Extended Stay America, Inc. [NASDAQ:STAY]: Analyst Rating and Earnings

Professional stock traders oftentimes make sure they verify what some leading Wall Street voices have to say about a potential buy. Currently, in relation to Extended Stay America, Inc. [STAY], the latest Wall Street average recommendation we can view is from the fiscal quarter that will be ending in the month of December. On average, stock market experts give STAY an Outperform rating. Its stock price has been found in the range of 14.77 to 22.58. This is compared to its latest closing price of $18.19.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Extended Stay America, Inc. [STAY] is sitting at 1.82. This is compared to 1 month ago, when its average rating was 1.82.

For the quarter ending in Mar-19 Extended Stay America, Inc. [STAY] generated $0.28 billion in sales. That’s 0.78% higher than the average estimate of $0.28 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.

Keep on the lookout for this organization’s next scheduled financial results, which are expected to be made public on Wed 1 May (16 days ago).

Fundamental Analysis of Extended Stay America, Inc. [STAY]

Now let’s turn to look at profitability: with a current Operating Margin for Extended Stay America, Inc. [STAY] sitting at +29.68 and its Gross Margin at +36.82, this company’s Net Margin is now 9.60%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 9.96, and its Return on Invested Capital has reached 10.40%. Its Return on Equity is 14.41, and its Return on Assets is 2.81. These metrics suggest that this Extended Stay America, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, Extended Stay America, Inc. [STAY] has generated a Total Debt to Total Equity ratio of 305.67. Similarly, its Total Debt to Total Capital is 75.35, while its Total Debt to Total Assets stands at 61.09. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 305.67, and its Long-Term Debt to Total Capital is 75.35. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.

What about valuation? This company’s Enterprise Value to EBITDA is 9.39 and its Total Debt to EBITDA Value is 4.09. The Enterprise Value to Sales for this firm is now 4.40, and its Total Debt to Enterprise Value stands at 0.43. Extended Stay America, Inc. [STAY] has a Price to Book Ratio of 3.71, a Price to Cash Flow Ratio of 6.54 and P/E Ratio of 28.90. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.

Shifting the focus to workforce efficiency, Extended Stay America, Inc. [STAY] earns $157,415 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 61.68 and its Total Asset Turnover is 0.32. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.53 and its Current Ratio is 1.53. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.

Extended Stay America, Inc. [STAY] has 187.79M shares outstanding, amounting to a total market cap of $3.42B. Its stock price has been found in the range of 14.77 to 22.58. At its current price, it has moved by -19.44% from its 52-week high, and it has moved 23.16% from its 52-week low.

This stock’s Beta value is currently 1.19, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 52.37. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Extended Stay America, Inc. [STAY] a Reliable Buy?

Shares of Extended Stay America, Inc. [STAY], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.