Last Updated: 14 Oct 2024
Executive Summary
Service Properties Trust (SVC) is a real estate investment trust (REIT) that owns a diversified portfolio of hotel and net-leasing services and need-based retail properties. The company has a market capitalization of $787.97 million and a dividend yield of 0.168%. SVC's latest stock price is $4.75, which is below its 52-week high of $7.95 and above its 52-week low of $4.26.
Company Overview
SVC is headquartered in Newton, Massachusetts and owns properties in the United States, Puerto Rico, and Canada. The company's portfolio includes 149 different brands across 23 industries. SVC's tenants include Marriott, Hilton, Hyatt, and Starbucks.
Fundamental Analysis
SVC's financial performance has been mixed in recent years. The company's revenue has grown slightly, but its earnings have declined. In 2023, SVC reported a loss of $1.21 per share. The company's EBITDA was $582.62 million, and its operating margin was 0.143%.
SVC's balance sheet is strong. The company has $1.2 billion in cash and equivalents and $2.3 billion in debt. SVC's debt-to-equity ratio is 0.67, which is below the industry average.
Technical Analysis
SVC's stock price has been trending down in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 35.71, which indicates that the stock is oversold.
Short Term Outlook
SVC's stock price is likely to remain under pressure in the short term. The company's earnings are expected to decline in 2024, and the stock market is expected to remain volatile. Investors should be cautious about buying SVC stock in the short term.
Long Term Outlook
SVC's long-term outlook is more positive. The company's portfolio of properties is well-diversified, and the company has a strong balance sheet. SVC is also expected to benefit from the long-term growth of the hotel and retail industries. Investors who are willing to take on some risk may want to consider buying SVC stock for the long term.
Analyst Recommendations
Analysts are divided on SVC stock. One analyst has a buy rating on the stock, two analysts have a hold rating, and one analyst has a sell rating. The average analyst target price for SVC stock is $5.83.
