Summit Hotel Return On Asset vs. Price To Earning
| INN Stock | USD 6.58 0.06 0.92% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.52 | 0.3505 |
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For Summit Hotel profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Summit Hotel to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Summit Hotel Properties utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Summit Hotel's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Summit Hotel Properties over time as well as its relative position and ranking within its peers.
Summit |
Summit Hotel's Revenue Breakdown by Earning Segment
Check out Risk vs Return Analysis.
Is Hotel & Resort REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Summit Hotel. If investors know Summit will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Summit Hotel listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.79) | Dividend Share 0.28 | Earnings Share 0.05 | Revenue Per Share 6.957 | Quarterly Revenue Growth (0.03) |
The market value of Summit Hotel Properties is measured differently than its book value, which is the value of Summit that is recorded on the company's balance sheet. Investors also form their own opinion of Summit Hotel's value that differs from its market value or its book value, called intrinsic value, which is Summit Hotel's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Summit Hotel's market value can be influenced by many factors that don't directly affect Summit Hotel's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Summit Hotel's value and its price as these two are different measures arrived at by different means. Investors typically determine if Summit Hotel is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Summit Hotel's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Summit Hotel Properties Price To Earning vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Summit Hotel's current stock value. Our valuation model uses many indicators to compare Summit Hotel value to that of its competitors to determine the firm's financial worth. Summit Hotel Properties is rated below average in return on asset category among its peers. It also is rated below average in price to earning category among its peers reporting about 811.11 of Price To Earning per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Summit Hotel's earnings, one of the primary drivers of an investment's value.Summit Price To Earning vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Summit Hotel |
| = | 0.018 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Summit Hotel |
| = | 14.60 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Summit Price To Earning Comparison
Summit Hotel is rated fifth overall in price to earning category among its peers.
Summit Hotel Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Summit Hotel, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Summit Hotel will eventually generate negative long term returns. The profitability progress is the general direction of Summit Hotel's change in net profit over the period of time. It can combine multiple indicators of Summit Hotel, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 11 M | 11.5 M | |
| Operating Income | 58.8 M | 40.8 M | |
| Income Before Tax | -25.3 M | -24.1 M | |
| Total Other Income Expense Net | -84.1 M | -79.9 M | |
| Net Loss | -9.5 M | -9 M | |
| Income Tax Expense | 2.8 M | 1.6 M | |
| Net Loss | -28.1 M | -26.7 M | |
| Non Operating Income Net Other | 8.6 M | 8.1 M | |
| Net Loss | -15.2 M | -14.5 M | |
| Interest Income | 1.7 M | 1.6 M | |
| Net Interest Income | -85.1 M | -80.9 M | |
| Change To Netincome | -7.3 M | -7.7 M | |
| Net Loss | (0.09) | (0.09) | |
| Income Quality | (16.19) | (15.38) | |
| Net Income Per E B T | 0.37 | 0.36 |
Summit Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Summit Hotel. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Summit Hotel position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Summit Hotel's important profitability drivers and their relationship over time.
Use Summit Hotel in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Summit Hotel position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Summit Hotel will appreciate offsetting losses from the drop in the long position's value.Summit Hotel Pair Trading
Summit Hotel Properties Pair Trading Analysis
The ability to find closely correlated positions to Summit Hotel could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Summit Hotel when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Summit Hotel - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Summit Hotel Properties to buy it.
The correlation of Summit Hotel is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Summit Hotel moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Summit Hotel Properties moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Summit Hotel can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Summit Hotel position
In addition to having Summit Hotel in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Companies involved in drilling, production, and distribution of oil and gas pipelines. The Oil And Gas theme has 38 constituents at this time.
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Check out Risk vs Return Analysis. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
To fully project Summit Hotel's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Summit Hotel Properties at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Summit Hotel's income statement, its balance sheet, and the statement of cash flows.