Hoteis Othon (BSP:HOOT4) Financial Strength: 6 (As of Jun. 2026) — 20% Above Median

Author: Vera Yuan Vera Yuan
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Director of Data and Quant Analytics at GuruFocus
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Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

BSP:HOOT4 Hoteis Othon SA BSP:HOOT4
54 GF Score
Price R$8.89
GF Value R$4.45
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Hoteis Othon Financial Strength?

Hoteis Othon BSP:HOOT4 +9.75% 54 Financial Strength is 6 as of Jun. 2026, which is 20% above its 10-year median of 5.00. GuruFocus rates BSP:HOOT4 with a GF Score™ of 54/100 and a GF Value™ of R$4.45 (Significantly Overvalued). The stock has 5 warning signs investors should review.

Hoteis Othon has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Hoteis Othon's Interest Coverage for the quarter that ended in Jun. 2026 was 1.69. Hoteis Othon's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.00. As of today, Hoteis Othon's Altman Z-Score is 0.61.


Hoteis Othon  (BSP:HOOT4) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Hoteis Othon has the Financial Strength Rank of 6.


Hoteis Othon Financial Strength Related Terms


BSP:HOOT4 vs MAR, HLT, H: Financial Strength Comparison

For the Lodging subindustry, Hoteis Othon's Financial Strength, along with its competitors' market caps and Financial Strength 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.


Hoteis Othon Financial Strength vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Hoteis Othon's Financial Strength distribution charts can be found below:

* The bar in red indicates where Hoteis Othon's Financial Strength falls into.


BSP:HOOT4
54GF Score
Hoteis Othon SA BSP:HOOT4
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Hoteis Othon Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Hoteis Othon's Interest Expense for the months ended in Jun. 2026 was R$-5.9 Mil. Its Operating Income for the months ended in Jun. 2026 was R$9.9 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was R$0.0 Mil.

Hoteis Othon's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*9.873/-5.854
=1.69

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Hoteis Othon SA interest coverage is 1.39, which is low.

2. Debt to revenue ratio. The lower, the better.

Hoteis Othon's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0) / 179.9
=0.00

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Hoteis Othon has a Z-score of 0.61, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.61 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 6 mean?
Hoteis Othon (BSP:HOOT4) has a Financial Strength of 6 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Hoteis Othon and its competitors. This is 20% above median its historical median of 5.00. Over the past decade, Hoteis Othon's Financial Strength has ranged from 2.00 to 6.00.
Is Hoteis Othon's Financial Strength too high?
Hoteis Othon's current Financial Strength of 6 is 20% above median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 6.00. Overall, Hoteis Othon has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hoteis Othon's Financial Strength compare to MAR and HLT?
Hoteis Othon's Financial Strength of 6 can be compared against companies in the Travel & Leisure industry. Historically, Hoteis Othon's own Financial Strength has ranged from 2.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Travel & Leisure company?
A good Financial Strength depends on the Travel & Leisure industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Hoteis Othon and its competitors. Hoteis Othon's current Financial Strength is 6, which is 20% above median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hoteis Othon stock overvalued right now?
Based on GuruFocus' analysis, Hoteis Othon (BSP:HOOT4) is currently considered Significantly Overvalued. The stock's GF Value™ is R$4.45, compared to a current price of R$8.89 — trading 99.8% above its estimated fair value. The current Financial Strength is 6, which is 20% above median its 10-year median of 5.00. Hoteis Othon's overall GF Score™ is 54/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Hoteis Othon (BSP:HOOT4), the current Financial Strength is 6 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 Hoteis Othon (BSP:HOOT4) Overvalued in 2026?

Based on GuruFocus' analysis, Hoteis Othon stock appears to be overvalued. The current stock price of R$8.89 is trading 99.8% above its estimated GF Value™ of R$4.45. GuruFocus considers Hoteis Othon to be Significantly Overvalued.

Key valuation signals for BSP:HOOT4:

  • Financial Strength: 6 (20% above median its 10-year median of 5.00)
  • GF Value™: R$4.45 vs. price of R$8.89 (99.8% above fair value)
  • GF Score™: 54/100 with 5 warning signs

No single metric tells the full story. See the BSP:HOOT4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hoteis Othon Business Description

Address R Teofilo Otoni 15 - Sala 1204/parte, Rio de Janeiro, RJ, BRA, 20090080
Hoteis Othon SA provides services in the hotel industry. It manages hotels, inns and suites in the states of Rio de Janeiro, São Paulo, Minas Gerais, Bahia, Ceará in Brazil, and in the cities of Lisbon and Porto in Portugal.
54GF Score

Get the complete analysis for BSP:HOOT4

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

R$8.89
Price
R$4.45
GF Value