Of note is the ratio of Service Properties Trust's sales and general administrative expense to its total operating expenses; only 5.15% of US stocks have a lower such ratio.
For SVC, its debt to operating expenses ratio is greater than that reported by 91.67% of US equities we're observing.
Service Properties Trust's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 23.82%, greater than the shareholder yield of 91.65% of stocks in our set.
If you're looking for stocks that are quantitatively similar to Service Properties Trust, a group of peers worth examining would be WPG, KNOP, HEP, TRTN, and GLOG.
SVC's SEC filings can be seen here. And to visit Service Properties Trust's official web site, go to www.svcreit.com.
Service Properties Trust operates as a real estate investment trust. The Company invests in properties, as well as provides leasing and management services. Service Properties Trust serves in the State of Massachusetts.
SVC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SVC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Service Properties Trust ranked in the 6th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Service Properties Trust, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 0.43 -- which is good for besting just 17.24% of its peer stocks (US stocks in the Real Estate sector with positive cash flow).
Its compound free cash flow growth rate, as measured over the past 5.52 years, is -0.17% -- higher than merely 9.77% of stocks in our DCF forecasting set.
23% of the company's capital comes from equity, which is greater than just 6.25% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Real Estate that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SVC, try ESS, MLP, SHO, APLE, and AXR.
Service Properties Trust (Nasdaq: SVC) today announced a regular quarterly cash distribution on its common shares of $0.01 per common share ($0.04 per share per year). This distribution will be paid to SVC’s common shareholders of record as of the close of business on January 25, 2021 and distributed on or about February 18, 2021.
Service Properties Trust (Nasdaq: SVC), or SVC, today announced that it has completed the previously announced sale of ten Hawthorn Suites branded hotels with 1,212 rooms and a net carrying value of $30.4 million for an aggregate sales price of $41.0 million, excluding closing costs. The proceeds from the sale will be used for the repayment of debt.
Service Properties Trust (Nasdaq: SVC), or SVC, today announced that it has completed the previously announced transition of branding and management for 12 hotels to Sonesta International Hotels Corporation, or Sonesta. This includes three hotels from InterContinental Hotels Group, plc, or IHG, located in Canada and Puerto Rico and nine hotels from Marriott International, Inc., or MAR.
Sonesta International Hotels Corporation announced the addition of 102 properties to its global hotel portfolio. 99 of the hotels have already been reflagged as Sonesta on 12/1, and the three remaining hotels, located in Canada and Puerto Rico, will be reflagged later in the month. All the hotels are owned by Service Properties Trust (Nasdaq: SVC).