Hersha Hospitality Trust
Hersha Hospitality Trust Fundamental Analysis
Hersha Hospitality Trust (HT) shows strong financial fundamentals with a PE ratio of 2.63, profit margin of 36.15%, and ROE of 23.66%. The company generates $0.5B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HT's fundamental strength across five key dimensions:
Efficiency Score
WeakHT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHT trades at attractive valuation levels.
Growth Score
ModerateHT shows steady but slowing expansion.
Financial Health Score
ExcellentHT maintains a strong and stable balance sheet.
Profitability Score
ExcellentHT achieves industry-leading margins.
Key Financial Metrics
Is HT Expensive or Cheap?
P/E Ratio
HT trades at 2.63 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HT's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Hersha Hospitality Trust at 0.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.21 times EBITDA. This is generally considered low.
How Well Does HT Make Money?
Net Profit Margin
For every $100 in sales, Hersha Hospitality Trust keeps $36.15 as profit after all expenses.
Operating Margin
Core operations generate 12.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.66 in profit for every $100 of shareholder equity.
ROA
Hersha Hospitality Trust generates $9.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hersha Hospitality Trust produces operating cash flow of $94.59M, showing steady but balanced cash generation.
Free Cash Flow
Hersha Hospitality Trust generates strong free cash flow of $65.07M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.35 in free cash annually.
FCF Yield
HT converts 10.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How HT Stacks Against Its Sector Peers
| Metric | HT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.63 | 24.23 | Better (Cheaper) |
| ROE | 23.66% | 659.00% | Weak |
| Net Margin | 36.15% | 4497.00% | Weak |
| Debt/Equity | 0.95 | -22.14 (disorted) | Distorted |
| Current Ratio | 3.05 | 13.87 | Strong Liquidity |
| ROA | 9.85% | -1390.00% (disorted) | Weak |
HT outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hersha Hospitality Trust's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
EPS CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT
FCF CAGR
N/A
Industry Style: Income, Inflation Hedge, REIT