Extended Stay America, Inc.
Extended Stay America, Inc. Fundamental Analysis
Extended Stay America, Inc. (STAY) shows weak financial fundamentals with a PE ratio of 37.88, profit margin of 9.23%, and ROE of 13.96%. The company generates N/A 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 27.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze STAY's fundamental strength across five key dimensions:
Efficiency Score
WeakSTAY struggles to generate sufficient returns from assets.
Valuation Score
ModerateSTAY shows balanced valuation metrics.
Growth Score
WeakSTAY faces weak or negative growth trends.
Financial Health Score
WeakSTAY carries high financial risk with limited liquidity.
Profitability Score
WeakSTAY struggles to sustain strong margins.
Key Financial Metrics
Is STAY Expensive or Cheap?
P/E Ratio
STAY trades at 37.88 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, STAY's PEG of 0.38 indicates potential undervaluation.
Price to Book
The market values Extended Stay America, Inc. at 5.34 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -3.03 times EBITDA. This is generally considered low.
How Well Does STAY Make Money?
Net Profit Margin
For every $100 in sales, Extended Stay America, Inc. keeps $9.23 as profit after all expenses.
Operating Margin
Core operations generate -0.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.96 in profit for every $100 of shareholder equity.
ROA
Extended Stay America, Inc. generates $2.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $-0.71 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.80
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
-0.00
vs 25 benchmark
How STAY Stacks Against Its Sector Peers
| Metric | STAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.88 | 24.97 | Worse (Expensive) |
| ROE | 13.96% | 1167.00% | Weak |
| Net Margin | 9.23% | 673.00% | Weak |
| Debt/Equity | 1.80 | 0.66 | Weak (High Leverage) |
| Current Ratio | 0.02 | 4.01 | Weak Liquidity |
| ROA | 2.71% | -8477.00% (disorted) | Weak |
STAY 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 Extended Stay America, Inc.'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: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary