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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Service Properties Trust's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.00%.
As of today (2026-07-28), Service Properties Trust's WACC % is 7.88%. Service Properties Trust's ROC % is 3.37% (calculated using TTM income statement data).
Service Properties Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Service Properties Trust (STU:HPO0) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Service Properties Trust's WACC % is 7.88%. Service Properties Trust's ROC % is 3.37% (calculated using TTM income statement data).
Service Properties Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Service Properties Trust (STU:HPO0) has a ROC % of 2.00% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Service Properties Trust and its competitors.
Is Service Properties Trust's ROC % too high?
Service Properties Trust's current ROC % is 2.00%. The REITs industry median ROC % is 3.74. Service Properties Trust's value of 2.00% is 46.5% below this industry median. Overall, Service Properties Trust has a GF Score™ of 61/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Service Properties Trust's ROC % compare to INN and CLDT?
Service Properties Trust's ROC % of 2.00% can be compared against companies in the REITs industry. The industry median ROC % is 3.74. Service Properties Trust's value of 2.00% is 46.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a REITs company?
The median ROC % among REITs companies is 3.74, based on 734 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Service Properties Trust's current ROC % of 2.00% is 46.5% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Service Properties Trust and its competitors. For the REITs industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Service Properties Trust's current ROC % is 2.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Service Properties Trust stock overvalued right now?
Based on GuruFocus' analysis, Service Properties Trust (STU:HPO0) is currently considered Possible Value Trap. The stock's GF Value™ is €11.96, compared to a current price of €7.60 — trading 36.5% below its estimated fair value. The current ROC % is 2.00% and 46.5% below the REITs industry median of 3.74. Service Properties Trust's overall GF Score™ is 61/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Service Properties Trust (STU:HPO0), the current ROC % is 2.00% as of Mar. 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 Service Properties Trust (STU:HPO0) Overvalued in 2026?
Based on GuruFocus' analysis, Service Properties Trust stock appears to be undervalued.
The current stock price of €7.60 is trading 36.5% below its estimated GF Value™ of €11.96.
GuruFocus considers Service Properties Trust to be Possible Value Trap.
Key valuation signals for STU:HPO0:
ROC %: 2.00%
GF Value™: €11.96 vs. price of €7.60 (36.5% below fair value)
No single metric tells the full story. See the STU:HPO0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Service Properties Trust is a real estate investment trust that owns hotel properties. These properties are located in the United States, along with Canada and Puerto Rico. The company operates through its segments 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. The hotels are extended stay or upscale. Some of the hotel brands include Courtyard by Marriott, Royal Sonesta, Crowne Plaza, Hyatt Place, and others.
61GF Score
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