Pebblebrook Hotel Trust
Pebblebrook Hotel Trust Fundamental Analysis
Pebblebrook Hotel Trust (PEB) shows weak financial fundamentals with a PE ratio of -14.66, profit margin of -6.72%, and ROE of -3.76%. The company generates $1.5B in annual revenue with weak year-over-year growth of 2.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 11.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PEB's fundamental strength across five key dimensions:
Efficiency Score
WeakPEB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPEB trades at attractive valuation levels.
Growth Score
ModeratePEB shows steady but slowing expansion.
Financial Health Score
WeakPEB carries high financial risk with limited liquidity.
Profitability Score
WeakPEB struggles to sustain strong margins.
Key Financial Metrics
Is PEB Expensive or Cheap?
P/E Ratio
PEB trades at -14.66 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PEB's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values Pebblebrook Hotel Trust at 0.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.74 times EBITDA. This is generally considered low.
How Well Does PEB Make Money?
Net Profit Margin
For every $100 in sales, Pebblebrook Hotel Trust keeps $-6.72 as profit after all expenses.
Operating Margin
Core operations generate 0.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-3.76 in profit for every $100 of shareholder equity.
ROA
Pebblebrook Hotel Trust generates $-1.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pebblebrook Hotel Trust produces operating cash flow of $290.20M, showing steady but balanced cash generation.
Free Cash Flow
Pebblebrook Hotel Trust generates strong free cash flow of $373.58M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.15 in free cash annually.
FCF Yield
PEB converts 25.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-14.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.04
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.002
vs 25 benchmark
How PEB Stacks Against Its Sector Peers
| Metric | PEB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -14.66 | 24.42 | Better (Cheaper) |
| ROE | -3.76% | 679.00% | Weak |
| Net Margin | -6.72% | 4578.00% | Weak |
| Debt/Equity | 1.02 | -22.07 (disorted) | Distorted |
| Current Ratio | 0.71 | 14.99 | Weak Liquidity |
| ROA | -1.77% | -1370.00% (disorted) | Weak |
PEB outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pebblebrook Hotel Trust's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-1.81%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-104.00%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-24.20%
Industry Style: Income, Inflation Hedge, REIT
Declining