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Sunstone Hotel InvestorsSHO +0.32%77 FCF Margin % is 22.37% as of Jun. 2026, which is 4% above its 10-year median of 21.52. GuruFocus rates SHO with a GF Score™ of 77/100 and a GF Value™ of $11.15 (Fairly Valued). The stock has 9 warning signs investors should review. Among 922 REITs companies, Sunstone Hotel Investors ranks worse than 67.03% on this metric.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Hotel & Motel subindustry, Sunstone Hotel Investors's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sunstone Hotel Investors FCF Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Sunstone Hotel Investors's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Sunstone Hotel Investors's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sunstone Hotel Investors (SHO) has a FCF Margin % of 22.37% as of Jun. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Sunstone Hotel Investors and its competitors. This is near median its historical median of 21.52. According to the industry distribution chart, Sunstone Hotel Investors ranks #618 out of 922 companies in the REITs industry, placing it in the top 67%.
Is Sunstone Hotel Investors' FCF Margin % too high?
Sunstone Hotel Investors' current FCF Margin % of 22.37% is near median its 10-year median of 21.52. The REITs industry median FCF Margin % is 40.63. Sunstone Hotel Investors' value of 22.37% is 44.9% below this industry median. Based on the distribution chart, Sunstone Hotel Investors ranks #618 out of 922 companies in the REITs industry, which is below the industry midpoint. Overall, Sunstone Hotel Investors has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sunstone Hotel Investors' FCF Margin % compare to PEB and XHR?
According to the REITs industry distribution chart, Sunstone Hotel Investors ranks #618 out of 922 companies for FCF Margin %. This places Sunstone Hotel Investors in the lower half of its industry. The industry median FCF Margin % is 40.63. Sunstone Hotel Investors' value of 22.37% is 44.9% below this benchmark. While the company's 10-year median is 21.52 vs. the industry median of 40.63, Sunstone Hotel Investors has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a REITs company?
The median FCF Margin % among REITs companies is 40.63, based on 922 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sunstone Hotel Investors's current FCF Margin % of 22.37% is 44.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Sunstone Hotel Investors and its competitors. For the REITs industry, the median FCF Margin % is 40.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sunstone Hotel Investors's current FCF Margin % is 22.37%, which is near median its own 10-year median of 21.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sunstone Hotel Investors stock overvalued right now?
Based on GuruFocus' analysis, Sunstone Hotel Investors (SHO) is currently considered Fairly Valued. The stock's GF Value™ is $11.15, compared to a current price of $10.90 — trading 2.3% below its estimated fair value. The current FCF Margin % is 22.37%, which is near median its 10-year median of 21.52 and 44.9% below the REITs industry median of 40.63. Sunstone Hotel Investors' overall GF Score™ is 77/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Sunstone Hotel Investors (SHO), the current FCF Margin % is 22.37% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sunstone Hotel Investors (SHO) Overvalued in 2026?
Based on GuruFocus' analysis, Sunstone Hotel Investors stock appears to be undervalued.
The current stock price of $10.90 is trading 2.3% below its estimated GF Value™ of $11.15.
GuruFocus considers Sunstone Hotel Investors to be Fairly Valued.
Key valuation signals for SHO:
FCF Margin %: 22.37% (near median its 10-year median of 21.52)
GF Value™: $11.15 vs. price of $10.90 (2.3% below fair value)
Industry Position: 44.9% below the REITs median (#618 of 922)
No single metric tells the full story. See the SHO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sunstone Hotel Investors Inc is a real estate investment trust that acquires, owns, manages, and renovates the full-service hotel and select-service hotel properties across various states in the United States. Its firm's portfolio consists upper upscale and luxury hotels located in convention, resort destination and urban markets. Its majority of the hotels operate under a brand owned by Marriott, Hilton, Hyatt, Four Seasons or Montage. It operates geographically in California which generates the majority of its revenue; Florida; and Hawaii. The company's sole source of income is hotel revenue from its Hotel Ownership Segment.
77GF Score
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