Host Hotels & Resorts, Inc. Fundamental Analysis
Host Hotels & Resorts, Inc. (HST) shows moderate financial fundamentals with a PE ratio of 16.90, profit margin of 16.40%, and ROE of 15.16%. The company generates $6.1B in annual revenue with moderate year-over-year growth of 7.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HST's fundamental strength across five key dimensions:
Efficiency Score
WeakHST struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHST trades at attractive valuation levels.
Growth Score
ExcellentHST delivers strong and consistent growth momentum.
Financial Health Score
ModerateHST shows balanced financial health with some risks.
Profitability Score
ExcellentHST achieves industry-leading margins.
Key Financial Metrics
Is HST Expensive or Cheap?
P/E Ratio
HST trades at 16.90 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HST's PEG of 0.33 indicates potential undervaluation.
Price to Book
The market values Host Hotels & Resorts, Inc. at 2.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.13 times EBITDA. This is generally considered low.
How Well Does HST Make Money?
Net Profit Margin
For every $100 in sales, Host Hotels & Resorts, Inc. keeps $16.40 as profit after all expenses.
Operating Margin
Core operations generate 14.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.16 in profit for every $100 of shareholder equity.
ROA
Host Hotels & Resorts, Inc. generates $7.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Host Hotels & Resorts, Inc. generates strong operating cash flow of $1.53B, reflecting robust business health.
Free Cash Flow
Host Hotels & Resorts, Inc. generates strong free cash flow of $1.03B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.51 in free cash annually.
FCF Yield
HST converts 6.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.83
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How HST Stacks Against Its Sector Peers
| Metric | HST Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.90 | 23.27 | Better (Cheaper) |
| ROE | 15.16% | 680.00% | Weak |
| Net Margin | 16.40% | 1953.00% | Weak |
| Debt/Equity | 0.83 | -17.04 (disorted) | Distorted |
| Current Ratio | 0.00 | 23.29 | Weak Liquidity |
| ROA | 7.69% | -758.00% (disorted) | Weak |
HST outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Host 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
284.71%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
206.53%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
598.72%
Industry Style: Income, Inflation Hedge, REIT
High Growth