Summit Hotel Properties, Inc. Fundamental Analysis
Summit Hotel Properties, Inc. (INN-PE) shows weak financial fundamentals with a PE ratio of -48.72, profit margin of -1.73%, and ROE of -1.46%. The company generates $0.7B in annual revenue with weak year-over-year growth of -0.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 11.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze INN-PE's fundamental strength across five key dimensions:
Efficiency Score
WeakINN-PE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentINN-PE trades at attractive valuation levels.
Growth Score
WeakINN-PE faces weak or negative growth trends.
Financial Health Score
ModerateINN-PE shows balanced financial health with some risks.
Profitability Score
WeakINN-PE struggles to sustain strong margins.
Key Financial Metrics
Is INN-PE Expensive or Cheap?
P/E Ratio
INN-PE trades at -48.72 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, INN-PE's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Summit Hotel Properties, Inc. at 0.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.37 times EBITDA. This is generally considered low.
How Well Does INN-PE Make Money?
Net Profit Margin
For every $100 in sales, Summit Hotel Properties, Inc. keeps $-1.73 as profit after all expenses.
Operating Margin
Core operations generate 8.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.46 in profit for every $100 of shareholder equity.
ROA
Summit Hotel Properties, Inc. generates $-0.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Summit Hotel Properties, Inc. produces operating cash flow of $152.09M, showing steady but balanced cash generation.
Free Cash Flow
Summit Hotel Properties, Inc. generates strong free cash flow of $120.89M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.14 in free cash annually.
FCF Yield
INN-PE converts 19.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-48.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.69
vs 25 benchmark
Current Ratio
Current assets to current liabilities
373.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.01
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How INN-PE Stacks Against Its Sector Peers
| Metric | INN-PE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -48.72 | 23.27 | Better (Cheaper) |
| ROE | -1.46% | 680.00% | Weak |
| Net Margin | -1.73% | 1953.00% | Weak |
| Debt/Equity | 1.69 | -17.04 (disorted) | Distorted |
| Current Ratio | 373.25 | 23.29 | Strong Liquidity |
| ROA | -0.46% | -758.00% (disorted) | Weak |
INN-PE outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Summit Hotel Properties, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
203.24%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
94.59%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
445.41%
Industry Style: Income, Inflation Hedge, REIT
High Growth