Innsuites Hospitality Trust (NYSE: IHT)

Sector: Real Estate Industry: REIT - Hotel & Motel CIK: 0000082473
Market Cap 10.72 Mn
P/B 2.70
P/E -5.22
P/S 0.68
ROIC (Qtr) -3.97
Div Yield % 1.67
Rev 1y % (Qtr) -1.32
Total Debt (Qtr) 13.49 Mn
Debt/Equity (Qtr) 3.73
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About

Investment thesis

Bull case

  • Robust tangible asset base of 13.90M provides 112.77x coverage of working capital 123213, indicating strong operational backing.
  • Strong free cash flow of (1.10M) provides 28.53x coverage of acquisition spending (38546), indicating disciplined M&A strategy.
  • Free cash flow of (1.10M) provides excellent 6.26x coverage of dividends (175646), indicating sustainable shareholder returns.
  • Long-term investments of 3.63M provide solid 29.48x backing of working capital 123213, showing strategic capital allocation.
  • Tangible assets of 13.90M provide robust 10.70x coverage of current liabilities 1.30M, showing strong asset backing.

Bear case

  • Operating cash flow of (426314) barely covers its investment activities of (711792), with a coverage ratio of 0.60, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 14016 provide limited coverage of acquisition spending of (38546), which is -0.36x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (426314) shows concerning coverage of stock compensation expenses of 19440, with a -21.93 ratio indicating potential earnings quality issues.
  • Free cash flow of (1.10M) provides weak coverage of capital expenditures of 673246, with a -1.63 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (426314) provides minimal -1982.86x coverage of tax expenses of 215, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Subsequent Event Type Breakdown of Revenue (2025)

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 2.35 0.89
EV to Cash from Ops. EV/CFO -66.81 26.26
EV to Debt EV to Debt 2.42 1.73
EV to EBIT EV/EBIT -73.98 25.23
EV to EBITDA EV/EBITDA 45.17 10.84
EV to Free Cash Flow [EV/FCF] EV/FCF -19.77 19.67
EV to Market Cap EV to Market Cap 3.05 13.92
EV to Revenue EV/Rev 2.06 3.79
Price to Book Value [P/B] P/B 2.70 2.70
Price to Earnings [P/E] P/E -5.22 -67.28
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -8.25 -3.61
Dividend Payout Ratio % Div Payout % (Qtr) -11.80 438.75
Dividend per Basic Share Div per Share (Qtr) 0.02 0.72
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -16.13 42.25
Interest Coverage Int. cover (Qtr) -1.62 1.26
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -36.37 -27.90
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -96.90 82.84
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 15.12
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -102.21 -26.70
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 156.34 -3.05
EBIT Growth (1y) % EBIT 1y % (Qtr) -102.15 -26.98
EBT Growth (1y) % EBT 1y % (Qtr) -60.07 -431.84
EPS Growth (1y) % EPS 1y % (Qtr) -70.00 -120.53
FCF Growth (1y) % FCF 1y % (Qtr) 10.15 73.92
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -4.55 -2.32
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.54 0.34
Cash Payout Ratio Cash Payout (Qtr) 0.71 0.16
Cash Ratio Cash Ratio (Qtr) 0.01 0.00
Current Ratio Curr Ratio (Qtr) 1.10 0.07
Debt to Equity Ratio Debt/Equity (Qtr) 3.73 1.85
Interest Cover Ratio Int Coverage (Qtr) -1.62 1.26
Times Interest Earned Times Interest Earned (Qtr) -1.62 1.26
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -2.00 23.64
EBIT Margin % EBIT Margin % (Qtr) -12.02 9.54
EBT Margin % EBT Margin % (Qtr) -19.45 -0.79
Gross Margin % Gross Margin % (Qtr) 35.10 38.19
Net Profit Margin % Net Margin % (Qtr) -19.40 -2.21