RLJ Lodging Trust
RLJ Lodging Trust Fundamental Analysis
RLJ Lodging Trust (RLJ-PA) shows weak financial fundamentals with a PE ratio of 36.49, profit margin of 2.48%, and ROE of 1.50%. The company generates $1.4B in annual revenue with moderate year-over-year growth of 3.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RLJ-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakRLJ-PA struggles to generate sufficient returns from assets.
Valuation Score
ModerateRLJ-PA shows balanced valuation metrics.
Growth Score
WeakRLJ-PA faces weak or negative growth trends.
Financial Health Score
ModerateRLJ-PA shows balanced financial health with some risks.
Profitability Score
ModerateRLJ-PA maintains healthy but balanced margins.
Key Financial Metrics
Is RLJ-PA Expensive or Cheap?
P/E Ratio
RLJ-PA trades at 36.49 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RLJ-PA's PEG of -0.49 indicates potential undervaluation.
Price to Book
The market values RLJ Lodging Trust at 0.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.22 times EBITDA. This is generally considered low.
How Well Does RLJ-PA Make Money?
Net Profit Margin
For every $100 in sales, RLJ Lodging Trust keeps $2.48 as profit after all expenses.
Operating Margin
Core operations generate 9.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.50 in profit for every $100 of shareholder equity.
ROA
RLJ Lodging Trust generates $0.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RLJ Lodging Trust produces operating cash flow of $255.25M, showing steady but balanced cash generation.
Free Cash Flow
RLJ Lodging Trust generates strong free cash flow of $225.43M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.49 in free cash annually.
FCF Yield
RLJ-PA converts 17.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How RLJ-PA Stacks Against Its Sector Peers
| Metric | RLJ-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.49 | 24.23 | Worse (Expensive) |
| ROE | 1.50% | 659.00% | Weak |
| Net Margin | 2.48% | 4497.00% | Weak |
| Debt/Equity | 1.07 | -22.14 (disorted) | Distorted |
| Current Ratio | 1.92 | 13.87 | Neutral |
| ROA | 0.70% | -1390.00% (disorted) | Weak |
RLJ-PA outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RLJ Lodging Trust's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.02%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-41.00%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-19.50%
Industry Style: Income, Inflation Hedge, REIT
Declining