SHO Stock Analysis: Sunstone Hotel Investors | NYSE
REIT - Hotel & Motel | NYSE, USA | Market Cap: 2.081m USD | 12M Return: 19.6% | US8678921011 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 24.9M
EPS Trend: -64.6%
Qual. Beats: 0
Rev. Trend: 1.7%
Qual. Beats: 3
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 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.
Sunstone Hotel Investors, Inc. (NYSE: SHO) is a lodging real estate investment trust (REIT) headquartered in Aliso Viejo, California. As of the release date, the company owns 14 hotels comprising approximately 7,000 rooms, the majority operated under nationally recognized brands.
SHO pursues long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort properties. Incorporated in 1995, the company is classified within the Hotel & Resort REITs sub-industry of the GICS Real Estate sector and trades as a mid-cap stock with a market capitalization of roughly $2.16 billion.
Hotel & Resort REITs are typically more economically sensitive than other REIT subtypes, given the cyclical nature of travel and group demand. As a US REIT, Sunstone operates under federal tax rules that require the distribution of at least 90% of taxable income to shareholders in the form of dividends.
- RevPAR growth lifts revenue at urban and group hotels
- Labor cost inflation pressures hotel operating margins
- Capital recycling through acquisitions and dispositions
| Net Income: 53.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 13.92 > 1.0 |
| NWC/Revenue: 5.29% < 20% (prev 12.00%; Δ -6.71% < -1%) |
| CFO/TA 0.07 > 3% & CFO 198.4m > Net Income 53.1m |
| Net Debt (887.0m) to EBITDA (240.3m): 3.69 < 3 |
| Current Ratio: 1.58 > 1.5 & < 3 |
| Outstanding Shares: last quarter (185.6m) vs 12m ago -5.48% < -2% |
| Gross Margin: 6.62% > 18% (prev 54.42%; Δ -47.79% > 0.5%) |
| Asset Turnover: 33.18% > 50% (prev 31.05%; Δ 2.13% > 0%) |
| Interest Coverage Ratio: 2.06 > 6 (EBIT TTM 104.1m / Interest Expense TTM 50.6m) |
| A: 0.02 (Total Current Assets 145.2m - Total Current Liabilities 92.1m) / Total Assets 3.03b |
| B: -0.21 (Retained Earnings -627.0m / Total Assets 3.03b) |
| C: 0.03 (EBIT TTM 104.1m / Avg Total Assets 3.02b) |
| D: 1.63 (Book Value of Equity 1.88b / Total Liabilities 1.15b) |
| Altman-Z'' = 1.38 = BB |
| DSRI: 1.11 (Receivables 50.8m/42.8m, Revenue 1.00b/935.0m) |
| GMI: 8.22 (GM 54.42% / 6.62%) |
| AQI: 1.03 (AQ_t 0.95 / AQ_t-1 0.93) |
| SGI: 1.07 (Revenue 1.00b / 935.0m) |
| TATA: -0.05 (NI 53.1m - CFO 198.4m) / TA 3.03b) |
| Beneish M = 3.66 (Cap -4..+1) = D |
As of September 07, 2026, the stock is trading at USD 11.06 with a total of 2,006,397 shares traded. Over the past week, the price has changed by -2.38%, over one month by -4.74%, over three months by -3.08% and over the past year by +19.57%.
Current recommended Stop Loss: 10.40 (which is 6% or 2.9 ATR below the current price).
Sunstone Hotel Investors has received a consensus analysts rating of 3.80. Therefore, it is recommended to hold SHO.
- StrongBuy: 4
- Buy: 0
- Hold: 6
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 11.8 | 6.6% |
P/E Trailing = 50.8636
P/E Forward = 120.4819
P/S = 2.0768
P/B = 1.2767
P/EG = 3.0039
Revenue TTM = 1.00b USD
EBIT TTM = 104.1m USD
EBITDA TTM = 240.3m USD
Long Term Debt = 943.4m USD (from longTermDebt, last quarter)
Short Term Debt = 2.65m USD (from shortTermDebt, last quarter)
Debt = 981.4m USD (from shortLongTermDebtTotal, last quarter) + Leases 6.53m
Net Debt = 887.0m USD (calculated: Debt 981.4m - CCE 94.4m)
Enterprise Value = 2.97b USD (2.08b + Debt 981.4m - CCE 94.4m)
Interest Coverage Ratio = 2.06 (Ebit TTM 104.1m / Interest Expense TTM 50.6m)
EV/FCF = 31.86x (Enterprise Value 2.97b / FCF TTM 93.2m)
FCF Yield = 3.14% (FCF TTM 93.2m / Enterprise Value 2.97b)
FCF Margin = 9.29% (FCF TTM 93.2m / Revenue TTM 1.00b)
Net Margin = 5.30% (Net Income TTM 53.1m / Revenue TTM 1.00b)
Gross Margin = 6.62% ((Revenue TTM 1.00b - Cost of Revenue TTM 936.7m) / Revenue TTM)
Gross Margin QoQ = 48.94% (prev 47.37%)
Tobins Q-Ratio = 0.98 (Enterprise Value 2.97b / Total Assets 3.03b)
Interest Expense / Debt = 5.15% (Interest Expense 50.6m / Debt 981.4m)
Taxrate = 0.73% (390k / 53.5m)
NOPAT = 103.3m (EBIT 104.1m * (1 - 0.73%))
Current Ratio = 1.00 (Total Current Assets 145.2m / Total Current Liabilities 145.7m)
Debt / Equity = 0.52 (Debt 981.4m / totalStockholderEquity, last quarter 1.88b)
Debt / EBITDA = 3.69 (Net Debt 887.0m / EBITDA 240.3m)
Debt / FCF = 9.52 (Net Debt 887.0m / FCF TTM 93.2m)
Total Stockholder Equity = 1.92b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.76% (Net Income 53.1m / Total Assets 3.03b)
RoE = 2.76% (Net Income TTM 53.1m / Total Stockholder Equity 1.92b)
RoCE = 3.63% (EBIT 104.1m / Capital Employed (Equity 1.92b + L.T.Debt 943.4m))
RoIC = 3.47% (NOPAT 103.3m / Invested Capital 2.98b)
WACC = 7.57% (E(2.08b)/V(3.06b) * Re(8.73%) + D(981.4m)/V(3.06b) * Rd(5.15%) * (1-Tc(0.01)))
Discount Rate = 8.73% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.37 | Cagr: -3.91%
[DCF] Terminal Value 75.44% ; FCFF base≈93.2m ; Y1≈93.5m ; Y5≈99.1m
[DCF] Fair Price = 3.52 (EV 1.54b - Net Debt 887.0m = Equity 654.2m / Shares 185.9m; r=8.35% [WACC [floored]]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: -64.63 | EPS CAGR: -53.34% | SUE: 0.66 | # QB: 0
Revenue Correlation: 1.65 | Revenue CAGR: 0.07% | SUE: 1.18 | # QB: 3
EPS current Quarter (2026-09-30): EPS=0.06 | Chg30d=N/A | Revisions=-25% | Analysts=2
EPS current Year (2026-12-31): EPS=0.28 | Chg30d=+93.10% | Revisions=+25% | GrowthEPS=+243.1% | GrowthRev=+2.3%
EPS next Year (2027-12-31): EPS=0.14 | Chg30d=-28.21% | Revisions=+40% | GrowthEPS=-50.0% | GrowthRev=-1.8%
[Analyst] Revisions Ratio: +29% (up=3, down=1)