* Note: Prices are in Million (M) USD.
Description:
Summit Hotel Properties, Inc. (Ticker: INN) is a publicly traded real estate investment trust (REIT) specializing in the ownership and operation of a diverse portfolio of premium branded hotels, primarily positioned in the upscale and luxury lodging segments. The company leverages efficient operating models to maximize profitability and enhance shareholder value, showcasing a strategic focus on high-demand markets and strong brand partnerships. With a commitment to sustainability and quality guest experiences, Summit Hotel Properties aims to capitalize on the growing travel and tourism trends, making it a compelling investment opportunity in the hospitality sector.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Note: Financial institutions (banks/insurers/brokers/REITs) are evaluated using sector, P/E, growth, ROE and other factors. The 3.5× Net Debt/EBITDA rule is skipped to avoid misleading signals; however, Cash/Debt/EBITDA are still displayed and counted for scoring.
Cash : $39 M
Debt : $1,426 M
EBITDA : $223 M
Net Debt (Debt - Cash): $1,386 M
This criteria used industry in which company operates:
Sector: Real estate
Industry: Reit - hotel & motel
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 17 overlapping fiscal years (max 20).Average Free Cash Flow: $15 M
Average Revenue: $400 M
Revenue Converted To Free Cash Flow (%): 3.8%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $732 M
Revenue 5 Years Ago (2019-12-31): $549 M
Total Growth over 5 Years: 33.2%
5-Year Revenue CAGR (Historical): 5.9%
Forward 5-Year CAGR (Tapered): 5.3%
Since historical Revenue CAGR is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $132 M
Share Count 5 Years Ago (2020-12-31): $104 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-0.33
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 6%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.33
EPS is non-positive; payout ratio not meaningful. 0 point assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 17 valid ROE years (max 20).Average ROE: -0.4%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $5.53
52-Week Low: $3.46
Threshold Price (15% Above 52-Week Low): $3.97
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $610 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 1% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share) (TTM ending 2025-06-30): $0.20
Owners' Earnings (FCF/Share, latest positive annual) (2024-12-31): $0.53
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 14 points to above Summit Hotel Properties Inc (INN) stock.
Last 6 Years Avg PE 16.24, Fair Value PE 12, Industry Based PE 20, Growth Based PE 15, RCFC Based PE 3.84, Risk-Free Anchored PE (25% MoS) 18.2. Based on these 6 values, average assigned is 14.21. The fair value of Summit Hotel Properties Inc (INN) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
