Summit Hotel Properties, Inc. Fundamental Analysis
Summit Hotel Properties, Inc. (INN) 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's fundamental strength across five key dimensions:
Efficiency Score
WeakINN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentINN trades at attractive valuation levels.
Growth Score
WeakINN faces weak or negative growth trends.
Financial Health Score
ModerateINN shows balanced financial health with some risks.
Profitability Score
WeakINN struggles to sustain strong margins.
Key Financial Metrics
Is INN Expensive or Cheap?
P/E Ratio
INN trades at -48.72 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, INN'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 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 $155.07M, showing steady but balanced cash generation.
Free Cash Flow
Summit Hotel Properties, Inc. generates strong free cash flow of $123.26M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.14 in free cash annually.
FCF Yield
INN 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 Stacks Against Its Sector Peers
| Metric | INN 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 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