(SHO) Sunstone Hotel Investors - NYSE
Sector: Real Estate | Industry: REIT - Hotel & Motel | Exchange: NYSE (USA) | Market Cap: 2.183m USD | Total Return: 42.4% in 12m
Avg Turnover: 25.2M
EPS Trend: -78.3%
Qual. Beats: 1
Rev. Trend: -40.5%
Qual. Beats: 2
Warnings
P/E ratio 106.5
Beneish M-Score 1.00 > -1.5 - likely earnings manipulation
Tailwinds
Supp Ema8
Sunstone Hotel Investors, Inc. (NYSE: SHO) is a Maryland-based real estate investment trust (REIT) focused on the acquisition and management of upper-upscale and luxury hotel properties. Established in 1995, the company utilizes an active ownership model to optimize the performance of well-located resorts and urban lodging assets.
Operating within the Hotel & Resort REIT sub-industry, the company generates revenue primarily through room rentals, food and beverage services, and ancillary resort fees. Unlike traditional real estate firms, hotel REITs are subject to daily fluctuations in occupancy and room rates, making them more sensitive to immediate shifts in consumer discretionary spending and corporate travel budgets.
Investors can evaluate the underlying asset quality and historical performance metrics of this REIT on ValueRay. Given the capital-intensive nature of the lodging sector, Sunstone frequently rotates its portfolio by divesting non-core assets to fund acquisitions in high-growth markets.
- Group business travel recovery drives urban core hotel occupancy and RevPAR
- Strategic asset dispositions provide capital for portfolio modernization and acquisitions
- Leisure travel demand fluctuations impact luxury resort revenue and margins
- Rising labor and insurance costs pressure net operating income and distributions
- Interest rate volatility affects refinancing costs and REIT valuation multiples
| Net Income: 37.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 0.16 > 1.0 |
| NWC/Revenue: 15.07% < 20% (prev -21.03%; Δ 36.10% < -1%) |
| CFO/TA 0.06 > 3% & CFO 195.2m > Net Income 37.9m |
| Net Debt (865.2m) to EBITDA (225.2m): 3.84 < 3 |
| Current Ratio: 2.61 > 1.5 & < 3 |
| Outstanding Shares: last quarter (188.7m) vs 12m ago -6.34% < -2% |
| Gross Margin: 6.23% > 18% (prev 54.76%; Δ -48.54% > 0.5%) |
| Asset Turnover: 32.28% > 50% (prev 29.80%; Δ 2.49% > 0%) |
| Interest Coverage Ratio: 1.75 > 6 (EBIT TTM 89.1m / Interest Expense TTM 51.0m) |
| A: 0.05 (Total Current Assets 240.7m - Total Current Liabilities 92.1m) / Total Assets 3.01b |
| B: -0.21 (Retained Earnings -636.3m / Total Assets 3.01b) |
| C: 0.03 (EBIT TTM 89.1m / Avg Total Assets 3.05b) |
| D: 1.72 (Book Value of Equity 1.90b / Total Liabilities 1.11b) |
| Altman-Z'' = 1.64 = BB |
| DSRI: 0.84 (Receivables 45.4m/50.4m, Revenue 985.8m/922.7m) |
| GMI: 8.80 (GM 54.76% / 6.23%) |
| AQI: 0.99 (AQ_t 0.92 / AQ_t-1 0.92) |
| SGI: 1.07 (Revenue 985.8m / 922.7m) |
| TATA: -0.05 (NI 37.9m - CFO 195.2m) / TA 3.01b) |
| Beneish M = 3.95 (Cap -4..+1) = D |
As of June 20, 2026, the stock is trading at USD 11.91 with a total of 4,521,000 shares traded.
Over the past week, the price has changed by +1.79%,
over one month by +14.52%,
over three months by +32.93% and
over the past year by +42.42%.
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 | 10.8 | -9.1% |
P/E Trailing = 106.5455
P/E Forward = 129.8701
P/S = 2.2149
P/B = 1.3364
P/EG = 3.0039
Revenue TTM = 985.8m USD
EBIT TTM = 89.1m USD
EBITDA TTM = 225.2m USD
Long Term Debt = 942.7m USD (from longTermDebt, last quarter)
Short Term Debt = 6.81m USD (from shortTermDebt, last quarter)
Debt = 956.3m USD (from shortLongTermDebtTotal, last quarter) + Leases 6.81m
Net Debt = 865.2m USD (calculated: Debt 956.3m - CCE 91.1m)
Enterprise Value = 3.05b USD (2.18b + Debt 956.3m - CCE 91.1m)
Interest Coverage Ratio = 1.75 (Ebit TTM 89.1m / Interest Expense TTM 51.0m)
EV/FCF = 18.57x (Enterprise Value 3.05b / FCF TTM 164.2m)
FCF Yield = 5.38% (FCF TTM 164.2m / Enterprise Value 3.05b)
FCF Margin = 16.65% (FCF TTM 164.2m / Revenue TTM 985.8m)
Net Margin = 3.84% (Net Income TTM 37.9m / Revenue TTM 985.8m)
Gross Margin = 6.23% ((Revenue TTM 985.8m - Cost of Revenue TTM 924.4m) / Revenue TTM)
Gross Margin QoQ = 47.37% (prev -123.7%)
Tobins Q-Ratio = 1.01 (Enterprise Value 3.05b / Total Assets 3.01b)
Interest Expense / Debt = 5.33% (Interest Expense 51.0m / Debt 956.3m)
Taxrate = 0.63% (240k / 38.1m)
NOPAT = 88.6m (EBIT 89.1m * (1 - 0.63%))
Current Ratio = 2.61 (Total Current Assets 240.7m / Total Current Liabilities 92.1m)
Debt / Equity = 0.50 (Debt 956.3m / totalStockholderEquity, last quarter 1.90b)
Debt / EBITDA = 3.84 (Net Debt 865.2m / EBITDA 225.2m)
Debt / FCF = 5.27 (Net Debt 865.2m / FCF TTM 164.2m)
Total Stockholder Equity = 1.95b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.24% (Net Income 37.9m / Total Assets 3.01b)
RoE = 1.94% (Net Income TTM 37.9m / Total Stockholder Equity 1.95b)
RoCE = 3.08% (EBIT 89.1m / Capital Employed (Equity 1.95b + L.T.Debt 942.7m))
RoIC = 3.08% (NOPAT 88.6m / Invested Capital 2.88b)
WACC = 8.20% (E(2.18b)/V(3.14b) * Re(9.47%) + D(956.3m)/V(3.14b) * Rd(5.33%) * (1-Tc(0.01)))
Discount Rate = 9.47% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -84.85 | Cagr: -3.76%
[DCF] Terminal Value 75.46% ; FCFF base≈164.1m ; Y1≈164.9m ; Y5≈175.1m
[DCF] Fair Price = 9.97 (EV 2.72b - Net Debt 865.2m = Equity 1.86b / Shares 186.3m; r=8.35% [WACC [floored]]; 5y FCF grow 0.14% → 2.50% )
EPS Correlation: -78.34 | EPS CAGR: -64.60% | SUE: 1.62 | # QB: 1
Revenue Correlation: -40.46 | Revenue CAGR: -1.69% | SUE: 2.27 | # QB: 2
EPS current Quarter (2026-06-30): EPS=0.07 | Chg30d=+0.00% | Revisions=-20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=-0.01 | Chg30d=N/A | Revisions=-20% | Analysts=2
EPS current Year (2026-12-31): EPS=0.14 | Chg30d=-14.71% | Revisions=+20% | GrowthEPS=+77.7% | GrowthRev=+5.4%
EPS next Year (2027-12-31): EPS=0.20 | Chg30d=+56.00% | Revisions=+33% | GrowthEPS=+34.5% | GrowthRev=+3.1%
[Analyst] Revisions Ratio: +33%