(SHO) Sunstone Hotel Investors - Ratings and Ratios
Hotel Ownership, Real Estate Investment, Lodging Properties
SHO EPS (Earnings per Share)
SHO Revenue
Description: SHO Sunstone Hotel Investors
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) that owns a diverse portfolio of 15 hotels, boasting 7,253 rooms, predominantly operated under well-established brands. The companys strategic focus is on generating long-term value for stakeholders through targeted acquisitions, proactive ownership, and strategic dispositions of high-quality hotel and resort properties.
As a Hotel & Resort REIT, Sunstone Hotel Investors, Inc. (NYSE: SHO) is well-positioned to capitalize on the growing demand for lodging and hospitality services. With a strong presence in the US market, the company is poised to benefit from the ongoing recovery in the hotel industry, driven by increasing travel and tourism demand.
Analyzing the companys recent price action, we observe that the stock is currently trading at $8.86, with its 20-day simple moving average (SMA) at $8.86, indicating a stable short-term trend. The 50-day SMA is at $8.58, suggesting a potential bullish crossover. However, the 200-day SMA at $10.10 indicates a longer-term bearish trend. Considering the average true range (ATR) of 0.28, representing a 3.14% daily volatility, we can expect the stock to continue trading within a narrow range in the short term.
From a fundamental perspective, Sunstone Hotel Investors, Inc. has a market capitalization of $1.78 billion, with a price-to-earnings (P/E) ratio of 89.60, indicating a relatively high valuation. The forward P/E ratio is even higher at 178.57, suggesting that the market expects significant earnings growth in the future. The companys return on equity (RoE) is relatively low at 1.68%, which may be a concern for investors.
Combining technical and fundamental analysis, we forecast that Sunstone Hotel Investors, Inc. will experience a moderate price increase in the coming months, driven by the ongoing recovery in the hotel industry and the companys strategic focus on high-quality properties. Our forecast suggests that the stock may reach $10.50 within the next 6-12 months, representing a potential upside of 18.5% from current levels. However, this forecast is contingent on the companys ability to maintain its strategic focus and navigate the challenges in the hotel industry.
SHO Stock Overview
| Market Cap in USD | 1,651m |
| Sector | Real Estate |
| Industry | REIT - Hotel & Motel |
| GiC Sub-Industry | Hotel & Resort REITs |
| IPO / Inception | 1995-08-10 |
SHO Stock Ratings
| Growth Rating | -14.3 |
| Fundamental | 57.7% |
| Dividend Rating | 61.3 |
| Rel. Strength | -7.78 |
| Analysts | 3.80 of 5 |
| Fair Price Momentum | 8.05 USD |
| Fair Price DCF | 6.66 USD |
SHO Dividends
| Dividend Yield 12m | 3.90% |
| Yield on Cost 5y | 4.71% |
| Annual Growth 5y | 46.72% |
| Payout Consistency | 56.9% |
| Payout Ratio | 4.6% |
SHO Growth Ratios
| Growth Correlation 3m | 16.6% |
| Growth Correlation 12m | -58.8% |
| Growth Correlation 5y | -22.5% |
| CAGR 5y | 2.44% |
| CAGR/Max DD 5y | 0.06 |
| Sharpe Ratio 12m | -0.97 |
| Alpha | -28.26 |
| Beta | 0.998 |
| Volatility | 26.22% |
| Current Volume | 2553k |
| Average Volume 20d | 1920k |
| Stop Loss | 8.3 (-3.8%) |
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income (20.1m TTM) > 0 and > 6% of Revenue (6% = 56.1m TTM) |
| FCFTA 0.06 (>2.0%) and ΔFCFTA 1.75pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 12.00% (prev 12.25%; Δ -0.25pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.06 (>3.0%) and CFO 167.9m > Net Income 20.1m (YES >=105%, WARN >=100%) |
| Net Debt (805.0m) to EBITDA (200.0m) ratio: 4.03 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.14 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (196.3m) change vs 12m ago -3.51% (target <= -2.0% for YES) |
| Gross Margin 54.42% (prev 41.40%; Δ 13.02pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 30.35% (prev 29.58%; Δ 0.78pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 1.40 (EBITDA TTM 200.0m / Interest Expense TTM 49.4m) >= 6 (WARN >= 3) |
Altman Z'' -0.87
| (A) 0.04 = (Total Current Assets 210.6m - Total Current Liabilities 98.4m) / Total Assets 3.01b |
| (B) -0.20 = Retained Earnings (Balance) -601.4m / Total Assets 3.01b |
| (C) 0.02 = EBIT TTM 69.2m / Avg Total Assets 3.08b |
| (D) -0.58 = Book Value of Equity -599.5m / Total Liabilities 1.03b |
| Total Rating: -0.87 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 57.67
| 1. Piotroski 5.50pt = 0.50 |
| 2. FCF Yield 6.84% = 3.42 |
| 3. FCF Margin 17.95% = 4.49 |
| 4. Debt/Equity 0.44 = 2.40 |
| 5. Debt/Ebitda 4.39 = -2.50 |
| 6. ROIC - WACC 2.47% = 3.09 |
| 7. RoE 0.97% = 0.08 |
| 8. Rev. Trend -26.43% = -1.32 |
| 9. Rev. CAGR 2.07% = 0.26 |
| 10. EPS Trend -49.67% = -1.24 |
| 11. EPS CAGR -12.03% = -1.50 |
As of August 12, 2025, the stock is trading at USD 8.63 with a total of 2,552,954 shares traded.
Over the past week, the price has changed by -1.37%, over one month by -5.27%, over three months by -4.93% and over the past year by -5.94%.
Neither. Based on ValueRay´s Fundamental Analyses, Sunstone Hotel Investors is currently (August 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 57.67 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of SHO is around 8.05 USD . This means that SHO is currently overvalued and has a potential downside of -6.72%.
Sunstone Hotel Investors has received a consensus analysts rating of 3.80. Therefor, it is recommend to hold SHO.
- Strong Buy: 4
- Buy: 0
- Hold: 6
- Sell: 0
- Strong Sell: 0
According to our own proprietary Forecast Model, SHO Sunstone Hotel Investors will be worth about 9.1 in August 2026. The stock is currently trading at 8.63. This means that the stock has a potential upside of +4.98%.
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 9.7 | 12.7% |
| Analysts Target Price | 9.9 | 14.1% |
| ValueRay Target Price | 9.1 | 5% |
SHO Fundamental Data Overview
CCE Cash And Equivalents = 73.6m USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 435.5
P/E Forward = 175.4386
P/S = 1.7653
P/B = 0.9716
P/EG = 1.21
Beta = 1.31
Revenue TTM = 935.0m USD
EBIT TTM = 69.2m USD
EBITDA TTM = 200.0m USD
Long Term Debt = 868.7m USD (from longTermDebt, last quarter)
Short Term Debt = 9.83m USD (from shortTermDebt, last quarter)
Debt = 878.5m USD (Calculated: Short Term 9.83m + Long Term 868.7m)
Net Debt = 805.0m USD (from netDebt column, last quarter)
Enterprise Value = 2.46b USD (1.65b + Debt 878.5m - CCE 73.6m)
Interest Coverage Ratio = 1.40 (Ebit TTM 69.2m / Interest Expense TTM 49.4m)
FCF Yield = 6.84% (FCF TTM 167.9m / Enterprise Value 2.46b)
FCF Margin = 17.95% (FCF TTM 167.9m / Revenue TTM 935.0m)
Net Margin = 2.15% (Net Income TTM 20.1m / Revenue TTM 935.0m)
Gross Margin = 54.42% ((Revenue TTM 935.0m - Cost of Revenue TTM 426.2m) / Revenue TTM)
[93m Tobins Q-Ratio = -4.10 (set to none) (Enterprise Value 2.46b / Book Value Of Equity -599.5m)
[39m Interest Expense / Debt = 1.39% (Interest Expense 12.2m / Debt 878.5m)
[93m Taxrate = -2.61% (set to none) (from yearly Income Tax Expense: -1.10m / 42.2m)
[39m[93m NOPAT = unknown (EBIT/Op.Income or Taxrate missing)
[39m Current Ratio = 2.14 (Total Current Assets 210.6m / Total Current Liabilities 98.4m)
Debt / Equity = 0.44 (Debt 878.5m / last Quarter total Stockholder Equity 1.98b)
Debt / EBITDA = 4.39 (Net Debt 805.0m / EBITDA 200.0m)
Debt / FCF = 5.23 (Debt 878.5m / FCF TTM 167.9m)
Total Stockholder Equity = 2.07b (last 4 quarters mean)
RoA = 0.67% (Net Income 20.1m, Total Assets 3.01b )
RoE = 0.97% (Net Income TTM 20.1m / Total Stockholder Equity 2.07b)
RoCE = 2.35% (Ebit 69.2m / (Equity 2.07b + L.T.Debt 868.7m))
RoIC = 2.47% (Ebit 69.2m / (Assets 3.01b - Current Assets 210.6m))
[93m WACC = unknown (E(1.65b)/V(2.53b) * Re(9.69%)) + (D(878.5m)/V(2.53b) * Rd(1.39%) * (1-Tc(none)))
[39m Shares Correlation 5-Years: -100.0 | Cagr: -2.06%
Discount Rate = 9.69% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 68.57% ; FCFE base≈148.9m ; Y1≈123.8m ; Y5≈90.6m
Fair Price DCF = 6.66 (DCF Value 1.26b / Shares Outstanding 189.5m; 5y FCF grow -20.33% → 2.90% )
Revenue Correlation: -26.43 | Revenue CAGR: 2.07%
Revenue Growth Correlation: 55.44%
EPS Correlation: -49.67 | EPS CAGR: -12.03%
EPS Growth Correlation: -46.43%
Additional Sources for SHO Stock
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