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Sunstone Hotel Investors Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

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

Sunstone Hotel Investors has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Sunstone Hotel Investors's Piotroski F-Score or its related term are showing as below:

SHO' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of Sunstone Hotel Investors was 8. The lowest was 1. And the median was 6.


Sunstone Hotel Investors Piotroski F-Score Historical Data

The historical data trend for Sunstone Hotel Investors'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.

Sunstone Hotel Investors Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 6.00 5.00 4.00 6.00

Sunstone Hotel Investors Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score 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 Premium Member Only Premium Member Only Premium Member Only 1.00 3.00 6.00 6.00 6.00

Competitive Comparison

For the REIT - Hotel & Motel subindustry, Sunstone Hotel Investors'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.

   

Sunstone Hotel Investors Piotroski F-Score Distribution

For the REITs industry and Real Estate sector, Sunstone Hotel Investors's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Sunstone Hotel Investors'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 (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was -23.057 + 137.989 + 13.989 + 35.349 = $164.3 Mil.
Cash Flow from Operations was 22.327 + 19.966 + 13.148 + 77.505 = $132.9 Mil.
Revenue was 167.421 + 173.886 + 172.315 + 251.28 = $764.9 Mil.
Gross Profit was 75.703 + 79.133 + 78.394 + 135.662 = $368.9 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(3015.362 + 3034.595 + 3041.049 + 2952.868 + 3086.623) / 5 = $3026.0994 Mil.
Total Assets at the begining of this year (Jun21) was $3,015.4 Mil.
Long-Term Debt & Capital Lease Obligation was $822.2 Mil.
Total Current Assets was $209.2 Mil.
Total Current Liabilities was $151.9 Mil.
Net Income was -89.291 + -37.999 + -53.312 + -27.322 = $-207.9 Mil.

Revenue was 28.91 + 37.36 + 50.633 + 117.21 = $234.1 Mil.
Gross Profit was -20.723 + -6.998 + 11.003 + 52.345 = $35.6 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(3423.701 + 3246.782 + 2985.717 + 2916.674 + 3015.362) / 5 = $3117.6472 Mil.
Total Assets at the begining of last year (Jun20) was $3,423.7 Mil.
Long-Term Debt & Capital Lease Obligation was $784.7 Mil.
Total Current Assets was $242.8 Mil.
Total Current Liabilities was $113.7 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.

Sunstone Hotel Investors's current Net Income (TTM) was 164.3. ==> Positive ==> Score 1.

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.

Sunstone Hotel Investors's current Cash Flow from Operations (TTM) was 132.9. ==> 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 (Jun21)
=164.27/3015.362
=0.0544777

ROA (Last Year)=Net Income/Total Assets (Jun20)
=-207.924/3423.701
=-0.06073077

Sunstone Hotel Investors's return on assets of this year was 0.0544777. Sunstone Hotel Investors's return on assets of last year was -0.06073077. ==> 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.

Sunstone Hotel Investors's current Net Income (TTM) was 164.3. Sunstone Hotel Investors's current Cash Flow from Operations (TTM) was 132.9. ==> 132.9 <= 164.3 ==> CFROA <= ROA ==> Score 0.

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: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=822.172/3026.0994
=0.27169365

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=784.721/3117.6472
=0.25170295

Sunstone Hotel Investors's gearing of this year was 0.27169365. Sunstone Hotel Investors's gearing of last year was 0.25170295. ==> 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: Jun22)=Total Current Assets/Total Current Liabilities
=209.228/151.888
=1.37751501

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=242.845/113.724
=2.13538919

Sunstone Hotel Investors's current ratio of this year was 1.37751501. Sunstone Hotel Investors's current ratio of last year was 2.13538919. ==> 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.

Sunstone Hotel Investors's number of shares in issue this year was 213.183. Sunstone Hotel Investors's number of shares in issue last year was 215.113. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

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
=368.892/764.902
=0.48227355

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=35.627/234.113
=0.15217865

Sunstone Hotel Investors's gross margin of this year was 0.48227355. Sunstone Hotel Investors's gross margin of last year was 0.15217865. ==> 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 (Jun21)
=764.902/3015.362
=0.25366838

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=234.113/3423.701
=0.0683801

Sunstone Hotel Investors's asset turnover of this year was 0.25366838. Sunstone Hotel Investors's asset turnover of last year was 0.0683801. ==> 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
=1+1+1+0+0+0+1+1+1
=6

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

Sunstone Hotel Investors has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Sunstone Hotel Investors  (NYSE:SHO) 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.


Sunstone Hotel Investors Piotroski F-Score Related Terms

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Sunstone Hotel Investors Business Description

Sunstone Hotel Investors logo
Address
200 Spectrum Center Drive, 21st Floor, Irvine, CA, USA, 92618
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. The firm's portfolio consists primarily of urban, upper-upscale hotels. The vast majority of these hotels are managed under Marriott, Hilton, Fairmont, and Sheraton brands. Regionally, the company's assets are located in its California, Other West, Midwest, and East geographical segments within the U.S. The majority of the company's revenue is derived from its Eastern operations, closely followed by its Californian operations. Sunstone's sole source of income is hotel revenue from its hotel ownership segment.
Executives
Reyes Aaron Robert officer: Chief Financial Officer 200 SPECTRUM CENTER DRIVE 21ST FLOOR IRVINE CA 92618
Mims Verett Ann director 200 SPECTRUM CENTER DRIVE 21ST FLOOR IRVINE CA 92618
Leslie Kristina M director DREAMWORKS ANIMATION SKG, INC. 1000 FLOWER STREET GLENDALE CA 91201
Ostapovicz Christopher Gerard officer: Chief Operating Officer 200 SPECTRUM CENTER DRIVE 21ST FLOOR IRVINE CA 92618
Digilio Monica S director ONE CAESARS PALACE DRIVE LAS VEGAS NV 89109
Klein David M officer: SVP - General Counsel 200 SPECTRUM CENTER DRIVE SUITE 2100 IRVINE CA 92618
Baird W Blake director 1411 SAND ISLAND PARKWAY HONOLULU HI 96819
Mccabe Murray J. director 1170 PEACHTREE STREET NE SUITE 600 ATLANTA GA 30309
Sloan David Ryan officer: SVP- General Counsel 120 VANTIS SUITE 350 ALISO VIEJO CA 92656
Monge Lindsay Newton officer: SVP - Treasurer & Secretary 120 VANTIS SUITE 350 ALISO VIEJO CA 92656
Giglia Bryan Albert officer: SVP - Chief Financial Officer 200 SPECTRUM CENTER DRIVE 21ST FLOOR IRVINE CA 92618
Springer Robert C officer: SVP - Acquisitions 200 SPECTRUM CENTER DRIVE SUITE 2100 IRVINE CA 92618
Batinovich Andrew director 200 SPECTRUM CENTER DRIVE SUITE 2100 IRVINE CA 92618
Pasquale Douglas M director 245 FICHER AVE STE D-1 COSTA MESA CA 92626
Arabia John V officer: Executive Vice President - CFO 200 SPECTRUM CENTER DRIVE SUITE 2100 IRVINE CA 92618

Sunstone Hotel Investors Headlines

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