus analysts rating of 4.60. Therefore, it is recommended to buy SVC.
- StrongBuy: 4
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 12.2 | 99.8% |
P/E Forward = 21.3675
P/S = 0.4793
P/B = 1.0527
P/EG = 2.2727
Revenue TTM = 1.66b USD
EBIT TTM = -67.8m USD
EBITDA TTM = 235.9m USD
Long Term Debt = 4.58b USD (from longTermDebt, last quarter)
Short Term Debt = 2.00m USD (from shortTermDebt, last quarter)
Debt = 4.58b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.57b USD (calculated: Debt 4.58b - CCE 5.51m)
Enterprise Value = 5.37b USD (796.5m + Debt 4.58b - CCE 5.51m)
Interest Coverage Ratio = -0.19 (Ebit TTM -67.8m / Interest Expense TTM 365.9m)
EV/FCF = -178.5x (Enterprise Value 5.37b / FCF TTM -30.1m)
FCF Yield = -0.56% (FCF TTM -30.1m / Enterprise Value 5.37b)
FCF Margin = -1.81% (FCF TTM -30.1m / Revenue TTM 1.66b)
Net Margin = -25.48% (Net Income TTM -422.7m / Revenue TTM 1.66b)
Gross Margin = 23.25% ((Revenue TTM 1.66b - Cost of Revenue TTM 1.27b) / Revenue TTM)
Gross Margin QoQ = 35.70% (prev -10.57%)
Tobins Q-Ratio = 0.92 (Enterprise Value 5.37b / Total Assets 5.84b)
Interest Expense / Debt = 7.99% (Interest Expense 365.9m / Debt 4.58b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -53.6m (EBIT -67.8m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 0.01 (Total Current Assets 5.51m / Total Current Liabilities 453.0m)
Debt / Equity = 5.68 (Debt 4.58b / totalStockholderEquity, last quarter 806.5m)
Debt / EBITDA = 19.39 (Net Debt 4.57b / EBITDA 235.9m)
Debt / FCF = -152.0 (out of range, set to none) (Net Debt 4.57b / FCF TTM -30.1m)
Total Stockholder Equity = 648.6m (last 4 quarters mean from totalStockholderEquity)
RoA = -6.62% (Net Income -422.7m / Total Assets 5.84b)
RoE = -65.18% (Net Income TTM -422.7m / Total Stockholder Equity 648.6m)
RoCE = -1.30% (EBIT -67.8m / Capital Employed (Equity 648.6m + L.T.Debt 4.58b))
RoIC = -1.00% (negative operating profit) (NOPAT -53.6m / Invested Capital 5.38b)
WACC = 6.88% (E(796.5m)/V(5.38b) * Re(10.13%) + D(4.58b)/V(5.38b) * Rd(7.99%) * (1-Tc(0.21)))
Discount Rate = 10.13% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 52.44 | Cagr: 82.64%
[DCF] Fair Price = unknown (Cash Flow -30.1m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.0 | # QB: 0
Revenue Correlation: -71.02 | Revenue CAGR: -3.23% | SUE: 1.68 | # QB: 2
EPS current Quarter (2026-09-30): EPS=-0.31 | Chg30d=-3.33% | Revisions=+25% | Analysts=1
EPS current Year (2026-12-31): EPS=-5.63 | Chg30d=-21.84% | Revisions=+0% | GrowthEPS=+7.6% | GrowthRev=-15.3%
EPS next Year (2027-12-31): EPS=-1.19 | Chg30d=-7.21% | Revisions=+25% | GrowthEPS=+70.8% | GrowthRev=+3.3%
[Analyst] Revisions Ratio: +40% (up=2, down=0)