Examining Service Properties Trust (SVC)’s cash flow and debt position

Service Properties Trust (NASDAQ: SVC) closed the day trading at $6.51 down -3.12% from the previous closing price of $6.72. In other words, the price has decreased by -$0.21 from its previous closing price. On the day, 1920349 shares were traded. SVC stock price reached its highest trading level at $6.76 during the session, while it also had its lowest trading level at $6.49.

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Ratios:

For a better understanding of SVC, let’s look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 5.46 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 2.22. In the meantime, Its Debt-to-Equity ratio is 4.63 whereas as Long-Term Debt/Eq ratio is at 4.63.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, HSBC Securities on October 23, 2023, initiated with a Hold rating and assigned the stock a target price of $8.

On April 22, 2022, Oppenheimer started tracking the stock assigning a Perform rating and target price of $8.50.

B. Riley Securities reiterated its Buy rating for the stock on February 28, 2022, while the target price for the stock was revised from $15 to $13.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, SVC now has a Market Capitalization of 1.11B and an Enterprise Value of 6.42B. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.58 while its Price-to-Book (P/B) ratio in mrq is 0.88. Its current Enterprise Value per Revenue stands at 3.42 whereas that against EBITDA is 9.65.

Stock Price History:

Over the past 52 weeks, SVC has reached a high of $11.56, while it has fallen to a 52-week low of $6.62. The 50-Day Moving Average of the stock is 7.93, while the 200-Day Moving Average is calculated to be 8.01.

Shares Statistics:

Over the past 3-months, SVC traded about 889.21K shares per day on average, while over the past 10 days, SVC traded about 862.98k shares per day. A total of 165.77M shares are outstanding, with a floating share count of 161.66M. Insiders hold about 2.48% of the company’s shares, while institutions hold 77.64% stake in the company. Shares short for SVC as of Feb 15, 2024 were 7.28M with a Short Ratio of 8.19, compared to 8.2M on Jan 12, 2024. Therefore, it implies a Short% of Shares Outstanding of 4.39% and a Short% of Float of 6.97%.

Dividends & Splits

SVC’s forward annual dividend rate is 0.80, up from 0.80 a year ago. Against a Trailing Annual Dividend Yield of 11.90%, it implies a Forward Annual Dividend Yield of 11.90%. The stock’s 5-year Average Dividend Yield is 6.93.

Earnings Estimates

Current recommendations for the stock of the company come from 1 analysts. On average, analysts expect EPS of -$0.11 for the current quarter, with a high estimate of -$0.11 and a low estimate of -$0.11, while EPS last year was $0.16. The consensus estimate for the next quarter is $0.11, with high estimates of $0.11 and low estimates of $0.11.

Analysts are recommending an EPS of between -$0.19 and -$0.29 for the fiscal current year, implying an average EPS of -$0.24. EPS for the following year is -$0.06, with 1 analysts recommending between -$0.06 and -$0.06.

Revenue Estimates

2 analysts predict $444.27M in revenue for the current quarter. It ranges from a high estimate of $444.55M to a low estimate of $444M. As of the current estimate, Service Properties Trust’s year-ago sales were $412.41M, an estimated increase of 7.70% from the year-ago figure.

A total of 4 analysts have provided revenue estimates for SVC’s current fiscal year. The highest revenue estimate was $1.92B, while the lowest revenue estimate was $1.88B, resulting in an average revenue estimate of $1.9B. In the same quarter a year ago, actual revenue was $1.87B, up 1.30% from the average estimate. Based on 3 analysts’ estimates, the company’s revenue will be $1.92B in the next fiscal year. The high estimate is $1.93B and the low estimate is $1.9B. The average revenue growth estimate for next year is up 1.00% from the average revenue estimate for this year.

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