SHO Investment Analysis Report & Stock Research, Sunstone Hotel Investors, Inc.

Sunstone Hotel Investors, Inc. (SHO)

SHO Stock Report

2-Year Price History

View Larger SHO Chart
NYSE:SHO
$8.14
(2/9 12:52PM)
Open$8.3 Mkt Cap$799.4 Million
High$8.37 52Wk High$9.84
Low$8.04 52Wk Low$1.87
Volume406,231 Avg Vol 10D974,700

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SHO Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 7 years. For, SHO the high and low end of the Price to Sales per share ratios are 1.86x and 1.04x respectively.

Notice that SHO's current Price to Sales per share ratio is 0.95x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $8.31, SHO is 35% below where we would expect to see it. This will beneficially factor into our final analysis of SHO as it is not often that this stock sinks to these levels.

SHO Cash Earnings

Price to Cash Earnings analysis is inappropriate for this company due to anticipated negative cash flows for this year. A negative cash flow presents many complications when comparing the company's current value to historically normal valuations. Clearly, when a company fails to earn a profit, it should be a concern for investors. As such, we have taken a negative view on SHO from a cash perspective. We should point out that this metric is a significant element in Ockham’s methodology for analyzing the outlook for any company. Many young companies have come through difficult times like this before; these companies have an opportunity to grow revenue appropriately to bring them around to profitablity. However, for mature company's with a history of positive cash flow this can be much more distressing. Therefore, for SHO, our overall valutaion is now more dependent on the Price to Sales analysis, and investors should be cautious with a company with very limited, if any, positive cash earnings.

SHO Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.

Peer Comparison

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Sunstone Hotel Investors, Inc. Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including SHO) 38.08 6.26 » 57.38 5.86 1.17 » 9.83 5.64% 9.31%
*10 year range does not include current year values
National Health Investors, Inc. NHI $897.5 Million $32.52 14.49 7.80 » 17.07 12.77 1.40 » 15.04 -15.62% 15.40%
Anworth Mortgage Asset Corp. ANH $800.5 Million $7.06 7.13 5.13 » 19.37 2.97 0.78 » 6.88 22.66% 5.77%
Sunstone Hotel Investors, Inc. SHO $799.4 Million $8.14 -1.00 2.30 » 73.55 0.95 0.13 » 8.52 n/a 6.87%
Sovran Self Storage, Inc. SSS $759.7 Million $32.45 23.88 11.33 » 36.51 3.92 1.92 » 7.32 12.36% 8.32%
Medical Properties Trust, Inc. MPW $754.4 Million $9.41 25.18 6.95 » 27.82 5.91 1.70 » 13.05 n/a 5.98%
Inland Real Estate Corp. IRC $693.1 Million $8.21 119.71 0.09 » 186.14 3.72 0.03 » 6.87 3.16% 11.06%
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Closing Bell

Sunstone Hotel Investors, Inc. (SHO) Discussed on CNBC's Closing Bell

Sunstone Hotel Investors, Inc. is in the news. Find out how this impacts SHO trading on Ockham Research.

Insurance giant aig held a half-million-dollar corporate retreat just weeks after accepting an $85 billion federal bailout. Trouble in the hotel sector also hit the w in san diego. SUNSTONE HOTEL INVESTORS say they will hand the property back over to its lenders after defaulting on the loan. Sunstone, which has a stake in 43 mostly upper crust hotels, says revenue per room across its

“… lenders after defaulting on the loan. Sunstone, which has a stake in 43 mostly upper crust hotels, says revenue per room across its …”

Fox Business

Sunstone Hotel Investors, Inc. (SHO) Discussed on Fox Business's Fox Business

Sunstone Hotel Investors, Inc. is in the news. Find out how this impacts SHO trading on Ockham Research.

You it's $17,000. This is an opportunity for warren buffett sho showcase all of his businesses, 70 that he owns under the barkshire umbrella. Shareholder meetings these days are contentious, filled

“… You it's $17,000. This is an opportunity for warren buffett sho showcase all of his businesses, 70 that he owns under the barkshire umbrella. Shareholder meetings these days are contentious, filled …”

Fox Business

Sunstone Hotel Investors, Inc. (SHO) Discussed on Fox Business's Fox Business

Sunstone Hotel Investors, Inc. is in the news. Find out how this impacts SHO trading on Ockham Research.

To slow down this hour and looking at a ford. >> this december goes on sale, the regular taurus and taurus sho, our performance version with our new eco boost engine and it asills to down size the engine and v-8 performance with v-6 fuel economy. >> this is one of the keys and you know, we talk about, wee

“… is one of the keys and you know, we talk about, wee …”

Mad Money

Sunstone Hotel Investors, Inc. (SHO) Discussed on CNBC's Mad Money

Sunstone Hotel Investors, Inc. is in the news. Find out how this impacts SHO trading on Ockham Research.

That's the one to pull the trigger on right here. And I would sell marsh now. Let's take one more. Let's go to marcy in georgia. >> caller: hey, jim, honey. Sho enough boo-yah from georgia. >> oh, yeah. I've got to get down to the pink state real soon. What's up, marci in. >> caller: i've been pretty dazzled by reynolds america inc.

“… at's up, marci in. >> caller: i've been pretty dazzled by reynolds america inc. …”

View All Sunstone Hotel Investors, Inc. Stock News

Key Fundamentals

SHO - Sunstone Hotel Investors, Inc. Fundamentals
Price (2/9 12:52PM) $8.14
Volume (2/9 12:52PM) 406,231
Last Close Price $8.14
10 Day Average Volume 974,700
13 Week Price Range $7.26 - $9.84
52 Week Price Range $1.87 - $9.84
LTM Revenue $855.6 Million
 
Shares Outstanding (12/2008) 98.2 Million
Market Capitalization $799.4 Million
Shares Held By Institutions 72.9 Million
Institutional Holders 192
% Shares Held By Institutions 97%
Earnings Per Share (EPS) $1.00
P/E Ratio n/a
Book Value Per Share $6.96
 
Gross Margin n/a%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 3.06
Fiscal Year Ends December

About Sunstone Hotel Investors, Inc.

Sunstone Hotel Investors, Inc. is considered to operate in the Financial sector. They specifically operate in the Reit - Hotel/Motel business segment contained within the Real Estate industry.

A real estate investment trust, which is engaged in acquiring, owning, asset managing and renovating hotel properties.