Red Lion Hotels Corporation owns, manages, and franchises hotels under its Hotel RL, Red Lion Hotel, Red Lion Inn & Suites, GuestHouse International, and Settle Inn brands in the United States and Canada. The company was founded in 1937 and is based in Spokane, Washington.
RLH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Red Lion Hotels CORP with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Red Lion Hotels CORP ranked in the 94th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 4062.83% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for RLH, they are:
Red Lion Hotels CORP's weighted average cost of capital (WACC) is 10%; for context, that number is higher than 78.29% of tickers in our DCF set.
Red Lion Hotels CORP's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.94. This coverage rate is greater than that of merely 11.19% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Red Lion Hotels CORP experienced a tax rate of about 3% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than merely 20.83% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SUP, MDCA, MTOR, BH, and ODP can be thought of as valuation peers to RLH, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
Red Lion Hotels Corporation (the “Company”) (RLH), announced today that its current Chief Financial Officer Nate Troup is leaving the Company to join Twilio (TWLO) as its Vice President, Global Controller. Mr. Troup’s last day with the Company will be May 29, 2020. RLHC has engaged Gary A. Kohn, a financial consultant with extensive public company chief financial officer experience, to support RLHC during the transition and until a replacement can be identified.
Shares of Red Lion Hotels (NYSE:RLH) were flat in pre-market trading after the company reported Q1 results.Quarterly Results Earnings per share fell 88.24% over the past year to ($0.32), which were in line with the estimate of ($0.32).Revenue of $17,265,000 less by 33.56% year over year, which beat the estimate of $15,340,000.Looking Ahead Red Lion Hotels hasn't issued any earnings guidance for the time being.View more earnings on RLHRevenue guidance hasn't been issued by the company for now.Technicals 52-week high: $8.26Company's 52-week low was at $1.16Price action over last quarter: down 32.68%Company Overview Red Lion Hotels Corp is a hospitality group covering upscale, midscale and economy hotels with operations spread across the United States. It owns, manages and franchises hotel...