Braemar Hotels & Resorts Inc. Fundamental Analysis
Braemar Hotels & Resorts Inc. (BHR) shows weak financial fundamentals with a PE ratio of -10.98, profit margin of -2.24%, and ROE of -3.38%. The company generates $0.7B in annual revenue with weak year-over-year growth of -3.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 2.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BHR's fundamental strength across five key dimensions:
Efficiency Score
WeakBHR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBHR trades at attractive valuation levels.
Growth Score
ModerateBHR shows steady but slowing expansion.
Financial Health Score
ModerateBHR shows balanced financial health with some risks.
Profitability Score
WeakBHR struggles to sustain strong margins.
Key Financial Metrics
Is BHR Expensive or Cheap?
P/E Ratio
BHR trades at -10.98 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BHR's PEG of -0.13 indicates potential undervaluation.
Price to Book
The market values Braemar Hotels & Resorts Inc. at 0.35 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -5.41 times EBITDA. This is generally considered low.
How Well Does BHR Make Money?
Net Profit Margin
For every $100 in sales, Braemar Hotels & Resorts Inc. keeps $-2.24 as profit after all expenses.
Operating Margin
Core operations generate 12.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-3.38 in profit for every $100 of shareholder equity.
ROA
Braemar Hotels & Resorts Inc. generates $-0.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Braemar Hotels & Resorts Inc. generates limited operating cash flow of $47.75M, signaling weaker underlying cash strength.
Free Cash Flow
Braemar Hotels & Resorts Inc. produces free cash flow of $27.56M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.40 in free cash annually.
FCF Yield
BHR converts 16.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-10.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.25
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.03
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How BHR Stacks Against Its Sector Peers
| Metric | BHR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -10.98 | 23.27 | Better (Cheaper) |
| ROE | -3.38% | 680.00% | Weak |
| Net Margin | -2.24% | 1953.00% | Weak |
| Debt/Equity | 2.42 | -17.04 (disorted) | Distorted |
| Current Ratio | 2.05 | 23.29 | Strong Liquidity |
| ROA | -0.84% | -758.00% (disorted) | Weak |
BHR outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Braemar Hotels & Resorts Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.95%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
89.34%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
140.77%
Industry Style: Income, Inflation Hedge, REIT
High Growth