Hospitality Properties Trust [NASDAQ:HPT]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Hospitality Properties Trust [HPT], the latest average analyst recommendation we can see is from the quarter closing in December. On average, stock market experts give HPT an Outperform rating. Its stock price has been found in the range of 22.47 to 29.43. This is compared to its latest closing price of $24.61.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Hospitality Properties Trust [HPT] is sitting at 2.50. This is compared to 1 month ago, when its average rating was 2.40.
For the quarter ending in Mar-19 Hospitality Properties Trust [HPT] generated $0.52 billion in sales. That’s 0.11% lower than the average estimate of $0.53 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Thu 8 Aug (In 56 Days).
Fundamental Analysis of Hospitality Properties Trust [HPT]
Now let’s turn to look at profitability: with a current Operating Margin for Hospitality Properties Trust [HPT] sitting at +7.94 and its Gross Margin at +21.75, this company’s Net Margin is now 14.50%. These measurements indicate that Hospitality Properties Trust [HPT] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 2.70, and its Return on Invested Capital has reached 5.80%. Its Return on Equity is 6.94, and its Return on Assets is 2.59. These metrics suggest that this Hospitality Properties Trust 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, Hospitality Properties Trust [HPT] has generated a Total Debt to Total Equity ratio of 160.64. Similarly, its Total Debt to Total Capital is 61.63, while its Total Debt to Total Assets stands at 58.14. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 160.64, and its Long-Term Debt to Total Capital is 61.63. 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 13.84 and its Total Debt to EBITDA Value is 5.35. The Enterprise Value to Sales for this firm is now 3.54, and its Total Debt to Enterprise Value stands at 0.52. Hospitality Properties Trust [HPT] has a Price to Book Ratio of 1.51, a Price to Cash Flow Ratio of 6.57 and P/E Ratio of 12.13. These metrics all suggest that Hospitality Properties Trust is more likely to generate a positive ROI.
Similarly, this company’s Receivables Turnover is 26.56 and its Total Asset Turnover is 0.32.
Hospitality Properties Trust [HPT] has 163.36M shares outstanding, amounting to a total market cap of $3.99B. Its stock price has been found in the range of 22.47 to 29.43. At its current price, it has moved by -16.99% from its 52-week high, and it has moved 8.72% from its 52-week low.
This stock’s Beta value is currently 0.98, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 32.78. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Hospitality Properties Trust [HPT] a Reliable Buy?
Hospitality Properties Trust [HPT] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.