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Service Properties Trust (Service Properties Trust) Piotroski F-Score : 5 (As of Apr. 25, 2024)


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What is Service Properties Trust Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Service Properties Trust has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Service Properties Trust's Piotroski F-Score or its related term are showing as below:

SVC' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 5   Max: 6
Current: 5

During the past 13 years, the highest Piotroski F-Score of Service Properties Trust was 6. The lowest was 4. And the median was 5.


Service Properties Trust Piotroski F-Score Historical Data

The historical data trend for Service Properties Trust's Piotroski F-Score can be seen below:

* 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.

* Premium members only.

Service Properties Trust Piotroski F-Score Chart

Service Properties Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 6.00 5.00 5.00 5.00

Service Properties Trust Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 6.00 6.00 6.00 5.00

Competitive Comparison of Service Properties Trust's Piotroski F-Score

For the REIT - Hotel & Motel subindustry, Service Properties Trust's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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.


Service Properties Trust's Piotroski F-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Service Properties Trust's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Service Properties Trust's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 25.95 + -11.278 + -4.128 + -43.323 = $-33 Mil.
Cash Flow from Operations was 12.373 + 316.13 + 73.455 + 83.591 = $486 Mil.
Revenue was 429.209 + 503.779 + 496.825 + 444.05 = $1,874 Mil.
Gross Profit was 129.643 + 194.679 + 179.073 + 128.899 = $632 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(7488.191 + 7482.166 + 7649.651 + 7604.311 + 7356.116) / 5 = $7516.087 Mil.
Total Assets at the begining of this year (Dec22) was $7,488 Mil.
Long-Term Debt & Capital Lease Obligation was $5,520 Mil.
Total Current Assets was $215 Mil.
Total Current Liabilities was $610 Mil.
Net Income was -119.822 + 11.35 + 7.5 + -31.409 = $-132 Mil.

Revenue was 393.764 + 515.777 + 498.251 + 455.219 = $1,863 Mil.
Gross Profit was 103.421 + 190.583 + 179.985 + 148.489 = $622 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(9153.315 + 9017.072 + 8331.559 + 7632.713 + 7488.191) / 5 = $8324.57 Mil.
Total Assets at the begining of last year (Dec21) was $9,153 Mil.
Long-Term Debt & Capital Lease Obligation was $5,656 Mil.
Total Current Assets was $202 Mil.
Total Current Liabilities was $444 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Service Properties Trust's current Net Income (TTM) was -33. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Service Properties Trust's current Cash Flow from Operations (TTM) was 486. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=-32.779/7488.191
=-0.00437743

ROA (Last Year)=Net Income/Total Assets (Dec21)
=-132.381/9153.315
=-0.01446263

Service Properties Trust's return on assets of this year was -0.00437743. Service Properties Trust's return on assets of last year was -0.01446263. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Service Properties Trust's current Net Income (TTM) was -33. Service Properties Trust's current Cash Flow from Operations (TTM) was 486. ==> 486 > -33 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=5520.22/7516.087
=0.73445398

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=5655.53/8324.57
=0.67937803

Service Properties Trust's gearing of this year was 0.73445398. Service Properties Trust's gearing of last year was 0.67937803. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=214.706/609.763
=0.35211385

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=202.358/443.869
=0.45589577

Service Properties Trust's current ratio of this year was 0.35211385. Service Properties Trust's current ratio of last year was 0.45589577. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Service Properties Trust's number of shares in issue this year was 165.153. Service Properties Trust's number of shares in issue last year was 164.861. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=632.294/1873.863
=0.33742808

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=622.478/1863.011
=0.3341247

Service Properties Trust's gross margin of this year was 0.33742808. Service Properties Trust's gross margin of last year was 0.3341247. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=1873.863/7488.191
=0.25024242

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=1863.011/9153.315
=0.20353402

Service Properties Trust's asset turnover of this year was 0.25024242. Service Properties Trust's asset turnover of last year was 0.20353402. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+1+1+0+0+0+1+1
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Service Properties Trust has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Service Properties Trust  (NAS:SVC) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Service Properties Trust Piotroski F-Score Related Terms

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Service Properties Trust (Service Properties Trust) Business Description

Traded in Other Exchanges
Address
255 Washington Street, Suite 300, Two Newton Place, Newton, MA, USA, 02458-1634
Service Properties Trust is a real estate investment trust that owns hotel properties. These properties are located primarily in the United States, along with Canada and Puerto Rico. The company operates through its hotel investment unit and net lease investments. The firm derives the majority of its revenue from the hotel real estate investments unit. The hotels are distinguished between their service levels, which include full service, select service, and extended stay; and chain scale, which includes luxury, upper upscale, upscale, upper midscale, and midscale. Most hotels are extended stay or upscale. Some of the major hotel brands include Courtyard by Marriott, Royal Sonesta, Crowne Plaza Hotels & Resorts, and Hyatt Place.
Executives
Rajan Penkar director C/O TRAVELCENTERS OF AMERICA INC., 24601 CENTER RIDGE ROAD, WESTLAKE OH 44145
Todd W Hargreaves officer: Vice President C/O THE RMR GROUP LLC, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Robert E. Cramer director C/O SERVICE PROPERTIES TRUST, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Laurie B. Burns director C/O SERVICE PROPERTIES TRUST, 255 WASHINGTON STREET, SUITE 300, NEWTON MA 02458
Brian E. Donley officer: CFO and Treasurer C/O THE RMR GROUP LLC,, TWO NEWTON PL., 255 WASHINGTON ST., NEWTON MA 02458
Donna D. Fraiche director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
William A. Lamkin director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Adam D. Portnoy director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Bruce M. Gans other: Trustee C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Gerard M Martin director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Barry M. Portnoy director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Arthur G Koumantzelis director C/O REITMANAGEMENT & RESEARCH LLC, 400 CENTRE STREET, NUWTON MA 02458
John L Harrington director C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458
Frank J Bailey director C/O REIT MANAGEMENT & RESEARCH LLC, 400 CENTRE STREET, NEWTON MA 02458
John G. Murray officer: President, Secretary, COO C/O THE RMR GROUP LLC, TWO NEWTON PL., 255 WASH. ST., STE. 300, NEWTON MA 02458