SHO Stock Analysis: Sunstone Hotel Investors | NYSE
REIT - Hotel & Motel | NYSE, USA | Market Cap: 2.200m USD | 12M Return: 41.7% | US8678921011 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 24.5M
EPS Trend: -64.6%
Qual. Beats: 0
Rev. Trend: 1.7%
Qual. Beats: 3
Warnings
Tailwinds
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.
Sunstone Hotel Investors, Inc. (NYSE: SHO) is a lodging real estate investment trust (REIT) that focuses on acquiring, actively owning, and disposing of well-located hotel and resort properties to create long-term stakeholder value. The company was incorporated in 1995, is headquartered in Aliso Viejo, California, and trades as a mid-cap stock with a market capitalization of approximately $2.08 billion USD.
As a REIT in the Hotel & Resort REITs sub-industry, Sunstone benefits from the standard REIT tax structure, which requires the distribution of at least 90% of taxable income to shareholders in exchange for pass-through tax treatment. Unlike hotel operators, lodging REITs typically own the real estate and lease the properties to third-party management companies or hotel brands, allowing the REIT to focus on real estate investment decisions while the operators handle day-to-day hospitality operations.
- Group and business travel demand drives RevPAR growth
- Interest rate hikes pressure REIT valuations and borrowing costs
- Labor cost inflation compresses hotel operating margins
| 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 (240.6m): 3.69 < 3 |
| Current Ratio: 1.58 > 1.5 & < 3 |
| Outstanding Shares: last quarter (185.6m) vs 12m ago -5.48% < -2% |
| Gross Margin: 2.42% > 18% (prev 54.42%; Δ -52.00% > 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: 22.51 (GM 54.42% / 2.42%) |
| 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 = 16.62 (Cap -4..+1) = D |
As of October 22, 2026, the stock is trading at USD 12.61 with a total of 5,885,613 shares traded. Over the past week, the price has changed by +9.56%, over one month by +14.62%, over three months by +7.27% and over the past year by +41.74%.
Current recommended Stop Loss: 12.20 (which is 3.3% or 1.5 ATR below the current price).
Sunstone Hotel Investors has received a consensus analysts rating of 3.58. Therefore, it is recommended to hold SHO.
- StrongBuy: 4
- Buy: 0
- Hold: 7
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 12 | -4.5% |
P/E Trailing = 56.3333
P/E Forward = 555.5556
P/S = 2.1955
P/B = 1.2608
P/EG = 3.0039
Revenue TTM = 1.00b USD
EBIT TTM = 104.1m USD
EBITDA TTM = 240.6m 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 = 3.09b USD (2.20b + Debt 981.4m - CCE 94.4m)
Interest Coverage Ratio = 2.06 (Ebit TTM 104.1m / Interest Expense TTM 50.6m)
EV/FCF = 33.13x (Enterprise Value 3.09b / FCF TTM 93.2m)
FCF Yield = 3.02% (FCF TTM 93.2m / Enterprise Value 3.09b)
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 = 2.42% ((Revenue TTM 1.00b - Cost of Revenue TTM 978.9m) / Revenue TTM)
Gross Margin QoQ = 33.71% (prev 47.37%)
Tobins Q-Ratio = 1.02 (Enterprise Value 3.09b / 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 240.6m)
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 = 7.16% (E(2.20b)/V(3.18b) * Re(8.07%) + D(981.4m)/V(3.18b) * Rd(5.15%) * (1-Tc(0.01)))
Discount Rate = 8.07% (= 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=-0.01 | Chg30d=-127.27% | Revisions=-25% | Analysts=2
EPS current Year (2026-12-31): EPS=0.22 | Chg30d=-21.43% | Revisions=+25% | GrowthEPS=+169.6% | GrowthRev=+2.5%
EPS next Year (2027-12-31): EPS=0.17 | Chg30d=+25.00% | Revisions=+40% | GrowthEPS=-20.4% | GrowthRev=-2.1%
[Analyst] Revisions Ratio: +29% (up=3, down=1)