Sunstone Hotel Investors (FRA:UF2) Beneish M-Score: -2.83 (As of Aug. 04, 2026)

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FRA:UF2 Sunstone Hotel Investors Inc FRA:UF2
76 GF Score
Price €10.00
GF Value €9.34
! 10 Warning Signs
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What is Sunstone Hotel Investors Beneish M-Score?

Sunstone Hotel Investors FRA:UF2 -0.99% 76 Beneish M-Score is -2.83 as of Aug. 04, 2026. GuruFocus rates FRA:UF2 with a GF Score™ of 76/100 and a GF Value™ of €9.34. The stock has 10 warning signs investors should review. Among 748 REITs companies, Sunstone Hotel Investors ranks better than 81.95% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.83 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:UF2' s Beneish M-Score Range Over the Past 10 Years
Min: -3.8   Med: -2.59   Max: 13.53
Current: -2.83

During the past 13 years, the highest Beneish M-Score of Sunstone Hotel Investors was 13.53. The lowest was -3.80. And the median was -2.59.


Sunstone Hotel Investors Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Sunstone Hotel Investors's Beneish M-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.

Sunstone Hotel Investors Beneish M-Score Chart

Sunstone Hotel Investors Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.55 -2.25 -2.92 -2.53 -2.75

Sunstone Hotel Investors Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-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 -2.29 -2.61 -2.88 -2.75 -2.83

FRA:UF2 vs PEB, XHR, RLJ: Beneish M-Score Comparison

For the REIT - Hotel & Motel subindustry, Sunstone Hotel Investors's Beneish M-Score, along with its competitors' market caps and Beneish M-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 Beneish M-Score vs REITs Industry

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

* The bar in red indicates where Sunstone Hotel Investors's Beneish M-Score falls into.


FRA:UF2
76GF Score
Sunstone Hotel Investors Inc FRA:UF2
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sunstone Hotel Investors Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Sunstone Hotel Investors for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.85+0.528 * 1.0026+0.404 * 0.9945+0.892 * 0.9908+0.115 * 0.9664
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9649+4.679 * -0.048932-0.327 * 1.1285
=-2.90

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was €39.2 Mil.
Revenue was 224.648 + 202.369 + 195.383 + 225.222 = €847.6 Mil.
Gross Profit was 106.414 + 92.28 + 86.024 + 113.183 = €397.9 Mil.
Total Current Assets was €208.2 Mil.
Total Assets was €2,603.8 Mil.
Property, Plant and Equipment(Net PPE) was €4.8 Mil.
Depreciation, Depletion and Amortization(DDA) was €117.2 Mil.
Selling, General, & Admin. Expense(SGA) was €47.2 Mil.
Total Current Liabilities was €79.7 Mil.
Long-Term Debt & Capital Lease Obligation was €821.3 Mil.
Net Income was 16.052 + 6.163 + 1.126 + 9.341 = €32.7 Mil.
Non Operating Income was 0 + 0 + -0.153 + -7.587 = €-7.7 Mil.
Cash Flow from Operations was 39.308 + 31.279 + 46.323 + 50.921 = €167.8 Mil.
Total Receivables was €46.6 Mil.
Revenue was 216.51 + 205.105 + 203.979 + 229.91 = €855.5 Mil.
Gross Profit was 99.191 + 92.394 + 93.034 + 118.017 = €402.6 Mil.
Total Current Assets was €210.7 Mil.
Total Assets was €2,864.4 Mil.
Property, Plant and Equipment(Net PPE) was €9.1 Mil.
Depreciation, Depletion and Amortization(DDA) was €118.5 Mil.
Selling, General, & Admin. Expense(SGA) was €49.3 Mil.
Total Current Liabilities was €390.2 Mil.
Long-Term Debt & Capital Lease Obligation was €488.2 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(39.24 / 847.622) / (46.593 / 855.504)
=0.046294 / 0.054463
=0.85

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(402.636 / 855.504) / (397.901 / 847.622)
=0.470642 / 0.469432
=1.0026

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (208.214 + 4.777) / 2603.774) / (1 - (210.708 + 9.12) / 2864.431)
=0.918199 / 0.923256
=0.9945

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=847.622 / 855.504
=0.9908

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(118.505 / (118.505 + 9.12)) / (117.246 / (117.246 + 4.777))
=0.928541 / 0.960852
=0.9664

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(47.158 / 847.622) / (49.327 / 855.504)
=0.055636 / 0.057658
=0.9649

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((821.34 + 79.682) / 2603.774) / ((488.173 + 390.205) / 2864.431)
=0.346045 / 0.30665
=1.1285

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(32.682 - -7.74 - 167.831) / 2603.774
=-0.048932

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Sunstone Hotel Investors has a M-score of -2.90 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.83 mean?
Sunstone Hotel Investors (FRA:UF2) has a Beneish M-Score of -2.83 as of Aug. 04, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Sunstone Hotel Investors and its competitors. According to the industry distribution chart, Sunstone Hotel Investors ranks #135 out of 748 companies in the REITs industry, placing it in the top 18%.
Is Sunstone Hotel Investors' Beneish M-Score too high?
Sunstone Hotel Investors' current Beneish M-Score is -2.83. Based on the distribution chart, Sunstone Hotel Investors ranks #135 out of 748 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Sunstone Hotel Investors has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Sunstone Hotel Investors' Beneish M-Score compare to PEB and XHR?
According to the REITs industry distribution chart, Sunstone Hotel Investors ranks #135 out of 748 companies for Beneish M-Score. This places Sunstone Hotel Investors in the top 18% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a REITs company?
A good Beneish M-Score depends on the REITs industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Sunstone Hotel Investors and its competitors. Sunstone Hotel Investors's current Beneish M-Score is -2.83. 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?
Sunstone Hotel Investors (FRA:UF2) has a current Beneish M-Score of -2.83. The stock's GF Value™ is €9.34, compared to a current price of €10.00 — trading 7.1% above its estimated fair value. The current Beneish M-Score is -2.83. Sunstone Hotel Investors' overall GF Score™ is 76/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Sunstone Hotel Investors (FRA:UF2), the current Beneish M-Score is -2.83 as of Aug. 04, 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 (FRA:UF2) Overvalued in 2026?

Based on GuruFocus' analysis, Sunstone Hotel Investors stock appears to be overvalued. The current stock price of €10.00 is trading 7.1% above its estimated GF Value™ of €9.34.

Key valuation signals for FRA:UF2:

  • Beneish M-Score: -2.83
  • GF Value™: €9.34 vs. price of €10.00 (7.1% above fair value)
  • GF Score™: 76/100 with 10 warning signs

No single metric tells the full story. See the FRA:UF2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sunstone Hotel Investors Business Description

Industry Real EstateREITs
Other Exchanges SHO:USA
Address 15 Enterprise, Suite 200, Aliso Viejo, CA, USA, 92656
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.
76GF Score

Get the complete analysis for FRA:UF2

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€10.00
Price
€9.34
GF Value