Host Hotels & Resorts, Inc. (NASDAQ: HST)

Sector: Real Estate Industry: REIT - Hotel & Motel CIK: 0001070750
Market Cap 11.01 Bn
P/B 1.71
P/E -1,000.50
P/S 3.81
ROIC (Qtr) 6.32
Div Yield % 1.75
Rev 1y % (Qtr) 0.91
Total Debt (Qtr) 5.64 Bn
Debt/Equity (Qtr) 0.85
Add ratio to table...

About

Investment thesis

Bull case

  • Operating cash flow of 1.30B provides exceptional 129.80x coverage of minority interest expenses 10M, showing strong core operations.
  • Operating cash flow of 1.30B provides strong 56.43x coverage of stock compensation 23M, indicating sustainable incentive practices.
  • Strong operating cash flow of 1.30B provides 10.38x coverage of SG&A expenses 125M, showing efficient operational cost management.
  • Robust free cash flow of 951M exceeds capital expenditure of 347M by 2.74x, indicating strong organic growth funding capability.
  • Cash position of 539M provides exceptional 53.90x coverage of minority interest expenses 10M, indicating strong liquidity.

Bear case

  • Operating cash flow of 1.30B barely covers its investment activities of (489M), with a coverage ratio of -2.65, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.30B provides thin coverage of dividend payments of (625M) with a -2.08 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 951M represents just -118.88x of debt issuance (8M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating earnings of 1B show weak coverage of depreciation charges of 784M, with a 1.28 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 784M relative to operating cash flow of 1.30B, which is 0.60x suggests significant maintenance capital requirements affecting free cash flow.

Product and Service Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the REIT - Hotel & Motel
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 HST Host Hotels & Resorts, Inc. 11.01 Bn -1,000.50 3.81 5.64 Bn
2 RHP Ryman Hospitality Properties, Inc. 5.24 Bn 19.78 4.11 4.13 Bn
3 PK Park Hotels & Resorts Inc. 2.45 Bn 8.02 0.92 4.78 Bn
4 DRH DiamondRock Hospitality Co 1.84 Bn -111.00 2.53 1.19 Bn
5 XHR Xenia Hotels & Resorts, Inc. 1.80 Bn 16.40 1.94 1.42 Bn
6 PEB Pebblebrook Hotel Trust 1.65 Bn -3.89 3.73 2.57 Bn
7 RLJ RLJ Lodging Trust 1.36 Bn 31.88 1.08 2.34 Bn
8 APLE Apple Hospitality REIT, Inc. 1.13 Bn 14.99 3.09 1.62 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.23 0.89
EV to Cash from Ops. EV/CFO 55.08 26.26
EV to Debt EV to Debt 2.85 1.73
EV to EBIT EV/EBIT 180.72 25.23
EV to EBITDA EV/EBITDA 31.42 10.84
EV to Free Cash Flow [EV/FCF] EV/FCF 101.80 19.67
EV to Market Cap EV to Market Cap 1.46 13.92
EV to Revenue EV/Rev 5.57 3.79
Price to Book Value [P/B] P/B 1.71 2.70
Price to Earnings [P/E] P/E -1,000.50 -67.28
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.18 -3.61
Dividend Payout Ratio % Div Payout % (Qtr) 85.70 438.75
Dividend per Basic Share Div per Share (Qtr) 0.90 0.72
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 65.08 42.25
Interest Coverage Int. cover (Qtr) 4.28 1.26
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -5.15 -27.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -4.43 82.84
Dividend Growth (1y) % Div 1y % (Qtr) -14.29 15.12
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 4.91 -26.70
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -2.31 -3.05
EBIT Growth (1y) % EBIT 1y % (Qtr) 4.82 -26.98
EBT Growth (1y) % EBT 1y % (Qtr) 2.27 -431.84
EPS Growth (1y) % EPS 1y % (Qtr) 1.94 -120.53
FCF Growth (1y) % FCF 1y % (Qtr) -16.87 73.92
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.62 -2.32
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.46 0.34
Cash Payout Ratio Cash Payout (Qtr) 0.38 0.16
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.07
Debt to Equity Ratio Debt/Equity (Qtr) 0.85 1.85
Interest Cover Ratio Int Coverage (Qtr) 4.28 1.26
Times Interest Earned Times Interest Earned (Qtr) 4.28 1.26
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 30.10 23.64
EBIT Margin % EBIT Margin % (Qtr) 16.85 9.54
EBT Margin % EBT Margin % (Qtr) 12.91 -0.79
Gross Margin % Gross Margin % (Qtr) 28.80 38.19
Net Profit Margin % Net Margin % (Qtr) 12.40 -2.21